Monthly Update
30 September 2021


The Fund fell 0.6% in September, behind its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.41%.

September saw some nervousness returning to the UK stock market, with talk of rising inflation moving on to talk of monetary tightening, with both the tapering of quantitative easing and raising of interest rates being predicted. This led to equity markets falling during the month until the Bank of England and then later the US Federal Reserve kept the current status quo at their respective meetings, resulting in a slight recovery of earlier falls. An expectation for tightening to still happen later in the year tempered this recovery, however, with the UK market, as measured by the FTSE 100 Index, still ending the month down 0.47%.

Two strategies had observation points during September. One, a note with HSBC, was below its required observation level, so moved on to its next observation point in three months’ time. The second, a strategy with Goldman Sachs, matured on its first anniversary returning a gain of 8.13% on its nominal value.

Two new strategies were added during the month, both based on the FTSE CSDI index. The first was a seven year strategy with a reducing reference level from 100% of its initial reference level in year one down to 92.5% in year seven. The second had similar terms but with an eight year maximum term allowing an extra possible maturity point. We took advantage of a period of increased volatility to get a slightly better coupon on the second contract at 7.8% compared to 7.2% for the former.

Further details of all the strategies within the fund can be found on the Fund’s website:

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 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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