MultiManager Income Fund

The investment objective of the Fund is to achieve an income in excess of the

MSCI World Index, alongside the potential for capital growth from investment

primarily in a global spread of collective investment schemes, including open-

ended investment companies and unit trusts as well as investment trusts.

as at 31 October 2008

Key Points

  • Top performance returning 46.16% over three years against a peer group average of 21.34%
  • Achieved 170.58% over five-calendar years against the MSCI World Index return of 81.33%
  • Target yield in excess of the MSCI World Index
  • Investment management responsibility for the Fund has been with John Husselbee of North Investment Partners since July 2004
  • Sector: IMA Cautious Managed

Current Views

There is no doubt that October has given investors a ‘white knuckle’ ride to a point that would test anybody’s faith in the financial markets. With a recession almost a foregone conclusion, not only in the US but also here in the UK and Europe, it is reassuring to know that governments and central banks worldwide have woken up to the realisation that this is a global crisis requiring a global solution.

We have already seen and will continue to see concerted efforts to alleviate this financial turmoil in the form of bailouts and rescue packages totalling in the trillions of dollars. The US TARP legislation was dramatically passed at the beginning of October and interest rates around the world have been cut as a result.

Until now, sentiment had been extraordinarily negative in the financial markets. Nobody expected Lehman Brothers to fail or the domino effect of major financial institutions that followed in its wake.

In the short-term it is most important for the credit markets to begin to function properly again; for it is credit that lubricates the engines of the financial markets, without which everything would seize up. Banks need to be recapitalised and this is now taking place in an effort to reduce the degree to which they are leveraged. This, in turn, will lead to the credit markets normalising and the restoration of investor confidence.

The worst does, however, appear to be over and the bear market has led to attractive valuations and buying opportunities across several asset classes. What investors must struggle to avoid is selling out of the market near, or at, the bottom, where they would realise a large loss and sacrifice any potential recovery participation and future growth.

Holdings and Asset Class

UKT 4.0% 2009 Fixed Interest
iShares FTSE Gilt All Stock Fixed Interest
Invesco Perpetual Corp Bond Fixed Interest
M&G Optimal Income Fixed Interest
PSource Structured Debt Fixed Interest
First State Asia Pacific Equity
FRM Credit Alpha Absolute Strategies
Symphony FTSE Inc/Growth Equity
Barclays Capital FTSE Equity
Cazenove Absolute Equity Absolute Strategies

Financial Information

Nav Class Acc Bid - 189.15p Ask - 203.50p
Nav Class Inc Bid - 121.29p Ask - 130.49p
Total Net Assets £18.1m

Asset Allocation

Equities by Region (exposure as % of equities)

Fund Performance vs IMA Cautious Managed Sector

Five-Year Performance

Year- Calendar year
to-date 2007 2006 2005 2004 2003
Fund -28.66% 8.44% 8.66% 24.04% 22.53% 51.08%
MSCI World Index -23.94% 7.72% 5.83% 23.04% 7.46% 20.29%
IMA Cautious Managed sector -19.20% 1.20% 6.80% n/a n/a n/a
IMA Cautious Managed sector ranking 112/118 3/97 31/79 n/a n/a n/a
Quartile 4 1 2 n/a n/a n/a

Fund Facts

ISIN Class Acc GB003485397
ISIN Class Inc GB003485405
Bloomberg Tickers
Class Acc QUIHGIA LN
Class Inc QUIHGII LN
Distribution Semi Annual
30 April & 31 October
Dealing/Valuation Frequency Daily
Accounting Year-End 31 August
Settlement T+4
EU Savings Directive In scope
Currency GBP
Annual Charge Class A 1.50%
Minimum Initial Class A £1,000
Initial Charge 5.00%
ISA Wrapper Yes
ISA Transfer Yes
Savings Plan Yes
Sector
  – IMA Cautious Managed
Depositary
Bank of New York Trust and Depositary
Registrar
Capita Financial Administrators