June 2009
Performance
The capital NAV of the Trust fell by 3.4% in May which was slightly less than the return from
the S&P 500 Composite Index. The weakness of the US dollar against sterling in falling from
$1.48 to $1.61 translated a 5% gain in the Index in US dollars into a negative return for sterling
based investors.
The rally in equities of the past couple of months extended into May as fresh ‘green shoots’
of recovery were anticipated in the global economy. The US bank stress test results were
better than expected and showed 10 out of 19 US banks needed to increase their equity
capital. Equity and commodity markets rallied, although Treasury bond yields continued to
move higher, despite the global quantitative easing measures, and this fed through into higher
mortgage costs. For the second consecutive month, consumer confidence surged in May and
suggests that confidence has turned several months ahead of the economy as consumers have
also bought into the ‘green shoots’ of recovery.
Activity
There were no changes to the constituents of the Index in May.
Strategy
The portfolio replicates in full the constituents and weightings of the S&P 500 Composite Index.
Source: Monthly Factsheet Aberdeen Asset Managers Limited