Monthly Update
31 January 2023


The Fund rose by 2.48% in January, ahead of its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5% which rose 0.73%.

(Source of all figures: FE Analytics)

Several factors lead to a positive month for equity markets in January. The end to China’s zero-Covid policy and the re-opening of its economy helped boost economies around the world. This was supported by inflation continuing to fall from its highs of last year in several major countries, including the UK. This in turn led to hopes that central banks would not need to raise interest rates much further, with some even predicting they could begin to fall again at the end of this year. The UK was also helped with better than expected economic data, including the GDP figure for November being revised up to show an unexpected expansion in the month, suggesting that the expected recession this year will be milder than previously expected.

One strategy matured within the Fund during January. A structured note with Morgan Stanley as the counterparty, 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 6.33% on the observation date triggering the strategy to mature with a gain of 9.00%.

The proceeds were rolled straight into Strategy 51, a new structured note with Morgan Stanley as the counterparty again. A step-down shape linked to the FTSE CSDI index as before, it did offer an improved coupon of 9.20% 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:

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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