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					Our investment trusts
independence   expertise   choice




                                    Information advantage
The information advantage

      RCM and its predecessors have been managing investment trusts since 1889,
      providing investors with access to investment markets around the world.




      RCM is an award-winning global asset manager and equities

      specialist. A company of Allianz Global Investors, our offices are

      strategically located in the US, Europe and Asia. At RCM, we

      believe the better the investment research, the better the

      investment decision, which is why research plays a crucial role     Why 250,000 interviews make us

      across the range of trusts that we manage. We apply our             right for the job
                                                                          GrassrootsSM Research is one of the
      resources, including a 60-strong fundamental research team
                                                                          investment industry’s most innovative research
      and our proprietary GrassrootsSM Research, to seek out attractive
                                                                          facilities and is unique to RCM. GrassrootsSM
      investment opportunities around the world.
                                                                          combines in-house experts with a global
                                                                          network of more than 250 independent
      Our investment trusts hold a variety of UK, European and global
                                                                          investigators and over 50,000 industry
      equities, and also include more specialist investments such as
                                                                          contacts. Since 1984, GrassrootsSM has
      endowment policy trusts. Each trust has a specific aim – either
                                                                          conducted over 250,000 interviews with
      to provide income, growth or a combination of both – which          businesses and consumers on hundreds of
      determines the type of assets in which it invests. Our goal is to   wide-ranging subjects, helping us to identify
      offer investors a broad choice, so that they can tailor their        market trends before our competitors.
      investment to their own specific objectives and needs.




          Strength and experience
          Allianz Global Investors is one of the largest

          active asset managers in the world, with

          €920 billion of assets under management

          and investment centres in 25 locations

          around the world. With 4,600 staff, including

          950 investment professionals, Allianz Global

          Investors brings together a distinctive

          network of specialist investment firms, each

          with their own dedicated area of expertise.
Our investment trust range

                  A broad choice of trusts to suit your investment requirements…


                     THE MERCHANTS TRUST PLC

                                        Income to appreciate.
                                        Investing in large UK companies, the Merchants Trust PLC aims to provide an above average level of income
                                        which increases over time. It was incorporated in 1889 and has assets in excess of £400m (as at 30 April
                                        2009), making it the oldest and largest investment trust in our range. The trust is managed by Simon Gergel,
                                        a Director at RCM with 22 years’ investment experience.



                     THE BRUNNER INVESTMENT TRUST PLC

                                                             Global potential.
                                                             Jointly managed by Lucy Macdonald and Mark Lovett, the Brunner Investment Trust PLC
                                                             provides investors with a global equity portfolio. Approximately half of the portfolio is
                                                             invested in large UK companies, with the remainder spread throughout the world’s
                                                             markets, creating a well-diversified portfolio.



                     BRITISH PORTFOLIO TRUST PLC

                                        A balanced portfolio.
                                        The British Portfolio Trust aims to provide growth in capital and income over the long term through investment
                                        in a diversified portfolio of UK equities. The broad range of sectors within the UK equity market helps achieve
                                        a balanced portfolio of stocks. As over half of the companies listed on the London stock exchange also derive
                                        profits from overseas, manager Jeremy Thomas takes full advantage of RCM’s global research capabilities.



                     CHARTER EUROPEAN TRUST PLC

                                        An award-winning investment.
                                        The award-winning Charter European Trust aims to deliver capital and income growth for investors looking
                                        for exposure to continental Europe. Managed by Mark Lovett, Co-CIO European Equities, the trust favours larger
                                        European “growth” companies and has benefited from a highly-focused investment style adopted in 2004.




                     RCM TECHNOLOGY TRUST PLC

                                        A specialist’s pursuit.
                                        The Technology Trust is managed by Walter Price, Managing Director and senior analyst of one of the leading
                                        technology fund management teams in the United States. Based in San Francisco, the team’s specialist
                                        research resources enhance its expertise in both technology and technology companies. Walter Price has
                                        been analysing technology stocks for more than 35 years.



