January 2010
Background
The health of the global economy continued to improve modestly during the period, albeit
at a chronically slow pace. Manufacturing and Industrial activity gathered some momentum,
causing commodity markets to tighten sharply. Unfortunately stubbornly high unemployment,
ongoing credit contraction and negative real income growth in the developed world continued
to constrain overall global GDP growth.
Activity
Additional cash added to the existing holding in British American Tobacco was the only activity
during the month.
Outlook
Although it could be argued that our concerns over the withdrawal of unorthodox policies and
potential tightening of monetary policy are premature, we make no apologies for labouring the
point. The risks associated with these are rising because the current emergency policy directives
and low level of interest rates cannot continue indefinitely. Global diversification based on
companies with quality earnings and dividend streams remain core to current portfolio
positioning and investment strategy.
Source: Monthly Factsheet Aberdeen Asset Managers Limited