saltydog INVESTOR · Our portfolio is at an all time high having gone up 2.8% in the last month 6...

Hedging your bets 2

Gold Funds

Can the Euro survive? Saltyblog

Sector Performance Tables &Graphs showing IMA sectortrends 8 - 9

Fund DataA detailed analysis of the bestperforming funds over the last 4 and 26 weeks

saltydogBecause knowledge is power.

INVE

STO

R

“750,000 new jobsneeded before bank

rates will go up”

Tugboat Portfolio

3 - 5

6

Saltydog’s Monthly Review of World Events by James Meston

10 - 19

This month we have made some changes to the way we analyse ‘Trading Tools’ ETFs

Is now the time to consider investing in Gold funds?

Our portfolio is at an all time high having gone up 2.8% in the last month

6

The Guv’nor

Speedboat Portfolio

ETF Data 22 - 23

20 - 21

Volatile markets cause problems for our high risk portfolio.

After the tenure of the particularly dour and downbeat Mervyn King, Mark Carney has now taken up his position as the Governor of the Bank of Eng-land. He has recently made his first pronouncements, and his initial ‘Forward Guidance’ has received mixed reactions from the markets.

August 13

The City was hanging on his every word as he indicated that interest rates were expected to be on hold for another 3 years. This is because he wants to see the unemployment rate reach 7% before putting any more pressure on the economy. Another 750,000 jobs need to be created for that to come about, still some way off.

However, by making it seem-ingly so cut and dried as far as the criteria for interest rate rises is concerned, if the economy improves faster than expected then those rate rises could well be quicker.

There has been a slew of good news stories coming from the Square Mile in the last couple of weeks, as various consumer and business confidence surveys show that the economy is perhaps nearer than we think

to recovery. This week BDO announced their survey of Business Confidence and the indications were that perhaps big businesses are much nearer to being ready to invest their large cash piles than had first been thought. There is optimism from company bosses backed by figures indicating that the UK is outpacing Germany, France, Japan, the US and even China. The economy grew by 0.6% in the second quarter, double the rate of the first 3 months of 2013.

The service sector that makes

up the largest proportion of the UK Plc is doing particularly well along with strong growth in car sales, manufacturing, and house prices.

Just to temper all this positivity it should be pointed out that the decline in British wages is the 4th worst in the EU since the downturn began, this at a time when inflation – in whichever guise you choose to measure it (CPI or RPI) - has been well above normally acceptable levels.

Continued on p2

2saltydoginvestor.com

The Guv’nor

Hedging your bets

This Group is made up of funds that instead of trying to mirror an index are either leveraged, magnifying the performance of an index, or go ‘short’, tracking in the opposite direction to the underlying index. Some do both.

It contains a wide range of investments including exotic funds like leveraged lean hogs and short soybeans.

One of the disadvantages of such a broad range of funds is that it’s easy to overlook some

Our ETF tables on pages 22 and 23 only give a summary of the more comprehensive analysis that we provide on our website. This month we have made some changes to the way we look at the ‘Trading Tools’ ETF Group.

The outcome is less easy to predict than reverting to cash as it will depend on the relative weightings of the holdings within your portfolio and their performance. However if you want to minimise your transac-tion costs it may be a strategy worth considering.

There is also a risk associated with these ETFs. Due to their very nature they are usually ‘synthetically’ replicated.

To help identify these funds we have split the ‘Trading Tools’ Group into two sections. One looks at ETFs based on Commodities, the other only features investments that are either leveraged or short versions of Stock Market or Fixed Interest Indices.

> Continued from p1

Good Timing

As the saying goes, ‘Better to be lucky than good’ and maybe Mark Carney has struck it lucky in the timing of his appointment.

There is no doubting that he has been successful in his previous roles, which after all was the reason that George Osborne fought so hard (and paid so well) to get him to take the job. The Governor seems to have settled well into the Chipping Norton set, as he was seen in full ‘chillax' mode at The Wilderness Music Festival in Oxfordshire this past weekend.

If the economy recovers to such an extent that rates have to rise sooner, it might well be a nice problem for Mr Carney to have. Andrew Sentance a former Monetary Policy Committee member thinks that the upturn in interest rates could happen

by the end of 2014 if the economic stars align.

While this would be a blessed relief for savers and pensioners, it would be a hammer blow for the borrowers - those whose incomes have been squeezed so tightly in the last 5 years as inflation has outstripped wage increases. This would have some big knock-on conse-quences and could lead to a large increase in the number of houses being repossessed. A recent report mentioned that there has been a huge rise in the number of people borrowing money just to be able to feed their families each month, and for these people an interest rate hike would be catastrophic.

‘Frack on’

In a recent blog we looked at the UK’s reserves of shale oil and gas - quite topical now as it turns out. The Prime Minister has come forward this week to

say that he wants to see ‘frack-ing’, the controversial process of extracting these fuels, become widespread across the country. Cue more scenes like those in Balcombe up and down the country. There are plenty of unanswered questions regard-ing the process, but it’s hard to see that this energy source will not be exploited - especially when the government takes into account the positive effect it has had on the US energy markets. That in combination with our own ever soaring energy costs.

Market Movements

Markets generally have been buoyant over recent weeks. There has been some volatility, but we in the UK are moving towards the higher end of the FTSE 100’s recent trading range. In the US the Dow Jones and the S&P 500 both reached record highs earlier this month. The conundrum of Japan still remains. Long term investors in

Japan should still be more than satisfied with their returns, but those who jumped on the band wagon in quarter 2 of this year will be feeling sore. Annualised Japanese growth in the second 3 months of the year was down at 2.6% from 4.1% in the first 3 months. The markets had hoped for, or expected, 3.6% and the stock indices continue to take a battering. Which way Japan goes is anyone’s guess but they are determined that this decade will not be another ‘lost one’.

As for Saltydog – as we near our 3rd anniversary, we will continue to do what we have always done. We will look at the numbers. We will tell you what is doing well. We will tell you what changes we are making, and why, and continue to refine our system that has served so well, a method that continues to produce good positive returns while eliminating large amounts of portfolio risk.

of the more familiar ETFs that are based on the common stock market indices, such as the FTSE100 or the S&P 500.

During the last couple of months we have seen increased levels of volatility in world markets. These are very difficult conditions for the momentum trader and it’s easy to buy into a rising market, then sell when the markets fall, only to buy again a few weeks later as conditions improve.

If you’re trading in Investment

Trusts or ETFs then each trans-action will incur a trading cost and every time you buy you will suffer a bid/offer spread.

An alternative approach could be to utilise one of the ETFs that goes short on one of the stock market indices. When markets start to fall instead of selling (or reducing) all of your holdings, you could buy a single ETF that tracks in the opposite direction to the other funds in your portfo-lio.

If the markets quickly recover then you only have one holding to sell to get you back to where you started. Should the down-turn develop into a trend, then you are already holding a fund that will be going up, and you can sell everything else.

3

Portfolio Update

Our example portfolios

Each month I look at how the recent changes in sector performance affect our example portfolios.

In previous newsletters I have discussed the rationale behind our example portfolios. If you haven’t seen these, subscribers have access to our previous newsletters on our website - saltydoginvestor.com.

There is also an explanation in our ‘Guide to the Saltydog Data’.

In June’s Newsletter all portfo-lios were mainly in cash with the balance in the Absolute Return sector from the ‘Slow Ahead’ Group. Last month we ventured into the ‘Steady as She Goes’ and ‘Full Steam Ahead Developed’ Groups, and during the last few weeks these have remained the stron-gest Groups, and so are well represented in all three of the portfolios.

The bond sectors in the ‘Slow Ahead’ Group have improved during the month, but have lagged behind the sectors in the ‘Steady as She Goes’ Group until this week. All sectors in the ‘Steady as She Goes’ Group made losses last week and this has narrowed the gap. However when you

look at the leading funds in the £ High Yield and £ Strategic Bond sectors and compare them with the best of the UK Equity Income funds they have still got some catching up to do.

The best performing Group is still ‘Full Steam Ahead - Devel-oped’, but the leading sectors have changed dramatically. Last month Japan was top of the list with America in second place. These are now at the bottom of the list with the UK and European sectors leading the way.

There are also funds in the ‘Full Steam Ahead Emerging’ Group and Specialist sector which have performed well in the last four weeks. These could be considered for the Speedboat.

Portfolio 1 - The Tug Portfolio 2 - The Ocean Liner Portfolio 3 - The Speedboat

Slow Ahead

Steady as She Goes

Full Steam AheadDeveloped

Full Steam Ahead Emerging

Optimum conditions Optimum conditions Optimum conditions

Here are the three hypothetical portfolios that we look at each month. They are shown at their most aggressive (under optimum market conditions), and how they are now - based on this month’s data. In the ‘Slow Ahead’ group the Absolute Returns fund have had the best track record through the recent uncertainty, but the £ High Yield and £ Strategic Bond sectors are starting to look interesting. In the ‘Steady as She Goes Group’ the UK Equity Income sector remains top of the Group and would feature strongly in each portfolio. The ‘Full Steam Ahead Developed’ Group has got the same allocations as last month, but the emphasis will have moved from Japan and the USA to the UK and Europe.

Market conditions 14/08/2013



saltydoginvestor.com

RICHARDWEBB

On the next two pages we give the details of the Saltydog Portfolio. This is a real fund that we set up in November 2010 to demonstrate how the Saltydog information can be used - details of each trade are reported every week on the website.

Specialist

Cash & Safe Haven

20%

10%

50%30%

7%7%

6%

70%

20%

16%

17%

17%

30%

10%

45%

45%

10%

10%

30%

35%20%

30%45%

20%


23/11/2010£40,04227.01%2.81%

Trade Date Fund Group Current Price (p)

Current Value (£)

Original Cost (£) Gain (£) Gain (%) Portfolio %

16/05/2013 CF Odey UK Absolute Return Slow Ahead 259 £10,921 £10,000 £921 9.21% 21.47%25/07/2013 Cazenove Absolute UK Dynamic Slow Ahead 145 £5,100 £5,000 £100 2.00% 10.03%12/10/2012 PFS Chelverton UK Equity Income Steady 135 £7,067 £5,998 £1,068 17.81% 13.90%04/07/2013 Unicorn UK Income Steady 223 £6,479 £6,000 £479 7.99% 12.74%12/07/2013 Std Life UK Eq Inc Unconstrained Steady 58 £6,174 £6,000 £174 2.89% 12.14%11/07/2013 Baillie Gifford Global Discovery Steady 605 £5,282 £5,000 £282 5.64% 10.39%04/07/2013 Fidelity Japan Smaller Companies Developed 165 £2,927 £3,000 -£73 -2.45% 5.75%11/07/2013 JPMorgan US Smaller Companies Developed 349 £2,034 £2,000 £34 1.69% 4.00%

Cash £4,873 9.6%

£50,856

GroupSteady

DevelopedDevelopedCazenove UK Smaller Companies Buy (using the proceeds from the sale of Fidelity Japan Smaller Companies)

Pending Transactions (these are based on last weeks data)

Fund TransactionUnicorn UK Income Increase current holding (by £4,873)Fidelity Japan Smaller Companies Sell entire holding

Return this month

Group Allocation

Current Holdings (as at 14/08/2013)

Total Portfolio Value

4

Tugboat Portfolio Portfolio Performance

Portfolio StatisticsPortfolio Launch DateInitial Investment (£)Return since launch

60% 22%

14%

4%

10th July 2013

10%

32% 49%

10%

14th August 2013 Cash or Safe

Slow Ahead

Steady as She Goes

Full Steam Ahead -Developed

Full Steam Ahead -Emerging

Specialist

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

£34,000

£36,000

£38,000

£40,000

£42,000

£44,000

£46,000

£48,000

£50,000

£52,000

23/11/10 23/05/11 23/11/11 23/05/12 23/11/12 23/05/13Tugboat Portfolio Mixed Inv 40-85% Shares FTSE100 Tracker

In the last 5 weeks we have seen the FTSE100 rise for two weeks, then fall, then rise, and then fall again - far from ideal conditions for the momentum investor.

