At Asia Associates we are focused on providing a bespoke investment strategy designed to meet the financial objectives outlined by our client during the interview and planning stage. Every investor has a unique set of objectives that may encompass such facets as investment horizon, income producing portfolio, along with capital growth demands, risk appetite, stage of life, estate planning and taxation. Our dedication to a personalized portfolio for each client means that we can modify an investment solution that's best for every client’s circumstances along with their goals and appetite for risk.
The main principles that guide our investment advices are:
• The client is the first priority. Your Asia Associates consultant works in partnership with you to deliver solutions that will help you to meet up your investment goals. They undertake regular reviews to ensure your asset allocation strategy remains aligned with your changing circumstances.
• Personalized solution for clients. All clients are very different and their investment objectives vary. We develop a tailored solution for every client recognizing their particular circumstances. Personalized portfolios are particularly essential to help in increasing tax efficiency, given the capital gains dividend and tax structure.
A tailored portfolio additionally means the risks associated with certain capital markets, are taken into consideration, and can continually be monitored. Individual investor thinking on ethical investing can additionally be incorporated into portfolios.
• Capital protection comes first. Many investors think about investment risk narrowly as the variation in month to month returns. However, we have a different approach that places increased exposure of capital during periods of market stress. We conduct considerable stress tests to build portfolios that can withstand stressed conditions without sacrificing returns.
• Diversification to lessen risk. Some risk must be undertaken to attain higher investment returns, but not all risk is rewarded. Diversified portfolios can typically achieve the same level of expected return with reduced risk and may provide some protection from extreme occasions. Portfolios should hit equilibrium between maximizing returns, reducing short-term return volatility and having some protection against episodes of market stress. We recommend portfolios that are diversified by geography as well as asset class to boost risk-adjusted returns. Diversified portfolios typically have similar expected returns in normal market conditions but could be more resilient in times during the market stress.
• Asset allocation drives profile outcomes. Asset allocation across asset classes is an important decision for investors. Academic studies have found that ninety percent of investment returns result from asset allocation. As a result, this is our main focus when designing portfolios.
Asset allocation is focused on long term factors such as valuations. Portfolios also need to be dynamic in reaction to opportunities created by such facets as market over reactions, economic developments, modernization, political occasions and regulatory changes. This is particularly important when operating in the current global climate where there is greater economic and political instability.
• Risk has dimensions that are different. Standard deviation is not a total way of measuring risk. Investors additionally need to consider other risks such as liquidity. A high degree of liquidity is always preferred but you can find times when investors are rewarded for holding assets that are not as liquid as others.
• Life cycle factors. An investor’s capacity to mitigate risk varies with age along with their stage of life. Investors whom are in retirement and who possess no other source of income have actually less ability to mitigate certain risks. They have lower capacity to deal with a downturn in income along with decreased returns so they should think about maintaining more conservative portfolios. Investors should also consider how much risk they are ready to tolerate; those investors that aren't confident with daily volatility need to give consideration to low risk portfolios. At Asia Associates we design balanced portfolios that meet their financial objectives whilst adhering to their risk tolerance.
• Active management. Wealth Managers with skill and experience coupled with the right resources and processes are able to create high returns with their active management strategies. We look at the utilization of passive investment through exchange traded funds (ETFs) or even index funds for some components of the portfolio. ETFs are also helpful for gaining access to certain regions, sectors and/or financial instruments, not typically available to the retail investors.