
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.
Read the detailed Risk WarningPast performance is no guide to future performance.
See latest monthly factsheet below for performance history.
At close 17-May-2012
Ord| Price | 178.00p |
| NAV | 175.04p |
| Prem/-Disc | 1.69% |
| Net Dividend Yield | 6.74% |
Source: Morningstar
NAV = Net Asset Value
Registered Office:
Bow Bells House
One Bread Street
London
EC4M 9HH
Registered in England as an Investment Company Number 386561
To provide for shareholders a high level of income, together with growth of both income and capital from a portfolio of investments substantially invested in UK Equities
April 2012
After two months of solid gains, markets fell during March with the FTSE All-Share Index declining by 1% on a total return basis. For the first time this year it has been the more defensive companies that have performed most strongly and this can be seen in the contributions from the likes of the Tobacco, Food Retail and Telecoms sectors. There are increasing signs that growth in China, whilst still high in absolute terms, is now slowing. Officials there have reduced their growth target to 7.5% this represents the first reduction since 2005. Not surprisingly, this has had a negative impact on the share prices of many companies with exposure to the Chinese economy. Indeed the miners in particular reacted negatively to the news that BHP Billiton is experiencing weakening demand for iron ore from the country.
Closer to home, we had The Budget in the UK. This was something of a non event for markets, at least in part because the contents had been so heavily trailed. In the EU the news flow was generally downbeat with confirmation that the region had contracted in the last quarter of 2011 and the market recognising that recession was more likely than not over the course of this year.
Conversely, the US continues to show signs of recovery as evidenced by the non-farm payrolls which have exceeded expectations and PMI readings that indicate ongoing economic expansion.
In terms of portfolio activity, we top-sliced the holdings in Whitbread and BAT following good share price performance. The proceeds were invested into Unilever.
Investor appetite for risk has been rising throughout 2012. This has combined with equity valuations that have been attractive on an absolute basis and relative to other asset classes and has resulted in a rally that appeared rather unlikely at the start of the year. It remains the case that we believe we are invested in good quality companies, many of which have significant exposure to non-domestic markets. These businesses should deliver attractive returns over the medium term. However, as we have previously commented the problems of European sovereign indebtedness have not been resolved. We face a prolonged period of austerity across the region. In such an environment it will be difficult for companies to deliver growth in profitability. Lastly, despite being at low levels currently, we expect volatility to be a feature of the markets over the medium term.