Evans Capital is a UK mutual fund established in Jan 2014- Prepare a report that will inform the committee on current issues in the investment environment, Evans’s objectives and constraints, and present alternatives for plausible strategic and TACTICAL ASSET ALLOCATIONS

Evans Capital is a UK mutual fund established in Jan 2014. Evans has a 5-year lock-in period where investors are restricted from withdrawing their funds (i.e. selling their units). Evans faces competition from other investment companies in attracting inflows of funds from investors. As of 31st Mar 2018, the fund holds £500 million of assets. It currently has 25% in UK equities, 10% in United States equities, 20% in BRIC (Brazil, Russia, India, and China) equities, 15% in UK corporate bonds, 10% in UK government bonds, 17% in European government bonds, and 3% in cash and short-term instruments. From January 2019, it forecasts that fund outflows will exceed fund inflows by 6% per annum on average for the subsequent 5 years. A suggested interpretation of this 6% figure is: (fund outflows during year – fund inflows during year) / total assets at 1/04/2018 = 6% The investment committee of Evans Capital will meet on 7th December 2018 to discuss its future investment strategies, strategic asset allocation and tactical asset allocation ranges.
REQUIRED: Prepare a report that will inform the committee on current issues in the investment environment, Evans’s objectives and constraints, and present alternatives for plausible strategic and TACTICAL ASSET ALLOCATIONS. Your report should also consider to what extent the fund should use ‘active’ versus ‘passive’ investment approaches in the different asset classes, with RECOMMENDATIONS FOR THE INVESTMENT MANAGEMENT STYLES. You are free to make any necessary assumptions in your analysis. Please state any such assumptions clearly in your report. The report must include some theoretical content as well as practical considerations. Support your arguments with examples when appropriate. The report will benefit from the inclusion of insights from academic and practitioner research. Please use only academic journals/ practitioner research, please don’t use appendixes. Please format Harvard referencing style with page number in-text citation. Thanks in advance!

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