The performance of the UK market remains poor with the FTSE All Share index falling by over 12% in the month. The market was on course to significantly under perform but a late rally in the month saw the index rise by 11% over the final week of the month. The financial sector of the UK market remains subdued as investors await greater details of the banking rescue package on offer from the government.The government package is expected to include restrictions on dividend payments and the ability to appoint directors onto the boards of banks seeking assistance. The wider economy in the UK remains under pressure with all sectors of the economy looking to the MPC for a significant cut in UK base rates. The yield on all shorter dated government treasuries has lowered over the month underpinning this expectation.Over the month we have reduced our exposure to foreign and domestic Sovereign debt and selectively increased our UK equity allocation.