Investment Philosophy

Investment Philosophy

We believe asset allocation is the main determinant of portfolio returns. The centrality of asset allocation stems from its role in determining the optimal portfolio allocations to distinct asset classes based on investors’ time horizon and risk tolerance. We employ strategic asset allocation: determining an asset mix appropriate for a targeted level of risk tolerance. We systematically rebalance the portfolio to the pre-determined long-term asset allocation target and review the asset policy mix in conjunction with investors' changing needs, expected returns and type and availability of investment instruments. We partition asset classes according to their portfolio role. We see equity as the engine of growth and fixed income as preserving capital and generating income. Alternative investments have the potential to enhance portfolio diversification due to their low correlation to traditional asset classes such as equities and fixed income.