jessop fund managers - morningstar, inc

Jessop Personal Pension Trust

Investing in the Gartmore range of funds

Short Interim Reportfor the six months ended 5 October 2009

Jessop Fund Managers

Jessop Fund Managers Limited

Jessop House

Jessop Avenue

Cheltenham

Gloucestershire

GL50 3SH

Table of Contents Manager’s Interim Review* 1

Global Investment Review* 2

Fund Reviews

Jessop (GAR) Global Equity Quant Personal Pension Fund 3

Jessop (GAR) Long Term Balanced Personal Pension Fund 4

Jessop (GAR) Cautious Managed Personal Pension Fund 5

Jessop (GAR) UK Growth Personal Pension Fund 6

Jessop (GAR) UK Index Personal Pension Fund 7

Jessop (GAR) UK & Irish Smaller Companies Personal Pension Fund 8

Jessop (GAR) US Opportunities Personal Pension Fund 9

Jessop (GAR) US Smaller Companies Personal Pension Fund 10

Jessop (GAR) European Growth Personal Pension Fund 11

Jessop (GAR) Japan Opportunities Personal Pension Fund 12

Jessop (GAR) Pacific Opportunities Personal Pension Fund 13

Jessop (GAR) Emerging Markets Opportunities Personal Pension Fund 14

Jessop (GAR) UK Long Dated Gilt Personal Pension Fund 15

Jessop (GAR) Index Linked Gilt Personal Pension Fund 16

Jessop (GAR) Cash Personal Pension Fund 17

About Jessop Fund Managers* 18

Trust Information* 19

* Together these comprise the authorised Fund Manager’s report.

1 | Jessop Personal Pension Trust

Manager’s Interim Review for the six months ended 5 October 2009

In spite of a risk of a ‘double-dip’ recession, our base case is that equities have further upside as earnings expectations are improving, and valuations are reasonable for this stage of the cycle.

Money printing is in full flow. The current year’s US budget deficit should hit a mind boggling US $1.6 trillion, while the Fed’s balance sheet has more than doubled, to reach US $2.1 trillion. China is in the midst of a US $580 billion stimulus plan (14% of gross domestic product ‘GDP’), with US $1.1 trillion worth of bank loans in the first half of 2009 alone, nearly three times the level of the year before. New asset bubbles are undoubtedly being created and they could lead to inflation and debilitating government debt problems. The price will ultimately have to be paid, but we need not worry about that for some time. As Lou Jiwei, Chairman of China’s largest Sovereign wealth fund recently stated: “It will not be too bad this year. Both China and America are addressing asset bubbles by creating more bubbles and we’re just taking advantage of that.”

In the short term, money printing will continue to fuel good news on the economic and corporate front, from inventory levels to GDP growth, to positive company earnings revisions. Buying stocks where consensus estimates are going up, and selling ones where they are going down, has been the worst performing strategy over the last 12 months. That could well reverse going forward, as investors focus less on chasing the more cyclical end of the market and concentrate on company fundamentals.

Thank you for continuing to invest with Jessop. The stewardship and growth of your assets remains our total focus.

Mark Charlesworth

Managing Director

Jessop Personal Pension Trust | 2

Global Investment Review for the six months ended 5 October 2009

Investment BackgroundThe appetite for risk that investors had regained in March was sustained through April and May, with a continuing emphasis on financial and cyclical stocks. Financial ‘stress tests’ prompted US banks to raise US $100 billion of capital on the open markets. This, combined with news of the early repayment of US $68 billion of funds injected under the Troubled Asset Relief Programme (‘TARP’) in 2008, boosted valuations.

The rally was aided by a number of positive earnings surprises during the first-quarter reporting season, including those from Goldman Sachs and JP Morgan Chase.

Rising commodity prices, including a sharp uplift in the oil price, underpinned valuations of energy and materials stocks. Classic defensive sectors such as healthcare and telecoms underperformed. In style terms, growing risk appetite encouraged a cyclical rotation away from large caps into recovery names. Small caps outperformed, as did companies characterised by lower earnings quality.

The pace of the rally stalled in June, with markets consolidating over the month. Caution returned as the International Energy Agency warned of decline in demand for oil in the near term, due to uncertainties over the timing, pace and extent of any rebound in the global economy.

The return to more stable credit market conditions, an improving macroeconomic backdrop and a positive quarter two earnings season underpinned global equity markets in the third quarter. As western governments kept interest rates close to zero, credit margins compressed, and companies undertook aggressive cost-cutting and inventory management, it became clear that corporate survivors would emerge leaner and possibly even stronger from the crisis. Many companies reported higher earnings on the back of weak sales, suggesting companies were managing to cut costs and manage their inventory more effectively.

Investment OutlookIn spite of a small risk of a ‘double-dip’ recession, our base case is that equities have further upside as earnings expectations are improving, and valuations are reasonable for this stage of the cycle. In fact, we feel that we could be on the verge of a profit explosion. The collapse of Lehman Brothers and the near-collapse of the global financial system meant that companies cut costs far more aggressively than usual in a downturn. It is the first time ever that US productivity has risen in the first year of a recession, for example, and inventory management has also been much better than expected. The combination of cost cuts and low inventories means that when demand recovers, profits are likely to run well ahead of expectations.

The return of Merger and Acquisition activity should also be supportive. There were a number of major developments in September, including Kraft’s bid for Cadbury, Xerox’s agreed deal for Affiliated Computer Services and the planned merger of Orange and T-Mobile in the UK. This is providing some offset to the slew of IPOs and secondary issuance.

Against these positive drivers, near-term risks include the effects of withdrawing stimulus too far and too fast as the global economy remains weak, and the prospect of a further downturn in the US financial sector as asset quality issues return again. Almost everywhere, equity and corporate bond valuations are reaching attractive levels for investors with longer term time horizons. With the reasonable amount of cash around, investors could well be tempted to seek out the opportunities that arise. Moreover, massive liquidity is being injected by central banks and via interest-rate cuts.

Please note that all performance figures in the bar charts included in this report are all shown on a mid to mid basis with income reinvested in line with UK pension taxation law.

The accounting period of the underlying investment differs from that of the Jessop Personal Pension Trust constituent fund. In order to provide more information, the disclosures of these underlying investments have been extracted from the underlying investment’s financial records. These records will not be audited until the underlying investment’s next year-end. Where a breakdown of portfolio is shown, this relates to the underlying Fund in which the Jessop Personal Pension Trust constituent fund invests.


Jessop (GAR) Global Equity Quant Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Global Equity Quant Fund)The Fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from global (ex UK) equity markets, by investing in companies of any market capitalisation accessed via a range of securities.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).

Performance Comparison

Investment SummaryResponding to the stimulatory measures introduced by governments and central banks in late 2008 and the early part of 2009, global equities rebounded very strongly over the ensuing six-month period. Market sectors sensitive to changes in economic expectations − basic materials, consumer discretionary and technology − delivered impressive returns. Meanwhile, more defensive market areas, such as utilities and telecommunications, were among the weakest. Signs of improving economic conditions in the US, Japan and Continental Europe together with better than expected corporate earnings reports (particularly in the US) spurred the market recovery. At the same time, there was a significant improvement in investor confidence with the result that cash, which had amassed in money market funds during the previous six-month period, began to find its way into other asset classes, including equities. The performance of the Fund is directly linked to the performance of the Gartmore Global Equity Quant Fund, therefore, no further investment analysis has been given.

