It was a rather mixed month for asset class returns during June, none more so than within equity markets. In local currency terms, we saw quite a divergence with, for example, the S&P 500 returning almost 3.5% whilst the FTSE 250 index was in negative territory by almost the same amount. The US index was very much driven, again, by those large technology/artificial intelligence concentrated names, with the Nasdaq up almost 6%. Apple and Microsoft led the way. The Japanese TOPIX index was another to post a positive return, helped by a second half of the month rally. European and UK equities meanwhile posted negative returns for the period. It was the more economically sensitive names within the UK which suffered the most, in particular mid-cap stocks, after their strong showing the month before.

UK fixed-income markets were positive for the period. For the first time in a while, we saw government bonds outperform their corporate counterparts, both investment and non-investment grade, at the index level. Whilst it was expected, the market took comfort from consumer price inflation falling to 2% in the UK, in line with the target set for the Bank of England. Whilst it is forecast to drift slightly higher again over the coming months, it perhaps increases the potential for the Bank of England to follow their European counterparts and consider that first cut in interest rates. In June, they remained on hold at 5.25%, although two members did vote for a rate cut of 0.25%.

The Fund underperformed the sector average during the month, returning 0.17% and 1.35% respectively. The performance of UK and European funds weighed on performance.

Further information about the fund can be found on the Fund’s website: MIDSF.com

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.