25th October 2011

Thames River multi-manager portfolio update‏

Sold : Fidelity South East Asia Fund
Bought : Schroder International Selection Fund Asian Total Return

We have sold our positions in the Fidelity South East Asia Fund in both the Thames River Balanced Managed and Equity Managed portfolios, with the proceeds reinvested into the Schroder International Selection Fund Asian Total Return. The rationale for the switch is relatively simple and does not reflect a negative assessment of the Fidelity fund. For now however we want to reduce our beta – i.e. the strength of our relationship with the wider market – whilst retaining our overweight Asian equities. The Schroder fund sits well with this aim as it makes tactical use of futures and options in order to deliver returns in a much smoother profile. Importantly we have known fund manager Robin Parbrook for a number of years and have successfully held this fund in our Cautious Managed portfolio.

Sold : Four Capital Active UK

We have sold our position in Thames River Global Boutiques. The sale is not a reflection on the quality of this fund or the team running it, but is a result of our desire to reduce our UK equity exposure at this juncture. With commodities (an area vulnerable to weaker demand given the subdued economic backdrop) making up a significant part of the index and with the UK domestic economy proving weaker than expected we see better value/potential elsewhere.

Rob Burdett and Gary Potter
Fund Managers

Investments