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.
It is nice to have a change every once in a while, and this month we have had a change in the leadership of your portfolio. After a long period where your semiconductor investments have been the main drivers of the fund, this month the baton was handed over to other sectors. Intuitive Surgical, the world’s leading robotic surgery company, rose by almost 20% on strong systems shipments and Edwards Life sciences, a leading manufacturer of replacement heart valves, was up around 15%. This is good news both for your portfolio, and also because it suggests a recovery in non-covid related medical treatments. Your investment in the parcel delivery company, UPS, also rose by just under 20% during the month. Unsurprisingly parcel delivery services are enjoying pricing power at the moment – part of the emerging inflationary trend which we believe is now taking hold.
During the month we have increased your investments in the Luxury goods and mining sectors, again two industries where pricing power is re-emerging, both of which have helped improve your portfolio diversification.
Once again, we are in the earnings season and we are pleased to report that 95% of your companies that have reported so far have beaten expectations, and the average annual EPS growth from reported holdings stand at 85%. While these numbers are encouraging, we would caution against getting too excited by year-on-year growth rates at the moment, as this time last year was close to the point at which lockdowns were having their maximum impact.