September was a fairly challenging time for global financial markets. Global equities weakened, led by the US and Asia, and Continental European equities were flat overall. UK rose, but this may be put to further sharp weakness of Sterling on Brexit fears: the Pound fell by over 5% against the Dollar in October. While this fans UK inflation pressures and squeezes household real incomes, it clearly benefits global companies reporting in Sterling-terms as overseas profits are worth more. The globally-oriented FTSE 100 rose 1%, while the more domestically-sensitive FTSE 250 mid-cap index fell almost 1.7%, a clear reflection of investors’ concerns about the impact of a hard Brexit on the UK growth (N.B. the 7IM Personal Injury Fund’s UK equity exposure is exclusively in large-cap FTSE companies). Damage in the bond market was more striking: 10yr gilt yields jumped from 0.75% to 1.25% in the month, leading to a loss of almost 4% for gilts in one month. Sterling corporate bonds were almost as bad, cushioned a little by their additional yield and by their shorter maturity.