
Ordinary Shares

Price (p)	149.00
Published NAV	170.30
Yield	3.89
Discount	-13.91

Prices correct as of close 2010-09-06. Last Published NAV is as at the previous business day. Source: Trustnet

Sigma Shares

Price (p)	66.70
Published NAV	88.10
Yield	3.00
Discount	-24.69

Prices correct as of close 2010-09-06. Last Published NAV is as at the previous business day. Source: Trustnet

For Sigma Shares

July 2010

June 2010

May 2010

April 2010
Small Cap Pan European real estate stocks fell 6.95% (in GBP) in capital terms in the month, almost eradicating the 7.1% gains made over the first quarter. No sooner has the real estate sector clawed itself into positive territory year to date than a macro economic driven wave of risk aversion swept all aside. The total return figure for the month was slightly better at -6.00% which reflected the quantum of dividends paid in the month. At the national level – as expected – Greek stocks fell the most (-23.3%), followed by Italy (-8.2%). The surprise top performers were Austria (+1.3%) dominated by the performance of CA Immo and the UK small cap stocks, which in GBP terms fell only -1.6%. In April (as opposed to May) this was viewed as a Euro based issue and Sterling gained 2.2% in the month. The fund is overweight UK stocks but its borrowings are also in Sterling which reduces overall Sterling exposure relative to the benchmark. Investors remain concerned that the driver behind the improvement in real estate pricing has been dominated by the ‘yield gap’ between bond yields and that available from property. If the cost of sovereign debt was to rise in the Eurozone, property values would of course come under pressure. The expectation would be for a period not only of higher priced debt but also a tougher borrowing environment which would be bad news for leveraged asset classes. Meanwhile the nascent improvement in underlying economic data (at least in the northern parts of Europe) has yet to translate into renewed demand for commercial premises.

Sigma’s NAV (capital only in GBP) fell 6.67%, slightly less than the benchmark. Given that the fund has 10.6% gearing this reflects stock selection. Whilst this gearing was a benefit in March it has been a hinderance to performance in April and was slightly reduced over the latter part of the month. A second interim dividend of 1.1p (declared on 3rd March) was paid on 1st April.