Equitile Resilience Fund aims to deliver capital growth by investing in large, growing companies in the developed markets. It is managed according to our core investment principles and uses the Equitile Fair Fee Model.
Latest Overview - November 2020 (GBP Class) (Print version)
As with every month of this year, November has been eventful. The U.S. election was won by Joe Biden, but is still being fought by Donald Trump. Preliminary positive test results of COVID-19 vaccines arrive on an almost daily basis. Although these offer a potential pathway out of economic lockdowns, for now at least, their effect looks likely to result in restrictions lasting until the end of Q1 2021. The combined expansion of the US, EU, Japanese and UK central bank balance sheets suggests the total COVID-19 stimulus programs are on course to become three or four times as large as those enacted at the time of the global financial crisis.
Fiscal stimulus, especially of the current magnitude, tends to find its way into corporate profits and this has been reflected in November with another stock market rally. Overall, we expect this fiscal support to continue for the foreseeable future. That said, today’s corporate revenue is very much a story of feast and famine. Companies facilitating the virtual economy continue feasting while many of those involved in the physical economy are in famine; as we write this update, Arcadia and Debenhams, two of the U.K.’s biggest high street retailers, have gone into receivership. We anticipate Q1 2021 will bring more of the same.
The positive vaccine results have recently triggered some short-sharp market rotations from growth into value stocks, but overall, technology stocks are continuing their market leadership. We remain confident with the composition of your portfolio but, as always, we will adapt if necessary.