By ROBERT HARLEY 21/05/2008
This fund adopts a contrarian ‘value’ approach to investing by focusing on ‘self help’ companies that have recently under performed the All Share. During the latter half of 2007 the performance deteriorated sharply relative to peer group funds. Whilst the fund has partly been the victim of its own investment style, which had a tough 2007, stock specific issues have also played a part.
Currently over 50% of the fund is invested in blue chip companies with stronger balance sheets which we believe should act as an anchor given the price action that has already taken place. However until we are confident that these performance issues have been resolved, we believe it is prudent to put the fund on a hold rating.