                     ENDOWMENT POLICY TRUSTS

                     These trusts invest in mid-term endowment policies to provide capital growth over their planned life:
                         Allianz Dresdner Second Endowment Policy Trust 2009 PLC
                         Allianz Dresdner Endowment Policy Trust 2010 PLC




Some of the trusts seeks to enhance returns for its shareholders through gearing. Gearing can boost a trust’s returns when investments perform well, though losses can be
magnified when investments lose value. You should be aware that these trusts may be subject to sudden and large falls in value and you could suffer substantial capital
loss. For more details, please visit www.rcm.com/investmenttrusts. Past performance is not a reliable indicator of future performance. You should not make any assumptions
on the future on the basis of performance information. The value of an investment and the income from it can fall as well as rise as a result of market fluctuations and you
may not get back the amount originally invested.
The benefits of investment trusts

   Investment trusts are collective investments that pool money together to invest in stock
   markets. Unlike other forms of collective investment, they are listed on the London Stock
   Exchange and can be traded throughout any dealing day. Here are several other key benefits:



   1      Investments designed to last…

          As one of the oldest existing forms of collective
                                                                      4    Income reserves

                                                                           Investment trusts have the ability to keep reserves of
          investment, investment trusts have proved their                  income, so even if dividends are cut by the companies
          longevity and flexibility. Indeed, they have been                 that the trust invests in, some trusts have the potential
          providing private investors with a cost effective route to        to continue to sustain their own dividends by using their
          the potential benefits of the stock market for more than          income reserves.
          130 years. Investment trusts are companies listed on



                                                                      5
          the London Stock Exchange that invest in the shares of           Gearing
          other companies. Like other companies listed on the

          Stock Exchange, their share price is determined by               Investment trusts can also benefit from gearing –

          supply and demand, and can also trade above (at a                the ability to borrow money with the aim of enhancing

          premium to) or below (at a discount to) the underlying           returns. The level of gearing is carefully managed by the

          value of the investments held by the trust. This                 trust’s Board of Directors and is determined by, amongst

          ‘underlying value’ is known as the net asset value.              other factors, stock market views. Gearing can boost a

                                                                           trust’s returns when investments perform well, though




   2
                                                                           losses can be magnified when investments lose value.
          Long-term track record




                                                                      6
          Whilst past performance is no guide to future                    Easy to purchase
          performance, and capital returns can, and recently have

          been, volatile, open-ended funds investing for global            You can easily purchase shares in our investment trusts

          growth have returned 15.5% over five years and -0.3%              through a stockbroker, and these can be held in an ISA

          over ten years, whereas global growth investment trusts          and/or savings scheme.

          have returned 37.1% and 28.2% over the respective

          periods. Similarly, open-ended funds in the UK All

          Companies Sector have returned 8.3% and -1% over

          the same periods, whereas UK growth investment trusts
                                                                                                                        TO FIND OUT MORE
          have returned 15.7% and 43.7% respectively.                                                                   You can find more information about RCM-managed

          (Sources: Lipper in GBP, as at 30.4.09, AIC vs IMA                                                            investment trusts on our website, including fact sheets,
                                                                                                                        video interviews with our fund managers, daily prices,
          sectors).
                                                                                                                        NAVs, performance charts and Annual Financial Reports.




   3      Independence                                                                                                  www.rcm.com/investmenttrusts

          Each investment trust benefits from the expertise and
                                                                                                                                                                                                                                                                                                                                                                                         British Portfolio Trust plc

          resources of a professional fund manager such as RCM,                                                                                                                                                               The Brunner Investment
                                                                                                                                                                                                                                                                                                                         Trust PLC

                                                                                                                                                                                                                                                                                                                                                                                         Aim                  31 March 2009                                                                      Key Information
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            31 March 2009




                                                                                                                                                                                                                                                                                                                                                                                         The Trust’s objective is to provide shareholders with growth in capital and income
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Total Assets:                           £38.8m
                                                                                                                                                                                                                                                                                                                                                                                         over the long term through investment in a diversified portfolio of UK equities. The
                                                                                                                                                                                                                                                                                                                                                                                         Trust invests mainly in the shares of FTSE 100 companies, although its portfolio also                   Gearing (net):                          10.5%
                                                                                                                                                                                                                                                                                                                                         Key Information

                                                                                                                             Trust PLC
                                                                                                                                                                                                                                                                                                                                                                                         includes some medium-sized and smaller UK companies.                                                    No. of Shares (Ordinary 1p):            36,747,220
                                                                                                                                                                                                                                Aim                                                                          index of 50%                                                                 £205.3m
                                                                                                                                                                                                                                                                      its total return above the benchmark

