PHILOSOPHY & METHODOLOGY
Achieving competitive returns in excess of the corresponding benchmark (Alpha) consistently over the medium to long term.
Fundamental Research and Valuation: Investment decisions are based on fundamental analysis conducted through a comprehensive study of the companies to determine their intrinsic values based on their forecasted cash flows as well as using other valuation techniques. Forecasts are driven by a hybrid approach that incorporates elements of both top down and bottom up analysis.
- Top Down Analysis starts with expectations about macroeconomic variables, down to the sectors, then the individual companies.
- Bottom Up Analysis focus on analyzing the companies individually while paying less attention to economic indicators.
Active Management: Actively managing holdings based on the belief that market inefficiencies create alphas which can be capitalized on, with the objective of producing better returns than those of passively managed assets.
Disciplined Investment Strategy: Following a strict and unemotional buy and sell disciplined plan.
Investment Decision Process
Investment Policy Statement: Portfolio managers set investment guidelines and product strategies
- The portfolio managers set the investment policy statements according to the objectives and constraints of each client.
- The portfolio managers develop funds’ prospectus in cooperation with the product development team.
Asset Allocation: Investment Committee approves asset allocation and the stock selection proposed by the portfolio managers.
Execution: Portfolio managers follow up the execution process with the trading team based on the approved asset allocation and stock selection within the stipulated guidelines.
Monitoring: Investment Committee monitors performance (risk & return); Compliance monitors adherence to guidelines strategy.