January 2010
Performance
The capital NAV of the Trust rose by 4.3% in December which was slightly ahead of the return
from the FTSE All-Share Index. The Company bought back 152,466 shares for cancellation
during the month.
The UK market reached a yearly high during December in a strong finish to 2009 with the
FTSE 100 Index rising above the 5,400 level having been as low as 3,600 in March. The market
benefited from further strong global economic data which helped sentiment despite the news
that the credit rating of Greece was lowered, Spain’s outlook revised downwards and Dubai
World required a US$10bn bailout by its neighbour Abu Dhabi.
Economic news flow was mixed within the UK with the unemployment figures improving but
consumer spending weaker than expected. The Bank of England maintained the quantitative
easing programme and kept interest rates unchanged as it sought to bolster growth.
Meanwhile, the government pumped a further £40bn into the Royal Bank of Scotland and
Lloyds Banking Group to shore up their capital bases. With the emergence of a tentative global
recovery, the emphasis in the UK is increasingly on the need for fiscal tightening given the
difficult outlook for the public finances.
The FTSE 100 Index rose by 4.3%, while the FTSE 250 Index rose by only 4.4% and the FTSE
SmallCap Index rose by 2.2%.
Activity
The changes to the constituents of the FTSE 350 Index in December were Booker, Genesis
Emerging Markets Funds, Unite and Fenner replacing Vectura, Chaucer, Avis Europe and
Morgan Sindall.
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