The Fund posted a return of -1.51% for February, outperforming the sector average return of -1.74%.

After a positive start for equity markets they fell away sharply as the unfortunate events in Ukraine unfolded. From an economic and market perspective, this and the subsequent reaction we have seen from other countries such as sanctions and unwillingness to trade, places uncertainties over global growth, inflation and corporate earnings. UK fixed income assets also had a difficult month. Prices fell sharply at the beginning of the month as inflation continued its march higher and a greater number of interest rate hikes were priced in. A partial rebound was seen in gilts in the second half of the month as war broke out, but not enough to move the return back into positive territory.

There was little activity on the Fund during the month. The number of Japanese equity funds was reduced. The size of the position in the Baillie Gifford Japanese Smaller Companies fund had decreased to a level whereby a decision was needed as to whether the position was added to or sold out of completely. Following an assessment of this fund and other Japanese funds held the decision was taken to liquidate and recycle the proceeds into an existing holding.

The allocation to long/short equity funds protected some of the Fund from the sharper falls seen in traditional equity and fixed income funds. The positions in silver and precious metals miners meanwhile performed strongly on the back of higher inflation expectations, falling real yields on fixed income and higher commodity prices in general.

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.