Monthly Update
31 October 2023

he Fund posted a return of -2.53% for October, performing in line with the sector average return of -2.52%.

Major equity indices were in negative territory for the month. With labour markets, in particular in the US, remaining tight, the prospect for interest rates to be higher for longer increased. The concern is that this will curtail economic activity and therefore corporate earnings. In the UK, therefore, it was no surprise to see mid and small-cap stocks underperform the large cap counterparts, given the greater level of earnings generated domestically.

UK gilt and investment grade fixed income markets recovered from their month lows to finish in marginally negative territory. With short yields anchored to a paused base rate, it was longer dated yields where we saw a pickup, leading to yield curves becoming less inverted.

During the month we saw the successful maturity of a structured note in the Fund. This was a FTSE 100 Autocall, 12.4% annual coupon, requiring the index to be at or above the initial strike level on any annual observation date to kick out. The early maturity occurred on the first observation date. A new note was added during the period, an autocall with the underlying index being FTSE CSDI. Offering a potential coupon of 10.3% for each year, with maturity on the first anniversary from the second year onwards provided the index is at or above the initial index level.

The position in the Jupiter Gold & Silver fund was liquidated during the period. With real yields in the US in positive territory, the opportunity cost of holding precious metals given that they don’t pay an income, is increased.

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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