Performance Update Feb 2016
Article Overview
The Oasis Global Equity Fund (OGEF) is a conventional global equity fund that seeks to provide investors with an ethical product.
A restructuring of the Chinese economy continues to weigh on import demand and hence commodity prices, with global growth expectations being revised moderately lower during the second half to 3.1%. Positive growth impulses in the Euro area and Japan have offset the Chinese slowdown to some extent, while steady consumer demand and a tightening jobs markets in the US and UK have driven their trade weighted currencies significantly higher.
Relative weakness in emerging market capital flows has seen a decline in official foreign currency reserves over the period, although weaker currencies as well as pockets of structural reform have improved their global competitiveness on average, reflected by narrowing current account deficits in countries such as India and Indonesia. Overall, global monetary conditions remain loose, and significant capacity for government support in China should provide for a continued orderly transition towards a consumer-led economy, while the US Federal Reserve’s monetary policy committee is expected to follow a relatively shallow hiking cycle over the medium term.
