The Fund posted a return of 2.18% for July, outperforming the sector average return of 1.79%.

Most major equity markets found themselves in positive territory in July, although there was dispersion amongst returns. The Hang Seng was a strong performer, with Chinese equities seeing a partial rebound after a weak period. Whilst economic activity has perhaps not been as strong as expected, the re-opening continues, nonetheless. In the UK it was mid-cap stocks which were the strongest performers, supported by lower interest rate expectations after inflation came in below forecast. This was seen as a positive as higher interest rates would have potentially strangled UK economic growth.

After a difficult start, July was a positive month for UK fixed income. Investment grade corporate bonds were the strongest performing, marginally outperforming their high yield/non-investment grade counterparts. The former, along with gilts, responded positively to inflation figures, with CPI coming in lower than consensus forecast. This led to a fall in peak UK interest rate expectations. High yield/non-investment grade bonds were also positive performers, with no sign in a material pick up in default rates, thus far.

During the month there was one change made to the underlying positions. After a strong performance, the overweight to alternatives, in particular equity long/short, was reduced. This was achieved by partially selling down the position in Tellworth UK Select. Proceeds were reinvested into fixed income, in particular the Man GLG Dynamic Income fund. This fund was offering a yield to maturity in excess of 14%, with a duration of just over three and a half years. Whilst mark to market volatility could be seen, this was deemed to be an attractive yield.

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.