IFSL RC Brown UK Primary Opportunities | Fund Update | September 2025
September: Markets gain despite rising gilt yields
Markets moved higher on the first interest rate cut in the US for twelve months, amid a growing belief that there will be further rate cuts this year. Hopes of a trade deal between the US and China also spurred markets.
In the UK, the Bank of England kept interest rates on hold, and due to inflation proving stubborn, expectations of a further rate cut this year have receded markedly. Inflation will be closely watched and is expected to peak in September. Meanwhile, gilt yields rose to their highest level this century and are the highest in the G7. This is as a result of the UK’s higher inflation and concerns over the budget deficit and how Chancellor Rachel Reeves intends to tackle this in November’s budget.
Economic self-esteem in the UK is currently low and this pre budget malaise may continue in the lead up to the budget. We do however believe that there are positives that the media are largely failing to focus on. For example, annualised economic growth in the UK has averaged 1.8% since November 2023, the fastest growing G7 country in 2025 so far, and the unemployment rate (4.7%) remains comparatively low.
No additions were made to the portfolio for a second month in a row. Whilst there were some primary opportunities in the market, (such as an equity raise by Yellow Cake PLC at a premium to its share price), there was nothing compelling enough for us to make a new investment and we prefer to retain our cash until more attractive investment opportunities arise. With markets relatively buoyant, we anticipate a pick-up in fund raising activity in the final months of this year.
In September, the IFSL RC Brown UK Primary Opportunities fund returned 0.7% compared with 1.9% for the FTSE All Share and 1.2% for the IA UK All Companies sector, all on a total return basis.
***Stock in focus***
JTC, the provider of fund administration and corporate services, confirmed this month that it had received preliminary approaches from more than one private equity house. As a result, the shares reached record highs. Whilst a formal offer may not be made or approved by the board, we intend to continue holding the shares as any acceptable offer we believe, would need to be at a premium to the current share price, despite the recent rise.
Purchases
There were no purchases in the month.
Sales
We sold the remaining holding in technology company Raspberry Pi after recent results. It proved an excellent investment since its IPO last year. However, given the high valuation of the company, and a technology sector that in the US in particular, appears priced for perfection, we decided to take profits following a moderate results statement by the company. We also trimmed our holdings in Whitbread and Coats on strength.
Cumulative Performance (Total Return %) – To 30 September 2025
| Fund/Benchmark Name | 3M | 6M | 1Y | 3Y | 5Y | 10Y | Since Inception (28/05/1997) |
| IFSL RC Brown UK Primary Opportunities P Acc | 3.8 | 10.3 | 11.4 | 32.3 | 51.5 | 99.1 | 568.2 |
| Quartile Ranking IA UK All Companies | 2 | 3 | 2 | 3 | 3 | 2 | 2 |
| IA UK All Companies | 3.1 | 10.8 | 9.6 | 41.1 | 58.1 | 84.8 | 402.8 |
| FTSE All Share | 6.9 | 11.6 | 16.2 | 50.0 | 84.1 | 118.3 | 489.3 |
Source: FE: 30/09/2025
Discrete Annual Performance (Total Return%) – To 30 September 2025
| Fund/Benchmark Name | Year to 30/09/2025 | Year to 30/09/2024 | Year to 30/09/2023 | Year to 30/09/2022 | Year to 30/09/2021 |
| IFSL RC Brown UK Primary Opportunities P Acc | 11.4 | 12.3 | 5.7 | -18.4 | 40.4 |
| Quartile Ranking IA UK All Companies | 2 | 3 | 4 | 3 | 1 |
| IA UK All Companies | 9.6 | 14.2 | 12.8 | -15.3 | 32.4 |
| FTSE All Share | 16.2 | 13.4 | 13.8 | -4.0 | 27.9 |
Source: FE: 30/09/2025
Please be advised that the past is not necessarily a guide to future performance. Investments and the income derived from them can fall as well as rise and the investor may not get back the amount originally invested.