Investment OutlookThe Fund is managed on an active quantitative basis. This investment approach is well-suited to global markets, which are typically less researched than the US or Europe, and therefore present more opportunities for a quantitative model.Stocks are selected through the use of proprietary quantitative models, which rank the relative attractiveness of equities based on qualitative measures of estimate revision, momentum, valuation and earnings quality. The model is built entirely from fundamental inputs and as managers we have final say over every position, industry and country bet. The portfolio is designed to yield consistent positive returns regardless of the market conditions. The qualitative measures used in the proprietary model are affected by investor perceptions of global economic outlook. However the outlook is not central to a quantitative approach to portfolio management.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund can invest in smaller companies which can be more risky than investing in larger companies due to lack of liquidity and increased volatility. As this Fund invests globally changes in exchange rates may cause the value of investments to fall or rise. Also this Fund invests in emerging markets, which tend to be more volatile than more established stock markets and therefore your money is at greater risk.

Annual Performance to 30.9.2009 30.9.08 30.9.07 30.9.06 30.9.05 30.9.04 30.9.09 30.9.08 30.9.07 30.9.06 30.9.05

Percentage growth 11.4 -17.5 15.3 9.9 27.4

In accordance with FSA guidelines on standardising past performance, the performance data shown above has been shown to the last full month. Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. Please see Cautionary Note on page 18.The Performance Comparison Chart shows data for one year and three and five years per annum. The Annual Performance Table shows discrete 12 monthly periods. Please note that performance figures in the bar charts included in this report are all shown on an offer to offer basis with income reinvested in line with UK pension taxation law.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)GLOBAL EQUITY QUANT 2004 152.91 126.71 2.48 (8.11.1988) Launch Date 2005 195.05 141.53 1.42 2006 197.55 181.57 1.52 2007 240.73 194.30 1.57 2008 237.08 145.16 4.48 To 5.10.2009 214.75 143.74 5.54

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)GLOBAL EQUITY QUANT 2007 10,594,925 5,217,716 203.05 1.04 − 2008 9,382,873 4,572,503 205.20 1.06 − 2009 7,274,490 4,398,257 165.39 1.16 0.07* As at 5.10.2009 8,735,541 4,429,327 197.22 1.16 0.55*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009

3 years to5.10.2009 pa


Source: Lipper Hindsight, Mid to Mid, net income reinvested, UK Sterling

10.0

18.1

1.7 1.90.8

6.9

0

5

10

15

20

Jessop (GAR) PP Global Equity Quant

FTSE World excluding UK


Note: A long report is available on request and is also published on the Jessop Fund Managers web site. www.jfml.co.uk

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)LONG TERM BALANCED 2004 167.26 139.73 3.15 (8.11.1988) 2005 204.03 156.48 2.90 2006 210.88 197.20 3.21 2007 246.89 206.68 3.51 2008 239.37 154.81 5.06 To 5.10.2009 206.84 148.37 6.57

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)LONG TERM BALANCED 2007 43,616,670 20,139,451 216.57 0.98 − 2008 37,845,274 18,014,233 210.08 1.06 − 2009 28,058,640 17,195,480 163.17 1.19 0.18* As at 5.10.2009 32,587,428 17,081,257 190.77 1.17 0.56*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

Jessop (GAR) Long Term Balanced Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Long Term Balanced Fund)The Fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from a balanced portfolio of UK and Global investments by investing in collective investment schemes, fixed interest securities, other transferable securities, money market instruments, warrants, cash and deposits.The Fund may use derivatives for the purposes of efficient portfolio management.

Performance Comparison Annual Performance to 30.9.2009 30.9.08 30.9.07 30.9.06 30.9.05 30.9.04 30.9.09 30.9.08 30.9.07 30.9.06 30.9.05



Investment SummaryResponding to the stimulatory measures introduced by governments and central banks in late 2008 and the early part of 2009, financial markets rebounded very strongly over the ensuing six-month period. Signs of improving economic conditions in the US, Japan and Continental Europe together with better than expected corporate earnings reports (particularly in the US) spurred the market recovery. At the same time, there was a significant improvement in investor confidence with the result that cash, which had amassed in money market funds during the previous six-month period, began to find its way into other asset classes, notably equities and credit markets. The adoption of unconventional measures to underpin the international banking system and ease credit constraints, principally quantitative easing − the policy of creating money to finance asset purchases, gave fresh impetus to government bond markets, notably gilts.The performance of the Fund is directly linked to the performance of the Gartmore Long Term Balanced Fund, therefore, no further investment analysis has been given.

Investment OutlookIn spite of the risk of a ‘double-dip’ recession, it is believed there is scope for further upside in equity markets as earnings expectations are improving, while valuations are reasonable for this stage of the cycle. Significantly, the near-collapse of the global financial system led companies to cut costs far more aggressively than usual in a downturn, while inventory management has also been much better than expected. This means that profits could well continue to exceed expectations. Against these positive drivers, near-term risks include the effects of withdrawing stimulus too far and too fast as the global economy remains weak, and the prospect of a further downturn in the US financial sector as asset quality issues return again. Any setbacks could well provide an opportunity to reinvest cash at more attractive valuations.

Risk ProfileThis Fund invests in equities, fixed interest securities, collective investment schemes, other transferable securities, money market instruments, warrants, cash and deposits. The collective performance and value of these investments is more risky than a cash or bond fund. Funds investing in overseas securities are exposed to and can hold currencies other than sterling. As a result, exchange rate movements may cause the value of investments to decrease or increase. Smaller companies are riskier and less liquid than larger companies, which means their share price may be more volatile. When a fund holds high yielding bonds there is an increased risk of capital erosion through default or if the redemption yield is below the income yield. Investors should also be aware that economic conditions and changes to interest levels may significantly impact the values of high yield bonds.

% pa

1 year to30.9.2009



4.6

13.3

-0.21.8

-0.7

7.7

-3

0

3

6

9

12

15

Source: Benchmark - RussellMellon CAPS (net of Fees)

Jessop (GAR) PP Long Term Balanced

CAPS Pooled Median


Jessop (GAR) Cautious Managed Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Cautious Managed Fund)The Fund aims to provide a combination of income and long-term capital growth. Investment will be a diversified portfolio of equities, bonds and other related investments. At all times the investment in equities will be limited to a maximum of 60% of the value of the Fund’s portfolio.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).




Investment SummaryThe UK equity market has delivered strong gains over the past six months, in stark contrast to the preceding period. A dramatic re-pricing of risk during the second quarter, as investors looked for and, in some cases, found the ‘green shoots’ of recovery, has maintained its momentum through more recent months. The FTSE 100 broke through the 5,000 mark for the first time in almost a year, before going on to record the largest quarterly gain in its 25-year history. From the US, positive earnings reports, and upbeat housing data have improved investor confidence and in August, Federal Reserve Chairman Ben Bernanke stated that the recessionary conditions were easing and the near-term outlook for a return to growth was positive. Although economic data has been more subdued domestically, a key characteristic of the past few months has been the overwhelmingly positive response to news. Weaker than expected data on several fronts has failed to dampen enthusiasm, reflecting investors’ increasing confidence in the big picture recovery story.The performance of the Fund is directly linked to the performance of the Gartmore Cautious Managed Fund, therefore, no further investment analysis has been given.

