The New Star Cautious Portfolio fell 1.4%* during the quarter, while the IMA Cautious Managed sector lost 1.3%*. Algebra-Alpha MENA contributed positively, returning 8.4%^, while the new holding in ETFS Wheat gained 6%* since being introduced into the portfolio in early June.This was offset, however, by weak performances from Atlantis China Fortune which lost 10.4%* and the UK equity holdings in Threadneedle UK Equity Alpha Income and Marlborough UK Equity Income, which shed 4.3%* and 5.9%* respectively.The portfolio sold holdings in Invesco Perpetual Income, iShares MSCI Turkey, iShares FTSE/ Xinhau China 25, S&P Homebuilders SPDR and Thames River High Income. The positions in Algebra-Alpha MENA and New Star Sterling Bond were increased and the portfolio initiated positions in BlackRock World Mining Trust, BlackRock Gold & General and ETFS Wheat.