February 2010
Performance
The capital NAV of the Trust fell by 3.6% in January which was in line with the return from the FTSE All-Share Index. The Company bought back 220,000 shares for cancellation during the month.
The main theme for January was the escalation of government debt issues in the euro area.
Fresh warnings about Greece’s precarious fiscal position surfaced, and the Greek government’s announcement of a three-year stability plan did little to soothe market concerns. However, it was ECB President Trichet’s very clear signal that the country wouldn’t be able to count on any special ECB assistance that compounded Greece’s woes. Sovereign risk concerns also spread to other euro area countries, notably Portugal and Spain.
The UK economy emerged from recession in the fourth quarter of 2009, but only by the smallest of margins. GDP rose just 0.1% which was well below City forecasts. The UK continues to lag behind the rest of the world in the recovery. Inflation jumped by a full percentage point in December with CPI rising to 2.9%, far above forecasts.
The FTSE 100 Index fell by 4.1%, while the FTSE 250 Index fell by only 0.8% while the FTSE SmallCap Index rose by 1.1% on a capital return basis.
Activity
There were no changes to the constituents of the FTSE 350 Index in January..
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