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SELECT CAUTIOUS RETURN FUND

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									SELECT CAUTIOUS RETURN FUND

INVESTMENT UPDATE
as at 31 October 2010



INVESTMENT OBJECTIVE                                                                                           ASSET ALLOCATION (%)
The objective of the Fund is to produce a positive return over the long term, regardless of                    Investment grade corporate bonds                   29
market conditions by investing primarily in interest bearing assets and related
                                                                                                               Cash and certificates of deposit                   22
derivatives.
                                                                                                               Developed market index linked                       21
FUND STRATEGY                                                                                                  Emerging market local currency debt                 13
 A low-risk option.                                                                                           Developed market sovereign                              8
 To provide either an income or a haven of safety for growth seekers.
                                                                                                               High yield corporate bonds                              8
 To utilise the most modern techniques available in this arena rather than adopting a
  more simple “global bonds only” approach.
                                                                                                                                      8
Designed to be an “all weather” fund, capable of delivering an attractive total return                                         8
                                                                                                                                                   29
regardless of prevailing market conditions. This should distinguish it from traditional
fixed interest funds where performance is largely dependent on market direction. The                                      13
Fund aims to provide a haven for low-risk investors by using a combination of bond and
currency investments. It aims to produce both growth and income. The level of risk is
closely managed and carefully controlled, spread across diversified sources of return,
producing a level of risk similar to that of a global bond fund. The Fund is permitted to                                      21                 22
invest in a wide range of investment types, including bonds, money market instruments,
bond and interest rate futures & options, interest rate and credit default swaps as well as
pooled fixed income funds. This flexibility means that the Fund is able to benefit in both
rising and falling market conditions. Suitable for the more sophisticated investor seeking                     TOP 10 HOLDINGS (%)
attractive returns, this Fund can sit comfortably within a broader investment portfolio.                       US Treasury Inflation                            10.2
                                                                                                               US Treasury Inflation 04/12                       6.7
FUND MANAGER COMMENTS
                                                                                                               UK gilt inflation 04/20                           5.9
The Fund had a good October. Corporate bonds continued their recovery with yields
                                                                                                               Germany 09/11 Fixed 1.25                          3.3
narrowing relative to government bonds, helping returns for the month. Interest rate
exposure also added to performance with the inflation-linked bond holding, in particular,                      Investec Monthly High Income                      3.1
benefitting as inflation expectations rose as the Fed argued for the need for inflation to                     UK gilt inflation 08/13                          2.8
rise. Emerging market bond and currency positions also worked well, as did a negative                          Investec EM S                                     2.6
view on the US Dollar.
                                                                                                               Investec EM I                                     2.6

Looking ahead, the fund remains defensive towards major government bonds which look                            RSA 8% 12/18                                      2.2
fully priced for deflation and weaker economic data. The evidence, by contrast, is that                        Investec High Inc Bond                            1.7
inflation remains sticky and activity has stabilised. We have bought protection against a
rise in yields through put options and inflation-linked bonds, although we do not
                                                                                                               PERFORMANCE (%)
anticipate a major sell-off while central banks continue to ease. We remain long of
                                                                                                                                                       Return
corporate bond exposure, given improving company profitability and reduced leverage.
We also retain exposure to a number of the better valued emerging bond markets.                                3 Months                                 0.7
Currency positions continue to favour under-performance from the Dollar and the Euro                           Year to Date                             0.0
against other developed and developing currencies. The Dollar, in particular, looks set to                     1 Year                                   1.0
weaken further, although it is oversold in the short-term.
                                                                                                               3 Years                                  3.2
                                                                                                               5 Years                                  n/a

                                                                                                               Source: Premier Fund Managers and Bloomberg.
                                                                                                               Basis: Total return gross of UK tax and including
                                                                                                               annual management charge, in GBP.
                                                                                                               Past performance is not a guarantee of future returns.
                                                                                                               Please note: The fund was priced weekly up to 20 July
                                                                                                               2010, after which it turned daily. Month end data
                                                                                                               points will therefore be the most recent valuation
                                                                                                               following month end.



