Investments - copy
USEC maintains a core concentration on Trade Finance related investments and US Equities. The company deploys funds into prime bank backed commercial trade transactions whilst maintaning a robust portfolio of Equities in US Markets. Investment oversight is continually in place with asset allocation monitored by the appointed ‘Investment Supervisory Board’. USEC also maintains an up to 30% investment diversification policy that allows for limited investments into alternative opportunities that may arise. This allows for a wider universe with minimal constraints in order to achieve higher long-term performance
The inclusion of Alternative Investments has historically played a critical role in the performance of corporate investment portfolios. The flexibility and reduction of stringent capital deployment constraints allows for a wider universe to invest along with provisional accessibility when opportune scenarios present themselves. This potential for greater returns provides for a more dynamic and optimal approach when coupled with the fundamental strategy of value investing.
Exposure to the US Equity Markets is a proven method to steadily grow wealth, especially in the long term. The US stock market has a pool of some of the world’s largest companies, with strong fundamentals and underlying core principles. US Stocks have outpaced bonds and inflation over time, despite a litany of volatility-inducing events. It has also shown an incredible resilence to market pull back bull markets running 130 months from 1946 to 2019 having 142% overall returns compared to bear markets that has taken away 30% with its 16 months duration. The United States market capitalization is also the largest and most liquid according to data from World Bank. In 2018, US total market cap amounted to 30.44 Trillion USD, which is 44.3% fo the World's total capitalization. China comes second with 6.32 Trillion USD followed by Japan with 5.3 Trillion USD.
In the last quarter of 2020, according to Siblis Research, the total market capitalization for US Equities has reached 50.8 Trillion USD. That is almost a 60% increase in value even during the height of restrictions caused by the global crisis of Covid-19 pandemic.