Sharewatch Growth Portfolios

To demonstrate the benefits of the Sharewatch newsletter "Something New" strategy, we have created our very own Growth Portfolio, a virtual portfolio which we update in the newsletter each month and which is run in order to illustrate the dynamics of managing an active small company portfolio. The performance of individual companies can vary widely. Share prices can fall as well as rise and some investments can fail altogether, so it is important to spread your investments over a number of holdings and not speculate on just one. Speak to your stockbroker if any points are unclear.

When running our portfolio, no share is added unless it is recommended in the newsletter and like all investors the portfolio operates with a finite amount of cash and so sometimes a sale must be made to free up cash for a new investment. The portfolio performance ignores income from dividends but takes account of prevailing stamp duty and dealing commissions on sales and purchases to show a realistic picture.

Launched in November 1994, shares in our Sharewatch Portfolio I, based on an investment of £25,000 delivered stunning growth of 1089% before being terminated in July 2001. On a mid-to-mid price basis, including dealing costs and excluding dividends, this represented a capital gain of £272,142. Over the same period, Sharewatch delivered growth some 12.2x better than the FTSE-100, an index which comprises mostly large companies and 12.8x better than the FTSE All-Share.

Growth Portfolio II was launched in March 2001 and is already performing strongly. As at 2/7/07 (July '07 issue publish date), it is showing a gain of 394.9% compared to the FTSE-100 which has risen just 15.2% over the period, the FTSE All-Share Index, which is showing a gain of 27.0% and the FTSE-Small Cap, which is up 38.9%.

But don't just take our word for it, ask your broker to run a check on our performance. Because quite simply our numbers can't lie, exaggerate or massage away poor performances. They simply speak for themselves. Remember, however, that past performance is not a guide to future success.

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Information and advice given in Small Company Sharewatch and The Momentum Investor are in general terms only and do not constitute personal advice to any investor. Published by Equitylink Ltd, a firm regulated by the Financial Services Authority. Remember, share prices and the income from them may go down as well as up. Past performance is no indication of future success. Investing in equities can lose you part or all of your capital.Most of the shares recommended may be smaller company shares which by their nature can be relatively illiquid and thus hard to trade. This makes investing in small caps riskier than in blue chips. Investors should seek advice from their stockbroker if any points are unclear.