Overall the index has risen by around 1.5%, as has the average of the Mixed Investment 40-85% Shares sector. In the same period this portfolio has risen by 2.8%.

The overall gain is now 27%, which equates to an annualised return of 9.2%.

Our cash holding started at 60% and in last month’s issue we explained that we were reducing it by a further 20%.

During the last few weeks we have contin-ued to add to our investments, predomi-nantly in the ‘Steady as She Goes’ sector.

We have some transactions planned that are listed below. This means that by the time you read this we will be 100% invested.

This week we are using up the last of our cash by adding to our current holding of the Unicorn UK Income fund. We are also selling the Fidelity Japan Smaller Companies fund that has failed to perform, and replacing it with the Cazenove UK Smaller Companies fund.


Fund Group Value (£) Date

JPMorgan US Smaller Companies Developed £2,000 11/07/2013Baillie Gifford Global Discovery Steady £5,000 11/07/2013Std Life UK Eq Inc Unconstrained Steady £3,000 12/07/2013Fidelity Japan Smaller Companies Developed £1,000 19/07/2013Unicorn UK Income Steady £3,000 19/07/2013PFS Chelverton UK Equity Income Steady £3,000 19/07/2013Std Life UK Eq Inc Unconstrained Steady £3,000 22/07/2013Cazenove Absolute UK Dynamic Slow £5,000 25/07/2013

5

Tugboat Portfolio Other transactions this month

Transaction

BuyBuyBuyIncrease current holding

Increase current holding

Increase current holding

Increase current holdingBuy

Why we've done what we've done

Although markets have been volatile the overall trend has been up and so we have been reducing our cash holding and increasing our exposure to equities.

‘Cash’ - 60% to 10% and we will soon be fully invested

A couple of months ago we moved into cash as nearly all sectors were making losses. In the last newsletter we reported that we were starting to reinvest and we have continued to add to our holdings over the last five weeks.

‘Slow Ahead’ - 22% to 32%

There’s only one sector in the ‘Slow Ahead’ sector where the leading funds have made gains every week for the last eight weeks - Targeted Absolute Returns. We have been holding the CF Odey Absolute Return fund since the middle of May and it’s currently up over 9%, and has gone up by 2% since the last issue. Unfortunately it has been soft closed and so is no longer available to new investors. As an alternative we have recently invested in the Cazenove Absolute UK Dynamic Fund that is up 2% in three weeks.

‘Steady as She Goes’ - 14% to 49%, but soon to be 59%

The sector making up the largest proportion of our portfolio is UK Equity Income. We started with two funds and added an additional fund, Standard Life UK Equity Income Unconstrained. All three funds are still showing in decile 1 for last week, the last 4 weeks, the last 12 weeks and the last 26 weeks (see page 13).

‘Full Steam Ahead - Developed’ - 4% to 10%

Japan was the first sector to recover after the falls in May and we invested at the beginning of July. In the last month this sector has been very volatile and the fund that we bought is currently showing a loss and will be replaced. We are switching to a UK Smaller Companies fund - another sector that has made positive returns for the last eight weeks. We are also holding a USA Smaller Companies fund that has made a small gain, but has slowed in the last few weeks and is under review.

Recommenda friend

and you could receive

Membership SchemeIf you know someone else who would be interested in making the most of their investments, please go to the ‘membership scheme’ section of our website www.saltydoginvestor.com and give us their details. We will e-mail them, and offer to send an introductory pack. If they sub-scribe and pay membership for at least 3 months, then we will send you a cheque for £25 as a thank you.

£25

Have gold funds turned the corner? saltyblogA PERSONAL VIEW


Can the Euro survive?

Recently gold funds have been on the rise and they now feature near the top of the Saltydog unit trust specialist section. Is this the start of a trend?

6

DOUGLASCHADWICKChairman

Between the beginning of October last year and the end of June this year bullion prices dropped by over 30%. In the last few weeks they have started to rise. Will they return to previous highs or even better? How strong is the corre-lation between bullion prices and fund prices? More ques-tions than answers!

If you were able to answer these questions with any certainty one would have to believe that divine guidance was involved. The trouble is that you can read as many articles and opinions on the subject from people who believe they have the answers, only to find that they are frequently contra-dictory. For every argument there appears to be an identical opposite view, it’s rather like sub-atomic particles that require positive and negative identities to keep the world in balance. Maybe we should rename these financial pundits “Quarks”.

Recently I have read a couple of quite disturbing articles on the subject of gold bullion prices. The first written by Chris Sanders entitled ‘As the crisis deepens Gold flows East’. He maintains that the debt crisis in the West is not being resolved by the zero interest rate policy and Quantitative Easing, and as a result the prospects for

business and employment are not at all good. He also states that Western governments (primarily the USA) have been consistently manipulating and vandalising statistics to improve the consumer price indices. These policies have led to dollar inflation being exported to those dollar pegged countries in the East, and in order to protect the future well- being of their currencies they are purchasing gold bullion. These purchases by central banks are on an unprecedented scale that has not been seen before. Also the recent fall in the price of gold bullion has led to difficulties in obtaining small denomination bars to keep up with the private demand from individuals in India, China, Japan and Singa-pore. He does not see this situation ending anytime soon.

The second article was by Bengt Saelensminde who feels that Western Banks may have been issuing IOUs to their Western customers for gold bullion that is apparently in their vaults and then charging their customers storage costs for what is a ghost product. This being on the assumption that they can repurchase the gold for their customer on demand, should he require taking possession. However as the shortage of the metal becomes more acute in the West and more clients like Germany

demand physical delivery then this problem of so called `secure facilities` at Comex and JPMorgan is being exposed as a sham. The Banks have lever-aged everything else, likewise their clients` gold. Ask for your gold and you may be offered cash based on prices set by these same banks. The value of paper assets can reduce very quickly. Now that this situation has been exposed it means that Western Banks are back in the market to acquire the actual bullion that their customers believe is in their vaults.

Investors still have the problem of deciding whether the price of bullion is going to start to rise again and if so will the gold funds return to shining form?

If the above articles are believ-able, then one can imagine that demand for bullion is going to continue strongly for some time to come. In the years leading up to 2007, gold equities were closely linked to the gold bullion price and in fact equities and funds regularly outperformed the metal. Since the recession however gold funds have lagged behind the bullion price. In the last few years mining companies have been making efficiency savings and they have been abandoning unprofit-able projects, so maybe now is the time when the prices of funds and bullion may start to move in step.

Looking at the Saltydog numbers for gold funds there were definite signs of improve-ment for 4 weeks in a row, but the last couple of weeks have seen them fall back slightly.

Turn to page 19 to see our latest listings of specialist funds. ETFs tracking bullion prices can also be found in our analysis on page 23.

I have always been inherently wary of large entities such as business conglomerates and in particular the European Currency Union. How can it be possible, even with the best management available, to drive and manoeuvre these unwieldy entities towards a common goal? Especially, as in the case of the E.U., when this task is being attempted by politicians. So surely the Euro must be doomed to failure.

I mean, have currency unions ever been attempted before and if so were any successful? Well the answer to that is yes and yes. The Latin Monetary Union in the late nineteenth century failed as did the Scandinavian Monetary Union attempted at around the same time. However the German Zollverein was launched in 1834 and, although it had its ups and downs until the Weimer Republic was estab-lished in 1919, it must be consid-ered a success.

Of course the obvious success was that of the United States and the American dollar which even survived the Civil War during its seventy years of becoming established.

If one assumes that the Euro remains in existence then along the way there will be more pyrotechnics with accompany-ing Bank collapses and country crises. These events will provide great opportunities for investors to buy as the markets rise and fall whilst the Euro struggles to become a stable currency.

saltydoginvestor.com Data at 13/08/13 7

These are: Safe Haven:

Slow Ahead:

Steady as She Goes:

Full Steam Ahead Developed:

Full Steam Ahead Emerging:

0.01%

0.1%

-0.8%

-0.4%

-2.1%

-1.0%

Steady as She Goes

Full Steam Ahead Developed

Full Steam Ahead Emerging

HSBC FTSE 100 Tracker

Saltydog Group ComparisonGroup Performance for Last Week:

Understanding the Saltydog System

The Slow Ahead Group just kept

above the zero line, but the other main

Groups had losses up to 2.1%.

Safe Haven

Slow Ahead

We aim to provide you with up-to-date information about readily available investment funds, so that you can see which are

currently performing well. In other words, to provide you with the data that will make DIY Investing a worthwhile hobby.

The Data

Our Objective

We cover Unit Trusts, OEICs, Investment Trusts, and ETFs.

At the beginning of each week we download the latest data, and select the funds that are easy to access in the UK. We then sort

the data and highlight the best performing funds.

This sorted data is available to our subscribers on our website (saltydoginvestor.com) each week, and a summary of the data is

included in our Newsletter, which is published monthly and posted to subscribers.

To give an example on how our information can be used, we run our own real money portfolio based on the data, and publish

details of what we buy and sell, and the overall performance.

We are very ready to help with any queries, but have to emphasise that we are not able to offer any financial advice.

SectorsAll funds are allocated a Sector by the relevant Financial 'body' such as the IMA - the Investment Management Association. That

means that all funds within a Sector will be investing within the constraints of that Sector, and so worthwhile comparisons of

performance can be made.

GroupsWe analysed the Sectors, and decided that it would be helpful to group sectors together according to their historical volatility, so

we created Saltydog Groups.

Very low risk, but also very low returns.

Normally a low risk level and often with adequate returns.

Generally low to medium risk, with potentially higher returns.

Higher risk, but potentially higher returns.

Higher risk, but potentially higher returns.

Let's Get Underway!The chart below shows how the 5 Saltydog Groups have performed over the last 12 weeks, based on the average of the leading

funds in each Sector within the Group, on a week-by-week basis.

In the following pages you can see how the Sectors have performed within the Groups, and the funds that have performed best in

each of the Sectors.

