Fund manager commentary
Equity markets across the globe continued to react positively to the announcement from the Federal Reserve in the US that it was not going to taper the policy of quantitative easing in the immediate future. The UK also benefitted from forecasts for growth being raised after a series of strong data from surveys on construction and consumer expenditure. Against this background the FTSE All Share Index rose by 4.3% whilst that of the FTSE Equity Investment Instruments Index gained by 3.8% (both are total returns). The Net Asset Value of the Income Portfolio was ahead by 3.9% whilst that of the Growth Portfolio rose by 4.3% (again both are total returns). There was one new purchase in the Growth Portfolio that of Impax Environmental which is specialist in alternative energy, water treatment and pollution control.
As at 31 October 2013
The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Emerging Markets, Unquoted Companies and Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile. The fund may invest in hedge funds or private equity funds which are not normally available to individual investors, exposing the fund to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess.