The Fund outperformed the IA Flexible Investment sector average during the month, returning 1.34% against 0.14% respectively.

Equity market performance was mixed during the period. In local currency terms there was a positive return from US equities with European, Japanese and UK equities posting negative returns. Strength in sterling over the month however generally meant that the returns from overseas equity indices in sterling terms were negative. UK fixed income markets meanwhile posted positive returns, led by investment grade corporates as credit spreads continued to compress. This was closely followed by high yield bonds which again benefitted from spread compression.

The holding in the WisdomTree Physical Silver ETC continued to perform strongly. Performance remains supported by the continuing move of real government bond yields further into negative territory, reducing the opportunity cost of holding an asset class which does not produce any income. This also benefitted the Funds allocation to the Merian Gold & Silver fund, a position which was added to during the month.

Within the fixed income allocation Janus Henderson Strategic Bond performed well on a relative basis, benefitting from its allocation to investment grade credit. This position was added to during the month following an update from the fund manager. Further allocations were also made across UK and European equities.

Overall, the Fund remains underweight its neutral allocation to equities. There continues to be enough uncertainty regarding the economic recovery and corporate earnings for a more cautious stance to be warranted. The Fund meanwhile remains overweight its neutral allocation in fixed income. For now, these markets appear well supported by central bank action and indeed the action of corporates themselves, where we have seen a reduction in dividends and share buybacks, all good news for bondholders. The Fund also remains overweight in alternatives relative to the neutral allocation, which includes the position in physical silver, although exposure is predominantly to long/short equity funds to protect against the potential for further volatility.

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.