August 2010
Performance
The capital NAV of the Trust rose by 6.7% in July which was marginally behind the return from the
FT SE All-Share Index. The Company bought back 70,000 shares for cancellation during the month.
Following three consecutive months of negative returns UK equities rose sharply in July. The
catalyst was better than expected corporate results in the US, signs of economic recovery in
Europe, despite the concerns over sovereign debt default, and the results of the stress-testing
of European banks which provided more transparency into the banking system.
UK economic data finally showed signs of catching up to buoyant surveys as GDP rebounded
to a four-year high in the second quarter although concerns about financial market conditions
and the impact of government spending persisted. The Monetary Policy Committee indicated
that interest rates would be kept on hold for some time based on the economic outlook.
The FTSE 100 Index rose by 6.9%, while the FTSE 250 Index and the FTSE SmallCap Index rose
by only 6.2% and 3.4% respectively.
Activity
The only changes to the constituents of the FTSE 350 Index in July were Melrose Resources
replacing VT which was acquired by Babcock International.
Strategy
The Trust’s portfolio replicates in full the constituents and weightings of the FTSE 350 Index
and also holds most of the constituents of the FTSE SmallCap Index.
Source: Monthly Factsheet Aberdeen Asset Managers Limited