Monthly Update
31 October 2021


The Fund rose by 1.57% in October, ahead of its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.39%.

October was a positive month for the UK stock market, as measured by the FTSE 100 index which rose 2.13%. The UK did lag other developed markets, however, amid concerns over bottlenecks in the global supply chain stunting economic growth. There were also continuing concerns that labour shortages and the consequential wage growth was likely to make inflation more persistent than originally expected.

No strategies had an observation point in October, but one new strategy was added during the month, based on the FTSE CSDI index. An eight-year strategy, the index must be the same or higher than its starting level on any anniversary to mature with a gain, paying 8.08% simple for each year it is in force. We also took advantage of favourable pricing to increase the size of an existing over-the-counter strategy. With just over four months to go to its first anniversary, and the underlying index up 6.48%, this strategy was still pricing at just above par, giving the opportunity to capture a higher annualised return should the index mature at its first observation.

The addition of the new strategy means the Fund now has observation points spread across every month in the year.

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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