Need more information? Check out the 'How To' guides on our website - saltydoginvestor.com

-15%

-10%

-5%

0%

5%

10%

15%

Weeks -10 -8 -6 -4 -2 Last Week

Safe Haven Slow Ahead

Steady as She Goes Full Steam Ahead Developed

Full Steam Ahead Emerging HSBC FTSE 100 Tracker

data source: Morningstar

saltydoginvestor.com Data at 13/08/13

4wks 12wks Wk -1 Wk -2 Wk -3 Wk -4 Wk -6 Wk -7 Wk -8

£ High Yield 1.6% -0.4% 0.2% 0.5% 0.4% 1.1% 0.6% -0.1% -0.3%

Targeted Absolute Return 1.5% 2.0% 0.6% 0.6% 0.2% 0.6% 1.0% 0.7% 0.3%

£ Strategic Bond 1.3% -1.4% 0.2% 0.6% 0.2% 0.7% 0.5% -0.1% -0.4%

£ Corporate Bond 1.0% -2.8% 0.2% 0.3% 0.0% 0.8% 0.2% -0.3% -1.0%

Global Bonds 0.2% -2.0% -0.3% 1.2% -0.2% 0.6% 1.4% 1.4% -0.6%

UK Gilts -0.8% -3.0% -0.1% -0.2% -0.4% 0.2% -0.1% -0.1% -1.2%

UK Index Linked Gilts -2.4% -5.3% -0.1% 0.1% -1.2% -1.1% 0.7% -1.1% -0.5%

Average: 0.3% -1.8% 0.1% 0.4% -0.1% 0.4% 0.6% 0.0% -0.5%


UK Equity Income 1.9% 2.8% -0.4% 2.1% 0.1% 0.7% 3.9% 0.9% -0.3%

UK Equity & Bond Inc 0.9% 0.1% -0.7% 1.5% -0.1% 0.9% 2.8% 0.8% -0.6%

Flexible Investment 0.5% -0.2% -0.8% 1.9% 0.0% 0.7% 2.7% 1.6% 0.3%

Mxd Inv 0-60% Shares 0.5% -0.8% -0.4% 1.0% 0.0% 0.5% 1.7% 0.5% 0.0%

Mxd Inv 40-85% Shares 0.5% -0.4% -0.8% 1.6% -0.1% 0.6% 2.3% 1.1% 0.1%

Global 0.4% 0.4% -1.5% 2.9% 0.0% 0.3% 2.7% 2.5% -0.5%

Global Equity Income 0.1% -0.5% -1.4% 2.2% -0.2% 0.2% 2.4% 2.7% -1.2%

Average: 0.8% 0.3% -0.8% 1.9% 0.0% 0.6% 2.6% 1.4% -0.3%

STEADY AS

SHE GOES

Group

A rather gloomy week for these

sectors with a 0.8% overall loss.

The UK Equity Income sector

stays the clear leader over the

last 4 weeks, and is just slightly

ahead of the Global sector and

the Flexible Investment sector

on the 8 week chart..

UK Equity & Bond Inc

Mxd Inv 0-60% Shares

SLOW AHEAD

Group

On pages 8 & 9 charts show

performance of Sectors in each

Group over the last 8 weeks,

based on average performance of

leading funds in each Sector.

Sectors are ranked in the tables by

their 4 week % return.

All % Return data is shaded to

highlight the higher figures in each

column.

Generally a slow week for this

Group with the best gain being

0.6% for the Targeted Absolute

Return sector.

At the other end of the scale the

Global Bonds sector couldn't

maintain the good progress it

showed the previous week when

it gained 1.2%, and last week it

fell back to a 0.3% loss.

1.6%

2.3%

2.3%

1.8%

2.4%

1.7%

2.2%

2.7%

2.5%

1.1%

Wk -5

UK Equity Income

Global

Flexible Investment

Global Equity Income

Mxd Inv 40-85% Shares

Percentage Return Data

0.8%

1.0%

1.2%

0.5%

1.4%

Sector

SectorPercentage Return Data

Targeted Absolute Return

Sector Performance by Saltydog Group

8

1.1%

Global Bonds

£ High Yield

£ Strategic Bond

£ Corporate Bond

UK Gilts

UK Index Linked Gilts

Wk -5

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Weeks -6 -4 -2 Current

-2%

0%

2%

4%

6%

8%

10%

12%





UK Small COs 5.5% 8.0% 2.4% 2.0% 0.8% 1.4% 3.4% 0.4% 0.6%

European Small COs 4.9% 8.8% 0.2% 3.2% 1.1% 1.0% 2.6% 0.7% -0.4%

Europe Inc/Ex UK 3.7% 4.6% -0.3% 3.4% 1.0% 0.4% 2.7% 0.9% -1.0%

UK All Companies 2.7% 3.8% 0.2% 2.2% 0.0% 1.1% 4.0% 0.8% -0.2%

Property 0.4% 0.0% 0.2% 0.8% 0.1% 0.3% 2.7% 4.6% 0.0%

N America inc Sm COs -0.5% 2.8% -2.6% 3.3% -0.4% 0.3% 3.0% 3.2% -1.0%

Japan inc J Small COs -4.1% -4.9% -3.2% 3.1% -1.7% -0.3% 6.5% 3.4% 2.9%

Average: 2% 3.3% -0.4% 2.6% 0.1% 0.6% 3.6% 2.0% 0%


Tech & Telecomms 2.4% 4.0% -1.1% 3.0% 0.8% 0.5% 3.6% 2.4% -0.3%

China & Gtr China 2.3% -2.7% -2.6% 3.3% 2.3% 0.1% 1.2% 4.0% -1.9%

Global Emerging Mkts -1.3% -9.6% -2.3% 1.2% 0.4% 0.3% 1.1% 5.3% -3.4%

Asia Pacific Inc/Ex Japan -2.1% -8.6% -2.6% 1.2% 1.1% -0.6% 1.5% 4.5% -2.2%

Average: 0.3% -4.2% -2.1% 2.2% 1.2% 0.1% 1.8% 4.0% -1.9%

FULL STEAM

AHEAD -

Emerging

Group

Losses for all the sectors in

this Group, with the Tech &

Telecomms sector having the

smallest loss, which keeps it at

the top of the 4 week table and

the 8 week chart.

FULL STEAM

AHEAD -

DEVELOPED

Group

The UK Small Companies

sector maintained its good

progress and now leads the

way over 4 weeks, and over 8

weeks.

The Japanese combined

sectors and the American

combined sectors both made

losses, and these 2 are now

bottom of the 4 week table.

Tech & Telecomms

China & Gtr China

Asia Pacific Inc/Ex Japan

1.3%

2.2%

Wk -5

3.1%

2.0%

1.8%

Global Emerging Mkts

SectorPercentage Return Data

1.8%

2.4%

SectorWk -5

2.4%

2.9%

2.5%

Percentage Return Data

1.8%

3.2%

2.7%

European Small COs

UK All Companies

Property

Europe Inc/Ex UK

N America inc Sm COs

9

Sector Performance by Saltydog Group

UK Small COs

Japan inc J Small COs

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%


-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%




Dec Ret Dec Ret Dec Ret -1 -2 -3 -4 -5 -6 -7 -8

Schroder Monthly High Inc 1 1.7% 2 -0.4% 1 4.1% 1 3 1 5 5 6 4 4

Threadneedle High Yld Bond 1 1.5% 2 0.0% 2 3.8% 1 4 1 5 5 5 5 3

IP Europ High Yield. 1 1.6% 1 0.7% 1 5.5% 2 2 1 6 4 2 6 3

Std Life Higher Income 1 1.7% 2 0.3% 1 4.5% 2 3 1 4 4 7 7 1

Aberdeen High Yield Bond 1 1.6% 3 -0.9% 2 3.3% 2 3 1 7 4 6 6 2

Aviva Inv High Yield Bond. 1 1.7% 2 -0.1% 1 4.6% 2 5 1 2 6 6 6 3


CF Odey UK Abs Return 1 3.9% 1 10.5% 1 20.8% 1 1 1 2 8 1 1 2

L&G UK Abs Trust 1 3.1% 1 1.3% 3 2.6% 1 1 2 1 10 1 10 6

Henderson UK Abs Return 1 1.8% 1 3.3% 1 9.8% 1 1 3 5 3 1 2 1

Cazenove Abs UK Dynamic 1 3.5% 1 6.0% 1 12.0% 1 2 1 1 1 7 5 2

City Financial UK Equity 1 2.8% 1 4.8% 1 6.1% 1 8 1 10 10 1 1 1

Cazenove UK Abs Target P1 1 1.8% 1 4.6% 1 8.5% 2 2 5 1 6 2 2 1


AXA Fram Managed Inc: 1 1.6% 3 -0.7% 2 3.6% 2 2 1 8 6 9 5 1

F&C Extra Inc Bond. 1 1.5% 4 -1.5% 2 2.9% 2 3 2 5 5 7 6 6

Artemis High Income: 1 1.5% 2 0.1% 1 6.1% 2 3 3 3 2 3 6 3

Std Life Invest Strat Bd 1 1.6% 2 -0.2% 2 3.5% 4 2 2 5 6 8 8 2

Old Mutual Dynamic Bond 1 1.6% 4 -1.9% 2 2.9% 6 3 1 3 1 5 4 9

Twentyfour Dynamic Bond 2 1.1% 3 -0.9% 3 2.7% 2 3 2 7 6 3 8 3

Targeted Abs

Return

4 Week 12 Week 26 Week Recent Weekly Deciles

£ Strategic

Bond


Data at 13/08/13 10

Slow Ahead Group - 4 Week Data

£ High Yield4 Week 12 Week 26 Week Recent Weekly Deciles

This page shows the leading 3 sectors of the Slow Ahead Group as listed on page 8, and the funds that have performed best in those Sectors

over the last 4 weeks. The data for the other 4 sectors in this Group is shown on our website as A.

We measure fund performance by their Decile Ranking in a Group. For each time period (1 week, 4 weeks, 12 weeks, or 26 weeks), we rank all

the funds in the Group by their % return, and then the top 10% of that ranking go into Decile 1, the next 10% go into Decile 2, and so on until the

bottom 10% go into Decile 10. We are on the lookout for funds that are often in Deciles 1 or 2 over the various time periods. The use of Deciles

gives a much more accurate performance measure than the 'quartile' system commonly used.

To select the leading funds in each Sector for the last 4 weeks, we first of all use the Decile Ranking for that period, and then use the Decile

Rankings for the most recent individual weeks. In that way we identify funds that have done best in their Sector over the last 4 week period, and

those performing best in the last few weeks go to the top of the list.

On this page we give data on the leading 6 funds in each Sector, showing their relative performance for the last 8 weeks on a chart, and providing

Decile Ranking and Percentage Return data in a table. The Decile History Report on our website gives details of more funds in these Sectors.

Always check for initial charges before investing. Funds in italics often have a Bid/Offer Spread.

Remember that past performance is no indication of future performance.

