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Fund Performance Update

| Investment | By Caroline Shaw

Yesterday we saw the worst one-day fall in global equity markets since 1987.

Fears of ongoing economic distress, combined with global travel restrictions and cancellations of social and sporting events have pushed the VIX index (measuring volatility) to levels not seen since 2008.

Our options strategy has been defensive and our low levels of equity exposure have helped during the last few days.

The Courtiers multi-asset funds have not fallen as much as the markets. The following chart shows the maximum drawdown in a single day over the last year from the Courtiers multi-asset funds compared to some major global indices. In simple terms, it shows the largest one-day loss experienced over the last year.

It is no coincidence that for the Courtiers multi-asset funds, and for the indices quoted, the maximum drawdown occurred yesterday. We are pleased that Courtiers multi-asset funds continued to be more defensive than global equity markets.

Max One-Day Drawdown 11/03/19-12/03/20

Source: Bloomberg & Courtiers. Based on total return. Past performance is not a reliable indicator of future returns.

We have also looked at the peak-to-trough falls during the last year, otherwise known as the maximum drawdown during the last 12 months. This uses the peak price and the lowest price following that.

Max Drawdown 11/03/19-12/03/20

Source: Bloomberg & Courtiers. Based on total return. Past performance is not a reliable indicator of future returns.

Again, the lowest prices (the troughs) were experienced yesterday. The peak prices for the Courtiers multi-asset funds during the last 12 months were actually not that long ago, in late January. The scale of the equity market falls is evident with European equities falling almost 35% from their peak on 19th February. In contrast, Courtiers Total Return Cautious Risk Fund has a maximum drawdown peak-to-trough of 14%.

Today markets are rallying, though early gains have been tempered this afternoon. We expect market volatility to continue but there are opportunities and we remain cautiously positioned whilst looking to take advantage of some of the attractive (cheap) valuations.

Caroline Shaw CFA, MEng (Hons), Dip PFS, IMC, Chartered MCSI

Head of Fund & Asset Management

Issued by Courtiers Asset Management Limited, CAM0320366. Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority - Register No: 616322.

Warning – the views expressed by Courtiers in this summary and any video and video transcripts, are reached from our own research. Courtiers cannot accept responsibility for any decisions taken as a result of reading this document, watching the featured video or reading the video transcript and investors are recommended to take independent professional advice before effecting transactions. The price of stocks, shares and funds, and the income from them, may fall as well as rise. Past performance is not necessarily a guide to future returns.

We do not endorse nor accept responsibility for the content of any website not operated by Courtiers which you may visit by following a link from this article.

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