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 – 30th September 2022

Bonds and equities continued to sell off sharply together in September as investors digested central banks’ commitment to bringing down inflation, even at the expense of growth.

September’s continued declines leave global equities down 25% for the year, whilst even the mighty US Treasury market has given up over 14%.

The Fund fell by 6.2% over the month.

There were five investments within the Fund that observed in September, four of which were at the end of their first year and therefore missed the barrier given the heavy declines seen over the past year. However, one investment did call, after its third year, showing the effectiveness of having barriers that reduce through time, giving investments the opportunity to produce positive returns even when the underlying equities they are linked to do not.

Given just how far equity markets have now fallen, for the first time investors can see that one would expect a negative return if the underlying equity indices were to fall another 20% and not recover, albeit the Fund would still strongly outperform those underlying equity indices.

In spite of this, there still remains a sizeable amount of protection in the portfolio, as well as the protection that time affords it; the average life to maturity is currently just over 4 years.

Persistent and high inflation, the hawkish commitment from central banks to bring it down, rising geo-political tensions and the de-globalisation of the global economy mean that the risk that equity markets may produce at best anaemic returns for the foreseeable future is one investors must take seriously. Having a Fund that produces double digit returns if equity markets make no recovery from here, and still maintains some protection even in the event of further falls, simply must be considered given the backdrop.

Total Return 2022 September
UK 100 -3.7% -5.2%
US 500 -24.1% -9.3%
Europe 50 -21.0% -5.6%
Japan 225 -8.5% -7.1%
Hong Kong 50 -24.1% -13.2%
US 2000 -25.1% -9.6%
Swiss 30 -18.0% -5.3%
BCOM 12.4% -8.4%
US Treasury -14.6% -4.3%
Euro Property -39.5% -16.6%
PGF -12.9% -6.2%
AGF 1.7% 1.5%
Real Estate -37.3% -17.3%
US Equity Income -24.1% -9.3%

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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