Diverse portfolio to include banks

confidence

Overall, we will be adopting a momentum-passive strategy in our investments. In summary, we invested in a 90/10 proportion of equity/bonds. To reap the benefits of diversification, we will be investing in the stocks of companies in many different industries.

We are applying momentum investing on the back of highly positive global news (e.g. favourable sentiment towards the US-China trade dispute, easing US-Iran geopolitical tensions and consistently strong US labour market), and the decade-long bull market. We feel that at this juncture, it is difficult to justify trading against this market trend.

In addition, we have decided to hedge our risk arising from our equity investments with investment grade bonds. IG bonds have a relatively lower risk of default, and thus poses as a safer investment in contrast to our equity investment.

Lastly, we also adopted a partly passive approach as we feel that there is significant room for growth in US corporates. In 2019, corporate earnings were relatively flat, thus investors largely expect a rebound in 2020 amid the recovery in the global economy.

Our portfolio consists of large US companies with a strong recent momentum. JP Morgan Chase & Co has a solid market position as well as unmet growth potential and thus is a great addition in the portfolio.

JPM belongs to one of the most important companies in the US and is a large financial institution in the financial sector. therefore, it is a perfect fit for the buy-and-hold passive strategy.

Based on quantitative analysis, the firm represents a key company in our investment strategy described in our report. JP Morgan Chase is the largest bank in the US, and named one of the G-SIBs, global systematically important banks that would catastrophic if they failed. The bank has seen growing profits and moderate growth in expenses recently and has a diverse portfolio of services.

Passive buy-and-hold investment strategy, following the Dow Jones Industrial Average Index. Investing in top 30 largest and most significant companies in the U.S. using value-weights based on companies’ market caps.

Our portfolio consists of large US companies with a strong recent momentum. J P Morgan Chase & Company has a solid market position as well as unmet growth potential and thus is a great addition in the portfolio.

Per our fund policy, part of our portfolio follows the S&P500 Index. This is achieved by taking the most important stocks on the index with respect to the present coefficients of the model. These are purchased in amounts reflecting the coefficients. JPMorgan Chase & Co is part of this portfolio.

Passive investment on a well-known multinational investment bank and financial services holding company.