Investment FundsLibero Balanced Fund

Fidelity Global Inflation-Linked Bond Fund

A specialist fixed interest fund with c. $450m in assets under management. The fund invests exclusively in index-linked bonds issued by governments around the globe, with a strong bias away from the UK. The fund has displayed low levels of volatility combined with a low level of correlation to global equity markets since it was launched in 2008. Because the currency exposure is left un-hedged, it will benefit from any further weakening of pound sterling against other major currencies. It also aims to offer investors some protection against inflation.

The Ferox Salar Fund

The Ferox Salar Fund is a global convertibles fund aiming to offer lowleveraged exposure to the favourable risk/reward upside potential of convertible bonds. The fund has $449m of assets at present and is ungeared. There are 160 positions in the portfolio with an average life of 3 years and turnover has remained low. This is a UCITS III, Dublin domiciled, tax efficient fund with a good yield - active in a market that offers investors upside. The managers are well regarded, experienced and have a strong track record.

Balfour Beatty

Balfour Beatty is a leading UK engineering, construction, services and investment business. The company is involved in building, civil and rail construction and invests in privately funded infrastructure assets and developments. The group operates almost exclusively in the UK and the US. The UK government’s proposals to step up infrastructure spending by harnessing the fire power of pension funds could be of great benefit to major construction companies such as Balfour Beatty. The group is capitalised at £1.7 billion and has net cash on the balance sheet and has an above average dividend yield. The current order book is £16 billion, which should tide them over nicely until the new government programme kicks in.

Rolls Royce

The combination of a strong balance sheet, a formidable order book and the visibility of revenue from the servicing element of the current installed base of aircraft engines make this an attractive stock. The group remains structurally well positioned to benefit from medium-term growth as the introduction of new aircraft platforms will drive market share gains. Roll Royce’s young fleet of engines are expected to fare better than its peers in the context of further capacity reductions. Marine and Energy should continue to grow strongly as they benefit from the Oil & Gas demand. Cash generation and the balance sheet remains strong which leaves the group the most highly rated stock in the aerospace and defence sector.

Intercontinental Hotels Group

Intercontinental Hotels Group is the world’s largest hotels group by rooms and operates the Holiday Inns, Intercontinental and Crowne Plaza brands. They own seven different hotel brands selling over 146 million rooms per annum with 666,000 rooms in over 4,500 hotels all over the world. 85% of revenue is fee based with ownership of asset the other 15%. The company has a high return on capital and is very cash generative. Sales are 60% US, 20% Asia Pacific and 20% Emerging Markets. The group is trading on a 20% discount to US peers, with room rates and occupancy levels increasing. The group is financially in a strong position and a recent debt refinancing has made this even more secure. Cash generation remains very strong and when combined with long term industry room growth, market share gains, industry leading margins and the power of the its global brands, IHG looks set to deliver attractive long term growth.