Interim Management Statement

 

TIDMMLFG 
 
RNS Number : 8998R 
Merrill Lynch FTSE100 Stpd Gwth&Inc 
07 May 2009 
 

Merrill Lynch FTSE 100 Stepped Growth and Income Limited 
Investment Manager's Report 
For the first quarter ending 31 March 2009 
Growth Shares 
The Growth Shares are designed to offer investors a capital growth amount of 
70.00 pence per growth share and to return a capital amount of 100.00 pence per 
growth share, as long as the Underlying Index has not fallen by more than 40.00% 
of the Initial Index Reference Level. If the Index has fallen more than 40.00% 
an amount of 5.00% is reduced from 70.00% for each of the remaining six monthly 
periods (first six month period ended on 16th December, 2002, and so on until 
16th June, 2009) to the Final Reference Date. 
As of 31st March, 2009, the FTSE 100 Index closed at 3,926.14, which represents 
a decrease of 11.46% for the quarter from the starting point at 31 December, 
2008 close of 4,434.17. Since the inception of this series the FTSE has lost 
16.74% from it starting point of 4,715.50. 
The Net Asset Value of the Growth Shares was GBP1.68 as of 31st March 2009, 
resulting in an increase of 5.66% for the quarter, (Net Asset Value of GBP1.59 
as at 31st December, 2008), and an increase of 75.00% since inception (initial 
Net Asset Value of GBP0.96). 
 
 
Income Shares 
The Income Shares pay a fixed dividend of 4.00 pence per Income Share, 
semi-annually in arrears as long as the Underlying Index has not fallen by more 
than 40.00% of the Initial Index Reference Level at any time up to the close of 
trading on the Final Reference Date. If the Underlying Index has fallen by more 
than 40.00% of the Initial Index Reference Level at any time up to the close of 
trading on the Final Reference Date then all the subsequent coupons (4.00 pence) 
will cease after that date. 
As of 31st March, 2009, the FTSE 100 Index closed at 3,926.14, which represents 
a decrease of 11.46% for the quarter from the starting point at 31 Dec 2008 
close of 4,434.17. Since the inception of this series the FTSE has lost 16.74% 
from it starting point of 4,715.50. 
The Net Asset Value of the Income Shares was GBP0.95 as of 31st December, 2008, 
resulting in an increase of 1.06% for the year, (Net Asset Value of GBP0.94 as 
at 31st December, 2008), and a decrease of 1.04% since inception (relative to 
the initial Net Asset Value of GBP0.96). 
 
 
 
 
 
 
 
 
 
 
Market Review 
 
 
The FTSE saw little relief during the first 2 months of the quarter losing 6.42% 
in January and 7.70% on February. However during March the FTSE gained 2.51% in 
unexpected swing. 
 
 
These gains were on the back of renewed consumer spending and a generally 
accepted belief in the market that stocks were over sold. The main benefactors 
of this renewed optimism were the Materials sector (+23%) and the Information 
Technology sector (+18%). 
 
 
However as expected there were still many sectors which continue to show poor 
returns namely the Financials (-19%), Utilities (-16%) and Telecommunication 
services (-15%) 
 
 
+----------------------------------+------------------+ 
| Sector                           | % MVT            | 
+----------------------------------+------------------+ 
| Materials                        |              23% | 
+----------------------------------+------------------+ 
| Information Technology           |              18% | 
+----------------------------------+------------------+ 
| Energy                           |               9% | 
+----------------------------------+------------------+ 
| Consumer Discretionary           |               6% | 
+----------------------------------+------------------+ 
| Industrials                      |              -9% | 
+----------------------------------+------------------+ 
| Consumer Staples                 |             -11% | 
+----------------------------------+------------------+ 
| Health Care                      |             -11% | 
+----------------------------------+------------------+ 
| Telecommunication Services       |             -15% | 
+----------------------------------+------------------+ 
| Utilities                        |             -16% | 
+----------------------------------+------------------+ 
| Financials                       |             -19% | 
+----------------------------------+------------------+ 
 
 
 
 
The big movers in the materials sector were lead by Fresnillo plc (+99%). 
Kazakhmys plc (+61%) and Rio Tinto (+58%). Still however some companies still 
struggled to perform within the sector with Xstrata (-27%) and Anglo American 
and Rexam plc both down 23%. 
 
 
The Information Technology sector was lead by Autonomy Corp which gained 37%. 
 
 
Consumer Discretionary was the surprise mover with Marks and Spencer recording a 
gain of 38% and Thomas Cook group (+36%) with Next following behind with a gain 
of 22%. 
 
 
As expected within the Financial sector was still experiencing heavy losses with 
Hammersons plc (-52%), RBS (-50%), Land Securities Group (-48%), AVIA (-45%) and 
Lloyds and Legal & General both down 44%. 
 
 
Within Utilities the biggest fall occurred in United Utilities Group (-23%) 
followed closely by National Grid (-22%) and Pennon Group (-19%). 
 
 
Telecommunications recorded significant declines with BT dropping 42% and 
Vodafone losing 12%. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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