The Fund fell 1.69% in January, underperforming its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.39%.

A very strong start to the month for the UK stock market, as measured by the FTSE 100 Index, saw the Fund show a similar positive move, being up 4% by the end of the first week. Despite a slight pull back in the following weeks, the Fund was still heading for a positive month in January until the final week. A social media campaign encouraging retail investors to buy stocks being shorted by hedge funds saw a flurry of investing in these companies. Whilst positive for the companies involved, the hedge funds had to heavily sell their other holdings to cover their short positions, pushing prices down in the broader markets.

One of the existing strategies passed an observation point during January, but with the level of the underlying index being below its observation level it did not mature. Instead, it rolls on to its next observation point in a year’s time, and should the index still be below the required level next year it still has a further six observation points after that.

With no strategies to replace during the month, no new strategies were added in January. Some of the recent cash inflows were used to increase the Fund’s short-dated gilt holdings, however, to act as collateral to future OTC purchases.

To view all the strategies within the fund in detail, please visit the portfolio page on 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.