1 April 2018
Global economic fundamentals are now evolving in a direction that the market is surprised by and the crowded consensus is being called into question more and more. I am increasingly confident that the market’s mood is changing in a way that is very supportive for our long-term investment strategy.
– Neil Woodford
April was a positive month for equities, with most major regional stock markets posting strong gains. Within the mix, the UK stock market outperformed most other indices, bucking the recent trend in which the UK’s unpopularity with global asset allocators has weighed on returns.
The Pronto trial readout from Prothena was clearly a disappointing development during the month. Elsewhere, however, there have been a number of positive events, from a macroeconomic and stock specific perspective, which provide further encouragement on the outlook for performance from here.
The Bigger picture
In an environment of deteriorating global liquidity, MacroStrategy argue that UK “money supply growth outlook faces no drag from either QE withdrawal in Eurozone or outright QT in the US” – bodes well for UK’s economic performance and in turn, UK-focused stocks.— Woodford (@woodfordfunds) April 26, 2018
Key Company Events
Patient Capital Trust case studies
With the release of the Woodford Patient Capital Trust annual report for 2017, we have provided a series of case studies, to demonstrate the encouraging progress being made across much of the portfolio. Case studies are available for the companies listed below, along with Neil’s portfolio manager’s review.
Our strategy has been out of step with the stock market view for some time now, however, as The Bigger Picture content demonstrates, we are seeing a number of macroeconomic developments that are increasingly calling into question the consensus view.