The Fund fell by 0.17% in July, compared to its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.42%.

July proved to be a topsy-turvy month for the Fund, with a positive performance in the first half of the month being given up and more over a period of three days, before the losses were recovered over the final two weeks leaving the Fund pretty much flat for the period.

This was matched by the markets in the UK in general, with initial gains being given up mid-month with rises in inflation and unemployment figures causing a short spell of pessimism. This was amplified by two members of the Bank of England’s Monetary Policy Committee stating that they felt the current relaxed monetary policy may need to be tightened if the current trends continued. Central banks were quick to reassure investors however that any movements on their part were still some way off which allowed markets to recover.

Two strategies had observation points in the period. For both the underlying index, the FTSE 100 index, was below the required level, so the strategies move on to their next observation points. Both have a further six years to go before their final possible maturity points, giving at least six more opportunities for the strategies to mature with a gain. One also has the advantage of the observation level required reducing in subsequent years, with its final observation point being over 14% below the FTSE 100 level at the end of the month.

The proceeds from June’s maturing strategies were also rolled over into a new structured note backed by Goldman Sachs. This strategy will pay a potential 9.05% for each year it is in force, payable on the first anniversary the underlying index, the FTSE CSDI index is at or above its initial value, with a maximum term of eight years. Further details of all the 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.