Investment Objectives and Beliefs
At Investus, we believe that our aptitude to recognize market opportunities using current market data allows us to remain one step ahead of our competitors, and ensures that we consistently perform well, over our 3 year investment horizon. Our aim is to create a well-diversified portfolio using a defensive strategy by investing across sectors we believe will outperform market expectations.
Our target client is someone looking to invest in a risk averse portfolio that provides stable returns with an expectation for capital gain. We have carried out extensive economic research in order to forecast future market conditions. This research is then used in combination with specific stock screens in order to…show more content… · The beta of the company increases exceedingly.
· If a company in our portfolio is acquired by another firm due to poor management
Global Macroeconomic outlook
In 2015, the IMF faced challenges that required fast acting changes. These included the sudden decline in oil prices, the Ebola pandemic in Guinea, Liberia and Sierra Leone, and finally supporting numerous member countries facing financial and economic problems. However, the IMF World Economic Outlook suggests that growth has been predicted to rise from 3.1% in 2015 to 3.4% in 2016 and 3.6% in 2017. Advanced economies growth is expected to rise to 2.1% in 2016 and to remain steady in 2017. Growth in Emerging Markets and Developing Economies have been predicted to rise to 4.3% in 2016 and then to 4.7% in 2017 from just 4% in 2015.
Figure 1: Graph from Bloomberg about China’s stock market
China lost 43% of its value on the CSI 300 last summer , the market became more stable over autumn before falling again in December. The graph above shows how in one year the CSI 300 grew around 150% and within six months it dropped to around two thirds of that growth. According to economists, China’s slowdown in growth has put downward pressure on oil prices resulting in lowering inflation, which should consequently boost household budgets. However, these market conditions could prompt the Bank of England to maintain interest rates at a record low.