Monthly Update
30 September 2023

The Fund posted a return of 0.06% for September, outperforming the sector average return of -0.50%.

Major equity indices returned a mixed performance for the month. Towards the bottom of the table was the Hang Seng, losing over 3% in local currency terms, as concerns over the health of the economy and the property sector continued to weight on investor sentiment. The US was also a weaker performer, with the S&P 500 losing almost 5%. These were very much driven by weakness within technology related names, with the Nasdaq down by even more. Conversely, although off their intra month highs, UK large cap equities posted positive returns, with sector composition relative to markets such as the US working to its advantage.

UK fixed income markets were also mixed. High yield indices continued to perform well with default rates to date showing no meaningful increase. Investment grade returns were flat on the month, giving up their earlier gains. Whilst the Bank of England left the base rate on hold, focus appears to have switched to how long, rather than how high. Gilts were, however, negative returning during the month.

In September we saw the successful maturity of a structured note in the Fund. This was a FTSE 100 Autocall, 12% annual coupon, with a maximum term of 8 years, requiring the index to be at or above the initial strike level on any annual observation date to kick out. This happened on the fifth anniversary, meaning that a return of 60% was seen for the holding period. This by far exceeded the total return posted by the underlying index over the period, which was 24.02%.

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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