The Fund lagged the IA Flexible Investment sector average during the month, returning 0.79%against 2.00% respectively.

Equity markets were generally higher during the month, with strong performances coming from European and emerging market indices, particularly in sterling terms due to a slightly weaker British pound. The Fund remains defensively positioned in equities, with an underweight position relative to its neutral allocation. In what was a positive month for equity markets this was detrimental to performance. Although the Fund is underweight its neutral allocation in UK equities it has a higher allocation than the sector average. This was a lag on performance as, although the return from this market was positive, it was behind other equity market regions.

The Fund also remains overweight its neutral allocation to fixed income. Although there was a positive return from credit, in particular high yield, due to the higher coupon available from these bonds and also due to continued spread compression, returns were still generally below that of equities.

Whilst markets were positive during the month we remain cautious given the uncertainty regarding the global economy, the pace at which it can recover and the subsequent impact on corporate earnings. We also remain wary of equity market valuations, both on absolute terms and relative to their own history, some more than others. We therefore remain relatively defensively positioned compared to our neutral allocation, which includes an overweight position in alternatives, much of which is allocated to long/short equity funds.

Within this allocation we also include an exposure to WisdomTree Physical Silver ETC, a position which we have added to in June. It has performed well since our initial exposure was initiated but we continue to believe its outlook remains positive. It still remains cheap relative to gold, which has also enjoyed a strong run. Suppressed long term interest rates, monetary stimulus which may lead to inflation at some point, and the potential for currency debasement, could all favour the value of precious metals such as silver moving forward.

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.