The Equitile Resilience Fund aims to deliver capital growth by investing in large, growing companies in the developed world. It is managed according to our core investment principles and uses the Equitile Fair Fee Model.
Latest Overview - March 2018 (print version)
March has been yet another month of unusually high equity market volatility, culminating in a sharp sell-off toward the end of the month. The losses were driven in part by concerns over the Federal Reserve moving to a more aggressive path of interest rate hikes and by growing geopolitical tensions between Russia and the UK and between China and the US. Of these we believe the China-US trade conflict is potentially the most significant and was, we believe, the main driver of this month’s losses. Boeing, a large exporter to China, suffered over a 10% price decline, with a number of other high-tech companies incurring smaller losses.
We are inclined to believe the markets have over-reacted to the reported US-China trade tensions. As with the earlier escalation of tension over North Korea we believe the sudden flair up of trade tensions is part of a robust negotiation tactic adopted by US President Donald Trump, which may well produce a surprisingly benign, even beneficial, outcome in the end. We have made a few modest adjustments to your portfolio recently, further reducing your exposure to the UK market and adding new holdings in both the US and Europe.