Investment OutlookThere is perplexion at why investors are now willing to ignore known problems − household and government debt, unsustainably low interest rates and the continued high cost of credit, and for the time being there seems little to stop the market on its headlong dash. Positive earnings surprises seem to be the order of the day, and they look like continuing for the short term at least. Meanwhile long dated gilts, which would normally expect to show signs of strain, seem very relaxed − plainly a result of the Bank of England’s quantitative easing ‘QE’ policy. But look a bit deeper at the steady fall in Sterling, or the sudden rise in inflation expectations, and concerns are less easily dismissed, while the big question of whether the consumer will feel up to providing the final demand to keep this bandwagon going is of course the biggest worry of all.

Risk ProfileThis Fund invests in a combination of bonds and shares. The Fund performance and value is more volatile than a fund investing solely in cash or bonds, but less volatile than one investing in shares alone, although you should bear in mind that the value of all investments can go down as well as up. The yield generated is subject to fluctuation and it is not guaranteed and as this fund invests in high yielding bonds, there is an increased risk of capital erosion, through default or if the redemption yield is below the running yield. In addition, economic conditions and changes in interest rates can affect the values of high yielding bonds. Changes in exchange rates may also cause the value of investments to fall or rise. Currently, the annual management charge is taken from the capital of the Fund, which will increase the yield, but restrict the potential for capital growth.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)CAUTIOUS MANAGED 2004 165.59 139.06 4.70 (8.11.1988) 2005 188.80 156.05 4.70 2006 192.99 188.23 5.37 2007 212.49 189.35 7.76 2008 208.34 163.09 8.46 To 5.10.2009 207.48 191.58 9.32

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)CAUTIOUS MANAGED 2007 38,828,610 19,955,328 194.57 0.90 − 2008 36,411,805 19,263,385 189.02 1.00 − 2009 31,877,759 19,050,759 167.33 1.08 0.21* As at 5.10.2009 36,870,151 19,069,109 193.35 1.10 0.68*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009




7.3 7.3

1.6

-0.90.6

3.3

-1

0

1

2

3

4

5

6

7

8

Jessop (GAR) PP Cautious Managed

IMA Cautious Managed Sector Average




Jessop (GAR) UK Growth Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore UK Growth Fund)The Fund aims to provide capital growth by investing in the UK market in any economic sector. The Fund will invest in a spread of companies as necessary to achieve the investment objective of capital growth.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth -0.8 -29.9 9.6 13.2 25.1


Investment SummaryThe UK equity market has delivered strong gains over the past six months, in stark contrast to the preceding period. A dramatic re-pricing of risk during the second quarter, as investors looked for and, in some cases, found the ‘green shoots’ of recovery, has maintained its momentum through more recent months. The FTSE 100 broke through the 5,000 mark for the first time in almost a year, before going on to record the largest quarterly gain in its 25-year history. From the US, positive earnings reports, and upbeat housing data have improved investor confidence and in August, Federal Reserve Chairman Ben Bernanke stated that the recessionary conditions were easing and the near-term outlook for a return to growth was positive. Although economic data has been more subdued domestically, a key characteristic of the past few months has been the overwhelmingly positive response to news. Weaker than expected data on several fronts has failed to dampen enthusiasm, reflecting investors’ increasing confidence in the big picture recovery story.The performance of the Fund is directly linked to the performance of the Gartmore UK Growth Fund, therefore, no further investment analysis has been given.

Investment OutlookEconomic data has improved significantly over the past few months and markets have responded very positively overall and continued to gain momentum. In terms of positioning, there has been a maintained strategy of slowly adding selected cyclical companies that are believed to be well-positioned to benefit from recovery, with a particular emphasis on companies with a strong international presence. Given the fundamental problems which are still obstructing recovery in the UK, the belief is that geographically diversified sources of revenue will mean a company is better-positioned over the medium term. Stakes in companies such as Rio Tinto, Standard Chartered, Imperial Tobacco and Prudential are in keeping with this theme. The idea is to remain cautious about consumer-related stocks at this early stage.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund can invest in smaller companies which can be more risky than investing in larger companies due to lack of liquidity and increased volatility.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)UK GROWTH 2004 203.54 167.25 2.88 (8.11.1988) 2005 253.24 190.48 2.37 2006 275.17 248.54 3.83 2007 316.97 251.87 2.87 2008 291.22 139.03 8.55 To 5.10.2009 208.51 133.26 8.80

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)UK GROWTH 2007 6,595,332 2,316,785 284.67 0.95 − 2008 5,056,541 1,970,129 256.66 1.01 − 2009 3,264,868 2,104,334 155.15 1.09 0.23* As at 5.10.2009 4,284,327 2,270,890 188.66 1.10 0.90*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009



-3.8

15.7

-4.4 -2.1 -6.0

5.7

-10

-5

0

5

10

15

20


Jessop (GAR) PP UK Growth

FTSE All Share


Jessop (GAR) UK Index Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore UK Index Fund)This Fund is designed to track the capital performance of the FTSE All-Share Index and to maintain a gross income yield equal to that of the Index. The Fund is managed on a fully invested basis and has a portfolio of, typically, over 600 stocks comprising the FTSE All-Share Index although, occasionally, the Fund may invest in stocks outside the Index. The emphasis is on maintaining tracking precision. Stocks are screened to minimise deviation from the Index. The portfolio also maintains a balance between large and small capitalisation stocks. The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investments schemes (use may be made of stock lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).




Investment SummaryThe UK equity market has delivered strong gains over the past six months, in stark contrast to the preceding period. A dramatic re-pricing of risk during the second quarter, as investors looked for and, in some cases, found the ‘green shoots’ of recovery, has maintained its momentum through more recent months. The FTSE 100 broke through the 5,000 mark for the first time in almost a year, before going on to record the largest quarterly gain in its 25-year history. From the US, positive earnings reports, and upbeat housing data have improved investor confidence and in August, Federal Reserve Chairman Ben Bernanke stated that the recessionary conditions were easing and the near-term outlook for a return to growth was positive. Although economic data has been more subdued domestically, a key characteristic of the past few months has been the overwhelmingly positive response to news. Weaker than expected data on several fronts has failed to dampen enthusiasm, reflecting investors’ increasing confidence in the big picture recovery story.The performance of the Fund is directly linked to the performance of the Gartmore UK Index Fund, therefore, no further investment analysis has been given.

Investment OutlookTalk of a return to economic growth in the UK has become louder and more frequent, with some commentators suggesting that the recession may already be over. However, Bank of England governor Mervyn King has warned against excessive optimism, reiterating that fundamental concerns remain. Households have been reducing debt and increasing savings, reflecting concerns about rising risk of unemployment and slow income growth.

