It may seem counterintuitive for UK investors dominated by a shock Brexit result, but almost all financial markets enjoyed strong returns in July 2016. UK equities returned around 4.00%, global equities fractionally more and gilts returned 2.00% (with ten year yields falling below 0.7% as markets moved to price in further easing by the Bank of England). After the extraordinary moves seen in the last few days of June, currency markets were much more stable, with Sterling down less than 1% vs the US Dollar. In truth, it would have been difficult to lose money in July, with almost all assets rallying: commodities, Russian equities and UK bricks-and-mortar property funds (none of which are held in the 7IM Personal Injury Fund) perhaps the notable exceptions.
Against a supportive market backdrop, the 7IM Personal Injury Fund achieved a return of 2.98% (B Acc) in July, one of its strongest months since inception.
Performance over the last year has been more volatile than for much of the Personal Injury Fund’s life, however, the strong recovery since February means that medium and long-term results for the fund remain consistent with 7IM’s projections: over five years, the fund has delivered compound annual returns of 4.6%.