Fund commentary

Market Review
After driving US equity markets through an outstanding first quarter, investors paused to take stock of events in April. Overall, the S&P 500 index was down 0.63% in dollar, total return terms. Telecoms and utilities were the top-performing sectors, while financials and technology stocks lost the most ground.

Fund Performance
The Fund outperformed the sector average in April with positive contributions from Solarwinds, O'Reilly Auto and Harley Davidson which rose strongly. The key detractors this month were Royal Caribbean Cruises and Qualcomm.

Fund Positioning
We remain extremely positive on the outlook for the US, the economic recovery is fast gaining traction. We hold significant positions in Harley-Davidson and Brunswick, as builders of motorbikes and recreational boats respectively, we expect both to profit from rising employment trends which will benefit consumer spending.