Nick Griffin, CIO Munro Partners, writes for Livewire Markets about global markets and ‘weapons of capital preservation’, the toolkit he and his team use in managing the Munro Global Growth Fund.
Global equity markets had another positive quarter, continuing to build on the strong recovery from the COVID-19 lows in March. A flattening of the COVID infection curve helped calm market fears, while the aggressive stimulus by global central banks and governments allowed investment grade companies to access cheap funding and assist furloughed industries through the health crisis.
From a bottom up perspective, it has become increasingly clear that many large and important listed companies, particularly in the digital, healthcare and climate change sectors are well placed to grow post the pandemic. This has resulted in a bifurcated market since the March lows with structural growth stocks outstripping companies that are worse off in a post-COVID world.