The Equitile Resilience Fund (UK-domiciled) 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.
The Equitile Global Equity Fund (Ireland-domiciled ICAV) follows the same strategy and principles as the Equitile Resilience Fund. The lastest update and other documents can be found here.
November has been kind to your portfolio with double digit positive returns coming from a reassuringly diverse selection of your holdings. The semiconductor machinery manufacturer, Lam Research, was up almost 21%, the luxury handbag maker, Hermes, up 18% and SIKA, the building materials company, up almost 15%. However, once again, your top performer was NVIDIA which increased by 28% over the month. We believe this was a continued response to Facebook’s planned Metaverse product, which will require immense growth in computing power.
Toward the end of the month, markets suffered a modest setback in response to the emergence of the new Omicron variant of the Covid virus. The resultant tightening of regulations looks likely to, once again, cause significant damage to the travel, tourism, entertainment, and leisure sectors. We continue avoiding these sectors.
Finally, as we write, the markets are digesting Fed Chair Powell’s latest monetary policy pivot in which he appears to recognise the resurgence of inflation may not be transitory after all. We concur with this view and expect inflation to become entrenched over coming years. We will be watching the Fed commentary closely over coming weeks, but for now our base case expectation is that Powell will talk tough while delaying substantive monetary tightening for the foreseeable future.