31 August 2021
Buoyant equity markets helped the fund rise by 1.75% during the month.
UK equities were one of the strongest performing, in particular mid and small cap stocks, which are more dependent on the domestic economy. Japanese equities also rebounded after a weak July. Within UK fixed income markets gilts were negative performers, as were investment grade bonds due to weakness in the former. High yield bonds meanwhile benefitted from their lower correlation to interest rate risk and credit conditions remain positive.
In the Fund, Japanese equity exposure performed well, in particular those funds with a quality bias, such as FFSA Japan Focus. The UK equity exposure gains were relatively even across underlying funds, with style biases having little impact overall. There was a positive rebound by Asian equity holdings after a weaker July, with FFSA Asia Focus leading the charge.
During the month the Fund saw net cash inflows which was allocated to existing fund holdings. We sold out of the Janus Henderson absolute Return fund in favour of TM Tellworth UK Select. As the former has increased in size it has increasingly moved to a more global approach. The latter is a long/short market neutral fund focused on the UK.
The Fund continues to maintain a more diversified strategy than many peers in the sector. A lower equity allocation than other funds led to the Fund underperforming the IA Flexible Investment sector average impressive return of 2.27%.
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.