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.
Company reporting season is upon us once more. Although only one third of your investments have reported so far, we are pleased to say those early indications suggest another strong set of results for technology sectors broadly. Microsoft – your 12th largest investment – have again reported strong demand for cloud computing services, with Azure growing 50% in the last quarter, driving their stock price to new all-time highs and, equally importantly, suggesting we are likely to see continued robust investment spending across businesses supporting the ongoing development of the virtual economy.
In a similar vein, a number of auto manufacturers have reported supply constraints of semiconductors, as cars are becoming more advanced, forcing them to restrict production. As a consequence, Taiwan Semiconductor – your largest holding – is under pressure to further increase supply to the auto sector and is also rumoured to be in talks to begin outsourced production of some Intel chips.
Your portfolio has been positioned to benefit from the rapid growth in the semiconductor industry for some time. Nevertheless during the month we have made small additional investments in this area, adding companies involved in the manufacturing of memory and electronic circuit components.