Monthly Update
31 March 2022


The Fund rose 1.65% in March, ahead of its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.46%.

The war in Ukraine and the ongoing implications that this brought continued to weigh heavily on the UK stockmarket at the start of March. By the end of the first week the FTSE 100 Index was down over 6% from the start of the month, but started to recover from this point. As the extent of the sanctions imposed against Russia became clear, along with the solidarity shown by NATO and the western nations, markets began to return to their earlier levels, with the FTSE 100 Index finishing the month up 0.77%.

One strategy had an observation point in March – an eight year Note with CIBC as the counterparty taken out in March 2019. This strategy needed the FTSE 100 Index to be at or above 95% of its starting level on the observation date to mature with a gain. The Index was comfortably above this level triggering the maturity of the strategy after three years with a gain of 27.60%, from a rise of just 3.14% in the underlying Index.

This strategy was quickly replaced with a new one, taking advantage of the continued falls in the market during the first week. Based on the FTSE CSDI index, this is a maximum eight-year gilt-backed over the counter strategy, where the index must be above its starting level on any anniversary to mature with a gain, paying 11.80% simple for each year it is in force.

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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