The performance of the Fund was slightly negative in September, falling -0.15%.
(Source of all figures: FE Analytics)

European stock markets, including the UK, fell slightly in the first week of September, with worries about weak US growth, and disappointing manufacturing data in particular, weighing on investor sentiment. This led to expectations of a bigger rate cut from the Federal Reserve, which they duly delivered, cutting by 0.5% later in the month. Whilst the speculation was enough to arrest the falls in the UK, it did not lead to a reversal, with the market, as measured by the FTSE 100 index, ending the month down 1.67% on a price only basis.

One strategy, strategy 64, had an observation date during September, which triggered a successful maturity. This was a gilt collateralised, over the counter trade which matured on its first anniversary, returning 9.43%. Over the same period the FTSE CSDI index, to which this strategy was linked, returned 7.20%.

A new strategy was also added to the Fund during the month. Strategy 83 is a seven-year over the counter trade which is collateralised with short-dated gilts. It requires the FTSE CSDI index to be at least 5% up on the first anniversary to mature with a gain of 8.94%. If not, then it carries on to the next anniversary, and potentially a further five anniversaries after that, with the FTSE CSDI index needing to be at or above its initial level to trigger a maturity, adding 8.94% for each year it is in force.

Further details of this and all the other strategies within the Fund can be found on the Fund’s website: www.UKDSF.com.

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.