Risk ProfileThis Fund tracks and invests in the FTSE All-Share Index and is not actively managed. The performance and value of shares is more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund invests in smaller companies which may be more risky than investing in larger companies due to the lack of liquidity and increased volatility. The Fund is aimed at investors looking to invest for the medium to long term, who are prepared to accept fluctuations in the value of their capital, including capital loss.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)UK INDEX 2004 78.23 64.57 1.55 (29.3.1996) 2005 94.38 73.33 1.39 2006 102.42 93.42 1.68 2007 118.52 97.50 2.15 2008 113.79 61.91 2.76 To 5.10.2009 96.74 59.36 2.85

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)UK INDEX 2007 3,533,499 3,334,060 105.98 0.99 − 2008 2,538,549 2,572,987 98.66 0.99 − 2009 2,070,735 2,942,902 70.36 1.08 0.20* As at 5.10.2009 2,341,891 2,668,779 87.75 1.08 0.92*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009



7.3

15.7

-1.1 -2.1 -2.0

5.7

-5

0

5

10

15

20


Jessop (GAR) PP UK Index

FTSE All Share




Jessop (GAR) UK & Irish Smaller Companies Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore UK & Irish Smaller Companies Fund)The Fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from the UK & Irish Smaller Companies equity markets, by investing in smaller companies having their registered office in the UK and Ireland, smaller companies that do not have their registered office in the UK and Ireland but either carry out a predominant proportion of their business activity in these markets, or are holding companies which predominantly own companies with registered offices in the United Kingdom and Ireland.The return will be a combination of capital and income returns.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).




Investment SummaryThe UK equity market has delivered strong gains over the past six months, in stark contrast to the preceding period. A dramatic re-pricing of risk during the second quarter, as investors looked for and, in some cases, found the ‘green shoots’ of recovery, has maintained its momentum through more recent months. The FTSE 100 broke through the 5,000 mark for the first time in almost a year, before going on to record the largest quarterly gain in its 25-year history. From the US, positive earnings reports, and upbeat housing data have improved investor confidence and in August, Federal Reserve Chairman Ben Bernanke stated that the recessionary conditions were easing and the near-term outlook for a return to growth was positive. Although economic data has been more subdued domestically, a key characteristic of the past few months has been the overwhelmingly positive response to news. Weaker than expected data on several fronts has failed to dampen enthusiasm, reflecting investors’ increasing urgency to reposition their portfolios for a recovery story. The performance of the Fund is directly linked to the performance of the Gartmore UK & Irish Smaller Companies Fund, therefore, no further investment analysis has been given.

Investment OutlookAs the quarter has progressed we have started to see signs of risk appetite becoming more normalised and greater confidence in the outlook for earnings. This trend has been buoyed by the extension of the Bank of England’s quantitative easing (‘QE’) program, and there is growing evidence that the QE medicine is driving investment flows into markets.At the present time, two key observations are striking. The first is that many of the positions have not yet received recognition for the development of their respective market positions. Secondly, capital remains a scarce resource in this area of specialism and competence. There is a continuation to introduce new names and identify opportunities to facilitate a scale of change in small businesses where it is believed they offer commensurate returns.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should remember that the value of all investments can go down as well as up. The Fund will be significantly invested in smaller companies which may be more risky than investing in larger companies due to lack of liquidity and increased volatility. As this Fund invests in the Republic of Ireland as well as in the UK, changes in exchange rates may cause the value of investments to fall or rise.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)UK & IRISH SMALLER COMPANIES 2004 126.88 98.77 0.65 (8.11.1988) 2005 147.72 117.75 0.36 2006 162.81 146.65 0.05 2007 192.02 145.19 0.00 2008 161.71 79.14 0.00 To 5.10.2009 145.34 78.71 2.66

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)UK & IRISH SMALLER COMPANIES 2007 2,214,016 1,301,393 170.12 1.05 − 2008 1,630,289 1,168,731 139.49 1.03 − 2009 1,008,103 1,169,668 86.18 1.09 1.31* As at 5.10.2009 1,605,038 1,201,953 133.53 1.05 1.55*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009



15.6

28.4

-5.4 -7.9 -2.02.0

-10

-5

0

5

10

15

20

25

30


Jessop (GAR) PP UK & Irish Smaller Companies

FTSE SmallCap xITs


Jessop (GAR) US Opportunities Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore US Opportunities Fund)The Fund will have a bias towards small and medium sized companies. Investment will be mainly in the US. The return will be a combination of capital and income returns.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth 2.9 -16.4 16.8 -3.2 14.8


Investment SummaryHaving fallen to multiyear lows in March 2009, US equities went on to register very strong gains over the ensuing six-month period. Market sectors sensitive to changes in economic expectations − basic materials, consumer discretionary and technology − delivered impressive returns. Meanwhile, more defensive market areas, such as utilities and telecommunications, were among the weakest. Signs of improving economic conditions − for example, in home sales, industrial production and retail sales − together with better-than-expected corporate earnings reports spurred the market recovery. During the April to June quarter, almost three in four of the companies that make up the Standard & Poor (‘S&P’) 500 Composite Index, announced profits that exceeded analyst forecasts. At the same time, there was a significant improvement in investor confidence with the result that cash, which had amassed in money market funds during the previous six-month period, began to find its way into other asset classes, including equities. The performance of the Fund is directly linked to the performance of the Gartmore US Opportunities Fund, therefore, no further investment analysis has been given.

Investment OutlookEconomic indicators suggest the US economy has embarked upon a cyclical recovery. Whilst it isn’t believed the economic recovery will be smooth, the belief is it will be sustained. Investment in those companies most able to deliver consistent growth through this recovery has been sought. In addition, the Fund’s exposure to companies with an international reach has been increasing, given mounting evidence of improving economic conditions in Europe, Asia and Latin America. Currently, the Fund is overweight information technology (Adobe, Apple, Google), financials (JP Morgan Chase, Wells Fargo, US Bancorp) and consumer discretionary companies (Disney and Polo Ralph Lauren). These positions are held at the expense of market sectors with more defensive qualities, such as utilities, healthcare and consumer staples.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund can invest in smaller companies which may be more risky than investing in larger companies due to lack of liquidity and increased volatility. As this Fund invests in the US, changes in exchange rates may cause the value of the investments to fall or rise.

% pa

1 year to5.10.2009



1.7

10.0

-2.2 -1.2 -0.4

3.0

-4

-2

0

2

4

6

8

10


Jessop (GAR) PP US Opportunities

S&P 500

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)US OPPORTUNITIES 2004 225.34 183.49 0.60 (8.11.1988) 2005 261.61 193.16 0.12 2006 254.00 218.95 0.42 2007 285.31 218.06 0.25 2008 281.99 179.19 0.26 To 5.10.2009 238.03 153.90 2.21

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)US OPPORTUNITIES 2007 1,877,982 810,450 231.72 0.96 − 2008 1,590,484 672,938 236.34 1.06 − 2009 1,262,989 715,669 176.47 1.10 0.09* As at 5.10.2009 1,633,438 756,271 215.98 1.07 0.88*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.




