Fund Objective

The objective of the trust is to obtain capital growth. In pursuing its objective, the scheme will invest predominantly in transferable securities of UK listed and/or UK domiciled companies.

View on Past Performance

During the quarter, the Trust outperformed the benchmark FT All Share Index, returning -9.43% compared to -9.85%. Leading contributor was copper mining company Kazakhmys, on surging copper prices and a prospective tie-up with miner ENRC.British American Tobacco also impacted positively, highlighting the industry's defensive qualities, although the holding was partly switched into Imperial Tobacco on valuation grounds. The financial sector and stock selections within it detracted from performance.Geopolitical worries about its exposure to South Africa added to sector gloom at Old Mutual. The Trust's holding in Lloyds TSB also detracted, alongside wealth management specialist Hansard Global. As regards new positions, industrial design group WSP was added.Inflationary pressures have been building and the Bank of England has said that the effects of the credit crunch may endure longer than previously thought, so UK and global stock market sentiment remains unpredictable.

Future Expectations

Economic forecasters generally expect further UK base rate cuts during 2008, if inflation data allows, but not to the extent seen in the United States.

Fund Details