July 2010
Performance
The capital NAV of the Trust fell by 8.1% in June which was in line with the return from the
index. The value of sterling against the US dollar rose from $1.45 to $1.50, exacerbating the
fall in US equities (down by over 5%) to sterling based investors. The Company bought back
46,000 shares for cancellation during the month.
Equity markets fell further in June as the doubts arose about the durability of the economic
recovery. Real GDP growth for the first quarter was lowered again, from 3.0% to 2.7%, and
the economic data for May also pointed to a loss of momentum. The unemployment, housing
starts and retail sales figures were weaker than expected and this trend was also reflected by a
fall in consumer confidence. The Federal Reserve commented on the improving inflation figures
and indicated that interest rates would remain at historically low levels for an extended period.
Activity
The changes to the constituents of the Index in June were CarMax replacing XTO Energy, which
was acquired by Exxon Mobil, and QEP Resources replacing Questar.
Strategy
The portfolio replicates in full the constituents and weightings of the S&P 500
Composite Index.
Source: Monthly Factsheet Aberdeen Asset Managers Limited