Long term interest rates across several key offshore markets dipped lower this month. This pushed bond prices higher, helping the Fund register a strong return.

In company news, Nike Inc reported very strong results for the year ended May 2021 with revenue increasing 19% which, in part, reflected a 64% increase in digital sales. While it is difficult to predict the lasting impact of the global pandemic, we do think the trend towards more online shopping will continue to increase. Nike is well placed to benefit from this. When coupled with its robust balance sheet, strong free cash flow, and globally recognised brand we believe this investment remains on a firm and improving path.

 Sherwin Williams, a market leader in paints and coatings, also updated investors regarding its long-term strategic priorities which centre on providing unique solutions for customers through product innovation. The executive team increased the group’s sales growth expectation for 2021 while also remaining committed to a strong balance sheet. Owing to leading market positions and global scale, we expect the company to continue to generate strong free cash flow in the years ahead.

A lowlight this month was the fund’s position in Banca Monte dei Paschi di Siena, the Italian banking group. The bank continues to progress with plans to improve its capital position. But a series of local press reports generated uncertainty regarding this process. As long-term investors, we believe in looking through short term headlines that reveal no new material information. Given this, we have maintained our investment position as we believe the bank will improve its operating metrics and balance sheet over the coming years.