Equity market performance was mixed during February. Chinese indices were strong performers, thanks in particular to a strong performance from technology stocks. This helped to lift emerging market equities in general. European stocks also remained in favour as they continued their year to date rebound from low valuations relative to other markets. At the other end of the spectrum, we saw weakness from UK small and mid-cap stocks on the back of concern over economic growth. Japanese stocks were also weaker. Inflation remains at a level which may justify another interest rate rise. This could lead to a stronger yen, which is historically seen as a negative for the equity market.

It was a positive month for UK fixed income asset classes, although it was again volatile for interest rate sensitive areas of the market, such as gilts and investment grade corporate bonds. These asset classes continued to flip-flop between positive and negative territory in terms of month to date return. Investors reacted to each piece of economic news released which was seen as having a potential bearing on the future path of interest rates. Towards the end of the month, both gilts and corporate bonds reacted positively as future cuts looked more apparent. High yield bonds continued their positive momentum on the back of the default outlook for credit remaining benign.

The Fund delivered a positive return for the month of 0.11%. This was ahead of the sector average return of -1.56%.

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.