Evenlode branches out from income stable with global equity fund launch
‘The concise investment style should provide a high degree of active share’
Evenlode’s decision to branch out from equity income funds has been hailed as a “natural step” in the boutique’s trajectory.
On Tuesday the firm revealed it would be launching Evenlode Global Equity for UK investors. The fund, which will be co-managed by Chris Elliott and James Knoedler (pictured), will take a bottom-up concentrated approach, holding between 30 and 50 companies in the portfolio over long periods.
The strategy employs the same process and philosophy as the £925m Evenlode Global Income fund, which Elliott works on with lead manager Ben Peters, but is not constrained by having to maintain a level of dividend payments.
A market recovery is underway and there is optimism amongst investors that stock markets should do well.
However, Tom Sparke of GDIM, a wealth manager, said oil majors would come under pressure. The oil price has tanked this year as planes have been grounded and manufacturing shut down during the pandemic.
Any short-term rally seems likely could be muted by the rise in electric vehicles and other green initiatives, which will contribute to lower demand than before the pandemic, he said.
What’s more, he added, investors are becoming “ever-more aware of the risk to oil” and with the rise of ethical investing, which typically avoids the oil majors, these stocks could struggle next year.
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Investors are optimistic and few are prepared for markets to fall again
Investors have been clamouring to buy stocks ahead of an expected economic rebound in 2021, but what if it does not go to plan?
Professional investors have said they are the the most optimistic they have been all year about stock market returns in 2021 and have just 4pc of their portfolios in cash, according to a survey by the Bank of America Merrill Lynch.
However, an economic recovery and any subsequent stock market gains are in no way guaranteed. Delivering the numerous vaccines to the masses is a tricky task. This week, London was placed into tier three, forcing millions to stay inside and businesses such as pubs and theatres to close again.