Monthly Update
31 December 2021
The Fund rose by 3.50% in December, ahead of its performance comparator of cash (as measured by the Bank of England’s Sterling Overnight Index Average (“SONIA”)) + 5%, which rose by 0.43%.
December brought a strong end to the year, as hope grew that the latest Covid variant, Omicron, would not be as severe as initially feared. Stock markets around the globe rallied, with the UK (as measured by the FTSE 100 index) being one of the strongest in local currency terms. The biggest gainers were those companies particularly sensitive to covid restrictions, such as those linked to travel and tourism.
Two strategies had observation points in December, with both maturing. The first, a gilt backed OTC contract, matured on its second anniversary returning a gain of 16.82%. The second, a structured note with HSBC as the counterparty, had quarterly observation points after its first anniversary, and matured after two- and three-quarter years, with a gain of 28.27%.
One new strategy was added during the month, based on the FTSE CSDI index. An eight-year strategy, the index must be above a falling reference level on any anniversary to mature with a gain, paying 7.90% simple for each year it is in force. In the first two years the reference level is 100% of the level at its start, years three to six see the level drop to 95% of the starting level, with the final two years only needing the index to be above 90% of its initial value.
The Fund also passed two milestones during December. The 18th saw the Fund reach its third anniversary, and the end of the month saw the total assets within the fund move above £20 million for the first time.
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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