
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

October 2009
October is yet another month in which the headline statistics belie intra-month activity. Our FTSE EPRA/NAREIT Small Cap benchmark increased by only +0.29% over the month. However, the market was certainly not as calm as that might suggest. Between 1st and 12th October small cap stock prices increased by 6.7% as investors bought into the idea that interest rates would remain low for an extended period and were consequently happy to take on increased risk. Values remained steady for the following week before plunging 8.2% between the 19th and 28th October as positive news on the economy and earnings persuaded the market that an exit from governments’ stimulus measures and a resultant increase in bond yields and interest rates might come sooner than previously expected. Prices then rebounded +2.4% to end the month more or less flat. Sigma had a poor month. The capital only NAV fell by 1.36%, giving rise to underperformance of 165 bps. With the market performance virtually flat, this weak return was due to poor stock selection. In particular, two companies which we under own, Deutsche Wohnen in Germany and CA Immo in Austria both rose over 14%. These stocks account for 6.2% of our benchmark. In the case of the latter, by mid November, it has returned to its late September share price. October is often a blustery month! There has been an increasing amount of anecdotal evidence of investors prepared to pay for quality property with strong income streams. We believe prime yields have tightened 100bps or more in the quarter and this is giving support to property asset values across Europe. Our net investment in October was £8.1m and the fund is now geared approximately 8.5%. Significant increased positions were Fabege and Norwegian Properties in Scandanavia, Tour Eiffel and Fonciere Paris France in France and Swiss Prime in Swizerland. Sales were focused on large cap positions, Wereldhave in the Netherlands and Castellum in Sweden. The fund’s small cap benchmark constituents are adjusted quarterly and after the last quarter’s price return of +26.6% there were six stocks which had exceeded the £1bn market capitalisation limit. The benchmark currently has 56 constituents.