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 - January 2019 (print version)
We are pleased to say equity markets have begun 2019 in a very different mood to which they ended 2018. January has seen a strong rally. In part the recovery has been driven by corporate earnings reports which have generally failed to confirm the market’s fears of an impending recession. In addition, and probably more importantly, Fed Chairman Powell has responded to the Q4 selloff with a decidedly more dovish monetary policy outlook. We suspect the Fed will view the Q4 2018 market turmoil as a policy communication error and will respond by erring on the side of monetary accommodation for the foreseeable future. In this respect we see echoes of Alan Greenspan’s famous ‘Irrational Exuberance’ comments from December 1996 which ultimately lead to a prolonged period of strong market performance.
In January we have been relatively active in adjusting your portfolio of investments. We have re-invested in the luxury goods and microelectronic machinery sectors. You now hold positions in both LVMH and Kering. In addition, you also hold investments in ASML, Applied Materials and Lam Research. Each of these companies are key to all the industries driving today’s technological revolution. ASML’s extreme ultraviolet lithography technology is especially exciting as it will likely enable another generation of even more powerful silicon chips.