Our content this month are as follows:-

• Those Lazy Hazy Days of Summer
• The DFA Global Fixed-Income Fund
• Books We Have Read
• Get the Creative Edge
• Quote of the Month

It is difficult to avoid the feeling these days that the UK has adopted some Continental habits and noticeable among these is how quiet things are during the month of August. More and more people are choosing to take more than the conventional two weeks of holiday and are spending more time with friends and family in the summer.

While you have been enjoying your summer holidays we have continued to beaver away on your behalf and have identified a new fund to add to client portfolios. We can tell you that it is an eagerly awaited development and will enhance returns and reduce risk on all portfolios. We will be mailing clients during September about the new fund and the benefits it can bring and hope to make the changes during October.

Every now and again we receive comments from clients about the performance of this fund; we are always happy to discuss the inclusion of any fund within client portfolios and feel it will be useful to revisit the subject here.

Virtually every client has the fund as a component of their portfolio for the simple reason that its purpose is to mitigate equity risk. Our investment methodology is designed to provide a successful investment experience achieving the most appropriate total return for each individual client.

Data has been produced from 1973 to 2005 which demonstrates that there will be periods of underperformance, when compared with cash, but the long-term outperformance when compared with cash is significant. The following is an extract from the figures:-

Of 33 one-year periods there were 32 positive returns and 1 negative; 21 of the periods outperformed cash and 12 underperformed, but the average outperformance was 2.8%.

Of 31 three-year periods all returns were positive; 28 of the periods outperformed cash and 3 underperformed, but the average outperformance was 9.01%.

Of 29 five-year periods all returns were positive; 27 of the periods outperformed cash and 2 underperformed, but the average outperformance was 15.25%.

It is possible to conclude from this that there will be short periods of underperformance, when compared with cash but this is part of the price to be paid for the long-term outperformance. It is important not to review funds in isolation, but to consider the entire portfolio, as inevitably different parts of the portfolio will under and over perform from time to time.

If anyone would like the entire paper (it is short!) please contact Stuart Cooper on 0121 502 8800 or by e-mail stuart@indexfundadvisors.co.uk.

In a recent survey run by one of the large hotel groups we learned that the book that has most often been left behind by guests is "Lucky Man" by Michael J. Fox. On first reading of this we were surprised, having read and enjoyed the book; on reflection we believe the result arises because guests leave the book behind having read it in one go due to the "unputdownable" nature of the story.

Having become one of the best-known film stars in the world through the "Back to the Future" series of films, he was diagnosed at the age of 30 with Parkinson's disease. The book describes how he deals with the initial mis-diagnoses and the impact the disease has had on his life. If you are wondering about the title, he believes that the diagnosis changed him for the better in many ways.

It is an inspiring read!

The book is available from Amazon.co.uk and if you have any trouble obtaining it please contact jayne@indexfundadvisors.co.uk.

Index client, Louise Panayides, addresses us this month about her business, Edge Creative Solutions; we have seen many examples of Louise's work and indeed have been the recipient of her ideas on more than one occasion. As you will see from the testimonial below, her Company has been working closely with David Lloyd of English Tennis and Health Club Entrepreneur fame.

“We needed an agency that could translate the Dinners Made ethos into a highly recognisable and stylish brand and design programme.

Whilst EDGE gave us complete confidence in their ability, it was their friendly approach and eagerness to see us as design partners that set them apart from other agencies. That was the deciding factor in their appointment – we knew they were the right agency for us.”

David Lloyd, Dinners Made

We are happy to add our endorsement and Louise's contact details are detailed below.

Sharper thinking and imaginative ideas

Hello, my name is Louise Panayides please allow me to introduce my company to you.

EDGE Creative is a friendly design agency specialising in brand identity, multimedia design and marketing communications.

“Every design, every idea sparked has fuelled my passion to create a company that is led by 'attention to detail', founded on strong working relationships - and is, fundamentally, original”.

As a forward thinking business we provide a range of innovative solutions to new and existing clients. We strongly believe that our design ideas and marketing initiatives will bring positive results; building your brand and enhancing your business.

A current project is the branding and marketing of a worldwide franchise with David Lloyd.

This new concept named ‘Dinners Made’ is set to take the UK by storm.

We are delighted to enclose a testimonial from David Lloyd regarding our work on this project. I would also be delighted to have the opportunity to talk to you about your creative requirements and how we can work together to achieve your goals.

I am keen to meet with you to discuss this further, please feel free to contact me on
07970 216114 or via email on louise@edgecreativesolutions.com

I look forward to hearing from you.

Yours sincerely

Louise Panayides

"Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish."

John Quincy Adams
1767-1848, Sixth President of the United States