Monthly Update
30 April 2023

The Fund posted a return of -0.59% for April, underperforming the sector average return of 0.45%.

Main equity markets were in positive territory for the month, led by the UK. Within the UK market it was large-cap stocks which were the strongest performers, with investors taking a less sanguine view of the outlook for the UK economy. Mid and small cap counterparts however were not far behind. There were also positive returns for Japanese, European and US stocks, as represented by the TOPIX, EStoxx50 and S&P 500, but it was tougher going for the Hang Seng, which ended in negative territory.

The picture was mixed for UK fixed income during April. Government bonds were in negative territory, with inflation remaining higher than expected; the consumer price index being north of 10%. Credit performed better however, both investment and non-investment grade. The latter is less interest rate sensitive and therefore did not react in the same way to higher inflation. Investment grade showed some reaction but remained well supported by investors, pushing the sector back into the black by month end.

No changes were made to underlying holdings during the month. The Fund maintained only a slight overweight to equities. With the recession narrative still circulating, there remain concerns that this could lead to a fall in corporate earnings. The allocation to fixed income was marginally above the neutral weighting. The yields available from this asset class are now much higher, although we believe there is still the need to be bond specific rather than simply own the market. Alternatives remains overweight, predominantly through long/short equity funds.

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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