Our focus is on mid-to-long term investing, based on our fundamental investment idea and research. We do perform targeted analysis on sectors and industries that are beneficial within the next two to five years span. This enables us to stay focus on only areas of higher risk-reward and keeping track of key counters that align with the major economic outlooks.
Nevertheless, we believed in aligning company fundamentals, business cash flows and in depth research as our supporting thesis.
Fixed-income instruments are generally allocated for yield generation with a longer horizon. We seek stable income growth but staying cautiously optimistic on any potential risks on interest rate movements, company fundamentals, geopolitical factors as well as market sentiments. We adopt diversification both at individual bonds level as well as funds level but regularly adjust our portfolio exposure to reap benefits from different regions and yield.
Indices and Funds
As some markets do not have direct primary access to their underlying stocks, we may add exposures to these markets via indices play and mutual funds. Indices could also be used for hedging purposes when market conditions are volatile while avoiding liquidation of our positions for the longer investment horizons. Selective mutual funds are allocated for strategic beta allocation with minimal transactional costs of building thematic portfolios.
Our forex exposure is for alpha and income generation with minimal outright transactions. The forex trades can also be positioned for currency hedges alongside with our underlying equity exposures. We also translate our views on the global economic developments to place forex positions and benefit from the central bank rate movements, GDP growth and other economic indicators.
Derivatives & Structured Products
We are open to various derivative instruments on any underlying asset classes including equities, indices and forex. Derivatives are utilized when outright executions are not efficient in reaping returns or risk-reward ratios are unfavorable. Moreover, derivatives could also be implemented as short-term hedges to ride out volatile periods. Structured products are invested on lesser liquidity requirement to generate longer term returns with minimal changes and review on the interim period.