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Dunedin Smaller Companies Investment Trust PLC

 

Objective

The objective of Dunedin Smaller Companies Investment Trust PLC is to achieve long term growth from a portfolio of smaller companies in the United Kingdom.

Ed Beal Dunedin Smaller Companies Trust plc


Manager's Monthly Report

January 2010


December was a fairly quiet month. Macroeconomic news flow was mixed. The markets chose to focus on the positives and equities generated further positive returns. The FTSE All-Share Index returned 4.3% and large companies outperformed their smaller counterparts with the FTSE 100 Index rising 4.4%. This ensured that the major indices ended 2009 at their year highs. There was positive news when it was announced that Dubai World would receive a US$10bn bail out from neighbouring Abu Dhabi This removed the fear that the Emirate’s problems would trigger further difficulties in the global economy. The potential for further negative shocks was demonstrated by the decision to downgrade Greece’s credit rating and to revise Spain’s downwards. In both the UK and US, employment data was better than had been expected though in the UK at least it was the more volatile part-time rather than full-time jobs that boosted the overall numbers in employment. The Bank of England made no changes either to interest rates or the programme of quantitative easing. There was limited portfolio activity during the month. We top sliced the holding in A.G. Barr and redeployed the proceeds in topping up Fuller Smith and Turner following a positive meeting with the management. We also topped up the holdings in Dignity and Umeco.




Source: Monthly Factsheet Aberdeen Asset Managers Limited