August witnessed quite a rebound in markets driven in large by the Oil price continuing to fall and an ease of inflationary pressures, and so raising hopes of monetary stimulus. The FTSE All Share rose 4.4% whilst the FTSE Mid 250 rose 6.5%, due to a greater element of interest rate sensitive stocks. Brent crude oil ended $112 per barrel, giving further hope that interest rates may be cut to help a sagging economy.However, recent numbers from the UK suggest this will be a tough battle as the outlook appears to be weakening markedly with Sterling responding in kind. I continue to hold a defensive tilt to the portfolio, but as suggested last month the fund is moving to neutralise some of the more economically sensitive sectors in case some form of monetary stimulus is provided.The fund continued to perform well against the benchmark, rising 6.8%, with some strong performances from Brit Insurance, Spirent, Logica and Bellway in particular, all rising over 20%. On a negative tack, modestly disappointing numbers from insurance group Chaucer saw the shares fall initially though recover some ground towards the end of the month and International Personal Finance was weaker in August with some investors locking in profits after an exceptionally strong run.Stock numbers have continued to drift modestly upwards with a purchase of Charter early in the month on recent weakness, even though the company appears to be trading well, also Homeserve, Kesa and Rensburg Sheppards, also look good value.
395.31p
