Investment Methodology.
Seeking to maximise opportunity while managing uncertainty.
Our investment team takes a top-down, multi-asset approach to investing. We help clients navigate through adverse markets and capitalise on attractive investment opportunities across asset classes, guided by our experience and our proprietary Market Analysis model, which combines fundamental, technical and quantitative analyses.
Market Analysis and Asset Allocation
V.E.S.T analysis is a systematic market analysis methodology employed by our investment team to assess and make sense of market conditions. This methodology applies a combination of primary and secondary research (economic data analysis, aggregated forecasts from economists and market specific analysts).
The combination of fundamental, technical and quantitative analyses in V.E.S.T helps our team to determine when markets are over-valued (bubble state) or under-valued and to decide on the eventual asset allocation.
Valuation: The fundamental valuation of all major markets.
Economic: The current state of global economies and future expectations.
Sentiment: Consumer confidence of major economies and the overall attitude of investors towards markets and investing.
Technical: Readings from IPPFA’s proprietary technical indicator and other relevant technical analysis tools.
Investment/Fund Selection
The investment selection process for allocation involves a combination of quantitative (i.e. ratio analysis, proprietary methods) and qualitative (i.e. due diligence) analysis of funds globally. Our investment team currently filters through over 700 regional and global funds to identify the best for each core category (i.e. region, industry, strategy, asset class). These best funds make up our recommendation list.
Portfolio Construction
Model portfolios have been constructed in-house based on the volatility target approach. The model portfolios cover varying levels of risk tolerance and, through further assessment, they can be tailored to suit unique requirements and preferences.
Portfolio Management
Our advisers regularly monitor our clients’ portfolios to ensure that their respective strategic asset allocation remains intact. Rebalancing will be triggered when the apportionment within the portfolio moves away from its original calibrations. In addition, on an ongoing basis, our investment team updates advisers with house views to provide them with insights to help their clients consider underweighting or overweighting in markets that are overvalued or undervalued. Our monthly Capital Watch newsletter provides clients with a comprehensive summary and opinion on global economies and markets.
Investment Committee
Our investment committee comprises seven investment professionals and is led by three veterans with combined investment and market experience of over 60 years. They are a team dedicated to conducting macro trend, market and risk analyses as well as determining and implementing asset allocation, fund selection and portfolio construction.