The current economic situation of UK Essay Example | Topics and Well Written Essays - 2000 words

The current economic function of UK - Essay ExampleMorris Capital is going to face a situation in which there may be a gap between its inflows and outflows and as such its liquidity may be drained in glide slope periods. Based on this, it is estimated that the fund withdrawals will be 3% more than the inflows received by the firm owe to the fact that its investment strategy acknowledge investors to start withdrawing the funds after five years. Considering this situation, the Investment Committee of Morris Capital is going to meet in March 2010 to further discuss the strategic apportioning of the assets as well as outline the future course of action. This report will therefore provide an overview of the current investment environment and provide alternatives for slick asset allocation along with the recommendations for the future course of action that may be taken.The current economic situation of UK is relatively more unstable owing to the financial meltdown that occurred during 2007. The overall situation is not considered as healthy as the estimates indicate that the UKs economy will grow at a very sluggish rate as IMFs forecasts indicate that the UKs economy is its worst after 1930s. During 2009, UKs economy experienced a harvest rate of just 0.1%1 during the last quarter of 2009 indicating the overall state of the economic conditions.