July
2010

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Performance in June

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Maximum Drawdown

Individual Stock Performance

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Elite LWM East-West Value Fund
Performance & Market Update

The latest factsheet for the Elite LWM East-West Value Fund, which includes top holdings, diversification and performance figures, can be accessed by clicking this link .

Greetings,

This month we look at the 6-month performance of the Fund in comparison with major markets. We consider volatility, maximum drawdown and the performance of all holdings in local and GBP currency terms.

But first, our regular overview of the performance of global markets and the Elite LWM East-West Value Fund.

Market Performance in June

During June, major global markets continued to fall, albeit at a slower pace than seen in May. Much of the data that was released suggested that economic conditions were deteriorating once again. Concerns over a double-dip recession increased.

The scale of the losses of the last two months left almost all markets showing substantial losses for the first half of the year, with only Germany bucking the trend.

The only major market to post positive returns was the German DAX (0.02%). The French CAC (-1.84%) was the best of the rest, followed by the MSCI World (-3.56%), the Dow Jones (-3.58%) and the Japanese Nikkei (-3.95%). The worst performing markets for the month were the FTSE 100 (-5.23%) and the S&P 500 (-5.39%).

The Elite LWM East-West Value Fund was down 5.08% in June. BP (-36.32%) was our worst performing stock. Performance was also hit by the increase in value of sterling.

Our best performing stocks in June were Drax Group (UK, +11.91%), Dynasty Fine Wines (China, +11.89%) and Lukoil (Russia, +6.90%).

All performance figures are in local currencies.

The best comparison for the Fund is the MSCI World index.

Click here for the latest Factsheet

Volatility: January 1st 2010 to June 30th 2010

Our conservative approach meant that not only did the Fund perform strongly in comparison with most major indices, it was also less volatile. The chart below shows daily returns and daily volatility.

The Fund was less volatile than all of the markets we track.

Maximum Drawdown: January 1st 2010 to June 30th 2010

Maximum Drawdown measures the maximum loss that could have been incurred over a period had an investor have bought and sold at the worst possible times.

	LWM Fund	Dow Jones	S&P 500	FTSE 100	DAX	CAC	Nikkei	MSCI World
High	119.15	11205.03	1217.28	5825.01	6332.1	4065.65	11339.3	1241.7
Low	106.02	9774.02	1030.71	4914.2	5434.34	3331.29	9382.64	1041.32
Max Drawdown	-11.02%	-12.77%	-15.33%	-15.64%	-14.18%	-18.06%	-17.26%	-16.14%

As can be seen from the above table, the maximum drawdown for the Elite LWM East-West Value Fund was lower than for all major markets.

Individual Stock Performance

The table below shows all stocks held by the Fund from January 1st 2010 to June 30th 2010.

The list is in chronological order. Canon was sold in April. later stocks (beginning with Groupe Lacroix) were purchased after January 1st.

Performance figures do not take into account any dividends received.

