Monthly Update
31 December 2022

The Fund posted a return of -0.08% for December, outperforming the sector average return of -1.10%.

The performance of key equity market indices was mixed during the month. The Hang Seng proved a strong performer in local currency terms, the further relaxing of Covid restrictions in China proving something of a tailwind. Conversely, US equities were weaker, in particular the S&P 500. Technology stocks, along with other growth orientated sectors, continued to weight on index performance, driven by concern over company valuations and their earnings outlook. In the UK it was small cap stocks which managed to eke out a positive performance, whereas large cap stocks were negative returning on aggregate.

UK fixed income was also mixed during the month. High yield, non-investment grade bonds were flat on the month. Gilts meanwhile gave back some of the gains made in the previous two months. Although there were some signs of division amongst interest rate setting committee members, overall central banks remained resolute that bringing inflation under control was the main item on their agenda.

There were few changes made to underlying investments during the month. After a strong period of performance since the end of June some profit was taken from the FSSA Japan Focus fund. Although we continue to believe that the investment outlook remains positive for Japanese equities as a whole, there is some nervousness around the relaxation of yield curve control and what this could mean for markets. There was also some profit taking from the Tellworth UK Select fund. This has been a positive performer throughout 2022 which had seen exposure to this fund increase to over 6% of the Fund. Proceeds from both partial sales were held in cash to provide liquidity.

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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