-4%

-2%

0%

2%

4%

6%

8%


-4%

-2%

0%

2%

4%

6%

8%


-4%

-2%

0%

2%

4%

6%

8%





CF Odey UK Abs Return 1 3.9% 1 10.5% 1 20.8% 1 1 1 2 8 1 1 2

Cazenove Abs UK Dynamic 1 3.5% 1 6.0% 1 12.0% 1 2 1 1 1 7 5 2

Henderson Europ Abs Return 3 1.1% 1 2.7% 1 10.5% 1 3 6 7 4 2 2 2

Henderson UK Abs Return 1 1.8% 1 3.3% 1 9.8% 1 1 3 5 3 1 2 1

Cazenove UK Abs Target P1 1 1.8% 1 4.6% 1 8.5% 2 2 5 1 6 2 2 1

City Financial UK Equity 1 2.8% 1 4.8% 1 6.1% 1 8 1 10 10 1 1 1


Artemis High Income: 1 1.5% 2 0.1% 1 6.1% 2 3 3 3 2 3 6 3

IP Monthly Inc Plus. 5 0.6% 2 -0.2% 1 5.2% 8 2 2 8 6 2 3 3

Premier High Inc Bond 2 1.5% 1 0.8% 1 4.8% 5 2 1 8 5 3 4 2

Artemis Strategic Bond: 3 1.0% 2 -0.3% 1 3.8% 3 5 2 6 4 4 5 3

M&G Optimal Inc 7 0.3% 3 -1.0% 2 3.7% 8 3 7 6 3 2 2 6

AXA Fram Managed Inc: 1 1.6% 3 -0.7% 2 3.6% 2 2 1 8 6 9 5 1


IP Europ High Yield. 1 1.6% 1 0.7% 1 5.5% 2 2 1 6 4 2 6 3

Ignis Higher Inc Bond 7 0.2% 3 -1.1% 1 4.7% 2 4 8 8 1 10 2 3

Aviva Inv High Yield Bond. 1 1.7% 2 -0.1% 1 4.6% 2 5 1 2 6 6 6 3

Std Life Higher Income 1 1.7% 2 0.3% 1 4.5% 2 3 1 4 4 7 7 1

Schroder Monthly High Inc 1 1.7% 2 -0.4% 1 4.1% 1 3 1 5 5 6 4 4

AXA Pan Europ High Yield

Bond: 2 1.3% 2 -0.2% 1 3.9% 2 4 2 6 5 4 4 4


Thr'needle Europ Hi-Yld Bond 2 1.2% 1 1.9% 1 4.7% 10 1 1 10 1 4 2 2

M&G Europ High Yield Bond 1 2.2% 1 1.4% 1 4.3% 10 1 1 1 2 2 2 9

Threadneedle Eurp Corp Bd 7 0.1% 1 0.6% 2 3.1% 10 1 5 9 5 2 3 4

M&G Europ Corp Bond 6 0.3% 1 0.9% 2 3.0% 10 1 3 9 5 1 2 3

SWIP Europ Corporate Bd 7 0.2% 1 0.5% 2 2.8% 10 1 6 7 2 4 3 3

Threadneedle Europ Bond, 7 0.0% 2 -0.4% 4 2.2% 9 2 7 9 6 3 2 6

Data at 13/08/13 11

Slow Ahead Group - 26 Week Data

Targeted Abs

Return


This page shows the Sectors that have performed best over the last 26 weeks, with the funds that generated that performance and their recent

performance. The funds are arranged by their 26 week Decile Ranking, and then by their 26 week % Return. The charts show performance over

the last 26 weeks. Remember that past performance is no indication of future performance.

£ Strategic

Bond


Recent Weekly Deciles

£ High Yield4 Week 12 Week 26 Week

Global Bonds4 Week 12 Week 26 Week Recent Weekly Deciles

-4%

0%

4%

8%

12%

16%

20%

24%

Weeks -20 -15 -10 -5 Current

-4%

0%

4%

8%

12%

16%

20%

24%


-4%

0%

4%

8%

12%

16%

20%

24%


-4%

0%

4%

8%

12%

16%

20%

24%





Std Life UK Eq Inc Uncons 1 3.3% 1 5.0% 1 17.3% 1 2 2 1 3 1 4 4

Marlborough Multi Cap

Income1 4.5% 1 7.2% 1 17.8% 1 3 1 1 4 3 8 3

Unicorn UK Income 1 6.0% 1 10.4% 1 19.0% 1 3 1 1 5 8 6 2

AXA Fram Monthly Inc: 1 2.8% 1 2.7% 4 8.9% 1 3 1 3 7 6 9 5

Henderson UK Equity Inc 1 3.0% 1 5.5% 1 14.2% 1 3 2 5 1 4 6 3

Royal London Equity Inc 1 2.3% 1 4.0% 1 16.5% 1 3 4 2 6 1 5 5


Marlborough Extra Income: 1 1.6% 2 1.0% 5 8.3% 1 7 1 2 8 6 9 4

M&G Extra Inc 1 1.5% 5 -0.6% 4 9.0% 4 7 3 1 7 9 3 8

Jupiter Monthly Inc 2 1.1% 7 -1.3% 8 4.6% 5 4 7 1 10 9 10 5

Threadneedle Monthly Extra

Inc3 0.5% 2 1.7% 2 12.9% 3 6 5 5 5 2 7 5

Threadneedle Mgd Inc 3 0.5% 2 1.2% 3 11.2% 4 5 4 7 5 3 6 6

HSBC Monthly Inc 4 0.4% 7 -1.5% 7 6.3% 4 7 5 2 6 4 9 7


Henderson Gbl Strategic

Capital1 2.1% 2 1.2% 9 3.0% 1 6 1 6 7 10 8 4

TB Wise Income 1 2.4% 1 3.3% 3 11.2% 1 8 1 1 4 10 8 1

Neptune Global Alpha 1 1.3% 1 2.5% 8 5.0% 10 1 10 1 3 1 1 4

Unicorn Mastertrust A 2 1.1% 2 2.0% 3 11.3% 1 7 2 8 7 6 7 2

CF Ruffer Equity & General. 2 0.9% 2 1.3% 5 8.0% 1 10 1 2 5 10 9 2

BlackRock Active Managed 2 0.7% 3 0.4% 6 7.2% 3 4 7 5 4 3 6 6

4 Week 12 Week 26 Week Recent Weekly DecilesUK Equity &

Bond Inc

Flexible

Investment



Data at 13/08/13 12

Steady as She Goes Group - 4 Week Data

This page gives details about the top 3 sectors of the Steady as She Goes Group, as listed on page 8. The data for the other 4 sectors in this

Group is shown on our website as A. The data is presented in the same way as the Slow Ahead Group.

The Steady as She Goes Group is often more volatile than the Slow Ahead Group, but the returns can sometimes be greater.

Note that the vertical scale on the charts may differ page to page, so it is important to check the maximum and minimum limit of the chart so you

can make accurate comparisons.

Data on the Full Steam Ahead Developed and Full Steam Ahead Emerging Groups are provided on pages 14 to 17, and again the data is

presented in the same way.

The Developed & Emerging Groups are often more volatile than the Steady as She Goes Group, but the returns can sometimes be greater.

The Developed Group covers Sectors specialising in the so-called 'Developed Countries' - Europe, UK, America, Japan etc.

The Emerging Group covers Sectors specialising in the Emerging Countries - Russia, China, Brazil, Latin America etc.

The Specialist Sector is not a natural fit into any of our Groups, so that is covered in a slightly different format on page 18, but with our usual 4

week data. Within the Specialist Sector there are funds that invest in similar areas e.g. Agriculture, Gold, India etc. We call these similar areas

'Sub-Zones', and highlight them in the data and provide a chart that shows how the Sub-Zones are performing.



UK Equity

Income

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%





Baillie Gifford Global

Discovery1 3.4% 1 8.9% 1 28.5% 1 2 1 9 2 1 4 4

Schroder Medical Discovery 6 0.0% 1 2.5% 1 19.1% 9 3 1 9 1 8 1 10

Old Mutual Global Equity 5 0.1% 1 3.4% 1 19.1% 10 1 9 5 1 3 2 9

IP Global Opps. 1 1.6% 1 2.4% 1 18.7% 8 1 1 6 4 2 3 4

L&G Glbl Health&Pharma

Index7 -0.4% 3 0.9% 1 17.9% 6 6 1 10 7 3 2 8

L&G Global Envir Enterprises 3 0.6% 3 0.7% 1 15.7% 7 8 1 1 3 2 2 10


Unicorn UK Income 1 6.0% 1 10.4% 1 19.0% 1 3 1 1 5 8 6 2

PFS Chelverton UK Eq

Income1 3.6% 1 7.4% 1 18.4% 1 6 1 2 2 3 4 3

Threadneedle UK Eq Alpha

Inc 2 1.1% 1 3.7% 1 18.0% 5 2 6 6 4 1 5 3

Marlborough Multi Cap

Income1 4.5% 1 7.2% 1 17.8% 1 3 1 1 4 3 8 3

IP UK Strategic Income. 3 0.5% 1 2.4% 1 17.7% 2 6 7 6 10 1 6 1

Std Life UK Eq Inc Uncons 1 3.3% 1 5.0% 1 17.3% 1 2 2 1 3 1 4 4


CF Ruffer Japanese. 10 -4.1% 10 -3.1% 1 21.9% 1 10 1 1 7 1 1 1

JPMorgan Portfolio 4 0.3% 3 0.5% 2 12.5% 7 3 8 3 2 3 4 2

Unicorn Mastertrust A 2 1.1% 2 2.0% 3 11.3% 1 7 2 8 7 6 7 2

TB Wise Income 1 2.4% 1 3.3% 3 11.2% 1 8 1 1 4 10 8 1

IP Managed Growth. 6 -0.1% 4 0.0% 3 11.0% 8 4 3 9 6 4 3 6

Aviva Inv SF Abs Growth. 6 -0.2% 3 0.5% 3 10.5% 8 2 9 5 4 5 3 7


IP Global Equity Income. 7 -0.4% 2 1.7% 1 15.0% 7 2 5 10 3 3 1 6

Henderson Global Equity Inc 8 -0.7% 2 1.0% 2 12.3% 8 2 8 10 3 4 3 8

Legg Mason Gbl Equity Inc 1 2.0% 1 2.4% 2 11.7% 2 3 3 4 3 4 3 8

JPMorgan Global Equity, 6 -0.1% 6 -0.9% 2 11.5% 5 5 5 8 2 9 3 10

Artemis Global Income 4 0.3% 9 -2.9% 3 11.2% 9 1 9 7 8 6 2 10

Std Life Gbl Equity Inc 7 -0.3% 3 1.0% 3 10.2% 8 4 6 4 1 9 1 5

Global Equity

Income


Flexible

Investment


UK Equity

Income



Data at 13/08/13 13

Steady as She Goes Group - 26 Week Data

This page shows the Sectors that have performed best over the last 26 weeks, with the funds that generated that performance, and how those

funds are currently performing. The funds are arranged by their 26 week Decile Ranking, and then by their 26 week % Return. The charts show

performance over the last 26 weeks. Remember that past performance is no indication of future performance.

