This report consists of a detailed view of the current investment environment, different possible asset allocations, the extent to which active and passive investment style to be used by the company, and actions to be taken by the fund.For the best allocation of assets, detailed insight into the investment environment is imperative. This part of the report deals with the investment environment and major issues relating to it. The main component of the investment environment is an economic condition. The global economy is currently in a growth path. United Nations gave out a projected growth of 2.4% for the world economy. The United Nations was also cautious about the implementation of the right policies by nations so that the world could achieve the predicted growth. “The UN report credited massive policy stimuli injected worldwide since late 2008 for the expected rebound. It recommended that the stimuli continue at least until there are clearer signs of a more robust recovery of employment growth and private sector demand.” (United Nations, 2010)Emerging markets, China and India will be the growth drivers in 2010, the expected growth rate being 8.8 and 6.5 respectively. The main reasons for the robust growth would be the better performance of global equity markets, an increase in international trade, and better industrial production. The Russian economy is also expected to post better economic growth. “In the industrialized world, the U.S. economy is forecast to grow by 2.1 percent in 2010 following an estimated decline of 2.5 percent in 2009, the U.N. said.” (Associated Press, 2009) Europe and Japan will be the slowest growing economies in 2010. The growth rate of these regions as per the UN is 1%. However, there are certain issues that can adversely affect the positive investment environment. They are enlisted below.Withdrawal of financial stimulus: Though the UN was positive on the investment environment of 2010, the UN has warned that a premature recovery of stimulus would take the economy again to a recessionary.