                                                                          The Merchants
                                                                                                                                                                                                                                                                                                                                           Total Assets:
                                                                                                                                                                                                                                 The Trust’s objective is to increase                              adjusted) over the long                                                                15.1%                                                                                                  Share Price1:                           88.0p




          yet, as a company listed on the London Stock
                                                                                                                                                                                                                                                                  All-World Index (ex UK sterling                                           Gearing (net):
                                                                                                                                                                                                                                 FTSE All-Share and 50% FTSE                                  The strategy of the Trust is                                                               Risks & Features                                                                                        Net Asset Value3:                       93.7p
                                                                                                                                                                                                                                                           UK and international securities.
                                                                                                                                                                                                                                 term, by investing inMarch 2009                                                                            No. of Shares (Ordinary
                                                                                                                                                                                                                                                                                                                                                                             1p):         46,710,015
                                                                                                                                                                                                                                                                                                          investment in a                                                                Investment trusts are quoted companies listed on the London Stock Exchange. Their
                                                                                                                                                                                                                                                    31                       of those seeking a single                                                                                     292.5p                                                                                                Premium/-Discount to NAV3:              -6.1%
                                                                                                                                                                                                                                  designed to meet the requirements                                                                         Share Price :
                                                                                                                                                                                                                                                                                                                                                            1
                                                                                                                                                                                                                                                                                                                                                                                         share prices are determined by factors including demand, or lack of, which means
                                                                                                                                                                                                                                                                   managed portfolio.                                                                                                      334.9p (316.1p – debt at market
                                                                                                                                                                                                                                                                                                                                                                                                                            value)                                                               Dividend Yield2:                        5.80%
                                                                                                                                                                                                                                  diversified and professionally                                                                                                                         that the shares may trade below (at a discount to) or above (at a premium to) the
                                                                                                                                                                                                                                                                                                                                                         Net Asset Value :
                                                                                                                                                                                                                                                                                                                                                                               3

                                                                                                                                                                                                                                                                                                                                                                                                                            value)                                                               No. of Holdings:                        50
                                                                                                                                                                                                                                                                                                                                                                                         underlying net asset value. market
                                                                                                                                                                                                                                                                                                                                                                                           -12.7% (-7.5% – debt at
                                                                                                                                                                                                                                                                                                                                                                                              3
                                                                                                                                                                                                                                                                                                                                                                                                :
                                                                                                                                                                                                                                                                                                                                                         Premium/-Discount to NAV
                                                                                                                                                                                                             n                                                                                                                                                                                                                                                                                   All data source RCM (UK) Limited as as 31.03.09 unless otherwise stated.
                                                                                                                                                                                   Key Informatio                                            Risks & Features                                            on the London Stock Exchange.
                                                                                                                                                                                                                                                                                                                                              Their       Dividend Yield :
                                                                                                                                                                                                                                                                                                                                                                              2                          4.00%
                                                                                                                                                                                                                                                                                                                                                                                                     The Trust seeks to enhance returns for its shareholders through gearing, in the form
                                                                                                                                                                                                                                             £363.7m trusts are quoted companies listed
                                                                                                                                                                                                                                             Investment                                                                                                                                                  bank
                                                                                                                                                                                                                                                                                                                                                                                                     of 136 borrowings. Gearing can boost the Trust’s returns when investments perform
                                                                                                                                                                                                                                                                                                                        or lack of, which means                                                                                                                                                  Launch Date:                            December 2001
                                                                                                                                                 income growth                      Total Assets:                                                                                  by factors including demand,                                           No. of Holdings:
                                                                                                                                level of income,                                                                                             40.3%prices are determined
                                                                                                                                                                                                                                             share                                                                         (at a premium to) the
                                                                                                                                                                                                                                                                                                                                                                                                     well, though losses can be magnified when investments lose value.
                                                                                                                                                                                                                                                                                                                                                                                                    as as 31.03.09 unless otherwise
                                                                                                                                                                                                                                                                                                                                                                                                                                           stated.
                                                                           Aim                                    above average                       in higher                                                                                                                          (at a discount to) or above                                      All data source RCM (UK) Limited                                                                                                       Continuation Vote:                      2013
                                                                                                 is to provide an                 of investing mainly                               Gearing (net):                                            that the shares may trade below
                                                                           The Trust’s objective                through a policy                                                                         (Ordinary 1p):
                                                                                                                                                                                                                                              102,813,464
                                                                                            growth of capital                                                                                                                                 underlying net asset value.                                                                                                                                                                                                                        AIC Sector:                             UK Growth
                                                                           and long-term                                                                                             No. of Shares                                             235.3p                                                                         gearing, in the form         Launch Date:                              History 1927
                                                                                                                                                                                                                                                                                                                                                                                                          January
                                                                                               100 companies.                                                                                                                                                                     returns for its shareholders through
                                                                                                                                                                                                                                                                                           value)                                                                                                                                                                                                Benchmark:                              FTSE All-Share Index
                                                                                                                                                                                     Share Price :                                             The Trust seeks to enhancemarket
                                                                                                                                                                                                                                                                     – debt at
                                                                                                                                                                                                1
                                                                            yielding UK FTSE                                                                                                                                                    255.3p (242.2p                                                          the Trust’s returns when                                                     TheGlobal Growth Trust in December 2001 followed offers to holders of Loan Notes
                                                                                                                                                                                                                                                                                                                                                                                                            launch of the
                                                                                                                                                                                                                                                                               debentures. Gearing can boost
                                                                                                                                                                                                                                               of long-term, fixed rate market value)
                                                                                                                                                                                                                                                                                                                                                           AIC Sector:
                                                                                                                                                                                                         :                                                                                                                        investments lose                                                                                                                                               Year end:                               31 October