Global4 Week 12 Week 26 Week

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%


-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%


-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%


-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%





Royal London UK Sm COs 1 5.5% 1 10.1% 2 17.3% 1 4 3 4 7 4 10 3

Aberforth UK Small COs: 1 6.3% 1 8.1% 2 16.5% 1 5 1 1 2 8 4 9

Investec UK Small COs. 1 8.4% 1 9.9% 3 15.5% 1 5 1 1 10 8 6 2

River & Merc UK Eq Sm Cos 1 4.7% 2 6.3% 3 15.7% 1 6 3 1 2 7 9 3

Lazard UK Sm COs 1 5.1% 1 7.5% 5 13.3% 1 6 3 2 5 6 7 4

F&C UK Small COs 1 4.6% 1 7.6% 2 16.7% 1 7 3 3 7 4 9 3


Schroder Europ Sm COs 1 4.7% 1 9.0% 3 15.6% 2 4 3 3 5 9 4 6

IP Europ Small COs. 1 5.8% 1 7.5% 8 10.0% 3 3 1 2 6 8 10 7

JPMorgan Europe Sm COs 1 5.9% 1 10.4% 1 19.5% 4 1 1 2 1 5 4 8

Henderson Europ Sm COs 1 5.3% 1 7.7% 6 12.2% 4 3 1 4 4 9 5 8

M&G Europ Small COs 2 3.6% 1 6.7% 5 12.8% 3 3 8 1 3 8 7 6

Baring Europe Select. 2 3.5% 1 7.4% 4 14.1% 4 3 3 4 3 8 8 4


Smith & W Europ Grth Trust 1 6.9% 1 6.9% 6 11.6% 2 1 1 2 1 9 10 10

CF Odey Continental Europ 1 6.2% 1 10.7% 1 20.5% 2 1 1 2 6 6 4 3

Artemis Europ Growth: 1 5.7% 2 5.4% 2 17.0% 2 2 4 2 2 9 6 9

IP Europ Equity. 1 5.9% 1 8.0% 1 19.3% 3 1 1 4 5 7 6 7

L&G Europ 1 5.1% 1 6.8% 4 13.7% 3 1 1 8 3 4 9 7

Cazenove Europ 1 5.0% 2 6.3% 4 14.5% 3 1 2 4 5 7 5 7


Premier Sanford Deland UK

Buffettology1 6.0% 1 7.4% 1 20.2% 1 8 2 2 9 10 7 2

L&G UK Special Situ 1 5.4% 2 5.6% 4 13.9% 2 5 3 1 9 2 9 7

Schroder UK Mid 250, 1 4.8% 1 7.8% 1 20.1% 3 4 3 1 6 3 6 3

Std Life UK Eq Unconstrained 1 4.9% 1 6.9% 1 20.7% 4 1 5 1 2 6 3 5

Std Life UK Eq Recovery 1 4.6% 4 3.2% 7 11.0% 5 7 2 1 5 6 9 8

Premier UK Mid 250 2 3.9% 3 4.6% 8 9.4% 1 6 4 6 5 3 6 3

UK All

Companies


Europe inc/ex

UK


Data at 13/08/13 14

Full Steam Ahead Developed Group - 4 Wk Data

This page gives details about the top 4 sectors of the Full Steam Ahead Developed Group, as listed on page 9. The data for the other 4 sectors in

this Group is shown on our website as A. The data is presented in the same way as the previous Group.


European

Small COs

4 Week


UK Small COs4 Week 12 Week 26 Week

12 Week 26 Week Recent Weekly Deciles

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%





Legg Mason Japan Equity 10 -3.7% 10 -9.9% 1 39.4% 10 10 1 7 10 1 10 1

IP Japanese Smaller COs. 10 -3.9% 10 -4.7% 1 34.1% 10 7 5 10 10 1 3 1

Baillie Giff Japan Sm COs. 9 -1.5% 9 -3.9% 1 31.2% 8 6 6 9 10 1 3 1

Baillie Giff Japanese. 10 -4.4% 9 -3.8% 1 27.0% 10 4 10 10 10 1 2 1

JPMorgan Japan 10 -3.9% 10 -4.3% 1 26.2% 10 1 10 9 10 1 1 1

M&G Japan Small COs 10 -4.3% 10 -5.4% 1 25.6% 8 9 10 10 7 1 3 1


Cazenove UK Small COs 1 7.2% 1 12.5% 1 25.9% 1 9 2 2 3 8 8 8

Franklin UK Sm Cos 1 4.7% 1 12.7% 1 24.8% 1 8 3 5 2 5 7 2

Fidelity UK Smaller

Companies2 3.4% 1 9.9% 1 24.4% 2 7 2 6 8 3 7 2

Kames UK Sm COs. 2 4.2% 1 8.4% 1 20.8% 1 6 5 3 8 3 9 2

Schroder UK Small COs 1 5.1% 1 9.8% 1 20.2% 1 8 3 2 8 10 8 2

Unicorn UK Sm COs 2 3.3% 1 8.2% 1 20.1% 2 10 1 4 9 9 10 1


Franklin UK Managers Focus 4 2.1% 1 7.1% 1 22.8% 2 9 3 7 1 2 7 4

IP UK Aggressive. 2 3.3% 2 5.1% 1 22.1% 4 7 1 2 6 3 9 1

Old Mutual UK Sel Mid Cap, 3 2.9% 2 6.1% 1 21.3% 4 3 6 3 1 1 6 2

Std Life UK Eq Unconstrained 1 4.9% 1 6.9% 1 20.7% 4 1 5 1 2 6 3 5

Cazenove UK Opps B 3 3.2% 2 6.2% 1 20.4% 2 6 4 2 2 3 10 3

Premier Sanford Deland UK

Buffettology1 6.0% 1 7.4% 1 20.2% 1 8 2 2 9 10 7 2


JPMorgan US Small COs 9 -1.0% 1 7.7% 1 22.3% 9 3 5 8 1 5 1 3

Old Mutual USA Equity 7 0.1% 3 4.9% 1 20.8% 10 1 5 7 1 9 1 9

Cler Med US Strategic 9 -1.0% 3 3.8% 1 19.5% 9 5 9 2 1 8 2 8

CIS US Growth 9 -1.1% 3 3.7% 2 18.3% 10 3 9 3 1 7 2 9

UBS US Equity 9 -1.1% 4 3.6% 2 18.1% 10 4 9 3 1 8 2 9

Legg Mason US Equity 6 0.6% 3 4.7% 2 17.9% 9 2 6 4 2 7 2 9

N America inc

Sm COs


UK All

Companies


UK Small COs4 Week 12 Week 26 Week Recent Weekly Deciles


Data at 13/08/13 15

Full Steam Ahead Developed Group - 26 Wk Data

This page shows the Sectors that have performed best over the last 26 weeks, with the funds that generated that performance, and how those

funds are currently performing. The funds are arranged by their 26 week Decile Ranking, and then by their 26 week % Return. The charts show

performance over the last 26 weeks. Remember that past performance is no indication of future performance.

Japan inc Sm

COs

4 Week 12 Week 26 Week

-10%

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10%

20%

30%

40%

50%

60%


-10%

0%

10%

20%

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60%


-10%

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10%

20%

30%

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50%

60%


-10%

0%

10%

20%

30%

40%

50%

60%





MFM Techinvest Technology. 1 6.3% 1 12.3% 1 19.0% 1 2 1 1 1 1 10 1

Close FTSE techMARK 1 1.7% 1 1.0% 1 9.8% 1 2 9 2 3 1 10 1

GLG Technology Equity 1 1.0% 1 0.1% 1 9.0% 3 1 3 8 1 1 8 3

AXA Fram Global

Technology:2 0.5% 1 2.4% 1 5.7% 1 2 8 4 1 1 10 1

Cavendish Technology 2 0.0% 1 1.5% 1 8.6% 4 1 8 2 1 1 10 1

L&G Global Tech Index 3 -1.4% 1 -1.3% 1 8.4% 1 1 8 10 4 1 10 2


Threadneedle China Opps 1 4.4% 1 0.8% 2 2.6% 1 1 1 2 2 9 5 4

Fidelity China Consumer 1 2.6% 1 -0.1% 2 4.8% 5 1 3 1 5 6 9 2

IP HK & China. 1 2.2% 1 -1.7% 1 8.0% 6 1 1 2 7 2 9 2

Neptune China 1 2.4% 2 -3.8% 5 -2.9% 7 1 1 2 3 6 9 5

Baring China Growth. 1 1.2% 2 -4.9% 5 -3.2% 7 1 1 5 2 8 10 3

Henderson China Opps 1 1.5% 2 -2.8% 2 2.1% 8 1 1 5 3 3 6 2


Martin Currie IF Emerg Mkts 2 -1.0% 8 -10.4% 10 -9.7% 1 6 6 4 9 10 2 10

Somerset Emerg Mkts Div

Gth2 0.2% 4 -8.2% 2 1.6% 2 5 10 3 10 7 4 8

Neptune Emerging Mkts 2 0.0% 6 -9.3% 9 -9.0% 4 4 5 1 3 5 7 8

Lazard Developing Mkts 2 -0.4% 10 -11.9% 10 -11.4% 6 4 5 1 9 10 9 9

Newton Emerging Income 3 -1.5% 9 -11.1% 6 -4.7% 1 5 9 3 10 3 2 10

Templeton Gbl Emerg

Markets3 -1.2% 10 -11.5% 10 -15.7% 2 10 9 1 1 8 10 10


Henderson Asia Pac Cap Gth 3 -1.5% 3 -6.6% 3 -1.5% 6 3 4 9 2 2 4 5

Liontrust Asia Income 4 -1.7% 9 -10.6% 3 -1.0% 2 7 7 5 10 5 6 5

Std Life Asian Pacific Growth 4 -1.7% 3 -7.5% 3 -1.0% 3 9 5 4 1 10 9 1

L&G Pacific Index 4 -1.9% 5 -8.5% 5 -3.3% 5 6 2 8 5 7 5 6

Newton Asian Income 5 -2.0% 6 -9.5% 3 -1.0% 1 9 7 4 10 2 7 4

Newton Asian Income 5 -2.0% 7 -9.6% 3 -1.3% 1 9 7 4 10 2 8 4

Asia Pacific

inc/ex Japan


Global

Emerging Mkts


China/Greater

China



Data at 13/08/13 16

Full Steam Ahead Emerging Group - 4 Wk Data

This page gives details about the 4 sectors in the Full Steam Ahead Emerging Group, as listed on page 9.

The data is presented in the same way as the previous Group. Remember that past performance is no indication of future performance.


