Investment Process
Equity Investment Process
All equity investment plans are formulated and executed through a systematic and transparent six-step process:
- Generate Ideas
Top down and bottom up thematic research generates a watch list of 200-300 stocks
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- Distill
Targeted research using qualitative and quantitative screens to determine attractiveness of stocks
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- Construct
Model portfolio consisting of approximately 2/3 benchmark & 1/3 non-benchmark stocks constructed. Implemented by central dealing
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- Calibrate
Weekly & monthly reviews revaildate stock, sector & country bets
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- Control
Multi-level risk control system ensure compliance with mandates
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- Attribute
Performance of portfolio tracked and attributed
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Fixed Income Investment Process
All fixed income investment plans are formulated and executed through a systematic and transparent five-step process:
- Performance Analysis
- Performance tracking
- Performance attribution
- Formulate Investment Overview
- Fundamental technical & valuation approach
- Weekly fixed income strategy meeting
- Quarterly credit meeting
- Quarterly asset allocation meeting
- Portfolio Construction
- Customisation
- Proprietary credit selection
- Optimisation
- Implementation
- Monitoring & Control
- Identify relative value opportunities
- Consistency from risk budget & information ratios
Our value-add to performance
Duration
Active decision on portfolio duration relative to benchmark duration
Yield Curve
Barbell or Bullet strategy to capitalise on shifts in yield curve
Credit
Sector analysis and allocation to capture corporate trends and shifts.
Fair value analysis (Credit Scoring and Merton Credit Default) to identify under valued securities
Currency
Currency overlay for active and passive FX management
Risk Control
Control exposure and volatility to provide optimal risk adjusted returns.
Manage counter-party exposure and maintain efficient execution to minimise transaction risk and cost