          Exchange, it is independent and is overseen by its own
                                                                                                                                                                                                       3

                                                                                                                                                                                       Net Asset Value                                                              – debt at                losses can be magnified when                                                                                  50% FTSE All-Share Index
                                                                                                                                                                                                                                                                                                                                                                                                     issued by Lafarge Minerals Ltd (former shareholders of Blue Circle Industries PLC)
                                                                                                                                                                           Their                                                                 -7.9% (-2.9%
                                                                                                                                                                                                                                               investments perform well, though                                                                            Benchmark:
                                                                                                                                                                                                                   :                                                                                                                                                                                        Shopgoal Ltd (former UK Index
                                                                                                                                                                                                                 3
                                                                                                                                                       Stock Exchange.                               count to NAV                                                                                                        to sudden and large falls                                                   and50% FTSE All-World ex shareholders of Fairbar Ltd, which was de-merged from              Reports & Accounts:                     Final posted in January,
                                                                            Risks & Features companies listed on the London lack of, which means                                                                                                                                    that this Trust may be subject
                                                                                                                                                                                       Premium/-Dis                                             value. You should be aware
                                                                                                                                                                                                                                                  9.39%                                                                                                                                              Whitbread plc), effectively to exchange their Loan Notes for Ordinary shares. In                                                    Interim posted in July
                                                                                          quoted  are                     or                                                                          2
                                                                                                                                                                                                        :                                                                                           capital loss.                                                                                          30 November
                                                                             Investment trusts                      factors including
                                                                                                                                           demand,
                                                                                                                                                               a premium to)
                                                                                                                                                                                    the Dividend Yield                                             value and you could suffer substantial
                                                                                                                                                                                                                                                inFinal: 5.6p (payable 15.05.09)                                                                            Year end:
                                                                                                 determined by                           to) or above (at                                                                                                                (payable 20.02.09)
                                                                                                                                                                                                                                                                                                                                                                                                     addition, Ordinary shares were available through a Placing and Offer for Subscription
                                                                                                                                                                                                                                                                                                                                                                                                            Final posted in February,                                                            AGM:                                    February
                                                                              share prices are                        (at a discount                                                    Net Dividend
                                                                                                                                                                                                      per Share:                                   3rd interim: 5.6p                                                                                        Reports & Accounts:                                             Trust
                                                                                                                                                                                                                                                                                                                                                                                                     by Cazenove. The in Julyhas issued new shares on subsequent occasions at the
                                                                                                may trade below                                                                                                                                                          (paid 13.11.08)                                                                                                                    Interim posted
                                                                              that the shares                                                                                                                                                      2nd interim 5.6p
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Dividends:                              March, September
                                                                                                asset  value.                                                             in the form                                                            History 5.5p (paid             19.08.08)                                                                                                            planned wind-up dates of other quoted investment trusts and also in exchange for
                                                                               underlying net                                                       through gearing,                                                                                1st interim:                                                             sale of Brunner, Mond
                                                                                                                           for its shareholders                                    when                                                                                                 Brunner family’s interest in the                                                                             loan Marchissued in cash takeovers.
                                                                                                                                                                                                                                                                                                                                                                                                             rates                                                                               Price Information:                      Financial Times, The Daily Telegraph,
                                                                                                   to enhance returns                                   the Trust’s returns                                                                      The Trust was formed from the                                                ICI in 1926. The Trust
                                                                                                                                                                                                                                                                                                                                                             AGM:
                                                                                                                               Gearing can boost
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         www.rcm.com/investmenttrusts
                                                                               Merchants seeks                                                                                       lose                                                           44                                 companies which came to form                                                                                          March, August
                                                                                                fixed rate debentures.                                     when investments                                                                       & Co, the largest of the four stated.                                           Investors formerly         Dividends:
                                                                                of long-term,                                       can be magnified                                  falls       No. of Holdings:                                                  unless otherwise (a subsidiary of Allianz Global                                                                                         Financial Times, The Daily Telegraph,                                               Board of Directors:                     Andrew Barker (Chairman),
                                                                                                          well, though losses                                sudden and large                                                                     has been managed by RCM
                                                                                                                                                                                                                                                as as 31.03.09
                                                                                investments perform                                         be subject to                                                               RCM (UK) Limited                                                                                                                     Price Information:                      Fund Manager’s Review                                                                                                               George Luckraft, Nicholas Gold,
                                                                                                                        this Trust may                                                             All data source                                Kleinwort Benson) since inception.                                                                                                                          www.rcm.com/investmenttrusts
                                                                                                       be aware that                                                                                                                                                                                                                                                                                                         The FTSE All Share index recovered modestly during March,
                                                                                 value. You should                                  capital loss.                                                                                                     16 February 1889
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Adam Wethered, Simon White
                                                                                                      could suffer substantial                                                                                                                                                                                                                                                                                Keith Percy (Chairman), providing investors some small relief after a poor
                                                                                                                                                                                                                                                                                                                                                                                                                             rising 2.8%,
                                                                                 in value and you                                                                                                   Launch Date:                                                                                                                                              Board of Directors:
                                                                                                                                                                                                                                                                                                                                                                                                              Vivian Bazalgette, Ben Siddons, the end of the first quarter the UK equity         Investment Manager:                     Jeremy Thomas, Director, UK Equity
                                                                                                                                                                                                                                                      UK Income Growth
                                                                                                                                                                                                                                                   Fund Managers’ Review After the dismal start to the year, world
                                                                                                                                                                                                                                                                                                                                                                                                                             start to 2009. At
                                                                                                                                                                                                    AIC Sector:                                                                                                                                                                                               William Worsley, Richard Wakeling                                                                                          RCM
                                                                                                                                                                                                                                                       FTSE 100 Index




