Fund commentary

Market Review
Returns from smaller companies lagged those from the wider market in April. Over the year to date, however, small caps have significantly outperformed larger companies.

Fund Performance
The Fund was ahead of the peer group average return in April with both sector allocation and stock selection proving positive. At a stock level the overweight positions in strong performing TT Electronics and clothing retailer Ted Baker proved beneficial while the position in Indus Gas was a drag on performance.

Fund Positioning
A strong run higher has seen valuations in some parts of the market becoming stretched. Some of last year’s strongest performers now look expensive. We are searching for value by looking for “recovery situations” where valuations are more attractive.