Monthly Update
31 October 2022

The Fund posted a return of -1.78% for October, underperforming the sector average return of 0.09%.

Most equity markets ended in positive territory for the month, with the exception of the Hang Seng. Here investors remained nervous as the Chinese authorities continued with their zero tolerance policy on COVID. Other markets meanwhile were buoyed by falling bond yields, favouring growth companies in particular. This gave support to the US market and Europe, whilst in the UK mid cap companies outperformed their large cap counterparts.

After a difficult start to the month, the market still reeling from the Truss/Kwarteng budget, UK fixed income markets enjoyed something of a relief rally. Markets were spurned on by the resignation of Kwarteng and the instatement of Jeremy Hunt. His subsequent reversal of the changes made by the outgoing chancellor were perceived to be much more market friendly and less likely to add to what were already high inflationary pressures. The resignation of Truss also added to the rally, in the hope that a new prime minister would be much more ‘tuned in’ to international markets expectations.

During the month the Fund exited its final position in the Atlantic House Defined Returns fund. Proceeds were reinvested into a new, standalone structured note. This is an 8 year contract with the FTSE 100 as its underlying index. It offers a coupon of 12.4% for each year that it is in force. To kick out with a gain it requires the underlying index to be at or above the initial strike level on the observation date(s).

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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