Team Invincible – Our Investment Strategy – Q3

Team Invincible came together in July 2011 and accepted the challenge of getting the best return on our investments against our peers!

As we are all still learning about investments we have taken a leap of faith and gone with our best judgement on our investments to date.

With a generous £3K to work with from our Chairman, we have invested as follows:

1. Standard Life UK Smaller Companies Retail Accumulation Units – £1K
2. Standard Life Global Absolute Return Strategies Retail Accumulation – £1K
3. First State Greater China Growth Class A Accumulation – £1K

Standard Life UK Smaller Companies Retail Accumulation Units

Harry Nimmo remains positive in his outlook for smaller companies. Companies are reporting better earnings figures, helped not just by cost cutting, but also sales growth. This strength is being seen across a wide range of sectors, particularly industrials, commodities and retailers. He is also finding a number of exciting new issues, and along with increased merger and acquisition activity, these are supportive factors for the fund.

 Why? We established that this fund was growing on average at 40-50%, year on year, with the fund continuing on an upward trajectory.

Return – we are aiming for 10% return on this fund

Standard Life Global Absolute Return Strategies Retail Accumulation

Standard Life’s Multi Asset team currently has a cautious view of markets. They do not anticipate equity markets moving significantly higher in the near term but are positive about companies with sustained profits growth despite the muted recovery in developed markets. They expect greater regulation in financial firms to benefit the bonds of these companies, and they form a significant part of the portfolio, particularly those that offer sustainable yields.

 Why? We established that this fund was growing on average at 10%, year on year, with the fund remaining fairly flat in terms of trajectory.

Return – we are aiming for 10% return on this fund

First State Greater China Growth Class A Accumulation

Martin Lau believes that interest rates in China are too low and he expects the authorities to tighten monetary policy more aggressively. His focus has been shifting towards companies with more steady growth, particularly in the telecoms and infrastructure sectors as these should be able to withstand further volatility in the markets. For example, he has been adding to the fund’s exposure to China Mobile which has continued to enjoy stable earnings.

 Why? We established that this fund was growing on average at 25%, year on year, with the fund hinting towards an upward trajectory for the next period.

Return – we are aiming for 10% return on this fund

Our Strategy

Our strategy is conservative with a touch of risk! Basically we have reviewed what funds look as if they are going in the right direction and selected them on this basis and the Fund Manager’s opinion of the fund!

In essence our strategy has seen us pick funds as: one very safe, one that should be safe and one quite risky…

Team Invincible – Ever to be the best