David Bulteel
“Bond markets produced modest returns in 2005 but most equity markets ended the year in good heart. The known risks (inflation, interest rates, oil prices) appear under control. However, equity valuations do not suggest optimism. Equities are on around 13-14 times earnings and yield 2-3 per cent with further earnings and dividend growth forecast for 2006. This appears modest given interest rates of 2-4 per cent and low inflation. So, the steady equity mood appears rational rather than complacent.”
Amount (E) Fund
16,575 Gartmore CSF Continental Europe (large cap)
14,500 Fidelity Funds European Bond Fund
12,500 Gartmore CSF European Bond
11,675 Investec GSF Continental European Equity
11,650 Henderson Horizon Continental European Equity
10,000 Baring European Bond Fund
5,375 Credit Suisse USA Equity
5,375 GAM Star American Focus (equity)
3,200 Lazard UK Equity
2,650 Mellon Newton Asian Equity Portfolio
2,500 Findlay Park US Smaller Companies
2,000 Martin Currie Japan Fund (equity)
2,000 Cash
