The Fund rose 1.24% during June (offer to offer, net income reinvested), underperforming the FTSE All-Share Index which rose 2.07%. The construction and building sector was affected by negative comments from the Bank of England governor Mervyn King, but the impact was tempered when Berkeley announced plans to return cash to shareholders. Persimmon and McCarthy & Stone both finished over 4% higher, although Ben Bailey was off almost 7%. Luminar also lost 7% as Euro 2004 probably led to reduced visitor numbers at Luminar’s clubs. The Fund’s holding in Westbury was sold during the month, as was the stake in Belhaven, whose good results have been reflected in a share that is now fully priced. Newport Networks was also sold following a quick gain after the IPO. The position in Financial Objects was added to, the shares ending the month virtually unchanged at 43p but with our confidence increased by the company’s statement that first half trading was slightly ahead of budget.Elsewhere,Marks & Spencer continued to gain,up 2.5% for the month as Philip Green returned with an improved proposal of "not less than" 370p a share in cash.A new holding was established in Cardpoint,a nationwide operator of ATM’s that recently acquired over 800 machines from HBOS.With a well thought of management team and a highly cash generative business model,the shares offer good long-term potential.Bede jumped another 22% after the company raised £714,000 in a Placing and announced further contract wins. Peacock leapt nearly 21% as the Group reported excellent results to 31 March 2004 and announced the acquisition of The Fragrance Shop. Music Choice lost 9.3% in light trading.
319.84p
