The performance of the Fund was positive in July, rising 1.09%. (Source of all figures: FE Analytics)

It was a positive month for UK equity markets, outperforming the other major regions in local currency terms. UK share prices were supported by a stronger than expected economy, along with an increased likelihood of an interest cut by the Bank of England as consumer price inflation remained at 2%. It was the small- and mid-cap companies which led their large cap peers, as they in particular are more reliant on the domestic economy.

July was a busy month within the Fund, with four strategies having observation dates, all of which triggered a successful maturity. Two were linked to the FTSE 100 index, with both maturing on their fifth anniversary. The first, strategy 13, was a step-down structured note with Citigroup as the counterparty, which returned 38.80%, while the second, strategy 14, was an at the money, gilt collateralised contract which returned 41.55%. Over the same period the FTSE 100 total return index, which includes reinvested dividends, returned 31.88%.

The second two, strategies 60 and 61, were both gilt collateralised, at the money contracts linked to the FTSE CSDI Index. They both matured on their first anniversary, returning 9.42% and 9.72% respectively.

Four strategies were also added to the Fund during the month, strategies 75 to 78. Two are maximum seven-year, gilt collateralised contracts linked to the FTSE CSDI Index. To mature they require the index to be at least 5% above their starting levels at the end of year one, or if not then at or above their starting levels on any other anniversary from year two onwards. For each year that they are in force they will accumulate coupons of 9.01% and 8.85% respectively.

The others were maximum seven-year structured notes, the first linked to the FTSE CSDI Index with Citigroup as the counterparty, and the second linked to the FTSE 100 Index with Santander. The Citigroup note 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 95% of its starting level on any other anniversary from year two onwards. For each year it is in force it will accumulate a coupon of 9.10%.

The Santander note also requires the index to be at least 5% higher than its starting level at the end of year one, but if not then it is measured against a reducing reference level each year thereafter, falling to 87.5% if its starting level in year seven. For each year it is in force it will accumulate a coupon of 8.55%.

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.