NIC-UD Fund: Monthly Performance Equity markets are on the rise as latest economic data brings hope to investors
João Pedro Coelho
Global Markets As lockdown measures have been lifted all around the world, new vaccines have been approved and daily new Covid-19 cases have been declining, optimism was the key word for April and investors started to put their eggs in riskier baskets, following a “beat the forecasts” behavior, surprising earnings reports appeared during April. As economic normalization is around the corner with positive economic data being released, investors are looking at long-term value investments as the way to follow, which resulted on a very positive month for global equities. Not so optimistic was the bond sell-off. In 2021, fixed income markets have suffered fast changes and analysts ffff
predict that the bond markets may remain in a state of flux for the remainder of 2021. One of the consequences of this market moves is the necessity of a more risk-aware asset management of fixed income allocations, which pushes investors towards equity markets. The optimistic trend is also affecting commodities markets as oil reached a six-week high, as demand forecasts continue to be on a positive note and OPEC agreed to increase oil production to 350,000 barrels a day in May and June. April has left positive notes for the rest of the year as investors are betting on economic recovery and coronavirus dust settling down.
Current Positions
Only one addition was made to our portfolio this month, Enterprise Products Partners L.P., this addition is aligned with our goal of diversifying our portfolio. This extremely important diversification allows us to capture different timing growths while minimizing risks associated with specific industries. The cash position is currently representing around one fifth of our portfolio, mainly due to the reduction of the Walt Disney Company and Gilead Sciences positions. We will continue to allocate this cash in new securities, always following our long-term value investing strategy. Nº
Positions Weight on Total Equity
1 2
7,46% 5,09%
20,52%
13,03% 3,69% 3,92%
2,27%
5,54%
10,38%
6,57%
5,54%
5,67%
4,26% 2,97%
3,11%
Entertainment US Pharma US Internet US Utilities US Gaming ETF Renewables US Electric Batteries ETF Gold Miner Consumer Products EU Pharma Retailer Chinese Govt Bonds Aerospace & Defense UK Tobacco UK Oil & Gas US Cash
Industry
Type
Streaming/Entertainment US Equity
Current Price
Open Price
$185,51
$141,70
$70,26
$25,21
Gaming/eSports
ETF
3
Pharmaceutical
US Equity
$65,80
$71,36
4
Social Media/Internet
US Equity
$322,58
$175,75
5
Renewables
US Equity
$76,70
$75,49
6
Utilities
US Equity
$11,43
$9,67
7
EV Battery
ETF
€14,97
€9,98
8
Consumer Products
EU Equity
€59,45
€47,80
9
Gold Miner
CND Equity
$38,72
$44,74
10
Pharma Retailer
US Equity
$54,30
$47,14
11
Sovereign China Bonds
Bond ETF
$5,47
$5,34
12
Aero & Defense
UK Equity
£5,06
£4,93
13
Tobacco
UK Equity
£26,82
£27,98
14
Oil & Gas
US Equity
$22,95
$23,23
21 NIC Undergrad Review