          Board of Directors. The fund manager is accountable to
                                                                                                                                                                      of the investment                                                                                                                                                                                                                                      market was down 9.1% for the year to date, a truly                                                          A company of Allianz Global Investors
                                                                                                                                            making it the oldest                                                                                                                                                                          in March as                                                          Mark Lovett, CIO, UK & European
                                                                                                                                                                                                                                                                                                                                                                                                                                                     Equity
                                                                                  History                              February 1889,                                             securities         Benchmark:                                         31 January                                     equity markets rallied strongly                                                                                       disappointing outcome after the near 30% fall in 2008. The
                                                                                                    incorporated in                                    in the fixed interest                                                                                                                                                                   showed         Investment Manager:                                                        Global Equity                                           Investor Services:                      020 7065 1407
                                                                                   The Trust was                                                                                                                                                                                                       some macroeconomic indicators                                                                           Lucy MacDonald, CIO,Portfolio Trust NAV rose 5.5% over the month,
                                                                                                                            it principally invested                 with the remainder                Year end:                                          Final posted in
                                                                                                                                                                                                                                                                            April,                                                                                                                                           British
                                                                                                         stable. Initially                and South America,
                                                                                                                                                                                                                                                                                                                                                    and
                                                                                   trusts in the RCM                                                                            Brewery in                                                                                  in September               tentative signs of stabilisation                                                                        RCM           benefitting from favourable stock selection and from the
                                                                                                              in the USA, Canada                                                                       Reports & Accounts:                                Interim posted                                                                                                                                                                        Investors                                        1
                                                                                                                                                         as Castlemaine                                                                                                                                                                     announced                                                          A company ofmodest Global gearing employed. A more positive period of
                                                                                                                                                                                                                                                                                                                                                                                                                               Allianz                                                            Source: Lipper as at 31.03.09, market close mid price.
                                                                                    of railway companies                           companies such                                                                                                                                                       governments around the world                                                                                                    level of
                                                                                                               securities and                                      major UK companies                                                                                                                                                               their
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Source: Datastream as at 31.03.09. Calculated using the latest full year dividend
                                                                                    held in Government                                          primarily upon                                                                                             May                                          new measures aimed at kick-starting                                                                     020 7065 1407
                                                                                                                                                                                                                                                                                                                                                                                                     stock selection was driven by a recovery in some of the stocks that contributed to
                                                                                                           The Trust   now concentrates                                                                                                                                       August,   November                                                 rates at      Investor Services:                                                                                                                divided by the current share price.
                                                                                     Western Australia.                    dividend yield.
                                                                                                                                                                                                        AGM:                                               February, May,                               economies. With their base interest                                                          weakness over the last six months such as Tullett Prebon, Prudential, Melrose and           3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  A trust’s net asset value (NAV) is calculated as available shareholders’ funds divided
                                                                                                       average rate of                                                         following the                                                                                   The Daily Telegraph,                                              Federal                                             market close mid price.
                                                                                     with an above                                                   shares were issued                                 Dividends:                                          Financial Times,                             historic lows, The Bank of England,                   1
                                                                                                                                                                                                                                                                                                                                                                 Source: Lipper as at 31.03.09, Informa. During the month latest full year dividend
                                                                                                                                                                                                                                                                                                                                                                                                                                      we started a new investment in Wolseley, the plumbing      by the number of shares in issue, with shareholders’ funds taken to be the net value
                                                                                                                           1,655,941 Ordinary                              Income Growth                                                                                       nvestmenttrusts Bank of Japan all announced Quantitative                                                                        Calculated using the
                                                                                                        2006 a further                        of Allianz Dresdner                                        Price Information:                                                                  and The                                                              Source: Datastream as at 31.03.09. distribution business, where we participated in a placing to rebuild an overleveraged       of all the company’s assets after deducting liabilities. It is the capital NAV that is
                                                                                      On 30th June                                                                                                                                                           www.rcm.com/i
                                                                                                                                                                                                                                                     Reserve, Swiss National Bank
                                                                                                                                                                                                                                                                                                                                                                2
                                                                                                                             winding up                                      cost to existing                                                                                                                                               last defence                                                                                                                                         shown, which excludes any income.
                                                                                                         and planned                                   achieved at no                                                                                                             (Chairman), in what is seen by many as the                                                                       price.
                                                                                                                                                                                                                                                                                                                                                                divided by the current share balance sheet. The termsshareholders’ funds divided extremely attractive and the
                                                                                                                                                                                                                                                                                                                                                                                                                                    offered to new investors were
                                                                                      reconstruction                                 in assets was                                                                                                           Hugh Stevenson
                                                                                                                                                                                                                                                     Easing schemes to increase
                                                                                                                                                                                                                                                                                          liquidity
                                                                                                                                                                                                                                                                                                                                    the news, with the                                                is calculated as available multiple of sales net value
                                                                                                            plc. The increase                                                                                                                                                 Mike McKeon,      Markets reacted positively to                                      A trust’s net asset value (NAV) stock trades on a very funds taken to be the given the potential for margins to recover
                                                                                       Investment Trust                                                                                                   Board of Directors:
                                                                                                                                                                                                                                                                                                                                                                                                                               low
                                                                                                                                                                                                                                                                                                                                                                 3
                                                                                                                                                                                                                                                              Dick Barfield,
                                                                                                                                                                                                                                                     against a deepening recession. Plummer,                                                                                                              with shareholders’
                                                                                                                                                                                                                                                                                      Joe Scott                                 year leading the way.            by the number of shares in issue, the extremely low In linecurrently achieved.
                                                                                                                                                                                                                                                                                                                                                                                                                                           with current industry
                                                                                                                                                                                                                                                              Sir James Sassoon,                hardest hit earlier in the                                                                           from
                                                                                                                                                                                                                                                                                                                                                                                                   after deducting liabilities. levels ‘fair value’ of debt.
                                                                                        shareholders.                                                                                                                                                cyclical industries which were                                          announced that they were             of all the company’s assets                                account     the                                                     (Cont.)
                                                                                                                                                                                                                                                              Henry Staunton                  as a number of US banks                                                                               shown that take into month that sentiment in the
                                                                                                                                                                                                                                                      Financials also rallied in March UK Equity                                     month: they passed           best practice NAVs are now We observed last the valuation of debt at fair value equity market was extremely                    recent low, and with high levels of cash sitting on the sidelines this rally may yet
                                                                                                                                                                                                                                                                                                                                                                                                         after allowing for




