Global equity markets were generally subdued over February, with US markets in particular continuing their slide. The S&P 500 Index fell by around 3% over the month as the market remained concerned over the prospect of further writedowns from banks. However, Europe ex-UK and Pacific Basin markets were relatively stronger, buoyed by strong commodity and energy prices.The Managed Fund returned 3.78% during February, against the IMA sector average return of 3.33%. In the UK, our holding in Expro International proved beneficial, after the company was rumoured to be an acquisition target. The strong performance of the mining sector also meant our holdings in Anglo American, Rio Tinto, Kazakhmys and Vedanta Resources made positive contributions to performance.In the US, smart meter manufacturer Itron was a strong contributor to performance, reporting buoyant sales of their electricity meters to utilities. Meanwhile, in Europe, the Fund benefited from its investments in equipment rental company Ramirent, after the company posted results which alleviated market concerns over Finnish and Eastern European construction, and StatoilHydro, which surged on the back of a strong oil price.Within the mining sector, we continued to add to BHP Billiton, which benefited from the sector consolidation and which was also supported by strong demand for nickel and copper. In the US, we sold Coach on concerns that the company is vulnerable within a weaker consumer spending environment.We also reduced the Fund's exposure to brokers such as Goldman Sachs, Merrill Lynch and Morgan Stanley, anticipating the likelihood of further large writedowns. Turning to Europe, Infineon's poor results highlighted shortcomings in its strategy to boost profits in its communication business, prompting us to sell the stock.
426.00p
