During March, the unit bid price of the Marlborough Cautious Fund declined by 3.15%, against the Morningstar Cautious Managed Sector average fall of 1.75%.March saw a resumption of the decline in equity markets, on this occasion however, markets became so technically oversold that it is likely that they formed a more durable bottom. Of the main markets, Europe led with an increase of 1.63% (FTSE World Europe ex-UK). All other main markets ended the month down, the US (S&P 500 Composite Index) ended down 0.38%.This was followed by the UK, Japan and Far East, with the FTSE 100, Nikkei 225, and FTSE Pacific ex- Japan indices down 3.10%, 3.61% and 3.84% respectively. Finally the MSCI Emerging Markets Index closed the month down 4.13%. Of the BRIC economies, only the Russian Trading System closed the month up, with a return of 2.06%.High Yield bonds finally began to bounce when spreads reached levels where they offered compelling valuations. Our holding in the Baillie Gifford High Yield Bond Fund had a strong month with an increase of 2.49%. Moving to equities, our holding in the Digital Stars Europe ex UK Fund produced the largest gain with an increase of 1.37%. Finally, the only other holding which ended the month up was the SG Sterling Bond Fund which increased 0.68%.
