David Bulteel

“No change! Euro denominated eurobond yields fell again over the last month, making an expensive market look even more so. In our view, the only way this would be justified would be if we were heading for a period of sustained deflation. Although a risk, we do not think this likely. Thus we recommend keeping half the capital earmarked for bonds in euro cash. Equity markets remain completely absorbed by the geopolitical situation. The overall asset allocation continues to reflect our cautious stance.” Amount (E) - Fund 25,000 - Cash 12,500 - Fidelity Funds European Bond Fund 12,500 - Gartmore CSF European Bond 11,675 - Gartmore CSF Continental Europe (small cap) 11,675 - Investec GSF Continental European (equities) 11,650 - Henderson Horizon Continental European Equity 5375 - Credit Suisse USA Equity 5375 - GAM Star American Focus (equities) 1600 - Lazard UK Equity 1325 - Martin Currie Japan Fund (equities) 1325 - Mellon Newton Asian Equity Portfolio