Monthly Update
28 February 2023
The Fund fell by 0.44% in February, whilst its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5% rose 0.67%. Despite this, it still remained ahead for the year to date, being up 2.02%, compared to the benchmark at 1.40%.
(Source of all figures: FE Analytics)
UK indices were positive for the month, driven by larger companies, particularly oil and energy related companies, who continued to post strong numbers. The FTSE 100 index, which measures the top 100 companies by value in the UK, reached an all time high during the month, closing above 8,000 points for the first time. The Fund lagged as would be expected in a rapidly rising market, but conversely did not fall as much in the last week of the month, as the index gave up some of the earlier gains.
One strategy matured within the Fund during February. A contract collateralised with short-dated gilts, it required its underlying index, the FTSE CSDI index, to be at or above its starting level to mature with a gain on its first anniversary. The index was up 5.76% on the observation date triggering the strategy to mature with a gain of 8.53%.
The proceeds, plus some additional capital, were rolled straight into Strategy 52, another gilt backed contract. A step-down shape linked to the FTSE CSDI index as before, it offered a similar coupon of 8.28% each year, with the level required for the strategy to mature dropping from its initial level after the second anniversary.
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.
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