After a strong February, the Fund returned 0.76% during the month, underperforming the IA Flexible Investment sector average return of 1.70%.

Equity markets were mixed during the month. There was divergence in the scale of returns with, for example, the EStoxx50 returning 7.78% in local currency terms whilst the Hang Seng returned -2.08%. Emerging markets were generally weaker due to a stronger US dollar. Those indices with greater exposure to cyclicality, such as Europe and small cap, continued to perform well as the prospect for economies opening increased as vaccination rollout pressed ahead. Within UK fixed income, high yield bonds were the strongest performers thanks to their lower sensitivity to interest rate expectations. UK gilts ended flat on the month although there was price volatility during the month as speculation on inflation continued.

Within our equity allocation it was those funds with a value style bias which outperformed during the month. This included funds such as Dodge & Cox US Stock, TM CRUX UK Special Situations, Man GLG Japan Core Alpha and R&M European. During the month the allocation to equities within the Fund increased, a function of market movements and the investment of positive cash inflows. This saw the allocation move to a more neutral position whilst the allocation to cash was moved below neutral. We remain wary of the strong rally seen in some markets and where that has resulted in high valuations, but we believe that there are opportunities in regions and investment styles which have proved laggards.

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.