The Fund returned 1.12% during the month, underperforming the IA Flexible Investment sector average return of 1.96%.

Equity markets were generally positive during the month when measured in their local currencies. The US led the way as technology stocks recovered some of their lost ground, helped by a fall in Treasury yields. Those markets/indices considered more cyclical in nature, such as the UK and Europe, were weaker performers, in particular UK mid-cap stocks. Currency again had an influence, with returns from overseas equity markets stronger in sterling terms due to weakness in the pound. UK fixed income markets also posted positive returns as government bond yields fell and credit spreads ground lower. Investment grade bonds were the strongest performers, closely followed by government and high yield bonds.

In the Fund it was those funds with a growth bias which performed the strongest, in particular FSSA Japan Focus, Baillie Gifford Japanese Smaller Companies and Baillie Gifford Emerging Markets Growth. Growth outperformed value as an investment style in general as the markets came round to the idea that central banks would appropriately contain inflation. After being strong the previous month it was positions in gold and silver which gave up ground.

During the month we saw net cash inflows into the Fund. These were invested so as to preserve a cash position below the neutral weighting. The allocation to UK equities was increased by increasing the exposure to SVM UK Growth. The fund manager has historically displayed strong stock picking ability.

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.