The Fund rose by 2.04% in November, taking the year-to-date return to 5.39%.

November was a good month for UK equities, as the published inflation figures were lower than expected. Forecasts for future inflation were also lower than previously predicted, meaning that the expectations of interest rates not rising further from current levels increased. In fact, across the UK, US and Europe markets started to price in rate cuts for 2024. The UK equity market, as measured by the FTSE 100 index, rose by 2.29% on a total return basis over the month, i.e. including reinvested dividends, so it was pleasing to see the Fund keep pace despite continuing to show lower volatility.

(Source of all figures: FE Analytics)

Two strategies had observation points in the month, namely Strategies 48 and 49. Both were gilt backed contracts linked to the FTSE CSDI. The first was a step-down shape, which needed the index to be at or above a reducing reference level on any anniversary to mature with a gain, whilst the second was an at the money shape, requiring the index to be above its starting level to mature positively. As it turned out they both matured on their first anniversaries, giving returns of 9.50% and 10.25% respectively for corresponding rises in the index of 2.25% and 0.39%.

One new strategy was added in November. Strategy 66 is a new gilt backed contract 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 9.00% 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.