Monthly Update
30 September 2023
The Fund rose by 1.10% in September, taking the year-to-date return to 4.47%.
(Source of all figures: FE Analytics)
After a steady start to September for UK equity markets, the European Central Bank signalled an end to its monetary tightening in the middle of the month, which saw share prices surge. The FTSE 100 Index rose by almost 2% in a single day, but this was to be short lived. Headline inflation in the UK fell slightly again when it had been predicted to rise, which allowed the Bank of England to surprise many by holding the base rate at the same level rather than the expected rise. This led to a slight sell-off in the final week as some felt it increased the chances of a recession in the UK, but it was not enough to remove all of the earlier gains with the markets finishing the month in positive territory.
Two strategies had observation points in the month, namely Strategies 46 and 47. Both were gilt backed contracts linked to the FTSE CSDI. It was the first observation for each, and they both required the FTSE CSDI to be above its initial level to mature with a gain. As it turned out, on the first observation date for Strategy 46, the index was up 0.77%, and for Strategy 47 it was up 6.14%, and as such, the strategies matured with gains of 9.41% and 9.72% respectively.
One new strategy was added in September. Strategy 64 is a gilt backed strategy, linked to the FTSE CSDI. A maximum eight-year contract, it needs the index to be at or above its starting level on any anniversary to mature with a positive return, accumulating a 9.43% coupon for each year it is in force.
Further details of all the strategies within the Fund can be found on the Fund’s website: UKDSF.com.
The value of this investment can fall as well as rise and investors may get back less than they originally invested.
The Fund is suitable for investors who are seeking capital growth over a medium to long term horizon but who are willing to tolerate medium to high risks due to the potentially volatile nature of the investments.
This article is for information purposes only and should not be construed as advice. We strongly suggest you seek independent financial advice prior to taking any course of action.
The Lowes UK Defined Strategy Fund is a sub-fund of the Skyline Umbrella Fund (ICAV) and is regulated by the Central Bank of Ireland. The KIID, Prospectus, and Supplement can be accessed by visiting UKDSF.com/literature and are only available in English.
Lowes Investment Management Ltd, Fernwood House, Clayton Road, Newcastle upon Tyne, NE2 1TL. Authorised and regulated by the Financial Conduct Authority.