Note: *Cash includes cash equivalent and/or money market funds.
A coherent investment philosophy, defining an asset manager’s approach to generating portfolio returns, is a necessary element of investment success. Such philosophical principles are normally grounded in the assumptions about market and investors’ behaviour.
Our belief in active management is based on our views that:
• markets are not always efficient; and
• investors do not always act in a rational manner.
With active management, we believe we can add value by our decisions on tactical asset allocation as well as those on security selections. We make these decisions based on an integration of fundamental (f), valuation (v) and technical (t) analyses. The fvt approach allows us to evaluate information on asset price determination from different perspectives, enhancing our search for investment opportunities and returns.
We adhere to risk management, focusing on the use of cash* as a tactical asset class in unfavourable market conditions. Diversification and loss control measures form the other key risk management tools. Through disciplined risk management, we balance the risk/return potential of our portfolios.
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