August 2010
Background
Tentative steps towards tighter fiscal policy dominated the economic backdrop throughout
most of the developed world over the period. As budgetary demands for rising taxes and
draconian public-spending cuts intensified, consumer confidence and consumption
remained subdued.
Performance
Global equity markets moved higher over the month, providing some welcome respite from
the intense selling pressure experienced in the second quarter. Better than expected corporate
profits from many companies exposed to emerging growth markets sparked a
broad-based rally.
Activity
Excess cash was used to add to existing positions in Canon, Total, Roche and ASUR.
Outlook
Historical evidence clearly shows that the dynamics of debt de-leveraging are deflationary.
Most countries in the northern hemisphere are now painfully realising this fact. With overall
growth likely to remain fragile and scarce, the portfolio will stay focused on high quality
companies with proven track records of delivering consistent returns to shareholders.
Source: Monthly Factsheet Aberdeen Asset Managers Limited