The performance of major equity indices was mixed during the month. Towards the bottom of the table we had the S&P 500, which was in negative territory, despite a positive return from the Nasdaq. Concerns over the potentially inflationary impact of tariffs, meaning fewer interest rate cuts could be seen, weighed on sentiment. Also, in negative territory were some of the main UK equity indices, with the ability of the government to aid/deliver economic growth questioned. More lowly valued markets, such as Europe, Asia and Japan saw positive momentum.

There were mixed performances from UK fixed income asset classes. The more interest rate sensitive areas, such as gilts and investment grade corporate bonds, posted negative returns, in particular the former. Negative impacting factors in the main were twofold. Concerns that above target inflation could raise its head once more, particularly if we were to see goods inflation reappear, meant that the number of interest rate cuts priced in by the market were wound back. The second factor was concerns around debt supply as government budgets continued to be stretched. Fears that more issuance would be required unsettled investors. High yield bonds, meanwhile, on a total return basis, continued to post positive returns. Whilst spreads remain tight there remained no major concerns about the credit outlook.

The Fund delivered a negative return for the month of -0.69%. This was ahead of the sector average return of -0.89%.

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.