The Fund returned 1.42% during the month, outperforming the IA Flexible Investment sector average return of 0.61%.

Equity markets generally ended the month in positive territory, although many closed below their month highs. Markets with a greater level of cyclical exposure performed well, such as Japan and Europe. This was also reflected in the UK, with the FTSE 100 proving a laggard to mid and small cap companies. Fixed income markets however endured a more difficult month. Bond yields rose and yield curves steepened as concerns over higher levels of inflation gathered pace. In the UK, government bonds were unsurprisingly negative performers, as were investment grade corporates. High yield bonds meanwhile managed to generate a positive return, thanks to their higher level of yield and less sensitivity to duration.

During the month the exposure to alternatives was reduced through the redemption of our holding in a long/short Japanese equity fund. Proceeds were reinvested into long only Japanese equity funds, thereby increasing our exposure to long only equities overall. The Fund saw net cash inflows during the period. These inflows were invested into a UK value equity fund and a short dated corporate bond fund, both already existing holdings. The cash allocation remains marginally above the neutral weighting. The fund remains marginally below its neutral allocation to equities, primarily based on valuation concerns. An overweight position to fixed income remains in place, although we are conscious of duration risk at present and therefore are favouring those funds with shorter duration or have the ability and flexibility to implement such.

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.