Ticker	Name	Country	Industry	Performance	Performance (GBP)	Weighting
BSL.AX	Blue Scope Steel	Australia	Basic Materials	-32.37%	-31.02%	1.96%
PFE	Pfizer	USA	Pharmaceuticals	-22.88%	-16.74%	1.47%
7751.T	Canon	Japan	Office Equipment	12.31%	18.28%	-
CVX	Chevron Corp	USA	Oil & Gas	-12.58%	-5.08%	0.94%
BP.L	BP	UK	Oil & Gas	-46.94%	-46.94%	1.43%
1135.HK	Asia Satellite	Hong Kong	Telecommunications	8.33%	18.92%	2.77%
NHY.OL	Norsk Hydro	Norway	Basic Materials	-38.95%	-40.42%	2.64%
8130.T	Sangetsu	Japan	Home Furnishings	-5.31%	6.10%	2.49%
TPI	Tianyin Pharma	China	Pharmaceuticals	-21%	-19.53%	3.37%
LKOD.IL	Lukoil	Russia	Oil & Gas	-8.71%	-0.51%	3.14%
0828.HK	Dynasty Fine Wines	China	Wine	26.48%	33.39%	5.80%
CHT	Chunghwa Telecom	Taiwan	Telecommunications	6.52%	3.36%	3.32%
OLN	Olin	USA	Diversified Chemicals	0.89%	11.43%	3.77%
TDW	Tidewater	USA	Oil Shipping Services	-19.56%	-12.41%	2.94%
AIZ	Assurant	USA	Insurance	16.91%	26.68%	3.94%
LACR.PA	Groupe Lacroix	France	Relays/Industrial Controls	-2.49%	-14.66%	1.27%
FFY.I	Fyffes	Ireland	Fruits	-28.57%	-32.76%	2.13%
CRMJ.J	Ceramic Industries	S Africa	Ceramic Wall/Floor Tile	-6.25%	-17.53%	2.98%
ARA.MX	Consorcio ARA	Mexico	Housing	-12.89%	-8.38%	3.39%
BPT.AX	Beach Energy	Australia	Oil & Gas	-33.01%	-34.38%	2.73%
AGI.PS	Alliance Global	Philippines	Conglomerate	22.22%	26.37%	5.07%
2345.HK	Shanghai Prime	China	Industrial Machinery	-21.05%	-17.59%	3.37%
ITL.L	Intec Telecom	UK	IT Services & Consulting	-43.57%	-43.57%	2.54%
CS.PA	Axa	France	Insurance	-23.06%	-29.28%	3.00%
HERR.AT	Hercules Cement	Greece	Construction	-8.97%	-17.55%	3.92%
DRX.L	Drax	UK	Electric Power Generation	7.60%	7.60%	5.27%
Total Value						85.21%

Complete Lowes Wealth Management Strategy Performance

The Fund uses the Lowes Wealth Management classical value investment strategy which was launched in October 2005. We use the concepts laid down by Benjamin Graham, the tutor of Warren Buffett, in the 1930s.

Classical value investment has consistently outperformed markets for more than 70 years. Whilst we hold closely to Graham's original approach, we use a concentrated portfolio and diversify across major and emerging markets.

Since launch we have dramatically outperformed all major markets, with lower volatility.

We seek to identify and invest in the best value opportunities from around the world. We typically hold around 25-35 stocks. Experience has shown that this number is large enough to gain significant risk reduction via diversification, but not so large as to overly dilute the outperformance that we are able to achieve.

Over the last 4 years we have dramatically outperformed all major global markets, with lower volatility. By viewing cash as a viable asset class, we have been able to protect our investors when opportunities are rare or when macro conditions have been at their most worrisome.

As can be seen from the graph above, the secret to successful investment management is not to generate spectacular returns. It is to generate decent returns whilst avoiding spectacular losses.

Kind regards,

Justin Lowes

Managing Director
Lowes Wealth Management
www.loweswealth.com

Performance Figures Prior to the Launch of the Fund

Prior to 1st December 2008 (the launch date for the Elite LWM East-West Value Fund), the performance figures quoted for the underlying strategy are the gross returns of our entire equity portfolio over the period beginning October 27th 2005. From 27th October 2008 to January 5th 2009 we were 100% in GBP cash for the transfer of clients' assets into the Fund. We measure only the performance of the money that was invested on behalf of our clients. We factor in any cash received in the form of dividends from stocks purchased and any realised cash that was held resultant of the sale of a stock. We do not however factor in sums received for investment that did not enter the investment cycle.

Important Notices:

This communication constitutes neither an offer to sell nor a solicitation of an offer to purchase/subscribe to any investment. All information and attachments (the "Material") are provided by Lowes Wealth Management ("LWM") as part of its internal research activity. This Material is solely for informational purposes, and LWM makes no representations as to accuracy or completeness. LWM is not responsible for errors contained herein and shall not be liable for any consequences arising out of reliance upon same. Opinions herein constitute the present judgement of LWM, which is subject to change without notice.

This communication is confidential and may be covered by legal, professional or other privilege. The information herein is solely for the intended recipient(s). Any other access is unauthorised. If you are not the intended recipient(s) please immediately delete it from your system. Any disclosure, copying or distribution, as well as any action taken or omitted to be taken in reliance on information herein, is strictly prohibited. This Material and its use may be restricted by law in some jurisdictions, and persons who receive or otherwise interact with it are required to inform themselves and to comply with any such restrictions. Specifically, the information herein is not for distribution to the United States or Switzerland, and it does not constitute an offer or a solicitation of an offer to buy or to sell securities in those countries or to sell securities to or for the benefit of any United States or Swiss resident.