The 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 GBP - November 2019 (print version)
November has been another month of improving market confidence pushing equity markets, and your fund’s share price, to new all-time highs. Most of the market commentary has focused on earnings reports and trade negotiations, however, we believe some little covered details of technical changes to the Federal Reserve’s monetary policy framework could prove even more important. On the 26th of November, Fed Governor Lael Brainard, delivered a potentially important speech outlining a new approach to inflation targeting whereby, following extended periods of below target inflation, the Federal Reserve would seek to achieve offsetting equally extended periods of above target inflation to ‘makeup’ for previously lost price rises. This arcane detail of monetary policy has potentially significant implications for future monetary policy. In the same speech Governor Brainard noted that inflation has ‘fallen short of 2 percent for most of the past seven years’, suggesting, if enacted, an inflation ‘makeup’ policy could already require at least another seven years of extremely stimulative monetary policy. We believe the Fed and other central banks will enact this policy framework and therefore expect further aggressive monetary stimulus over coming years, suggesting an environment supportive of further equity market gains.
Your strongest performers over the month were Apple, Adobe and CSL, all of which gained more than 10% in November. We have made only very minor adjustments to your portfolio during the month.