The Fund rose 10.01% in November, well ahead its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.42%. It was behind the FTSE 100 Index however, to which all the underlying strategies are linked, which rose by 12.35% over the month on a price only basis.

The announcement at the end of October of very positive preliminary results from two Covid-19 vaccine trials gave stock markets everywhere a big boost. The FTSE 100 Index had risen by over 14% within the first two weeks of the month, with the Fund up 12% in the same period, before they both levelled off as investors consolidated.

In the US, Joe Biden won the presidential election but without managing to take both Houses in Congress which will temper his ability to make sweeping changes in his early days, especially when it comes to raising taxes. This too was seen as a positive by the markets and only leaves the Brexit trade deal talks as a big unknown for investors as the negotiations continue to go down to the wire.

Two of the existing strategies passed observation points during November, but with the current Index level below their observation levels neither matured and instead roll on to their next observation points in a year’s time, with at least a further five years to run after that should the index still be below the required levels next year. One of these strategies is a step down contract, meaning its observation level drops each year, and even with no further positive movement in the FTSE from its end of month level it would still mature with a positive gain in its final year.

With no strategies to replace during the month, no new trades were made in November, although one was prepared for the beginning of December to utilise some of the positive cash inflows. 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.