Monthly Update
31 August 2023

The Fund posted a return of -0.94% for August, outperforming the sector average return of -1.34%.

Equity indices were predominantly in negative territory for the month, although they did partially rebound from their mid-month lows. Japanese equities were the only positive performers, with investors continuing to remain positive on the economic and therefore corporate outlook. European equities meanwhile were weak performers. The region has significant trading arrangements with China and therefore weakness there is reflected on the region also.

August was also a difficult month for UK fixed income markets, although indices for investment grade credit and government bonds almost fully recovered their mid-month losses. Whilst it is acknowledged that inflation is likely to be ‘sticky’ and take some time to reach central bank targets, it would appear that it is now at least moving in the right direction. The debate is whether we now see a further interest rate hike in the US.

During the month there was one change made to underlying holdings. After a disappointing period of performance and gloom still being on the horizon, the position in the FSSA All China fund was exited. The position was initially placed to benefit from the reopening of the economy as pandemic restrictions were released, with pent up demand expected to provide a boost to the economy. Whilst this was seen, it proved to be short lived, with property sector woes appearing to be holding back public spending. The exposure to emerging markets was maintained, with proceeds redeployed into the Redwheel Next Generation Emerging Markets Equity and Lazard Emerging Markets funds.

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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