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The RIO Professional Investor Fund provides members with the opportunity to benefit from the boom in both commodity and currency markets. This has created an investment opportunity through the predictable fluctuation of both currency and commodity values, whether positive or negative. This Fund also holds small percentages in alternative investments. The Objective of this Fund is gradual and steady capital appreciation. Investment decisions are based on a combined analysis of fundamental economic, financial and political events that affect both currency and commodity market prices, the markets themselves and the potential risk/reward from taking a position. A simple example would be the political & economic situation resulting from war and its effect on the price of oil. Our researchers and market analysts are responsible for monitoring and evaluating worldwide events, which could affect both currency and commodity markets and developing investment strategies based thereon. Careful risk management, through monitoring and applying analytical techniques, is intended to make risk management more rational and effective. Institutional investors, pension funds and assurance groups are increasingly beginning to view commodities as a distinct asset class to be included in their portfolios, along with more traditional investments in shares and bonds. The resulting volume movement of money presents vast investment opportunities. One key driver for the change is that institutional investors are unhappy with the returns they are seeing from traditional investments. This decade is being characterized by a significant deterioration in the performance of bond and equity returns, according to Deutsche Bank Global Markets Research. Equities, which were increasingly perceived as low risk, high return assets during the 1990s have become a high risk, low return form of investment during this decade, while bond returns are under threat from strong growth, inflation shocks and persistently low interest rates. This just magnifies the opportunities within both currency and commodity markets, which is well borne out by our research, and is the basis of the Strategy for this Fund. As predicted, institutions are now viewing the buying of shares in companies, particularly in Europe and the US, as risky since many of them face uncertain futures. This is due to rising costs from high energy and raw material prices, and growing competition from Chinese or Indian firms. We are not facing the end of the commodities super cycle - we are actually just getting started! This market is just in the early stages of what is sure to be unprecedented growth and appreciation in the coming years.
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Download
the latest performance graph for Rio Options Account.
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