By ROBERT HARLEY 17/09/2009
We have reduced our rating on the High Income Trust from five stars to four to reflect the potentially detrimental effect of swing pricing volatility that the fund has been experiencing over the last year. All fund structures retain the option to protect existing investors against the potential impact of net inflows / outflows. However, whilst this is arguably of no concern to the longer term investor, the frequency of the moves in this particular instance can catch investors who are seeking to realise capital off guard. We understand L&G may be reviewing this situation in the near future.