          the directors of the investment trust, who are
                                                                                                                       Review                                                                after a                                                                             Director,  February. Barclays had an eventful                                     This means NAVs are calculated                                             NAVs with debt at
                                                                                                                                                                   market sentiment                                                                   profitable in the January and
                                                                                                                                                                                                                                                               Simon Gergel,                                                         to sell their iShares                                               than at and repayment value.
                                                                                                                                                                                                                                                                                                                                                                                                     depressed,final after a further sharp sell-off conditions seemed ripe for a market rally.   continue further. Given the scale of the problems facing the global economy and
                                                                                         Fund Manager’s saw a sharp turnaround in the of England cut interest Investment Manager:                                                                                                            government funding and looked                                         or current market price, rather series of small of the cost of debt, and thus a around the world, such as the closely
                                                                                                                                                                                                                                                                                                                                                                                                                                                            more
                                                                                                                  March                                      Bank                                                                                     FSA stress tests, rejected UKGlobal Investors
                                                                                                                                                                                                                                                               RCM
                                                                                                                                                                                                                                                                                  Allianz of some economic data, it is difficult to call the bottom
                                                                                                                                                                                                                                                                                                                                                                                                     A realistic impact positives in the economic data                                           the impact this will have on corporate profits it seems unlikely that the foundations
                                                                                                                                            caution. The                                                                                                        A company of                                                                                       market value provide a more                                                     any income.
                                                                                                                  period of extreme
                                                                                                                                                                                            a major
                                                                                                                                                                                                                                                       unit. Despite the stabilisation                                                                                                                     NAV new shown, which excludes
                                                                                                                                                                                                                                                                                                                                                                                                     watched that isorders component of the Institute of Supply Managers Survey have
                                                                                                                                                          the Treasury announced                                                                                                                                             and unemployment figures              realistic discount. It is the capital                                                                                         are yet being created for a sustained recovery in equity markets, but we continue
                                                                                                                                        low 0.5% and                                  - £150bn of                                                                                          house prices continue to fall
                                                                                                                  rates to a record                              to buy £75bn                                                                          of the market just1407as US
                                                                                                                                                                                                                                                                 020 7065 yet,                                                                                                                       encouraged investors to consider whether the rate of economic contraction is                to believe that there are plenty of lowly valued stocks available for long-term
                                                                                                                                      Easing” programme                                 in the poor                                                                                           rise at an alarming rate.
                                                                                                                   “Quantitative                                    of stabilisation                         Investor Services:                        around the world continue to                                                                                                                  slowing. Additionally there is now some hope that policy initiatives such as the            investors.
                                                                                                                                               with some signs                        recovery. The                                                                           price.                                          the underweight in Banks,
                                                                                                                   bonds. This coupled                      US, led to a market                                                                         market close mid                 its benchmark individend with
                                                                                                                                                                                                                                                                                                       year March,                                                                                   expansion of the money supply, the US Treasury plan to encourage investment in
                                                                                                                                          in the UK and                                up 6%. There                                as at 31.03.09, Brunner underperformed latest full the                                                               The                                                                                                                                                               RCM (UK) Limited, 155 Bishopsgate, London EC2M 3AD
                                                                                                                    economic news                             the mid cap index
                                                                                                                                                                                                              1
                                                                                                                                                                                                                Source: Lipper                                  Calculated using                         of months, a detriment to performance.                                                      toxic assets from banks balance sheets, fiscal stimulus packages, and reduced
                                                                                                                                         gained 3% with                                                                                    as at 31.03.09. has worked well for a number
                                                                                                                                                                                                                                                        which                                                                                  as investors
                                                                                                                     FTSE 100 index                                              cyclical industries           2
                                                                                                                                                                                                                 Source: Datastream share price.                                                  also had an impact on performance,
                                                                                                                                                                                                                                                                                                         funds divided
                                                                                                                                                              rotation into                                                        current              increased appetite for cyclicality be the net value riskier assets. As a consequence
                                                                                                                                                                                                                                                                            available shareholders’
                                                                                                                                                                                                                                                                                                                                                                                                     mortgage rates may begin to bear fruit. The FTSE 100 has now rallied 17% from its
                                                                                                                                         massive sector                                     Defensives          divided by the                           is calculated as                                                                                                                                                                      London EC2M 3AD
                                                                                                                      was however                                    up over 10%.                                                                                                   funds taken to and switch into
                                                                                                                                                                                                                                        value (NAV) began to sell out of defensive names current industry                                                                                         RCM (UK) Limited, 155 Bishopsgate,
                                                                                                                                             and general retail                                      and           A trust’s net asset shares in issue, with shareholders’ In line within the portfolio were East Japan Railway, Reed
                                                                                                                                                                                                                                                                                                 with
                                                                                                                      mining up 25%                                        9%. The defensive
                                                                                                                                                                                                                 3


