Equity markets were mixed during the period. The US equity market was strong, helped by a strong return from the large technology stocks which now dominate the S&P 500 in terms of market capitalisation. Europe also performed strongly, as well as Emerging markets, the latter benefiting as Asian markets rebounded as some investors saw the previous sell off in China as overdone. The UK equity market was a laggard, in particular more domestically orientated mid and small cap stocks, as there were concerns that supply shortages and bottlenecks for goods could stunt economic growth. Within UK fixed income it was gilts which were the strongest performers, taking investment grade corporate bonds higher also. High yield posted negative returns as spreads widened slightly on concerns over growth.

Within the Fund, Jupiter Gold & Silver was the strongest performer, benefitting from real yields on bonds continuing to fall as inflation continued to surprise to the upside. This also helped the position in physical silver ETF holding. Miners in general also have the strongest balance sheets they have had for some time.

During the month we took advantage of net cash inflows into the Fund to increase exposure to European and Japanese equity funds. Both have a strong focus on valuation and a rising inflation environment should suit their investment style.

The Fund underperformed the sector average return of 0.83% due to having a larger allocation to UK equities, which underperformed other markets.

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.