The Fund rose marginally during the month, returning 0.07%. This represented outperformance of the IA Flexible Investment sector average, which posted a -1.11% return.

Equity markets were generally negative during the month, the exception to the rule being Japan. Concerns over supply bottlenecks, shortages in an increasing number of goods and rising energy costs raised concerns over economic growth and consequently corporate earnings. Within fixed income, government and investment grade bonds delivered negative returns, more so the former. Rising prices across goods and energy ignited fears that higher inflation may not prove as transitory as some had originally thought. High yield bonds were flat on the month given their lower sensitivity to rates.

Within the Fund it was Japanese equity funds which proved to be the strongest performers, in particular Man GLG Japan Core Alpha with its value style bias. It was those funds with a value style bias across most regions which were the strongest, with higher bond yields being a key driver. Emerging market funds were some of the weakest performers, in particular those with a higher exposure to China. The Chinese equity market was weak as property developers struggled to meet their financial obligations and investors continued to fret over further authority intervention.

During the month we took advantage of net cash inflows into the Fund to increase exposure to UK equities. This market continues to trade at a discount to global counterparts. Whilst this is being recognised by some investors via mergers and acquisitions, we are yet to see global asset allocators move in this way.

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.