Tech &

Telecomms


-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%


-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%



-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%




MFM Techinvest Technology. 1 6.3% 1 12.3% 1 19.0% 1 2 1 1 1 1 10 1

Close FTSE techMARK 1 1.7% 1 1.0% 1 9.8% 1 2 9 2 3 1 10 1

GLG Technology Equity 1 1.0% 1 0.1% 1 9.0% 3 1 3 8 1 1 8 3

Henderson Global

Technology3 -1.3% 1 -0.1% 1 8.8% 2 1 10 7 1 2 10 1

Cavendish Technology 2 0.0% 1 1.5% 1 8.6% 4 1 8 2 1 1 10 1

L&G Global Tech Index 3 -1.4% 1 -1.3% 1 8.4% 1 1 8 10 4 1 10 2


IP HK & China. 1 2.2% 1 -1.7% 1 8.0% 6 1 1 2 7 2 9 2

Fidelity China Consumer 1 2.6% 1 -0.1% 2 4.8% 5 1 3 1 5 6 9 2

Threadneedle China Opps 1 4.4% 1 0.8% 2 2.6% 1 1 1 2 2 9 5 4

Henderson China Opps 1 1.5% 2 -2.8% 2 2.1% 8 1 1 5 3 3 6 2

First State Gtr China Growth. 10 -3.2% 3 -6.4% 2 0.3% 10 2 7 10 4 2 6 2

Jupiter China 2 0.2% 2 -4.4% 3 -1.0% 10 3 1 3 7 6 6 3


IP Pacific. 10 -3.9% 3 -6.9% 1 7.4% 9 4 10 7 7 1 7 1

Baillie Giff Developed Asia

Pac.7 -2.5% 2 -5.5% 1 6.4% 4 3 9 9 10 1 10 1

First State Asia Pac Sustain. 7 -2.5% 2 -6.4% 2 2.3% 9 10 5 1 2 5 3 3

Melchior Asian Opportunities 10 -3.2% 8 -10.3% 2 1.1% 7 3 2 10 8 9 10 7

First State Asia Pacific Ldrs. 7 -2.4% 3 -7.1% 2 -0.3% 8 3 2 10 4 1 7 3

Old Mutual Asian Select 7 -2.4% 6 -9.1% 3 -0.3% 6 7 6 6 2 6 6 8


Somerset Emerg Mkts Div

Gth2 0.2% 4 -8.2% 2 1.6% 2 5 10 3 10 7 4 8

Fidelity Emerging Markets 3 -1.5% 3 -6.5% 2 1.1% 5 3 9 2 6 3 7 4

First State Global EM

Leaders.4 -1.8% 2 -4.9% 2 0.1% 4 3 9 4 6 2 3 3

First State Global EM

Sustain.6 -2.3% 3 -7.6% 3 -0.6% 6 9 9 1 8 3 5 6

IP Emerging Countries. 5 -2.0% 4 -7.9% 5 -2.7% 5 8 7 3 8 8 1 8

Threadneedle Global EM Eq 3 -1.3% 5 -8.8% 5 -2.9% 4 5 7 2 9 9 1 9

Global

Emerging

Mkts


Asia Pacific

inc/ex Japan


China/Greater

China



Data at 13/08/13 17

Full Steam Ahead Emerging Group - 26 Wk Data

This page shows the Sectors based on their 26 week performance, and how the funds are currently performing. The funds are arranged by their

26 week Decile Ranking, and then by their 26 week % Return. The charts show performance over the last 26 weeks. Remember that past

performance is no indication of future performance.

Tech &

Telecomms


-10%

-5%

0%

5%

10%

15%

20%

25%


-10%

-5%

0%

5%

10%

15%

20%

25%


-10%

-5%

0%

5%

10%

15%

20%

25%


-10%

-5%

0%

5%

10%

15%

20%

25%




Decile Return Decile Return Decile Return -1 -2 -3 -4 -5 -6 -7 -8

JPM Global Mining . . 1 4.5% 7 -6.0% 10 -24.7% 1 8 2 2 2 2 10 9

Oceanic Australian Nat Res Nat ResNat Res 1 5.3% 4 -2.6% 9 -22.2% 1 9 2 1 9 2 9 8

JPMorgan Natural Resources. Nat ResNat Res 1 3.4% 4 -3.4% 9 -21.5% 1 9 2 5 2 2 9 9

Martin Currie Latin America Latin AmLatin Am 1 2.6% 10 -14.1% 8 -16.1% 2 4 5 1 10 10 1 9

Neptune Latin America Latin AmLatin Am 1 3.2% 8 -10.0% 8 -11.0% 3 2 8 1 10 8 2 9

BlackRock Gold & General: Gold Gold 1 2.9% 7 -6.1% 10 -34.5% 7 9 1 9 1 1 10 10

CF Ruffer Pacific. . . 2 2.0% 7 -5.6% 4 2.6% 2 8 2 3 4 9 9 2

Investec Global Gold. Gold Gold 2 2.0% 7 -6.2% 10 -33.0% 4 10 1 5 1 1 10 10

Jupiter Int Financials Fund FinancialFinancial 2 2.3% 3 -0.3% 2 10.8% 5 1 5 4 5 4 5 4

Baring German Growth. . . 2 1.9% 1 2.9% 2 11.9% 5 1 5 6 2 9 7 4

Threadneedle Latin America Latin AmLatin Am 2 1.6% 10 -14.7% 8 -13.6% 5 4 6 1 10 10 2 9

CF Ruffer Baker Steel Gold. Gold Gold 2 2.2% 10 -22.8% 10 -51.7% 10 9 1 1 10 2 10 8

SWIP £ Credit Advantage . . 3 0.9% 2 -0.2% 4 1.7% 1 7 3 8 9 9 8 2

Neptune Africa . . 3 1.4% 5 -3.7% 5 -0.5% 3 1 8 8 7 3 4 6

Jupiter Financial Opps FinancialFinancial 3 1.0% 3 -1.7% 2 10.5% 7 1 8 3 6 3 4 5

SWIP Financial FinancialFinancial 3 1.0% 2 0.6% 1 13.1% 7 2 6 4 5 3 3 6

Henderson Global Financials FinancialFinancial 3 1.2% 2 -0.1% 1 13.2% 8 2 7 3 5 4 4 5

Premier Small Companies . . 3 1.0% 2 0.7% 1 12.2% 8 3 3 3 6 8 5 3

AXA Fram Biotech: . . 3 0.9% 1 8.4% 1 37.2% 10 1 2 6 1 1 1 8

SWIP UK Flexible Strategy . . 4 0.9% 1 2.0% 3 5.8% 2 5 3 6 8 7 8 1

UBS Targeted Return, . . 4 0.8% 4 -3.3% 3 4.8% 2 5 6 5 7 7 9 3

Smith & W Glbl Gold & Res Gold Gold 4 0.6% 5 -4.1% 10 -33.9% 4 10 1 10 1 1 10 10

Allianz Global EcoTrends. . . 4 0.7% 1 4.1% 1 12.3% 7 1 4 9 3 4 5 3

MFM Junior Gold Gold Gold 4 0.8% 9 -13.3% 10 -52.7% 7 10 1 10 9 1 10 10

WAY Charteris Gold Portfolio Gold Gold 4 0.5% 5 -3.6% 10 -39.3% 8 10 1 10 1 1 10 10

Henderson MM Diversified . . 5 0.0% 2 0.4% 3 4.6% 1 5 5 8 8 8 8 1

Aberdeen MM Ethical: . . 5 0.2% 3 -0.4% 3 8.3% 3 6 4 5 2 4 8 1

IP Latin America Latin AmLatin Am 5 0.2% 9 -13.8% 8 -12.3% 5 7 4 2 10 10 1 10

M&G Global Convertible . . 5 0.0% 1 0.7% 3 7.1% 6 3 6 7 8 6 5 3

18

Specialist Sector - 4 Week Data

The Specialist Sector contains funds that do not fit into the contraints of the mainstream sectors, so they are something of a mixed bag.

We have created our own SubZones for the funds that have a broadly similar focus - Agriculture, Financial, Gold, India, Latin America, Natural Resources, Russia

& Eastern Europe. All the funds are measured by their 4 Week Decile Ranking and then their Recent Weekly Deciles.

4 Week 12 Week 26 Week Recent Weekly DecilesFund

SubZone

(If Applicable)

The chart below left shows how the SubZones have performed, based on their 8 week trend, based on average % return.

The chart below right shows the 8 week performance of the top 8 funds in the Specialist sector table above.

-20%

-15%

-10%

-5%

0%

5%


JPM Global Mining Oceanic Aus Nat Res

JPM Natural Resources Martin Currie Latin America

Neptune Latin America BlackRock Gold & Gen

CF Ruffer Pacific. Investec Global Gold.

-20%

-15%

-10%

-5%

0%

5%

10%


Agriculture Financial

Gold India

Latin America Nat Resources

Russia & Eastern Europe



Decile Return Dec Rtn Dec Rtn -1 -2 -3 -4 -5 -6 -7 -8

Lindsell Train Investment Trust Global Growth 1 4.7% 2 4% 7 7% 1 4 3 8 1 9 9 5 LTI 8%

Scottish Mortgage IT Global Growth 1 4.9% 1 5% 3 12% 3 1 2 2 9 2 2 7 SMT -5%

Oryx International Growth Global Smaller Cos 1 3.3% 1 5% 5 11% 3 9 4 1 7 10 6 4 OIG -23%

Edinburgh Worldwide Global Growth 1 4.0% 1 9% 4 12% 5 1 5 9 3 5 4 10 EWI -12%

Martin Currie Global Portfolio Global Growth 1 4.5% 5 2% 3 13% 10 2 8 1 10 7 5 3 MNP -1%

Scottish American Inv Tr Global Growth & Inc 2 3.3% 3 3% 4 12% 1 3 9 1 7 6 1 2 SCAM 4%

Marwyn Value Investors Global Smaller Cos 2 3.0% 2 4% 1 17% 1 4 3 7 10 7 6 8 MVI -30%

Independent Investment Trust Global Growth 2 3.1% 1 8% 1 19% 2 8 4 1 3 5 7 7 IIT -7%

London & St Lawrence IT Global Growth & Inc 2 2.3% 3 3% 4 12% 7 3 2 4 2 6 6 4 LSLI 1%

Brunner Investment Trust Global Growth 2 2.9% 3 4% 4 12% 9 3 5 1 6 4 5 7 BUT -14%

Monks Global Growth 3 2.0% 4 3% 5 11% 2 2 9 3 5 6 2 3 MNKS -14%

JPMorgan Overseas Ord Global Growth 3 1.8% 5 2% 5 10% 2 6 1 8 7 3 2 7 JMO -6%

JPMorgan European Small Cos European Smaller Cos 1 9.2% 1 12% 5 17% 1 2 1 2 2 5 9 5 JESC -17%

BlackRock Smaller COs UK Smaller Cos 1 7.7% 1 15% 3 23% 1 2 3 7 3 7 1 4 BRSC -10%

Acorn Income Fund (Split) UK High Income 1 7.1% 4 5% 2 23% 1 3 3 6 9 10 6 6 AIF -2%

Henderson Opportunities Trust UK Growth 1 6.9% 2 10% 5 17% 1 5 6 1 6 7 5 5 HOT -18%

Small Cos Dividend Trust Ord. UK High Income 1 8.0% 2 11% 2 29% 1 8 3 1 8 10 8 3 SDV -8%

Throgmorton Trust UK Smaller Cos 1 7.3% 1 12% 2 24% 2 1 7 3 7 4 5 10 THRG -12%

Value & Income UK Growth & Income 1 7.1% 1 12% 4 18% 2 5 3 1 7 8 6 2 VIN -16%

Aberforth Smaller Companies UK Smaller Cos 1 8.6% 1 13% 2 27% 3 1 1 10 7 2 7 6 ASL -9%

Henderson Eurotrust Europe 2 5.8% 3 8% 5 17% 1 7 1 9 6 7 6 6 HNE -5%

Crystal Amber UK Growth 2 6.0% 1 12% 1 35% 1 9 3 8 10 10 4 3 CRS -1%

Aberdeen Smaller Cos High Inc UK High Income 2 5.2% 3 7% 4 18% 2 2 4 6 4 7 6 2 ASCH -3%

Henderson Smaller Cos UK Smaller Cos 2 4.6% 2 9% 2 23% 2 4 4 5 4 1 8 7 HSL -15%

Africa Opportunity Global Emerging Mkts 1 0.6% 4 -8% 1 26% 1 6 3 7 10 5 8 1 AOF -13%

Aberdeen New Dawn Asia P Ex Japan 1 1.0% 3 -6% 3 2% 2 3 3 3 2 6 2 8 ABD -4%

Fidelity China Special Situations Country Spec Asia P 1 7.7% 1 1% 3 1% 5 1 1 2 5 7 9 3 FCSS -7%

