Fund commentary

Market Review
US equity markets rallied strongly over the first three months of 2012. The S&P 500 index was up 12.6% in dollar, total return terms.

Fund Performance
The Fund outperformed the median in the first quarter of 2012. Harley-Davidson, Solarwinds and Brunswick Corporation were the key positive impacts to Fund performance, whilst food producer, Treehouse Foods Inc, was the main negative contributor over the quarter.

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.