The Wingate Global Equity Income Fund was down -0.62% in December and -18.70% in 2008, despite a healthy +20% return in realised income from the fund's investment process.
Share price declines were the main factor contributing to the negative 2008 return, with unprecedented drops in equity prices hurting the fund particularly in the last quarter of the year. During the December quarter the fund continued to decrease its cash position in favour of a higher equity exposure, with the heaviest weighting in the oil and gas industry (approximately 25% of the fund's assets), a sector which suffered from a drop in the demand for oil and lower investment in new production in 2008.
Given the uncertain outlook for world economies in 2009, the fund will continue with a company specific focus, rather than position itself for a general recovery in consumer or financial conditions.
