Monthly Update
28 February 2023

The Fund posted a return of -0.77% for February, marginally underperforming the sector average return of -0.65%.

The performance of key equity market indices was mixed during the month. Chinese stocks were some of the weakest performers. Although the economy continues to open and further policy support for economic growth is expected, the market succumbs to a bout of profit taking. There were also losses for US equities, the market unsettled by stubborn inflation data. UK indices were positive for the month, driven by large caps, as oil and energy related companies continued to post strong numbers. Europe was also in positive territory as concerns for energy supply continued to recede.

UK fixed income indices struggled during the month, with government and investment grade corporate bonds ending in negative territory. The market took much of its direction from the US, where we saw a sharp rise in interest rate expectations from investors on the back of stubborn inflation data. The market ended the month pricing in higher peak interest rates than the last ‘dot-plot’ median expectation.

During the month there were no changes made to fund selection or asset allocation. Any changes which were seen were due to market movements only. The stronger performing funds were those which have a value driven style bias, such as Schroder Recovery, CRUX UK Special Situations and R&M European. Weaker performers were those equity funds investing in Asian equities, driven by the weakness which was seen in Chinese stocks. The position in a silver exchange traded fund (ETF) was also weaker, due to higher bond yields.

This article is for information purposes only and should not be construed as advice. We strongly suggest you seek independent financial advice prior to taking any course of action.

The value of this investment can fall as well as rise and investors may get back less than they originally invested. Past performance is not necessarily a guide to future performance.

The Fund is suitable for investors who are seeking to achieve long term capital growth.

The tax treatment of investments depends on the individual circumstances of each client and may be subject to change in the future. The above is in relation to a UK domiciled investor only and would be different for those domiciled outside the UK. We strongly suggest you seek independent tax advice prior to taking any course of action.

Past performance is not a guide to future performance.

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