Jessop (GAR) US Smaller Companies Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore US Growth Fund)In this context the ‘smaller companies’ means companies whose market capitalisation, at the time of purchase by the Investment Manager, does not generally exceed US$ 2 billion. This capitalisation figure may be adjusted from time to time, depending on market conditions.The return will be a combination of capital and income returns.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth -10.6 -17.6 3.5 7.6 24.5


Investment SummaryHaving fallen to multi-year lows in March 2009, US equities went on to register very strong gains over the ensuing six-month period. Market sectors sensitive to changes in economic expectations − basic materials, consumer discretionary and technology − delivered impressive returns. Meanwhile, more defensive market areas, such as utilities and telecommunications, were among the weakest. Signs of improving economic conditions − for example, in home sales, industrial production and retail sales − together with better-than-expected corporate earnings reports spurred the market recovery. During the April to June quarter, almost three in four of the companies that make up the Standard & Poor (‘S&P’) 500 Composite Index, announced profits that exceeded analyst forecasts. At the same time, there was a significant improvement in investor confidence with the result that cash, which had amassed in money market funds during the previous six-month period, began to find its way into other asset classes, including equities. The performance of the Fund is directly linked to the performance of the Gartmore US Growth Fund, therefore, no further investment analysis has been given.

Investment OutlookThe US economy has embarked upon a cyclical recovery. In many sectors, excess goods from the previous expansion have been used up and now production is increasing to meet the stronger demand from consumers. While employment has been weak, rising production should lead to the creation of new jobs. Whilst it isn’t believed the economic recovery will be smooth, the belief is it will be sustained. Investment in those companies most able to deliver consistent growth through this recovery has been sought. In addition, the Fund’s exposure to companies with an international reach has been increasing, given mounting evidence of improving economic conditions in Europe, Asia and South America. Currently, the Fund is overweight information technology, materials and financials and underweight healthcare and consumer staples.

Risk ProfileThis fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund will be significantly invested in smaller companies which may be more risky than investing in larger companies due to lack of liquidity and increased volatility. As this Fund invests in the US, changes in exchange rate may cause the value of investments to fall or rise.

% pa

1 year to5.10.2009



-4.9

9.7

-3.6 -0.3 -5.1

3.3

-6

-4

-2

0

2

4

6

8

10


Jessop (GAR) PP US SmallerCompanies

Russell 2000

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)US SMALLER COMPANIES 2004 84.62 63.87 0.00 (30.5.1997) 2005 101.99 74.01 0.00 2006 112.00 92.49 0.00 2007 117.46 86.58 0.00 2008 100.40 54.74 0.00 To 5.10.2009 84.06 54.43 1.08

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)US SMALLER COMPANIES 2007 909,203 860,286 105.68 1.12 − 2008 612,517 745,203 82.19 1.14 − 2009 467,439 711,438 65.70 1.17 0.38* As at 5.10.2009 588,901 769,491 76.53 0.98 2.90*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.


Jessop (GAR) European Growth Personal Pension Fund

The pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore European Selected Opportunities Fund)The Fund aims to achieve a long-term return, in excess of the long-term return that is typically achieved from European equity markets, by investing in: companies having their registered office in Europe; companies that do not have their registered office in Europe but either (i) carry out a predominant proportion of their business activity in these markets, or (ii) are holding companies which predominately own companies with registered offices in Europe

The Fund will invest in companies of any market capitalisation.

The return will be a combination of capital and income returns.

The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stocklending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).



In accordance with FSA guidelines on standardising past performance, the performance data shown above has been shown to the last full month. Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. Please see Cautionary Note on page 18.

The Performance Comparison Chart shows data for one year and three and five years per annum. The Annual Performance Table shows discrete 12 monthly periods. Please note that performance figures in the bar charts included in this report are all shown on an offer to offer basis with income reinvested in line with UK pension taxation law.

Investment SummaryFears over the state of the world economy caused global indices to tumble as investors worried about the ongoing deterioration of the credit markets. Problems afflicting the two largest mortgage finance companies in the US − Freddie Mac and Fannie Mae − caused global reverberations. The swift action of the US Treasury and Federal Reserve once again demonstrated the responsiveness of the authorities to stresses in the financial system giving some respite to investors. By the end of the period under review, global markets were hit by news that Lehman Brothers has filed for bankruptcy sending shockwaves through the financial markets. The credit downgrade of American International Group, emergency sale of Merrill Lynch to Bank of America and JP Morgan’s acquisition of Washington Mutual added further intensity to a very volatile year. On the last day of September the US House of Representatives decided to reject a US$ 700 billion bail-out package sending markets into a tailspin.

Investment OutlookFinancial market developments continue to dominate the headlines and shape the near-term outlook. The combination of a stronger euro exchange rate, higher energy and food prices, credit and money market turmoil and slowing US growth weighed heavily on the euro-area economy in the third quarter. The degree of uncertainty and magnitude of the financial market crisis remains extreme and is now beginning to impact the real economy. The telecoms sector stands alone as the last relatively safe sector in terms of attractive dividend yields and defensive earnings. It is important to remain cautious in the outlook for this year and expect any recovery to be conditional upon the stabilisation of the housing and financial markets.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund can invest in smaller companies which may be more risky than investing in larger companies due to lack of liquidity and increased volatility. As this Fund invests in Europe, changes in exchange rates may cause the value of investments to fall or rise.

*Please note that the underlying investment of the European Growth Personal Pension Fund changed on 1 December 2008. This was through the merger of the Gartmore European Fund into the European Selected Opportunities Fund.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)

EUROPEAN GROWTH 2004 270.11 211.46 2.33 (8.11.1988) 2005 333.58 246.98 2.10 2006 357.60 319.45 4.08 2007 418.22 343.90 4.23 2008 416.64 225.25 5.09 To 5.10.2009 363.52 222.87 9.53

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)

EUROPEAN GROWTH 2007 6,302,830 1,708,620 368.88 1.03 − 2008 5,047,897 1,406,889 358.79 1.05 − 2009 3,641,972 1,401,296 259.90 1.06 0.21* As at 5.10.2009 4,730,769 1,427,132 331.48 1.11 0.99

*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009




15.1

22.7

-0.5

3.1

-0.6

10.5

-5

0

5

10

15

20

25

Jessop (GAR) PP European Growth

FTSE World Europe excluding UK




Jessop (GAR) Japan Opportunities Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30 September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Japan Opportunities Fund)The investment objective and policy of this Fund is to invest in a spread of Japanese securities. The ACD will invest in securities with the best long-term prospects rather than trying to achieve short-term performance.

The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth 3.2 -15.7 -4.1 8.0 30.6


Investment SummaryDeteriorating economic conditions prompted Japan’s government to announce a third economic stimulus package in March 2009. Since then, the Bank of Japan has made available loans worth ¥1 trillion to the country’s commercial banks. Subsequently share prices have rebounded strongly, as credit markets have stabilised and investors have begun to anticipate an upturn in the earnings cycle. Importantly too, a weaker Yen is beginning to bring some relief to Japan’s exporters. Trade data shows that exports reached a trough in February 2009, and have since been on a strengthening trend.The election of the Democratic Party of Japan (‘DPJ’) in a landslide victory at the end of August marks the end of an era. For over 50 years, the Liberal Democratic Party has ruled the country, with only a brief period in the 1990s without a monopoly on power. Early pledges from the DPJ suggest that the focus will shift towards rebalancing the economy via the introduction, among other things, of tax cuts.The performance of the Fund is directly linked to the performance of the Gartmore Japan Opportunities Fund, therefore, no further investment analysis has been given.

