Monthly Update
28 February 2023

MonthlyUpdate

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 value of this investment can fall as well as rise and investors may get back less than they originally invested.
The Fund is suitable for investors who are seeking capital growth over a medium to long term horizon but who are willing to tolerate medium to high risks due to the potentially volatile nature of the investments.
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 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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