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%


– 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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