UK mid-cap shares underperformed the broader market in October, as fears of a protracted painful downturn for the domestic economy gathered pace amid falling commodity prices. The FTSE 250 Index closed 20% lower, with mining and property stocks bearing the brunt of the sell-off. The Bank of England cut interest rates by 0.5% as part of a coordinated global response to the credit crisis.It also boosted bank deposit guarantees, unveiled a £50bn rescue package, offered up to £200bn in short-term loans and proposed to take stakes in three banks. Latest data showed the economy was edging towards recession: third-quarter GDP shrank by 0.5%, the first contraction in 16 years. Manufacturing output declined, while retail sales cooled as unemployment rose.Housing prices remained weak. The inflation outlook was mixed as producer prices eased but consumer prices rose faster than expected in September. We sold Premier Foods to reinvest the capital in better opportunities elsewhere. We topped up Persimmon, as its valuation appeared attractive, and Weir Group, which has a good-quality business, strong management and a solid balance sheet.