The US economy's soft spot, most clearly seen in the low level of job growth, continues to raise concerns over the strength and sustainability of the economic recovery. Although US industrial production continues to grow, consumer confidence declined in September for the second consecutive month and the index of leading indicators declined for the third month in a row. This weakness fed through to global bond markets, sending global yields lower during most of September. The US 10 year government bond yield dipped below 4%, an important support level, before rebounding in the last few days of the month, pulling global bond yields upwards.

Equities as a whole rose slightly during September, extending their gains off the oversold bottoms seen in August. The MSCI AC World Index (USD) was up 1.9% in September. On the currency front, the dollar weakened slightly during the month, yet the relatively narrow ranges that have characterised currency movements over the past several months remain intact.

The low level of job growth, continues to raise concerns over the strength and sustainability of the economic recovery. Although US industrial production continues to grow, consumer confidence declined in September for the second consecutive month and the index of leading indicators declined for the third month in a row. This weakness fed through to global bond markets, sending global yields lower during most of September. The US 10 year government bond yield dipped below 4%, an important support level, before rebounding in the last few days of the month, pulling global bond yields upwards.

Equities as a whole rose slightly during September, extending their gains off the oversold bottoms seen in August. The MSCI AC World Index (USD) was up 1.9% in September. On the currency front, the dollar weakened slightly during the month, yet the relatively narrow ranges that have characterised currency movements over the past several months remain intact.

The Metropolitan Select Manager Global Growth FoF was launched in August 2004. The fund will provide a balanced exposure to global equities, global bonds and global absolute return managers.