COVID-19: Q2 Update

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Dear Investors,

Covid-19 has led us through a succession of tumultuous months in the markets. Shares closed last year with a sharp, even frenzied, advance in the fourth quarter. That celebration came to an abrupt end once the virus struck. The impact on the country has been damaging and frightening but ultimately is becoming familiar and tedious. This has been reflected in the stockmarket which enjoyed an explosive rally from the lows in March before slowing to a more measured pace from mid-June. We have a contest between central banks and governments expanding the money supply and investors’ concern about weak profits. Historically money supply has won this battle.

A vaccine may arrive to solve the problem but even without this we are seeing small but steady improvements in handling of the disease. The ratio of deaths to recorded infections is improving. Partly this just reflects higher detection levels but there is also an encouraging rise in the survival rates of patients once in hospital. The regular outbreaks of the virus in meat processing plants, where temperatures are kept in the low single degrees Celsius, is a warning that winter risks a new surge. But overall we see Covid-19 becoming something people learn to live with rather than an economy-crippling plague. Meantime, as mentioned above, monetary and fiscal support is at unprecedented levels. Therefore we believe that investors should be looking to take advantage of dislocation in markets.

Best Wishes,

Slater Investments Limited

Risk warning: Past performance is not necessarily a guide to the future. The value of investments and the income from them may go down as well as up. Investors may not receive back their original investment. The Slater Funds have a concentrated portfolio, which means greater exposure to a smaller number of securities than a more diversified portfolio. Charges are not made uniformly throughout the period of the investment. The Slater Funds invest in smaller companies and carries a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid and their performance more volatile over shorter time periods. The Slater Fund can also invest in smaller companies listed on the Alternative Investment Market (AIM) which also carry the risks described above. The Slater Funds may invest in derivatives and forward transactions for the reduction of risk or costs, or the generation of additional capital or income with an acceptably low level of risk which is unlikely to increase the risk profile of the fund significantly. This document is provided for information purposes only and should not be interpreted as investment advice. If you have any doubts as to the suitability of an investment, please consult your financial adviser. The latest Key Investor Information Documents and Prospectuses are available free of charge from Slater Investments Ltd. You are required to read the Key Investor Information Document before making an investment. Telephone calls may be recorded. Slater Investments Ltd, which is authorised and regulated by the Financial Conduct Authority, is the manager of the Slater Growth Fund. Slater Investments Ltd address is Nicholas House, 3 Laurence Pountney Hill, London, EC4R 0EU.