The FTSE All Share index, representing the performance of all eligible companies (currently about 630) listed on the London Stock Exchange has finished the week (and the year) at 3062.85, some 31.56 points lowers on the day and 36.06 lower than the start of the week.

During 2010 the FTSE All Share index, which accounts for approximately 98% of the UK’s market capitalisation, made gains of 255.9 points from its’ opening value of 2806.95 on 4th January 2010.

That’s a rise of 9.11% over the course of 2010.

CPI annual inflation – the Government’s target measure – was 3.3% in November, up from 3.2% October. In the year to November, RPI annual inflation was 4.7%, up from 4.5% in October.

Bank of England base rate is currently set at 0.5% and has been at this level since a reduction from 1.00% on 5th March 2009.

Exposure to a fund tracking the FTSE All Share Index during 2010 would have delivered returns well ahead of inflation.  A cash account would need to have been delivering a gross return of 4.125% per annum (for a basic rate tax payer) just to keep up with inflation.