Aberdeen Life North American Equity Fund
Objective
To provide exposure to an actively managed portfolio of North American equities - an asset class that is expected to provide long-term returns that are ahead of inflation.
Manager's Quarterly Report
July 2010
Market review
- US equities experienced turbulence in the second quarter. There were persistent jitters
regarding the ongoing fiscal problems in the Eurozone, as well as the release of disappointing
economic data, including a significant drop in existing home sales in May. The continuing
uncertainty surrounding the possible fallout from the oil spill in the Gulf of Mexico weighed on
shares of oil and natural gas exploration and production and integrated oil and gas companies.
This offset the short-lived boost the sector received in mid June following BP’s announcement
of the establishment of a US$20 billion fund for claims related to the disaster.
Fund review
- During the quarter, we initiated positions in auto insurance claims software provider Solera
Holdings and transport equipment manufacturer Bombardier. We added to our holding in Hess
Corp as we feel it has garnered a relatively cheap valuation due to the concerns regarding the
Gulf of Mexico oil spill. We exited our position in Goldman Sachs given the likelihood of financial
reform and its possible impact on the company’s client franchise and current business model.