Monthly Update
30 June 2024
The performance of the Fund was flat in June, rising only slightly by 0.02%.
(Source of all figures: FE Analytics)
It was a mixed month for equity markets around the globe, with a divergence in local currency terms. In the US, for example, the S&P 500 index was up 3.47%, followed by the Nikkei 225 index up 2.85% in Japan. In Europe and the UK meanwhile, equities posted negative returns for the period. It was the more economically sensitive stocks within the UK which suffered the most, in particular mid-cap stocks, a reverse of their strong showing the month before.
Consumer price inflation fell to 2% in the UK, in line with the target set for the Bank of England. Whilst it is forecast to drift slightly higher again over the coming months, it perhaps increases the potential for the Bank of England to follow their European counterparts and consider that first cut in interest rates.
Two strategies had observation dates in June. Both were linked to the FTSE CSDI index, with both maturing on their first anniversary. The first, strategy 58, was an at the money structured note with Citigroup as the counterparty, which returned 9.45%, while the second, strategy 59, was a step-down, gilt collateralised contract, returning 8.60%.
One strategy was added to the Fund during the month, strategy 74. This was a maximum eight-year, gilt collateralised contract linked to the FTSE CSDI Index. To mature it requires the index to be at least 5% above its starting level at the end of year one, or if not then at or above its starting level on any other anniversary from year two onwards. For each year that it is in force it will accumulate a coupon of 9.00%.
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.