Executive Summary
The economic recovery continued to gather pace in May, with many companies experiencing a sharp bounce back in demand. Despite high volatility most equity markets realized positive gains, but many companies are reporting supply chain disruptions and various other constraints that are hindering a return to pre-pandemic production levels. This, combined with rising demand, creates inflationary pressure, which is the primary risk for the markets in the longer term. Market overvaluation continues to suggest a cautious long-term outlook. However, the low level of interest rates, which are expected to remain on hold for the next three years; low level of annualized inflation; and minimal returns on fixed-income instruments make us affirm our "risk on" stance to equities over the course of 2021. We have used the market pullback in May as an opportunity to invest almost all of our reserved cash by adding to some of our core positions and opening new positions in companies that we have long been monitoring to buy at more favorable share prices. The Technology of the Future Fund realized a -0.57% return in May, slightly underperforming the benchmark MSCI World Index (USD), which had a return of +1.26%.