Subsequently, meetings are held between the client and ourselves at regular intervals to ensure that the client is fully apprised of their portfolio’s progress and they are aware what our intended investment strategy at that particular time will be. It is a useful forum to measure the fund manager’s intentions against results, and ultimately, those results against the clients’ own expectations.
Within the inevitable constraints of overall market movements, we aim to consistently achieve above average investment performance and to avoid excessive volatility of returns.
At the same time, we closely monitor the difference between market values and book costs to minimize the downside risk to the values of the clients’ portfolios. Just as it is important to choose securities based on a fundamental belief that its price will rise, we believe that timing the disposal of the securities is also critical. In the volatile market conditions that we have been and are experiencing, it has perhaps emerged as the most important discipline in the investment process.
We believe that if we consistently apply a strict buy and sell discipline to every security in our clients’ portfolios, we should as a result be able to provide them with a consistent return for the whole portfolio, in excess of risk-free rates and benchmark returns in the medium to long term.