31 August 2021
The Fund rose by 1.55% in August, ahead of its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.43%.
August was a good month for the Fund, rising by just over 2% in the first fortnight before pulling back slightly to leave the Fund up 1.55% over the period. This was ahead of the UK market, as measured by the FTSE 100 index, which was up 1.24% on a price only basis.
The pull back in the second half of the month followed the US Federal Reserve signalling it was set to start reducing its quantitative easing program by tapering its asset purchases within months. Just this indication of future plans and not any actual action was enough to strengthen the US dollar and cause oil prices to weaken after a strong start to the year.
It was a busy month in the fund, with three of the strategies maturing. The start of the month saw the maturity of an over the counter strategy on its second anniversary despite the FTSE 100 being below its level at the start of the contract. The terms of the strategy meant the FTSE 100 could be up to 5% down, allowing it to mature with a gain of 15.3%. The last day of the month saw two further maturities; another over the counter contract and a structured note with Santander. Both were on their second anniversaries, returning gains of 22.72% and 25.39% respectively.
Two more had observation points in the period, but 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 both to mature with a gain.
Further details of all the strategies within the fund can be found on the Fund’s website: www.UKDSF.com.
The Lowes UK De¬fined 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.