Utilico Emerging Markets Global Emerging Mkts 2 0.5% 4 -8% 4 0% 1 6 5 4 9 3 9 5 UEM -7%

Advance Frontier Markets Global Emerging Mkts 2 0.5% 1 3% 2 11% 1 6 5 5 4 8 9 2 AFMF -11%

Clean Energy Brazil Latin America 2 0.0% 2 0% 1 41% 2 6 10 1 10 9 9 2 CEB -22%

BlackRock Latin American IT Latin America 2 -0.1% 9 -18% 10 -18% 4 9 1 3 9 10 7 6 BRLA -13%

BlackRock Frontiers Global Emerging Mkts 3 -1.0% 1 7% 1 20% 2 8 7 4 1 4 10 1 BRFI 1%

Fidelity Asian Values PLC Asia P Ex Japan 3 -0.6% 3 -6% 2 4% 3 2 4 8 4 7 3 6 FAS -11%

Asian Total Return Investment CoAsia P Ex Japan 3 -1.0% 3 -7% 3 1% 6 3 2 6 5 5 7 4 ATR 4%

Ashmore Global Opp GBP Global Emerging Mkts 3 -0.8% 2 -5% 8 -11% 7 1 2 9 9 6 10 3 AGOL -33%

Burford Capital Specialist 1 8.8% 1 9% 3 13% 1 5 2 2 4 6 5 5 BUR 16%

GEIGER COUNTER LTD Comm&Nat Resources 1 9.6% 6 -2% 9 -23% 4 4 1 2 9 10 10 9 GCL -13%

Jupiter Green Environmental 1 7.7% 1 14% 2 21% 7 4 1 1 2 4 7 8 JGC -2%

Livermore Investments Group Financials 1 9.1% 1 61% 1 117% 8 1 2 1 10 1 1 1 LIV -8%

Baker Steel Resources Comm&Nat Resources 1 28.2% 10 -26% 10 -42% 10 1 1 2 10 10 8 8 BSRT -19%

RCM Technology Trust 25p TMT 2 5.2% 1 14% 1 32% 1 2 2 9 2 2 1 4 RTT -6%

New City Energy Ltd Comm&Nat Resources 2 4.2% 8 -7% 8 -19% 1 5 5 5 1 6 7 10 NCE -15%

BlackRock World Mining Comm&Nat Resources 2 7.1% 8 -6% 8 -19% 3 1 4 1 2 5 10 10 BRWM -10%

Blue Planet Int Financials Financials 2 4.2% 1 22% 1 27% 5 7 5 1 1 5 1 2 BLP -23%

City Natural Resources Hi Yield Comm&Nat Resources 2 6.6% 7 -4% 9 -29% 10 1 2 9 1 8 8 10 CYN -14%

HICL Infrastructure Co Infrastructure 3 3.8% 5 1% 3 12% 1 2 8 8 8 9 7 1 HICL 15%

Data at 13/08/2013 19

Investment Trusts - Summary Page

Leading Investment Trusts sorted by 4 week Decile Ranking then weekly Decile Rankings using Market Value.

Discount/Premium column shows how the trusts are trading relative to their Net Asset Value (NAV) per share. Negative figure = discount.

All Investment Trusts have a Bid/Offer Spread. Past performance is no indication of future performance.

Emerging Group

Specialist Group

Recent Weekly Deciles Discount/

Premium

to NAV

Global Group

Developed Group

Fund AIC Sector4 Week 12 Week 26 Week

Ticker


23/11/2012£37,43710.79%-2.42%

Trade Date Fund Group Current Price (p)

Current Value (£)

Original Cost (£) Gain (£) Gain (%) Portfolio %

02/07/2013 iShares MSCI Japan GBP Hedged Developed 4031 £4,918 £5,001 -£83 -1.66% 11.9%09/07/2013 iShares S&P SmallCap 600 Developed 2550 £9,869 £10,008 -£140 -1.40% 23.8%18/07/2013 Fidelity Japan Values (I.T.) Developed 74 £4,704 £5,037 -£333 -6.60% 11.3%18/07/2013 JPMorgan US Small Cos (I.T.) Developed 1545 £4,898 £5,032 -£134 -2.66% 11.8%10/07/2013 db X-trackers MSCI Mexico Emerging 390 £5,140 £5,012 £128 2.56% 12.4%

Cash £11,950 28.8%

£41,478

GroupDeveloped

iShares S&P SmallCap 600 Developed

Fidelity Japan Values (I.T.) Developed

iShares S&P SmallCap 600 Developed

Unicorn UK Income Steady

Cazenove UK Smaller Companies Developed Buy

Sell entire holding

Sell entire holdingBuy

Pending Transactions (these are based on last weeks data)

Fund TransactioniShares MSCI Japan GBP Hedged Sell entire holding

Sell entire holding

Return this month

Group Allocation

Current Holdings (as at 14/08/2013)

Total Portfolio Value

20

Speedboat Portfolio Portfolio Performance

Portfolio StatisticsPortfolio Launch DateInitial Investment (£)Return since launch

-4%

0%

4%

8%

12%

16%

20%

24%

28%

£36,000

£38,000

£40,000

£42,000

£44,000

£46,000

£48,000

23/11/12 23/01/13 23/03/13 23/05/13 23/07/13

ETF Speedboat Portfolio FTSE100 Tracker

64%

36% 29%

59%

12%

10th July 2013 14th August 2013Cash

Fixed Interest

Developed Markets

Emerging Markets

Commodities

Trading Tools

Currency

Specialist

The recent volatility in world markets (especially in Japan) has caused problems for this portfolio.

In the last five weeks the Speedboat has lost 2.4%, and dropped below the FTSE100 for the first time. The overall return has fallen to 10.8% - an annualised return of 15.2%.

It wasn’t that long ago that we were 100% in cash.

Last month we started investing in Japan and the US, and we have continued to invest in these areas using a combination of ETFs and Investment Trusts. We also hold an ETF tracking the Mexican stock exchange.

This week we have also decided to include Unit Trust and OEICs in this portfolio.

This week we are selling all the ETFs and ITs that are currently showing a loss and investing in the same OEICs that we have selected for the Tugboat.


Fund Group Value (£) Date

iShares S&P SmallCap 600 Developed £5,002 10/07/2013db X-trackers MSCI Mexico Emerging £5,012 10/07/2013

JPMorgan US Small Cos (I.T.) Developed £5,032 18/07/2013Fidelity Japan Values (I.T.) Developed £5,037 Buy 18/07/2013

HSBC MSCI Japan Developed £4,626 Sell 29/07/2013

Why we've done what we've done

Increase current holdingBuy

Buy

21

Speedboat Portfolio Other transactions this month

Transaction

It’s been a very difficult couple of months for the Speedboat portfolio.

When we launched the portfolio in November of last year we decided to invest solely in ETFs to help demonstrate how the ETF data that we had recently introduced could be used. ETFs also have the advantage that they have relatively low management charges and give the private investor access to areas that are not covered by conventional Unit Trust and OEICs. The disadvantages are that there are transaction charges for buying and selling them, they have a bid / offer spread, and they tend to be more volatile than many of the actively managed funds.

Initially we had great success in ETFs covering the Emerging Markets like Poland, Vietnam, the Philippines, and Turkey. Markets were rising so quickly that the trading costs were soon recouped and we made some impressive returns. Recently we also included a couple of Investment Trusts - these also incur trading costs and some of them have significant bid / offer spreads. They are further complicated by their premium / discount.

As markets have trended up and down over recent weeks we have bought and sold funds and have been unable to make up the initial charges. We have also been in volatile funds when market conditions should have made us more cautious - this was a mistake, and hopefully a valuable lesson has been learnt.

We have now re-evaluated how we will run this portfolio and decided to include Unit Trust and OEICs. This gives us the option of select-ing less volatile funds and being able to buy and sell without incurring unnecessary costs. We will still include ETFs and Investment Trusts, but only when their returns justify the trading costs and increased volatility. Looking at this month’s data there are Unit Trust and OEICs giving comparable, if not better, returns than ETFs, especially when you take into consideration the costs of trading.

We have decided to invest in two OEICs and will wait until a more definite trend emerges before venturing back into ETFs and Investment Trusts.

Cash - 64% to 29%

This month we have been reinvesting as markets have recovered.

Emerging Markets - 0% to 12%

We invested in an ETF tracking Mexico on the 10th July and it is currently up 2.56%

Developed Markets - 36% to 59%

In the last newsletter we said that the first signs of recovery came from Japan, and so we invested in a couple of funds. These have been very volatile over the last few weeks and, having briefly broken in to positive territory, are now showing a loss.

The next market to recover was the USA and at the beginning of August the Dow Jones and S&P 500 both hit record highs. We are holding two funds investing in the USA, but they have struggled for the last couple of weeks and are now going to be sold.

saltydoginvestor.com Data as at 13/08/2013

Decile Return Decile Return Decile Return -1 -2 -3 -4 -5 -6 -7 -8SLXX OS iShares £ Corporate Bond 1 0.8% 7 -3.6% 6 1.2% 2 8 2 2 1 10 8 10YIEL SR Lyxor iBoxx EUR Liquid High Yield 30 1 0.9% 2 1.6% 1 5.7% 4 1 1 3 3 5 4 3

SHYG OS iShares Euro High Yield Corporate Bond 1 0.9% 2 1.6% 6 1.7% 4 2 1 4 3 7 6 2IS15 OS iShares £ Corporate Bond 1-5yr 2 0.7% 4 -0.5% 4 2.1% 1 9 3 3 5 9 7 4ISXF OS iShares £ Corporate Bond ex-Financials 2 0.7% 7 -3.5% 5 1.7% 2 8 1 2 1 10 9 10IBGS OS iShares Euro Government Bond 1-3yr 2 0.0% 1 1.8% 3 2.2% 6 5 2 7 7 3 5 2IBGL OS iShares Euro Government Bond 15-30yr 2 0.1% 6 -1.4% 1 4.5% 7 1 6 7 4 7 4 9IEBC OS iShares Euro Corporate Bond 3 -0.1% 5 -0.7% 3 2.4% 5 2 5 7 4 5 10 4IBGX OS iShares Euro Government Bond 3-5yr 3 0.0% 2 1.2% 2 2.5% 6 4 4 5 6 2 4 4SEGA OS iShares Euro Government Bond 3 0.0% 5 -0.8% 2 2.5% 8 2 4 6 5 4 9 6

Decile Return Decile Return Decile Return -1 -2 -3 -4 -5 -6 -7 -8DJMC OS iShares EURO STOXX Mid 1 7.5% 1 6.4% 2 14.9% 1 1 1 3 6 7 10 7IMIB FR iShares FTSE MIB (Inc) 1 10.9% 3 1.3% 8 7.2% 1 2 1 1 10 6 10 10DJSC OS iShares EURO STOXX Small 1 5.9% 2 1.8% 7 8.4% 1 2 2 1 4 8 10 8IDJV FR iShares EURO Total Market Value Large 1 7.7% 1 3.3% 6 9.2% 2 3 1 1 4 9 5 106PSC FR PowerShares FTSE RAFI Europe Fund 1 4.6% 2 2.3% 5 10.8% 2 4 2 1 4 8 7 950E FR HSBC EURO STOXX 50 ETF 1 5.3% 2 2.9% 4 12.4% 3 1 1 2 1 10 3 10

