Monthly Update
31 July 2020


The Fund fell 2.78% in July, behind its performance comparator of cash + 5%, which rose by 0.42%. It was ahead of the FTSE 100 Index however, to which all the underlying strategies are linked, which fell 4.41% over the month on a price only basis.

“Cash” within the performance comparator was changed during the month and is now measured by the Bank of England’s Sterling Overnight Index Average (SONIA). The previously used measure of 3-month Sterling LIBOR is to be discontinued next year, so this change was made in anticipation.

The UK stock market was relatively flat during July, trading in a +/- 2% range during the first three weeks. Fears of a resurgence in Covid-19 cases around the world caused the market to fall during the final week, however, ending the month down by over 4%.

Three strategies passed observation points in the month, but they did not mature, moving on to their next observation points. All three have at least seven years before their final observation date.


The Fund continued to see positive inflows during the month. No new strategies were added to the portfolio, however, as it was decided to wait for potentially better opportunities in the future. The new monies were instead used to purchase additional short-dated gilts, ready to be used as collateral against future over-the-counter contracts.

To view all the strategies within the fund in detail, please visit the portfolio page on

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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