Executive Summary
In October, the discrepancy continued to narrow between the straggling COVID-19 economy and the markets, which has been priced for the Best-Case Scenario. The COVID-19 winter came early, and it has proven to be quicker and greater than we had thought. As Europe went into soft lockdown and the U.S. numbers worsened, markets had to correct accordingly.
The Technology of the Future Fund was more resilient during this period of volatility than were major indexes, due to not having high-flying, overpriced IT stocks in our portfolio. The fund had a return of -1.39% in October, outperforming the benchmark MSCI World Index (USD), which had a return of -3.14%. YTD the fund delivered a +13.27% return, significantly outperforming the benchmark MSCI World (USD), which had a return of -2.78%.
We expect the volatility to stay high at the year’s end, as the pandemic and protracted election uncertainty, power transitions, and potential legal battles in the U.S. will continue to weigh on the markets. In the middle and long terms, we continue to maintain our neutral to positive view on equities. The market volatility creates opportunities for investors to reposition their portfolios for 2021 any weakness is seen as buying opportunity.