Investment OutlookThe Fund is managed on an active quantitative basis. This investment approach is well-suited to global markets, which are typically less researched than the US or Europe, and therefore present more opportunities for a quantitative model.Stocks are selected through the use of proprietary quantitative models, which rank the relative attractiveness of equities based on qualitative measures of estimate revision, momentum, valuation and earnings quality. The model is built entirely from fundamental inputs and as managers we have final say over every position, industry and country bet. The portfolio is designed to yield consistent positive returns regardless of the market conditions. The qualitative measures used in the proprietary model are affected by investor perceptions of the economic outlook in Japan. However the outlook is not central to the quantitative approach to portfolio management.

Risk ProfileThe Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund can invest in smaller companies which can be more risky than investing in larger companies due to lack of liquidity and increased volatility. As this Fund invests in Japan, changes in exchange rates may cause the value of investments to fall or rise.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)JAPAN OPPORTUNITIES 2004 56.56 42.02 0.00 (8.11.1988) 2005 73.26 44.03 0.00 2006 74.91 63.39 0.00 2007 72.55 55.87 0.00 2008 65.36 42.33 0.06 To 5.10.2009 59.90 44.12 1.32

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)JAPAN OPPORTUNITIES 2007 2,043,126 3,129,311 65.29 1.10 − 2008 1,449,734 2,634,034 55.03 1.11 − 2009 1,216,816 2,559,973 47.53 1.16 0.28* As at 5.10.2009 1,344,516 2,618,831 51.34 1.11 1.24*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009




3.9

8.8

-5.2 -4.5 -4.3

2.5

-6

-4

-2

0

2

4

6

8

10

Jessop (GAR) PP Japan Opportunities

TOPIX


Jessop (GAR) Pacific Opportunities Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30th September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Pacific Opportunities Fund)The Fund may also invest in American Depository Receipts (‘ADRs’) investing in securities issued by companies incorporated in the Pacific Rim, Far East, Indian subcontinent and Australasian markets or any similar listed securities of Pacific Rim, Far East, Indian subcontinent and Australasian companies. There is no predetermined geographical asset allocation, except that the Fund will not normally invest in Japanese companies. The return will be a combination of capital and income returns.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).




Investment SummaryThe markets of the Pacific Rim, India and Australasia registered strong gains over the period, propelled by sharp economic improvements across the region. Signs that the economies of the US, Japan and Continental Europe may have stabilised or even begun to improve provided further support. Chinese equities underwent a partial correction in August, due principally to concerns that, following a sharp decline in bank lending in July, the government may be acting to prevent a domestic credit bubble. A significant driver behind the recent revival among the region’s markets has been the sheer scale of government stimulus packages, aided by large budget surpluses. The region has seen a very large fiscal stimulus, with Australia, South Korea, Malaysia, Singapore and Taiwan among the main beneficiaries alongside China. In these countries, spending has been boosted by 4% or more of gross domestic product (‘GDP’). The impact of these measures has been to boost domestic investment and consumer activity.The performance of the Fund is directly linked to the performance of the Gartmore Pacific Opportunities Fund, therefore, no further investment analysis has been given.

Investment OutlookThe Fund is managed on an active quantitative basis. This investment approach is well-suited to global markets, which are typically less researched than the US or Europe, and therefore present more opportunities for a quantitative model.Stocks are selected through the use of proprietary quantitative models, which rank the relative attractiveness of equities based on qualitative measures of estimate revision, momentum, valuation and earnings quality. The model is built entirely from fundamental inputs and the managers have final say over every position, industry and country bet. The qualitative measures used in the proprietary model are affected by investor perceptions of the economic outlook in the Pacific region. However the outlook is not central to the quantitative approach to portfolio management.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund will invest in emerging markets which tend to be more volatile than more established stockmarkets and therefore your money is at greater risk. As this fund invests in overseas shares, changes in exchange rates may cause the value of investments to fall or rise.

% pa

1 year to5.10.2009



34.037.1

4.8

12.5

7.0

15.0

0

5

10

15

20

25

30

35

40

Source: MSCI AC Far East excluding Japan to 7.7.2006

Jessop (GAR) PP Pacific Opportunities

MSCI AC Pacific excluding Japan

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)PACIFIC OPPORTUNITIES 2004 42.93 31.49 0.19 (31.12.1994) 2005 53.42 37.65 0.38 2006 58.25 49.29 0.45 2007 90.22 55.32 0.12 2008 81.33 40.15 1.51 To 5.10.2009 78.81 44.26 2.00

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)PACIFIC OPPORTUNITIES 2007 1,879,606 3,022,069 62.19 1.14 − 2008 1,866,517 2,741,159 68.09 1.09 − 2009 1,623,202 2,990,896 54.27 1.14 0.25* As at 5.10.2009 2,217,714 3,062,781 72.40 1.14 1.14*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.




Jessop (GAR) Emerging Markets Opportunities Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30th September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Emerging Markets Opportunities Fund)In this context, the term ‘emerging markets’ means countries with low or middle per capita income and which are referred to by the World Bank as developing countries.The Fund may also invest in American Depository Receipts (‘ADRs’) investing in securities issued by companies incorporated in emerging markets or in any similar listed securities of emerging companies.The return will be a combination of capital and income returns.The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).





Investment SummaryEmerging equity markets registered strong gains over the period, propelled by sharp economic improvements in countries as diverse as Brazil, Russia, China, Korea and Taiwan. Signs that the economies of the US, Japan and Continental Europe may have stabilised or even begun to improve provided further support. Chinese equities underwent a partial correction in August, due principally to concerns that, following a sharp decline in bank lending in July, the government may be acting to prevent a domestic credit bubble. A significant driver behind the recent revival among emerging markets has been the sheer scale of government stimulus packages, aided by large budget surpluses. Asia has seen a very large fiscal stimulus, with South Korea, Malaysia, Singapore and Taiwan among the main beneficiaries alongside China. In Latin America, government packages have been sizeable also, led by Chile followed by Brazil, Mexico and Peru. The performance of the Fund is directly linked to the performance of the Gartmore Emerging Markets Opportunities Fund, therefore, no further investment analysis has been given.

Investment OutlookIt is believed that the world economy has entered a recovery phase and the focus is moving progressively towards the likely beneficiaries of this, such as discretionary consumer stocks and information technology. With the Chinese authorities becoming more concerned about strong domestic credit growth, there is a view to diversify further the cyclical exposure towards countries with the most accommodating monetary policies, such as Brazil, Korea and Taiwan. Holding overweight positions in materials and consumer discretionary stocks there is an expectation to benefit from improving rates of domestic and international economic growth. Conversely, the Fund is underweight in financials and defensive market areas, such as consumer staples, telecoms and health care. There is an aim to emphasise stocks whose valuations remain below their sector or industry averages. Those offering the potential to deliver strong growth in an economic recovery also appear attractive.

Risk ProfileThis Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up. This Fund invests in emerging markets, which tend to be more volatile than more established stockmarkets and therefore your money is at greater risk. As this Fund invests globally, changes in exchange rates may cause the value of investments to fall or rise.


