The Fund was up 2.35% in January.
(Source of all figures: FE Analytics)

World equity markets were generally positive over the month, although we did see dispersion across the regions. Although the threat of tariffs from the US still lingered in Europe, it was the strongest performing of the main regions, as the ECB continued to cut interest rates to support the economy. Some also saw the valuation of companies within the region as being attractive.

In the UK large cap stocks also performed well, as measured by the FTSE 100 index. This index is seen as relatively defensive given its sector composition and again valuations are seen as attractive compared to other markets. More domestic facing UK companies, in general, were not as strong performing however, in terms of share price.

One strategy had an observation date in January, which lead to another successful maturity.

Strategy 51, a structured note with Morgan Stanley as the counterparty, needed the FTSE CSDI index to be up on what was its second anniversary to mature. It was, so the strategy matured with a gain of 18.40%, 9.20% for each year, from a rise of 10.57% in the index.

A new strategy was also added to the Fund. Strategy 88 is an eight year, over the counter strategy, fully collateralised with short-dated gilts. It can mature on any anniversary, provided that the FTSE CSDI and EuroStoxx 50 indices are both at or above a reducing reference level. The reference level is 105% of their strike levels in year one, 100% in years two and three, 95% in years four to six, and finally 90% of their strike levels in years seven and eight. This strategy will give a simple return of 9.30% for each year it is in force.

Summary
Rising 2.35% in one month was a pleasing start to the year for the Fund. Spread over twenty-four different strategies, it continues to be well diversified in terms of observations dates, observation levels and counterparty exposure. Gilt-backed strategies remain the largest allocation, while the strategies in note form are diversified across nine counterparty banks. Details of the current strategies and the investment banks used, along with further information on the fund, can be found at UKDSF.com.

We hope this update provides you with a flavour of how the Fund is currently positioned.

Further details of this and all the other strategies within the Fund can be found on the Fund’s website: 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.