News

16/04/2009 - Liberation VI Trading Note

Bought L&G Dynamic Bond is managed by Richard Hodges and aims to beat the IMA Sterling Strategic Bond peer group through an unconstrained global asset allocation approach. The fund
looks to add alpha via directional, relative value trades and sector and asset allocation decisions.
While the fund is managed by Richard he is backed by L&G’s strong fixed interest team of circa 30 professionals and utilises their best ideas on global macro and asset allocation, investment grade, high yield and structured solutions. The fund manager is responsible for apportioning risk across the various alpha buckets, and will apply overlay strategies to manage, in particular, the
portfolio's credit beta risk.

Equities
Having had a bias towards large cap stocks due to their defensive characteristics we have been
looking to increase our exposure towards mid caps, an area which we feel has been oversold. As a result and following the heavy sell of witnessed in the first week of March we initiated a holding in Royal London Strategic Growth, and at the beginning of April we bought into the Threadneedle
American Select.

Royal London UK Strategic Growth is managed by Leigh Himsworth who is a fully qualified accountant and has managed the fund since June 2006. His investment process is pragmatic, blending both bottom up and top down views in selecting stocks. The fund will always hold at
least 80% in FTSE Mid-250 companies, with Leigh aiming to select stocks which he believes are undervalued and where there is a catalyst for change and a reason for an upwards re-rating. As a
result of Leigh’s accountancy background he runs a range of quantitative and valuation screens
coupled with qualitative work or company visits and management meetings. His main areas of
focus are:
· Strong balance sheet
· Cash generative
· Strong dividend growth
· Experienced management with a stake in the business
· Analysis of the competitive position

Threadneedle American select is managed by Cormac Weldon backed by a team of eight
analysts, who aim to identify the best stocks in each sector with the manager then constructing the portfolio within a risk-controlled, top-down framework. The fund’s style is pragmatic with the team fully integrated into the house top-down thematic process and uses ideas deemed relevant to their market to prioritise stock research. Although not a concentrated portfolio is does run more risk than some “core” type funds, with stock bets relative to the index at +/-3%, sector limits at +/- 10%, and a tracking error of 4 – 6%.

Asset Allocation Changes
Following the recent changes to asset allocation we have sold our entire holdings in First State Asia Pacific Leaders, JO Hambro Japan, and SG Japan Core Alpha.

This document is produced by Close Private Asset Management Limited, for the
exclusive use of current investors in the Liberation ICVC. It is not intended for wider circulation and no assurance of suitability for any purpose is accepted.

Close Private Asset Management Limited, 10 Exchange Place, London EC2A 2BY authorised and regulated by the Financial Services Authority.

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