Fortem Capital Progressive Growth Fund

UK & EU – For professional and institutional investors only
Switzerland – this is an advertising document for professional and institutional clients as defined by the Swiss Financial Services Act only

Monthly Commentary – 31st August 2022

August saw investors left under no uncertainty about the commitment of central banks to bring inflation under control in spite of data continuing to signal a slowdown of growth in the global economy. Both bond and equity markets reacted negatively over the month as investors brace for tighter conditions for longer.

Most major equity indices suffered falls over the month with the exception of Japan, where policy continues to be loose and the benefits felt of a weakening currency.

The Fund posted a return of -2.3% for the month.

There were again no maturities during the month, with three observation barriers being missed; those three investments simply roll onto next year, during which they will have another, lower observation barrier. The defined annual returns from this year also roll onto next year, hence the Fund is building in significant levels of value that is essentially locked in and paid so long as the investments’ final barrier, set in the 60s at outset, is not breached.

The return available to investors in a scenario in which the equity indices do not rise is now greater than an annualised 10%. Given that central banks are now telling investors that they expect rates to rise higher and stay higher for longer, the return built into the Fund looks more and more attractive.

Equities have enjoyed a prolonged period of favourable conditions until this year, and it has undoubtedly caused a shift in where expectations of future returns are anchored. Given the prospect that conditions may be tighter for longer, valuations’ heady starting point, and the continued call for the redistribution of some of the spoils of the era of stimulus, equities could be set for an extended period of lower annualised returns than investors have become used to. It is for this reason that the case for defined returns in portfolios has never really been stronger.

Total Return 2022 August
UK 100 1.6% -1.1%
US 500 -16.4% -4.1%
Europe 50 -16.3% -5.1%
Japan 225 -1.5% 1.1%
Hong Kong 50 -12.6% -0.8%
US 2000 -17.2% -2.1%
Swiss 30 -13.4% -2.6%
BCOM 22.7% -0.2%
US Treasury -10.8% -2.8%
Euro Property -27.4% -10.8%
PGF -7.2% -2.3%
AGF 0.2% 0.7%
Real Estate -24.2% -9.4%
US Equity Income -18.8% -4.1%


– This document has been issued and approved as a financial promotion by Fortem Capital Limited for the purpose of section 21 of the Financial Services and Markets Acts 2000. Fortem Capital Limited registration number 10042702 is authorised and regulated by the Financial Conduct Authority under firm reference number 755370.
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– The information has been prepared solely for information purposes only and is not an offer or solicitation of an offer to buy or sell the product.
– Data is sourced from Fortem Capital Limited and external sources. The data is as at the date of this document and has been reviewed by Fortem Capital Limited.
– Information, including prices, analytical data and opinions contained within this document are believed to be correct, accurate and derived from reliable sources as at the date of the document. However, no representation or warranty, expressed or implied is made as to the correctness, accuracy or validity of such information.
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– All price and analytical data included in this document is
intended for indicative purposes only and is as at the date
of the document.
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– The Fortem Capital Alternative Growth Fund is a Sub-Fund of Skyline, an open-ended investment company with variable capital incorporated on 1 June 2010 with limited liability under the laws of Ireland with segregated liability between Funds. The Company is authorised in Ireland by the Central Bank of Ireland pursuant to the UCITS Regulations.

“NOTICE TO INVESTORS DOMICILED OR RESIDENT IN SWITZERLAND – The interests in the UCITS Fund and any related services, information and opinions described or referenced in this document are not, and may not be, offered or marketed to or directed at persons in Switzerland (a) that do not meet the definition of “qualified investor" pursuant to the Swiss Federal Act on Collective Investment Schemes of 23 June 2006 (“CISA") (“Non-Qualified Investors"), or (b) that are high net worth individuals (including private investment structures established for such high-net worth individuals if they do not have professional treasury operations) that have opted out of customer protection under the Swiss Federal Financial Services Act of 15 June 2018 (“FinSA") and that have elected to be treated as “professional clients" and “qualified investors" under the FinSA and the CISA, respectively (“Elective Qualified Investors").
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