Monthly Update
30 April 2024
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The performance of the Fund was positive in April, rising by 0.72%. (Source of all figures: FE Analytics)
This month was a positive one for UK equity markets in general, in particular small cap stocks, which outperformed both their large and medium sized counterparts. Economic growth data was supportive, and smaller companies are more dependent on the strength of the UK economy compared to their large cap peers. The Bank of England continued to hold interest rates at 5.25%, which was expected by economic forecasters. Falling inflation means they now have some scope to cut the base rate, but are mindful of moving too early and reigniting inflationary pressures.
There were no maturities during April, with no strategies having an observation point in the month. Two new strategies were added to the Fund, however, Strategies 70 and 71. These were both in note form, with Bank of America and UBS the respective counterparties.
The first is a maximum seven-year contract linked to the FTSE 100 Index. To mature it requires the index to be at or above 95% of its starting level on any anniversary from year two onwards. For each year that it is in force it will accumulate a coupon of 8.60%.
The second was again linked to the FTSE 100 Index, but this time over a maximum eight years. To mature it requires the index to be at or above its initial level on any anniversary from year two onwards. For each year that it is in force it will accumulate a coupon of 9.10%.
Further details of this and all the other strategies within the Fund can be found on the Fund’s website: www.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.