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.
A robust macroeconomic backdrop, the decline in Delta variant cases, and a dovish Fed have supported the rally of global equity and risk assets. U.S. GDP grew by 12.2% for the year ending June 30. The very large stimulus plan that has been in place over the last 19 months has achieved its goal of helping the Federal Reserve reach its dual mandate of reflating the economy and full employment. Unemployment dropped to 5.3%, and year-over-year inflation was above 5% for the third month in a row at the end of August 2021.
After a strong first half in 2021, global equity markets were slightly negative for the third quarter. The U.S. equity markets were flat, with the S&P 500 up 0.6% for the quarter and up 15.9% for the first nine months. All sectors were positive for the period, representing broad market participation. This has been a positive for active managers, as they have been able to add value over the benchmark through stock selection.
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.