EMERGING MARKETS OPPORTUNITIES 2004 71.28 53.77 0.65 (31.1.1995) 2005 105.04 65.62 0.31 2006 119.31 95.86 0.71 2007 188.59 112.20 0.40 2008 182.89 77.29 0.59 To 5.10.2009 143.89 84.59 3.22

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)EMERGING MARKETS OPPORTUNITIES 2007 2,556,031 2,059,075 124.13 1.11 − 2008 3,068,143 2,005,904 152.95 1.08 − 2009 2,322,355 2,280,592 101.83 1.10 0.33* As at 5.10.2009 3,360,525 2,521,640 133.26 1.23 0.91*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009




21.3

51.1

6.6

13.6

5.6

19.4

0

10

20

30

40

50

60

Jessop (GAR) PP Emerging Markets Opportunities

MSCI Emerging Markets


Jessop (GAR) UK Long Dated Gilt Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30th September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore UK Long Dated Gilt Fund)The investment objective and policy of this Fund is to invest in fixed interest United Kingdom Government stocks. The ACD will invest in securities with the best long-term prospects rather than trying to achieve short-term performance.

The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth 9.8 4.6 -5.6 4.6 9.6


Investment SummaryLong dated gilts lost ground during the second quarter, as equities rallied sharply from their lows in March and credit spreads tightened. The UK’s burgeoning fiscal deficit was the main preoccupation for gilt investors, particularly as Standard & Poor’s (‘S&P’) revised down the UK’s credit outlook and warned it may lose its “AAA” credit rating. The UK’s public finances deteriorated alarmingly and, according to S&P’s, the UK budget deficit may approach 100% of gross domestic product (‘GDP’) by 2013. Subsequently, the Bank of England’s decision to extend its quantitative easing (‘QE’) programme by a further £50 billion in August triggered a sharp rally in long dated securities. In the near-term, inflationary pressures look to have eased as the benchmark Consumer Price Index declined to 1.6% in August, which was its lowest reading since January 2005. Policymakers continue to stress the large degree of spare capacity that is limiting inflationary pressures. The performance of the Fund is directly linked to the performance of the Gartmore Long Dated Gilt Fund, therefore, no further investment analysis has been given.

Investment OutlookExpectations among investors have clearly shifted away from deflation towards anticipating a sustained recovery in the global economy as we head into 2010. However, the outcome of the latest G20 summit suggests monetary officials still believe the greater risk is not inflation, but rather reversing stimulative policies too soon, derailing the recovery. Enduring problems for the financial system and the fragility of the UK economy suggest it would be premature to conclude the deflationary threat has been completely averted. With quantitative easing set to draw a close during the fourth quarter, investors are likely to refocus on the volume of new issuance required to fund the fiscal deficit and it would not be surprising to see a rise in long dated gilt yields over the coming months.

Risk ProfileThis Fund invests in fixed income securities, which are less volatile than shares, but more volatile than cash, although you should bear in mind that the value of all investments can go down as well as up. The yield generated is subject to fluctuation and it is not guaranteed. The annual management charge is taken from the capital of the Fund, which will increase the yield, but restrict the potential for capital growth. This Fund holds a limited number of investments. If one or more of these investments declines in value, or is otherwise affected, this may have a greater impact on the Fund’s value than if a larger number of investments were held.

Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)UK LONG DATED GILT 2004 168.83 143.36 5.55 (8.11.1988) 2005 182.29 151.14 5.29 2006 179.28 172.94 4.90 2007 182.78 155.41 4.98 2008 205.28 162.74 5.67 To 5.10.2009 205.42 170.47 7.60

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)UK LONG DATED GILT 2007 5,638,359 3,449,302 163.46 1.01 − 2008 5,989,096 3,534,900 169.42 1.05 − 2009 5,800,373 3,199,397 181.29 1.12 0.29* As at 5.10.2009 6,272,947 3,314,260 189.27 1.11 0.91*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

% pa

1 year to5.10.2009



7.0

10.4

2.4

5.2

2.0

6.4

0

2

4

6

8

10

12


Jessop (GAR) PP UK Long Dated Gilt

FTSE Gilts Over 15 Years




Personal Pension Trust Constituent Fund − Past Unit Prices for each Calendar Year since 2004 Highest Lowest Bid Net Income Offer Price Price per Unit (Pence) (Pence) (Pence)INDEX LINKED GILT 2004 150.16 129.78 1.61 (8.11.1988) 2005 160.96 136.60 1.33 2006 156.74 154.62 1.35 2007 173.25 146.14 1.84 2008 189.03 150.11 1.20 To 5.10.2009 184.97 154.78 2.74

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)INDEX LINKED GILT 2007 623,953 414,461 150.54 1.14 − 2008 1,089,239 651,368 167.22 1.13 − 2009 916,299 570,851 160.51 1.13 0.38* As at 5.10.2009 953,605 548,402 173.88 1.07 1.40*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

Jessop (GAR) Index Linked Gilt Personal Pension FundThe pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30th September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Index Linked Gilt Fund)The investment objective and policy of the Fund is to invest mainly in index-linked United Kingdom gilts. There is the possibility that the Fund will invest in other non-UK index linked stocks. The ACD will invest in securities with the best long-term prospects rather than trying to achieve short-term performance. The Fund may also invest at the Manager’s discretion in other transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth 1.1 9.2 -0.2 5.2 8.2


Investment SummaryIndex linked gilts gained ground as yields fell back across a broad range of maturities over the review period. The drop in yield was most pronounced on short-dated 0-3 year securities. Although the Bank of England is issuing more index linked gilts to finance the public sector borrowing requirement (‘PSBR’), concerns over the size of the fiscal deficit and the longer-term implications for inflation from quantitative easing (‘QE’) have underpinned demand for index linked gilts. Significantly, the central bank decided to extend QE in August by a further £50 billion to £175 billion. Several large institutional investors also view linkers as an effective hedge against equity market volatility. In the near-term, inflationary pressures look to have eased as the benchmark Consumer Price Index (‘CPI’) declined to 1.6% in August, which was its lowest reading since January 2005. Policymakers continue to stress the large degree of spare capacity they expect to limit inflationary pressures. The performance of the Fund is directly linked to the performance of the Gartmore inex Linked Gilt Fund, therefore, no further investment analysis has been given.

Investment OutlookPolicymakers worldwide have taken concerted action to avert a prolonged and severe global recession. In the UK, inflationary pressures are likely to pick up in 2010 as the economy responds to large scale fiscal and monetary stimuli. Currently, the breakeven inflation rate on 10 year securities is historically cheap, well below the average for the last decade, but with inflationary pressures easing this might not represent good value in the near-term. Looking further out, demand for inflation protection from UK institutional investors should continue to underpin index linked gilts.

Risk ProfileThis Fund invests in fixed income securities, which are less volatile than shares, but more volatile than cash, although you should bear in mind that the value of all investments can go down as well as up. The yield generated is subject to fluctuation and it is not guaranteed. The annual management charge is taken from the capital of the Fund, which will increase the yield, but restrict the potential for capital growth. This Fund holds a limited number of investments. If one or more of these investments declines in value, or is otherwise affected, this may have a greater impact on the Fund’s value than if a larger number of investments were held. As this Fund may invest internationally, changes in Exchange rates may cause the value of investments to fall or rise.

