FAM's global multi-asset strategy often serves as the foundation of an investor's portfolio. It's designed to seek out opportunities across different countries, sectors and asset classes, and it's almost impossible that the strategy is unable to find any investment opportunities throughout the whole market cycle.
Our multi-asset strategy aims to harvest gains by allocating across stocks, bonds and alternatives. Our benchmark-agnostic approach equips us with the flexibility to navigate through the ups and downs of markets and focus on generating long-term performance. By investing meaningfully into alternative strategies, we can reduce the portfolio volatility without compromising on the return.
Investors have to grapple with two major components of any potential interim decline in their portfolio:
1. The size of the drawdown.
2. The time it takes to recover.
During the 2008 crisis, an equity portfolio had a maximum decline of 55%. Certainly there are investors that are able to accept such a sizeable decline, but such volatility is not for everyone. For those who were able to stay invested, it would have taken them 55 months to recover to the previous peak. Again, there will be investors who find it difficult to wait out this recovery period without being tempted to throw in the towel and lock in their losses. That is why FGO is designed to drop less and recover much faster than an equity portfolio, without compromising on the long term compounding.
The Asia ex Japan economies are growing three times faster than developed markets. By end of 2020, Asia's middle class population will exceed that of the rest of the world. By 2030, Asia will have two thirds of the world's middle class; that also makes Asia the largest market for consumer goods & services.*
Meranti Asia Fund seeks to achieve long-term capital appreciation by investing in Asian businesses. Investors need to be aware that investing in Asian equities can be highly rewarding but also very volatile. Building on decades of research^, we use a model-driven approach to identify companies that are well-placed to outperform the market over time. By investing in higher quality businesses with more attractive valuations, we aim to deliver higher returns than the market.
We evaluate over 18,000 companies, assessing their fundamentals for profitability and balance sheet strength. However, companies with good fundamentals alone may not be good investments; we further select companies that are trading at attractive valuations in order to create a margin of safety. While we encourage equity investors to maintain a long-term investment horizon, we manage the liquidity profile of the portfolio to ensure that investors will be able to encash their investment should the need arise. The volatility of Asian markets actually benefits the strategy. Such volatility creates a cycle of mis-pricing and fair valuation that throw up opportunities regularly.
If you have investible assets in excess of USD 10 million, you are likely to have financial concerns beyond investment returns or lower transaction and interest costs. Hidden issues might potentially wipe-out the family wealth if you don't have a comprehensive plan. For instance, legal fee incurred when there are disputes over the family wealth, tax liabilities when taking over an offshore property. There is also significant risk in the failure to safeguard the family wealth when the owner passes away or in the event of forced liquidation of the family business due to the lack of a proper succession plan.
You will also likely have multiple accounts with various banks, each being managed separately. That will create more complexity as different parties usually have different agenda and do not talk to each other. In order to leave a legacy beyond your wealth, you need to cover all areas including investment, trust, insurance, legal, tax, and even which passport to hold in a holistic manner.
With decades of experience representing regional ultra-high net worth clients, FAM works in synergy with leading private banks as an independent asset manager. We acts in clients' interests to research, and negotiate with financial institutions to tailor appropriate solutions.
We integrate and manage investment exposures across different banks so that your entire investment portfolio achieves its objective instead of remaining as different silos. We do not receive transaction commission or soft dollars, hence we are not pressured to meet sales targets or generate unnecessary turnover. We are more concerned than you about cost as we are remunerated based on the value of your portfolio. And this business model brings alignment of interest to make sure the best effort will be put in on an ongoing basis so your family legacy can be passed down beyond your generation.