The Fund returned 2.26% during the month, marginally underperforming the IA Flexible Investment sector average return of 2.54%.

Equity performance showed divergence in August, although most major markets posted positive returns. Japanese equities performed particularly strongly, closely followed by the US, with the UK proving to be a laggard. A strengthening in the British pound across major currency pairings meant that returns in sterling terms from overseas markets were generally weaker. Within fixed income a rise in yields meant gilts posted a negative return. UK investment grade credit was also negative despite the credit spread yield cushion. High yield bonds posted a positive return.

Despite the weaker returns from the UK as a whole, we saw some strong performances from some of the Fund’s underlying holdings, in particular CRUX UK Special Situations, which benefited from strong stock selection along with small and mid-cap exposure. Within the alternatives section we continued to see a strong performance from the holding in silver. Within the Japanese equity allocation there was also a strong performance from Man GLG Japan Core Alpha as value outperformed growth.

The Fund remains underweight its neutral allocation to equities. After a strong recovery from their March lows there remains uncertainty, with mixed messages coming from di erent asset classes. Whilst some economic data has shown a rebound we need to be cognisant of the low levels from which it was coming from.

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.