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 May 2022

Investors were granted some respite in May after a fairly torrid start to the year. A slight pivot from the Federal Reserve to a less hawkish tone after inflation slowed slightly, causing some to proclaim it had peaked, allowed both equity and bond markets to post positive returns on the month. NB – they are still correlated.

However, the broad risks of inflation, conflict, and Covid policy rather than Covid itself remain.

The Fund returned 0.6% over the month.

Within the Fund, the FTSE 100 continues to be the stand out performer across global equities. It’s equally weighted sibling underperformed it by 2.5% over the month. Meanwhile, most other equity markets posted modest positive returns. The Hang Seng has notably begun to recover as Covid restrictions begin to be lifted, the tech crackdown begins to loosen, and the Chinese Government attempt to stimulate the economy.

One investment called during the month, at the end of the first year of its life, returning investors 7.30% in growth as well as original capital. The investment was linked to the FTSE 100 and S&P 500. A replacement investment linked to the same indices was entered into in its place, with a headline coupon of 8.12% and a final protection barrier of 65% of initial strike.

The diversifier overlay returned -0.4% over the month as sentiment shifted and spreads narrowed.

With the relatively benign May out of the way, attention returns to inflation numbers for the same month. Any acceleration is likely to put risk assets, including bonds, back under pressure. The Fund, whilst not escaping the mark to market impact of equity declines, retains its significant protection over the medium term. And, if equities are to enter a paradigm of lower annualised returns than those investors have become used to, if not expect, then the pre-defined return profile that the Fund offers is something that should prove extremely useful in portfolios.

Total Return 2022 May
UK 100 4.8% 1.1%
US 500 -12.9% 0.1%
Europe 50 -10.1% 0.9%
Japan 225 -4.4% 1.0%
Hong Kong 50 -7.6% 2.1%
US 2000 -16.6% 0.2%
Swiss 30 -7.4% -4.1%
BCOM 32.4% 1.4%
US Treasury -8.9% 0.6%
Euro Property -14.0% -4.0%
PGF -4.9% 0.6%
AGF 0.0% -1.6%
Real Estate -13.5% -6.6%
US Equity Income -12.9% 0.1%


Disclaimer

– 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.
– This document is intended for Professional Investors, Institutional Clients and Advisors and should not be communicated to any other person.
– 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.
– Fortem Capital Limited assumes

no responsibility or
liability for any errors, omissions or inaccuracy with respect to the information contained within this document.
– All price and analytical data included in this document is
intended for indicative purposes only and is as at the date
of the document.
– The information within this document does not take into account the specific investment objective or financial situation of any person. Investors should refer to the final documentation and any prospectus to ascertain all of the risks and terms associated with these securities and seek independent advice, where necessary, before making any decision to buy or sell.
– The product may not be offered, sold, transferred or delivered directly or indirectly in the United States to, or for the account or benefit of, any U.S. Person.
– 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.

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