                                                                                             with, for example,                                        tobacco down                                               by the number
                                                                                                                                                                                                                                     of                                   liabilities.
                                                                                                                                                                                                                                                         of this, the worst performers                      of debt. This
                                                                                                                                    over 10% and                                 the more optimistic                                         assets after deductinginto account the ‘fair value’                                  Prebon, BHP Billiton and
                                                                                                                 utilities down                                                                                    of all the company’s now shown to take BAE Systems. Theof debt at fair value best performers were Tullett
                                                                                                                                                                                                                                                                                                                       or
                                                                                             languished with                                  caused it to underperform with the portfolio                                                 are           Elsevier and
                                                                                                                                                                                                                                                                         for the valuation                                         month as it announced
                                                                                                                         of the portfolio                          stock level                                     best practice NAVs                                                value. NAVs    with Prebonmarket stellar
                                                                                                                                                                                                                                                       after allowing Inter-broker dealer Tullett debt had
                                                                                                                                                                                                                                                                                                                at       a
                                                                                              high yield positioning was extreme volatility at the                                              and Man             means NAVs are
                                                                                                                                                                                                                                         calculated Informa. UK                                             more an increase in trading volumes and
                                                                                                                                                                                                                                                              at final repayment volatilitythus a led to realistic
                                                                                                                     there                                            Billiton (up 25%)                                                price, rather than the of the cost of debt, and had




