Report for October 2006

A better month, with the FTSE100 up 3%, stabilising around 6100. Our portfolio improved by 3% too with particularly good performances from BHP Billiton and Tesco, both up 11%. Even our speculative mining and oil stocks held their own pretty well, and our new China Growth Unit Trust is showing a gain of 5% after two months. The Unit Value (see separate graph) has taken a welcome turn upwards and now stands at 108.14.

Severn Trent demerged its waste handling business which now lists separately as Biffa. We now hold 87 shares in Biffa, and our holding of Severn Trent has been reduced by one-third to 58 shares.