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.
Overall, equity markets recovered their composure in October, albeit with considerable dispersion of returns. This was particularly the case within the U.S. mega caps where, for example, Amazon, Alphabet, Meta and Microsoft fell 9%, 6%, 31% and 2% respectively, while Apple bucked the trend with a 9% gain. You are invested in Apple, Alphabet and Microsoft.
For this reason, we believe, the Federal Reserve, and other central banks will soon be forced to pivot back toward looser monetary policy. We expect this will, in turn, help equity markets and other risk assets begin to recover. That said, we are concerned by the pace and degree of interest rates tightening already implemented by central banks. Even if this year’s rate hikes were to be quickly reversed, households and corporations may still choose to reduce their borrowing in fear of future interest rate shocks. The 2022 interest rate shock is now in the historic record and as a result risk models, both implicit and explicit, will be pushing households, corporations and perhaps governments to reduce borrowing levels for years to come.
During October we have again been relatively busy shifting the composition of your portfolio. We have further increased your investment in the energy companies which now forms your largest sector exposure. These new investments have been funded by further reducing your exposure to technology companies, particularly those involved in the semiconductor industry.