- 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.