There was only real one story in equities this month and that was China, although this was reserved for the final week of the month. In an attempt to revive economic activity and keep alive the chance of achieving 5% growth this year, the Peoples Bank of China announced a number of changes aimed at improving liquidity and sentiment. Measures were aimed at improving consumer confidence which continues to languish at the lowest levels seen since the early 1990’s. The measures introduced have certainly improved investor sentiment with some Chinese equity indices ending the month more than 20% higher.

September was rather a mixed month for UK fixed interest markets. High yield bonds were again the strongest performing sub-asset class with credit conditions remaining favourable. For government and investment grade bonds, which are much more interest sensitive, it was very much a case of buy the rumour, sell the fact. Both performed strongly in the first half of the month on the expectation that rate cuts would be seen from the US and potentially the UK. Following the US Federal Reserve’s decision to cut by 0.5% and the Bank of England’s decision to hold, those earlier gains were pretty much given back.

The Fund outperformed the IA Flexible Investment sector average during the month, returning 0.98% and 0.54% respectively.

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.