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See latest monthly factsheet below for performance history.
At close 12-Dec-2013Ord
|Net Dividend Yield||5.25%|
Source: Morningstar, NAV = Net Asset Value, excluding income.
Bow Bells House
One Bread Street
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
In this webcast, Ed Beal gives an update on a wide range of subjects including performance, analysis of the listed equity in the portfolio, the twenty largest investments and an outlook for the Trust.
Markets continued their upward path during October with the FTSE All-Share Index delivering a total return of 4.3%. The month was characterised by a rising appetite for risk. This arose as investors focused on the signs of recovery emanating from many developed economies allied with a perception that macroeconomic risks, specifically those associated with the European debt crisis were receding. The news flow from the domestic economy was broadly positive. Third quarter GDP was in line with expectations at 1.5%. The IMF’s forecast for 2014 was raised, in part aided by a pick-up in the housing market as the “Help to Buy” scheme began. Construction output was again strong coming in at 4%. In Europe there were further positive signs as Spain delivered her first quarter of positive growth for more than two years and Greek bond yields hit post crisis lows.
In the US a temporary agreement was reached that allowed an end to the self-enforced shutdown of large parts of the public sector. The employment data was again weak with non-farm payrolls some way below expectations. This led to an assumption that tapering would now be delayed till at least 2014 and markets responded positively.
Emerging markets remained a source of concern despite China delivering 7.8% growth, and the IMF cut their expectations for global growth for this year and next. In line with our long term approach to investing there was limited activity in the portfolio over the month. We did continue to seek to reduce our exposure to Wm. Morrison Supermarkets via the sale of some calls.
Equity markets keep rising. We have commented in the past that there are issues surrounding developed market indebtedness, the already high levels of companies’ profit margins and the unusual situation whereby in the US bad economic news is regarded as good news for equities. These factors create the potential for volatility even as we consider the prospect that a more broadly spread recovery may be underway.