Monthly Update
31 October 2022
The Fund rose by 3.52% during October, ahead of its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5% which rose 0.60%. It was also ahead of the FTSE 100 index which was up 2.91% over the month on a capital only basis.
(Source of all figures: FE Analytics)
The UK stock market continued to fall during the first half of the month, with the FTSE 100 index down 0.98% by the 12th October. From this point on however, as it looked more and more likely that Liz Truss would have to resign, the markets began to rally and the index was up 2.91% by the end of the month. Other than the economic policies of the government, the markets continued to be dominated by the high level of inflation, and more importantly the steps being taken by the central banks to bring it under control.
One strategy within the Fund had an observation point in October. It was the first observation point for this contract linked to the FTSE CSDI index. Needing the index to be at or above its strike level to mature with a gain, it was in fact down 3.11% over the year so the strategy moves on to its second observation point (next year), with a further six potential maturity points after that, adding 8.08% to the potential gain for each year it is in force.
With no maturities in the Fund during October, no new strategies were added. The Fund did have positive cash inflows during the month, but these were allowed to build up the cash position in anticipation of a better entry point in the future.
Further details of all the strategies within the fund can be found on the Fund’s website: www.UKDSF.com.
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 UKDSF.com/literature 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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