SEUA FR iShares EURO STOXX 50 (Acc) 1 5.3% 2 2.8% 4 11.9% 3 1 1 2 2 10 3 10IEUR FR iShares FTSEurofirst 80 1 4.8% 3 1.0% 6 10.1% 3 1 2 3 1 10 6 10IDVY FR iShares EURO Dividend 1 5.2% 4 0.3% 8 7.1% 4 3 1 1 4 10 7 9XESC SR db x-trackers Euro STOXX 50 ETF 1C 1 5.1% 2 2.7% 4 11.8% 5 1 1 2 2 10 3 10

CSUKS OS iShares MSCI UK Small Cap 2 3.5% 1 4.5% 2 15.8% 1 2 5 6 1 3 6 66PSD FR PowerShares FTSE RAFI Dev Eur Mid-Sm 2 4.5% 1 4.3% 4 12.0% 1 4 2 4 5 7 9 6HMCX FR HSBC FTSE 250 ETF 2 3.0% 1 3.5% 3 14.1% 2 2 5 5 2 3 8 5L250 SR Lyxor FTSE 250 2 3.0% 1 3.5% 2 14.7% 2 2 5 5 2 3 8 5MIDD OS iShares FTSE 250 2 3.0% 1 3.5% 3 14.6% 2 2 5 5 3 3 8 5S250 SR Source FTSE 250 ETF 2 3.0% 1 3.5% 2 14.7% 2 2 5 5 3 3 8 5GDIV SR ETFX Dow Jones Global Select Dividend 2 3.1% 5 -0.8% 8 6.7% 2 7 2 5 8 9 3 5


ETFs. Full Steam Ahead Developed Mkts - 4 Week Data


The charts below show the last 12 week performance of a selection of ETFs from the table above

Ticker Type Provider Name4 Week 12 Week 26 Week

22

ETFs. Slow Ahead Fixed Interest - 4 Week DataReplication Type: FR Full Replication OS Optimized Sampling SR Synthetic Replication


-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

Weeks -10 -8 -6 -4 -2 Current£ Corporate Bond iBoxx EUR Liquid High YieldEuro High Yield Corporate £ Corporate Bond 1-5yr£ Corporate Bond ex-Finance Euro Government Bond 1-3yr

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Weeks -10 -8 -6 -4 -2 CurrentEURO STOXX Mid FTSE MIB (Inc)EURO STOXX Small EURO Total Market ValueFTSE RAFI Europe Fund EURO STOXX 50 ETF


saltydoginvestor.com Data as at 13/08/2013


SPOL FR iShares MSCI Poland 1 7.8% 1 6.0% 2 2.5% 1 1 7 2 2 3 10 10

HMLD FR HSBC MSCI EM Latin America ETF 1 3.2% 8 -13.4% 9 -13.5% 1 5 4 3 9 9 2 9

MXBS SR Source MSCI Brazil ETF 1 3.4% 9 -18.5% 10 -17.0% 1 9 2 1 8 10 5 10

HMBR FR HSBC MSCI Brazil ETF 1 3.4% 9 -18.4% 10 -16.8% 1 9 2 1 8 10 5 10

IBZL FR iShares MSCI Brazil (Inc) 1 3.4% 10 -19.5% 10 -18.4% 1 9 3 1 8 10 5 10

XMEX SR db x-trackers MSCI Mexico TRN 1C 1 4.0% 1 -2.8% 2 -1.9% 2 1 5 4 9 3 1 9

LTAM OS iShares MSCI EM Latin America (Inc) 2 2.7% 8 -13.7% 9 -14.8% 1 6 4 3 9 8 2 9

XSFD SR db x-trackers S&P Select Frontier 1C 2 2.9% 1 0.6% 1 11.2% 2 2 6 4 5 1 10 3

XMLA SR db x-trackers MSCI EM LATAM TRN Index 2 1.7% 8 -14.7% 9 -14.7% 4 5 4 3 9 9 2 9

XMBR SR db x-trackers MSCI Brazil TRN Index 1C 2 1.4% 10 -20.0% 10 -18.6% 4 9 2 1 8 10 5 10


TINM SR ETFS Tin ETC 1 10.2% 2 2.5% 6 -10.2% 1 1 4 8 4 10 6 2

PHSN FR ETFS Physical Tin ETC 1 10.7% 1 3.3% 6 -9.9% 1 1 7 6 10 8 2 5

PLAG FR SPGS Platinum ETN 1 6.7% 1 3.0% 7 -13.4% 1 3 5 2 1 10 8 10

1694 SR ETFS Nickel ETC 1 3.5% 5 -3.8% 8 -19.5% 1 3 9 2 4 10 7 2

COCO SR ETFS Cocoa ETC 1 7.2% 1 4.3% 1 10.9% 1 9 7 1 8 3 3 6

SPGP FR iShares Gold Producers 1 11.0% 3 0.8% 10 -33.4% 1 10 4 1 1 10 1 10

PLTM SR ETFS Platinum ETC 1 3.8% 3 -0.5% 7 -11.6% 2 2 6 3 1 8 7 8

SPPT FR Source Physical Platinum P-ETC 1 3.5% 3 -0.8% 6 -11.4% 2 4 4 4 2 5 8 8

M9SD SR RBS Market Access NYSE Arca GoldBugs ETF1 3.9% 6 -4.2% 10 -38.9% 3 10 1 1 4 10 5 10

AUCP SR ETFX DAXglobal Gold Mining Fund 1 4.0% 7 -6.5% 10 -39.2% 4 10 1 1 1 10 7 10

COTN SR ETFS Cotton ETC 2 1.7% 2 2.3% 1 7.4% 1 5 7 5 10 4 5 7

COPA SR ETFS Copper ETC 2 1.9% 5 -3.3% 7 -12.0% 2 1 7 8 5 7 6 5

SPLT FR iShares Physical Platinum ETC 2 3.5% 3 -0.8% 6 -11.4% 2 4 4 4 2 5 8 8

LEED SR ETFS Lead ETC 2 2.1% 1 5.1% 5 -9.9% 3 1 3 10 7 8 2 5

AIGS SR ETFS Softs DJ-UBSCI ETC 2 1.8% 6 -5.1% 5 -6.1% 3 5 5 3 10 9 4 4

GOLG FR SPGS Gold ETN 2 2.7% 5 -3.9% 9 -21.3% 3 7 2 3 1 9 10 10

XGLS FR db Physical Gold GBP Hedged ETC 2 2.2% 6 -4.7% 10 -21.9% 4 9 1 2 1 7 10 10

The charts below show the last 12 week performance of a selection of ETFs from the table above


ETFs. Full Steam Ahead Commodities - 4 Week Data

Ticker Type Provider Name4 Week 12 Week 26 Week Recent Weekly Deciles

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ETFs. Full Steam Ahead Emerging Mkts - 4 Week Data

Replication Type: FR Full Replication OS Optimized Sampling SR Synthetic Replication


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Weeks -10 -8 -6 -4 -2 Current

iShares MSCI Poland HSBC MSCI EM Latin America

Source MSCI Brazil ETF HSBC MSCI Brazil ETF

iShares MSCI Brazil (Inc) db x-trackers MSCI Mexico

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Weeks -10 -8 -6 -4 -2 Current

Tin ETC Physical Tin ETC Platinum ETN

Nickel ETC Cocoa ETC Gold Producers


WHAT’S HOT

AND

WHAT’S NOT

Saltydog Investor Ltd. 90 High Street, Thame, Oxfordshire, OX9 3EH. Registered in England & Wales No. 6743621.

Interest rates to stay lowfor 3 more years

Improved Business andConsumer con�dence

England retains Ashes

GOING UP

Savers still hurt by lowinterest rates

Fracking divides opinion

RBS in public ownership foranother 5 years

Japan continues toconfound

Motorists see fuel costs go up by £15 per month

GOING DOWN

24

© 2013 Saltydog Investor All Rights Reserved. The information contained herein is proprietary to Saltydog Investor Ltd. It is not warranted to be accurate, complete or timely. It may not be copied, distributed or combined with other 3rd party data without prior written consent. Neither Saltydog nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. Information in the Saltydog Investor Newsletter is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions. Appropriate independent advice should be obtained before making any such decisions. Saltydog Investor Ltd and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.The tables and graphs are derived from data supplied by Morningstar, Inc. All rights Reserved.

Mo Farah strikes Goldagain


New Governor takescharge of B of E

Death and TaxesBenjamin Franklin once famously said that the only two things that are certain in life are death and taxes. Unfortunately, in the case of inheritance tax, both can occur at the same time and can have an equally devastating effect on your family. Despite what you read in the press, inheritance tax (IHT) is essentially a voluntary tax and with some careful planning it’s possible to reduce or avoid it.

With the current IHT allowance set at £325,000 and the average UK property valued at £226,887 it’s not difficult to see how many households with some savings, life assurance and property could come within reach of this 40% duty. If you have been a basic rate income tax payer all your life it’s going to be more than a little galling to finally break through into the higher rate once you’re 6 feet under.

As we mentioned in the June issue of Saltydog there are many basic steps you can take to reduce the effects of IHT. These include keeping your will up to date, making effective use of allowances, and putting any life cover in trust. But what about the larger part of your estate and in particular any investments you hold?

Well the next step is probably to start gifting some of these assets whilst you are still alive. Whilst this does eventually have the desired IHT effect,

If you are managing your own investments, but need fixed tariff financial planning, then Saltydog have negotiated special rates for subscribers with IFA firm JPM Asset Management Ltd. For more informa-tion give them a call on 01189 533771, or visit their website www.jpmasset.co.uk

it is important to appreciate that money (or any other assets) given away before you die is still usually counted as part of your estate for 7 years after making the gift. The bigger issue for most people when making larger gifts is that you have to relinquish ownership and any further entitlement to the asset in the future.

So what are the options available if you want to try and reduce your IHT liability but still need that access to either your capital or require an ongoing income? As a general rule of thumb the more access you need to your original invest-ment the more protracted the IHT benefit.

If you are looking to retain access to your original capital then a Loan Trust might be the solution. Having set up a trust you lend the trustees (of which you are one) a sum of money to invest. All growth on the invest-ment will immediately fall outside your estate but you retain the right to repayment of the original loan in full at any time, although it is normally in the form of a regular income. On death only the balance of any repaid loan is included

within your estate for IHT.

If you want to move the money out of your estate quicker than this but still need an income from your investment, the answer may be a Discounted Gift Trust (DGT).

A DGT will allow you to make a gift which is held for the ultimate benefit of your nomi-nated beneficiaries, whilst providing you with a series of withdrawals, payable for the rest of your life. These withdrawals must be specified at outset and cannot be varied thereafter.

Providing you survive 7 full years from the creation of the trust then the full value of the gift will be outside of your estate for IHT purposes.

As the withdrawals are for your absolute benefit, they are not deemed to be part of the gift you made to the trust for IHT purposes. As such, should you die within 7 years of creating the trust, HMRC should agree to ‘discount’ the value of the transfer by the amount of your retained right to the income, effectively making a reduction to your liability from day one.

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