The performance of major equity indices was generally positive during the month, although we did see dispersion. The strongest performing market was Europe. Whilst the threat of tariffs from the US still lingered, the market performed well as the ECB continued to cut interest rates to support the economy. Some also saw the valuation of companies within the region as being attractive. The UK large cap index also performed well. It is seen as relatively defensive given its sector composition and again valuations are attractive compared to other markets. More domestic facing UK companies, in general, did not perform as strongly in terms of share price.

Volatility remained in UK fixed income asset classes, particularly in the areas of the market more sensitive to interest rates. Mid-month, gilts were down 2% before making a strong recovery, ending January in positive territory. Will they or won’t they remained the order of the day, as forecasters continued to carefully scrutinise economic data, trying to work out the future path of interest rates,. The announcement of tariffs by the US on countries such as Canada, Mexico and China distorted the outlook for inflation. The introduction of such was seen as being potentially inflationary, therefore reducing the chances of interest rate cuts. The subsequent reaching of agreements with Canada and Mexico has brought a pause for now, allowing bond markets to recover.

The Fund delivered a positive return for the month of 2.73%. This was behind the sector average return of 3.57%.

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.