Fund commentary

Johnny Russell

The FTSE All-Share ended the year on a positive note, up 4.3% on the month and some 30.1% over the year.

In a month of limited transactions we took profits on our holding in Barclays after a period of strong outperformance. Our holding in Lloyds Banking Group increased, reflecting our participation in the Group's capital raising. The share price of WPP, a marketing communications company, is up some 60% from its 2009 lows and we used this as an opportunity to take profits in our holding during December.

The Fund performed marginally behind its benchmark in December. The largest impact over the month came from the holding in Mouchel Group. The consulting and business services group saw its share price rise by over 50% after news the firm had received a takeover approach from VT Group. On the downside holdings in interdealer broker Tullett Prebon and Goals Soccer centre proved detrimental to performance.

Johnny Russell
31 December 2009

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