% pa

1 year to5.10.2009




0.7

5.7 5.56.1

2.5

6.8

0

1

2

3

4

5

6

7

8Jessop (GAR) PP Index Linked Gilt

FTSE Index Linked Gilts Over 5 Years


Jessop (GAR) Cash Personal Pension Fund

The pension fund invests in only one security. Any investment objectives, investment summaries and investment outlooks contain information relating to that single underlying security. The performance comparison and annual performance to 30th September 2009 relate to the pension fund itself.

Investment Objective of the Underlying Fund (Gartmore Cash Fund)The Fund aims to provide a high level of capital security and wholesale money market rates of return by investing in sterling denominated cash deposits and money market instruments.

The Fund may also invest at the Manager’s discretion in transferable securities, money market instruments, cash and near cash, derivative instruments and forward transactions, other deposits and units in collective investment schemes (use may be made of stock-lending, borrowing, cash holdings, hedging and other investment techniques permitted in applicable FSA Rules).


Percentage growth 1.1 4.6 4.4 3.6 3.8



Investment SummaryThe Bank of England left its Base Rate unchanged at 0.5% over review period, and announced in August that quantitative easing (‘QE’) would continue for another three months and be extended by a further £50 billion to £175 billion. In the near-term, inflationary pressures look to have eased as the benchmark Consumer Price Index (‘CPI’) has now fallen back below its official 2% target. Significantly, the outcome of the latest G20 summit suggests monetary officials still believe the greater risk lies with reversing stimulative policies too soon, thus derailing the global economic recovery. In the money markets, the benchmark Sterling LIBOR rate fell significantly and is now at its lowest rate since the mid 1980s. However while consumers are now paying down unsecured debt at the fastest rate since records began in 1993, recent evidence suggests banks remain reluctant to lend and focused on rebuilding their balance sheets.

The performance of the Fund is directly linked to the performance of the Gartmore Cash Fund, therefore, no further investment analysis has been given.

Investment OutlookExpectations among investors have clearly shifted away from deflation towards anticipating a sustained recovery in the global economy as we head into 2010. However, enduring problems for the financial system and the fragility of the UK economy suggest it would be premature to conclude the deflationary threat has been completely averted. There remain significant doubts as to whether QE has had the desired effect on the broader economy, and we could well see a subdued recovery in 2010. Under these circumstances, interest rates are likely to remain on hold for longer than the markets are currently anticipating.

Risk ProfileThis Fund only invests in cash deposits and related instruments held in the UK and internationally. The performance of cash is less volatile than that of shares or bonds. As this Fund invests internationally, changes in exchange rates may cause the value of investments to fall or rise.


CASH 2004 136.02 123.36 4.23 (8.11.1988) 2005 140.92 127.92 4.22 2006 137.40 140.99 4.41 2007 153.03 137.45 4.19 2008 157.97 143.90 5.99 To 5.10.2009 160.10 149.74 7.05

Personal Pension Trust Constituent Fund − Net Asset Value Record As at 5 April Net Asset Units in Net Asset Total Portfolio Value Issue Value per Expense Turnover (£) Unit (Pence) Ratio (%) (%)

CASH 2007 4,126,007 2,970,361 138.90 0.79 − 2008 5,520,980 3,796,169 145.43 0.83 − 2009 4,433,119 2,947,105 150.42 0.85 0.31* As at 5.10.2009 4,570,638 3,041,972 150.25 0.84 1.79

*Portfolio Turnover Rate for the period 6 April 2009 to 5 October 2009.

Jessop (GAR) PP Cash

IMA Money Market Sector average

% pa

1 year to5.10.2009




1.0

-0.1

4.2

2.22.0

2.5

-1

0

1

2

3

4

5




Services for the Investor

Admin Help Line 0870 601 1131If you have any queries regarding the administration of your Personal Pension Trust investment, contact Pension Administration.

Web Site Address www.jfml.co.ukInformation about Jessop Fund Managers products is available on our web site.

Email [email protected] conversations may be recorded for monitoring and training purposes.

About Jessop Fund Managers

Manager

The Manager of the Scheme is Jessop Fund Managers Limited, a company limited by shares incorporated on 4th April, 2006 in England and Wales under the companies Act 1985. Jessop Fund Managers Limited is a wholly owned subsidiary of Vertex Administration Limited.

Trust StatusJessop Personal Pension Trust is an authorised umbrella scheme for the purposes of the Financial Services and Markets Act 2000. Copies of the Trust Deed may be inspected at the office of the Manager.

Data ProtectionIf you do not wish information concerning your investment in the Jessop Personal Pension Trust to be sent to your adviser, please write to us at the following address: Data Protection Officer, Jessop Fund Managers Limited, Jessop House, Jessop Avenue, Cheltenham, Gloucestershire, GL50 3SH.

Further InformationFor further information and to answer any questions you may have, please contact Jessop Pension Administration on 0870 601 1131 between 9.00a.m. to 5.00p.m. (Monday to Friday). Telephone conversations may be recorded for monitoring and training purposes.

Cautionary NotePast performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. Emerging markets tend to be more volatile than more established stockmarkets and therefore your money is at greater risk. Other risk factors such as political and economic conditions should also be considered. Funds investing in overseas securities are exposed to and can hold currencies other than sterling. As a result, exchange rate movements may cause the value of investments to decrease or increase. The level of yield may be subject to fluctuation and is not guaranteed. The difference between the redemption and the running (or income) yield is that the redemption yield gives a more long-term view, taking into account expected capital repayments as well as income payments should the bonds in the fund be held for 10 years. The running (or income) yield gives an indication of the income to be paid based on the Fund’s current bond holdings. When a Fund holds high yielding bonds there is an increased risk of capital erosion through default or if the redemption yield is below the income yield. You should also be aware that economic conditions and changes to interest levels may significantly impact the values of high yield bonds.

As a Constituent Fund is not a legal entity, if the assets attributable to any Constituent Fund were insufficient to meet the liabilities attributable to it, the shortfall might have to be met out of the assets attributable to one or more of the other Constituent Funds.

More detailed information on the different Funds’ risk factors is contained in the relevant Key Features Documents and Prospectus.


Trust Information

Manager of the FundJessop Fund Managers Limited, Jessop House, Jessop Avenue, Cheltenham, Gloucestershire, GL50 3SH

Authorised and regulated by the Financial Services Authority

Directors of the ManagerA list of Directors can be supplied on request

Investment AdviserGartmore Investment Limited, Gartmore House, 8 Fenchurch Place, London, EC3M 4PB


TrusteeHSBC Bank plc, 8 Canada Square, Canary Wharf, London, E14 5HQ


RegistrarJessop Fund Managers Limited, Jessop House, Jessop Avenue, Cheltenham, Gloucestershire, GL50 3SH


Independent AuditorsPricewaterhouseCoopers LLP, PO Box 90, Erskine House, 68-73 Queen Street, Edinburgh, EH2 4NH

DealingPersonal Pension Administration, Jessop Fund Managers Limited, PO Box 1043, Cheltenham, Gloucestershire, GL50 9JB

Telephone: 0870 601 1131 Fax: 0870 6011135

Jessop Fund Managers Limited

Registered in England No. 1137353

Issued by Jessop Fund Managers Limited, which is authorised and regulated by the Financial Services Authority

Registered Office Pegasus House, Kings Business Park, Liverpool Road, Prescot, L34 1PJ

Telephone: +44 (0) 151 443 9000
