Fund commentary

Market Review
Fears over the state of Spain’s finances and political upheaval in France and the Netherlands played on investors’ minds this month. Risk assets were mostly shunned, with equity indices tumbling. Corporate results were mixed, while economic data pointed to recession in Europe.

Fund Performance
The Fund outperformed its sector average in April, benefiting mainly from overweight holdings in Freenet and Kone B which both rose strongly over the month. There was also a positive contribution from being underweight in banks. On a negative note, holdings Roche GS and CSM detracted from returns.

Fund Positioning
While the political and economic landscape remains uncertain, we expect equity markets to be volatile over the next few months. Nonetheless, equities represent fair value and should deliver solid long-term returns. We are overweight oil & gas and insurance, and underweight banks, health care and financials.