Source for all performance data is Bloomberg and the allocation data is sourced from Premier Fund Managers Ltd.
Performance figures show total return, gross of UK tax and „net‟ of annual management charge.
The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
SELECT CAUTIOUS RETURN FUND

INVESTMENT UPDATE
as at 31 October 2010




DISCRETE ANNUAL PERFORMANCE TO QUARTER                                                                         FUND FACTS
E N D % (up to 30 September 2010)                                                                              Fund size:                                  £62.8m
                                                                                                               Minimum initial                            £10,000
15
                                                                                                               investment:
                                                                                                               Minimum additional                         £10,000
                                                                       9.7
10                                                                                                             investment:
                                                                                                               Minimum withdrawal:                         £5,000
                                                                                                               Initial charge:                            up to 5%
 5
                                                                                                               Annual management                              1.5%
                                                                                          1.7
             n/a                                                                                               charge:
 0                                                                                                             Status:                                       OEIC
                                -0.8                                                                           Launch date:                         15 March 2006
                                                   -2.7                                                        Type of unit:                           Distribution
 -5
        2005 to 2006       2006 to 2007       2007 to 2008       2008 to 2009        2009 to 2010              Base Currency:                              Sterling
                                                                                                               Dividend declaration dates: 31 Mar, 30 Jun, 30 Sept,
Source: Bloomberg. Basis: Total return gross of UK tax and including annual management charge, in                                                           31 Dec
GBP. Past performance is not a guarantee of future returns. Please note: The fund was priced weekly
up to 20 July 2010, after which it turned daily. Month end data points will therefore be the most              ISIN:                              IE00B0SYHV36
recent valuation following month end.                                                                          SEDOL:                                   BOSYHV3
                                                                                                               Bloomberg ticker:                     DYNSCRA ID
INVESTMENT TEAM                                                                                                Historic yield:                                4.3%
This fund is managed by John Stopford of Investec Asset Management, which
has grown into one of the top 100 third party global asset managers since its
inception in 1991. The company is still run by its founding members, who have
ensured the commitment to investment excellence and personal service that
has underwritten the company‟s success permeates every aspect of the business
today. Investec Asset Management is a specialist international investment
                                                                                                               ADMINISTRATOR
management business with major operations in the UK and South Africa,
                                                                                                               Northern Trust International Fund Administration
managing assets on behalf of institutional and mutual fund clients. Investec                                   Services (Ireland) Ltd
Asset Management commenced operations in South Africa in 1991, where                                           Georges Court
today it is the largest manager of third-party assets and has one of the largest                               54-62 Townsend Street
unit trust companies.                                                                                          Dublin 2
The value of an investment and the income from it can fall as well as rise and you may not get back
                                                                                                               Ireland
the amount originally invested. Tax assumptions and reliefs depend on an investor‟s particular
circumstances and may change if those circumstances or the law change. If you invest through a                 Telephone: +353 1 524 2000
third-party provider you are advised to consult them directly as charges, performance and terms and
                                                                                                               Fax: +353 1 524 2920
conditions may differ materially. Past performance is not an indicator of future performance. Full
details of the risks can be found in the Simplified Prospectus, the Prospectus and the Supplement for
the fund, which can be obtained from Armstrong Investment Managers or www.thedynamicfund.
co.uk. Nothing in this document should be construed as investment advice. Issued by Armstrong                  INVESTMENT MANAGER
Investment Managers LLP, which is authorised and regulated by the Financial Services Authority of              Armstrong Investment Managers
25 The North Colonnade, Canary Wharf, London E14 5HS FSA no. 503693. Dynamic Assets Managed
Fund plc is an open-ended umbrella investment company with variable capital incorporated in                    3 Devonshire Street
Ireland under the Companies Acts 1963 to 2009 and an umbrella fund with segregated liability                   Marylebone
between sub-funds. Dynamic Assets Managed Fund plc is authorised in Ireland as an undertaking for
collective investment in transferable securities pursuant to the European Communities (Undertakings            London W1W 5DT
for Collective Investment in Transferable Securities) Regulations, 2003 (S.I. No. 211 of 2003) as such         +44 (0)20 3440 5060
may be amended, supplemented or consolidated from time to time. The Fund is a sub-fund of
Dynamic Assets Managed Fund plc.


Source for all performance data is Bloomberg and the allocation data is sourced from Premier Fund Managers Ltd.
Performance figures show total return, gross of UK tax and „net‟ of annual management charge.
The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

								
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