          themselves, in turn, accountable to the shareholders.
                                                                                              market. However                                    (up 69%), BHP                     Aviva and Centrica               current market                        that
                                                                                                                                                                                                                                                            impact
                                                                                                                                                                                                                                                                      recent market
                                                                                                                                                                                                                                                                                                 any income.
                                                                                                                    holdings in Inchcape                   the negative tack,                                                         a more realistictherefore net income. excludes
                                                                                                                                                                                                                                                                             which
                                                                                               benefitting from                          positions. On                                    Rio Tinto and             value provide                           that is shown,
                                                                                                                     amongst other                               from not owning                                                      the capital NAV
                                                                                               Group (up 27%)                              and we suffered                                        included           discount. It is
                                                                                                                         15% - 20%)                                    Major transactions
                                                                                                both fell (between                                  30% - 35%).                            the position in                                                                                                             3AD
                                                                                                                           (both up between                     run and increasing                                                                                                                    London EC2M
                                                                                                Standard Chartered                             after a strong                                       outlook                                                                    155 Bishopsgate,
                                                                                                                          in BHP Billiton,                           shares. The economic                                                             RCM (UK) Limited,
                                                                                                 taking some profits                         remaining Diageo                                      time and
                                                                                                                         by selling the                                       levels for some
                                                                                                  Unilever, financed                                  to return to trend                 large, solid, high
                                                                                                                             with growth unlikely                  biased towards
                                                                                                  remains challenging                       portfolio remains                                         to build
                                                                                                                        still tight. The                                    continued to look
                                                                                                   credit conditions                                however we have
                                                                                                                             on low valuations              on depressed
                                                                                                                                                                                valuations.
                                                                                                   yielding companies
                                                                                                                             more cyclical businesses
                                                                                                    positions in certain
Our investment trusts at a glance

       Our investment trusts are designed to provide income, growth or a combination of
       both to suit different investment requirements.


                                                    Invests in                Investment objective                   Dividends paid

                                                    UK equities               Above average income and               February, May,
         The Merchants Trust PLC                                              income growth                          August, November

                                                    Global equities           Capital and income growth              March, August
         The Brunner Investment Trust PLC

                                                    UK equities               Capital and income growth              March, September
         British Portfolio Trust plc

                                                    European equities         Capital and income growth              April, August
         Charter European Trust plc

                                                    Global technology         Long-term capital growth               -
         RCM Technology Trust plc

                                                    Endowment                 Capital growth over                    -
         Endowment Policy Trusts                    policies                  planned life




How to invest

       Our investment trusts are UK based public limited
                                                                                                         CONTACT US
       companies traded openly on the London Stock
                                                                                                         If you have any queries regarding our
       Exchange. You can invest in one or more of the trusts
                                                                                                         investment trusts, or if you would like
       by purchasing shares through a stockbroker. Shares                                                to be added to the mailing list for
       can also be held within an ISA and/or savings                                                     Financial Reports or fact sheets, our

       scheme and a number of suppliers offer this facility,                                              Investor Services team can be

                                                                                                         contacted on:
       including:

       Alliance Trust Savings                      HSBC (InvestDirect)                                   020 7065 1407
       www.alliancetrust.co.uk                     www.hsbc.co.uk
                                                                                                         e-mail:
       Barclays Stockbrokers                       The Share Centre                                      investor.services@uk.rcm.com
       www.barclaysstockbrokers.co.uk              www.thesharecentre.co.uk
                                                                                                         website:
       Charles Stanley (FasTrade)                                                                        www.rcm.com/investmenttrusts
       www.charles-stanley.co.uk


       Note: We are not responsible for the content and information on these websites.
       Source: The Association of Investment Companies as at 31 October 2008. Please
       note RCM (UK) Ltd does not make recommendations on where to buy investment
       trusts and is unable to provide financial advice. You are strongly advised that if you
       are unsure about the most suitable option for your needs that you should contact
       a financial adviser.
Issued by RCM (UK) Limited. Registered office: 155 Bishopsgate, London, EC2M 3AD. Registered in England No. 2014586. Authorised and
regulated by the Financial Services Authority (“FSA”), ref. 122219. The FSA’s address is 25 The North Colonnade, Canary Wharf, London, E14 5HS,
website www.fsa.gov.uk.

				
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