The Fund posted a return of 3.18% for November, behind the sector average return of 3.86%.

November was a positive month for most asset classes. Softer than forecast inflation figures meant there was an increase in market expectations that terminal interest rates have now been reached across many countries. Across key areas such as the US, UK and EU we have now seen the market start to price in rate cuts for 2024.

Unsurprisingly, we saw positive returns from UK fixed income during the month. Investment grade and UK gilts responded to the above given their interest rate sensitivity, with securities of longer duration returning the strongest. High yield bonds meanwhile continued their positive performance with still no sign of a material increase in defaults or default expectations.

In local currency terms one of the strongest performing markets was the S&P 500, buoyed by the strong performance of technology related stocks. Europe was also a strong performer. In sterling terms, however, which is ultimately the most important figure for UK investors, it was UK mid cap stocks which stole the show. Not only did the market respond well to the interest expectations but also a slightly more positive domestic economic outlook. The Chinese stock market remained a laggard, with concerns over their economy unfaded.

During the month the position in Amati Strategic Metals was sold, taking advantage of a rally during November. Whilst the long-term demand outlook for the minerals and metals which the underlying companies mine potentially remains positive, given their need in processes such as electrification, the market appears unwilling to reward miners. Instead, they remain focused on end of chain beneficiaries. We may revisit this theme at some point in the future.

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.