The Fund aims to outperform the MSCI World Index in US Dollar terms, with a below average tracking error. The Company has reserved the right to close the Fund to new investors. The value of units may go down as well as up in the future. Past performance is no indication of future performance. Commissions and incentives may be paid, and if so, are included in the overall costs.
Unit trusts are generally medium to long term investments.
The tilt in the portfolio is kept towards European markets and away from the equity markets of the US and Japan. We are of the opinion that over the next quarter we could see a lower dollar against the euro as well as underperformance from the Japanese equity market. It appears from the most recent data releases that Japan's economy has slipped into a recession again and that mainly for this reason we maintain an underweight position in the Japanese equity market. Financial markets will start to sell the dollar once the US administration downplay their frequently made pronouncements on the virtue of the strong dollar. A weaker dollar could also encourage the European Central Bank to lower interest more faster, which will further increase the attractiveness of European equities.