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Canterbury Outsourced CIO: Second Quarter 2021 Commentary
July 31, 2021

Every quarter, Canterbury's Outsourced CIO committee shares their observations of the market that impact the management of our discretionary portfolios in the Canterbury Outsourced CIO Commentary.

The first half of 2021 seems to have gone fairly quickly with vaccinations, a move toward normal life, and good market returns facilitating a smooth transition in the direction of post-pandemic normality. Compared to a year ago, the economic pendulum has swung from dire concerns about the pandemic to more optimism toward containment and economic recovery.

The uneven pace of vaccinations and reopening across regions has led to inevitable constraints in supply chain as well as labor shortages as consumers and businesses try to return to pre-COVID activities. The Federal Reserve and most others are hoping that the current inflation spikes will be temporary and that prices will fall as capacity is added. However, the uncertainty is high, as shortages in inputs from lumber to microchips have pushed up prices on consumer essentials.

While the concerns about inflation are well-founded, the U.S. has not seen year-over-year inflation persist over 4% since the 1980s. Advances in technology and globalization have boosted productivity and kept prices low over the past few decades. The Federal Reserve has been more concerned about deflationary pressures since the 2008 financial crisis, but this time it has hinted at moving to higher rates when they have achieved their objectives of higher average inflation and full employment.

Access the Canterbury Outsourced CIO: Second Quarter 2021 Commentary

Ms. Parekh is a member of the Board of Directors, a shareholder of Canterbury, and directs the Canterbury Outsourced CIO platform, which caters to institutions and private clients who wish to outsource day-to-day management of their portfolios to Canterbury. In that role, Ms. Parekh is the chair of the Canterbury Outsourced CIO Committee and a member of each of the firm’s five Manager Research Committees. She joined Canterbury in 1996 as the manager of analytics with responsibility for directing the firm’s account analysts and client services group. In that role, Ms. Parekh secured many of the asset allocation modeling and research software tools we use today. In 2001, she became the director of manager research, responsible for oversight of all manager, fund, and product research; maintenance of Canterbury’s proprietary research database; and chairing the Investment Manager Research Committee. Ms. Parekh graduated from the University of Hong Kong with a Bachelor of Arts in economics. She completed her Master of Business Administration at Shenandoah University.