Our Selection Process

AIFPMS Experts’ Proven Process for Long-Term Investment Success

Navigating the labyrinth of capital markets is akin to riding the unpredictable waves of a heartbeat, it thrives on its rhythmic volatility. Much like a heartbeat’s vitality lies in its fluctuations, the market’s health depends on its unpredictable ups, downs, and neutral phases, beyond our control. Amidst this uncertainty, the crucial factor within our grasp is the way we choose to engage with the market – a strategic decision influenced by our risk appetite, investment horizon, goals, or a fusion of these elements.

The essence of investing lies in self-awareness – a recognition that echoes the sentiment, ‘know thyself’. Failure to comprehend one’s financial landscape can lead to a perilous journey, akin to wandering into the unknown footsteps of others. Imagine being a beach enthusiast surrounded by a mountainous crowd – succumbing to the trend might prompt you to venture into the mountains, but the experience would be far from fulfilling. This scenario mirrors the dissatisfaction that stems from investing without self-awareness, resulting in hasty redemptions driven by fear.

Consider this: Remaining true to your preferences, even when they deviate from the crowd, can offer enduring satisfaction. Just as enjoying a beach during off-season can be surprisingly gratifying, staying committed to your unique investment process, irrespective of market volatility, yields a sense of fulfillment. It is this realization that underscores the need for a structured investment process – a compass that not only guides you to the right funds but also empowers you to stay invested, undeterred, even in the face of market turbulence. After all, embracing your financial preferences and having a well-defined process is the key to not only weathering market fluctuations but relishing the journey, much like basking on a quiet beach in the midst of a bustling world.

This is why we meticulously follow a robust framework for selecting fund managers and portfolios of Alternative Investment Funds (AIF) and Portfolio Management Service (PMS) Funds. Introducing the 3Is of investing, where we incorporate the third ‘I’ (eye) of scrutiny, our focus sharpens on Investment Manager Style, Investment Portfolio Quality, and Investment Performance Consistency. Just as a seasoned navigator relies on precise instruments, we scrutinize each aspect with meticulous care to ensure the alignment of your financial goals. Before delving into the intricacies, let’s take a closer look at the 3Is individually, dissecting the nuances that collectively form the foundation of our strategic approach.

Part 1: Investment Style:

Investment Style encompasses the overarching strategy and approach that we adopt to achieve our investor’s financial objectives. It reflects our unique approach towards understanding our investor’s preferences, risk appetite, and beliefs about the market. The key to effective investment style lies in alignment with our investor goals and adaptability to market conditions. Within the 3i investment framework, Investment Style serves as the foundation upon which all investment decisions are built.

• The Philosophy behind Investment Style: We believe that a well-defined investment style is essential for clarity of purpose and consistency in decision-making. It helps us draw our investors roadmap to navigate through market fluctuations and capitalize on opportunities.
• Key aspects of Investment Style:
  1. Clarity of Strategy: Assess the clarity and coherence of the investment strategy in relation to the stated objectives.
  2. Risk-Return Alignment: Evaluate the risk-return profile of the strategy and its compatibility with investor risk tolerance.
  3. Market Adaptability: Gauge the flexibility of the investment style to adapt to changing market dynamics and capitalize on emerging trends.

Part 2: Investment Quality:

Investment Quality focuses on the intrinsic value and fundamentals of the assets being considered for investment. It explores the qualitative aspects such as management competence, competitive advantage, and financial health of the underlying companies or assets. High-quality investments form the bedrock of a resilient and sustainable portfolio.

• The Philosophy behind Investment Quality: The principle of investment quality transcends short-term gains and emphasizes long-term value creation. By prioritizing quality assets, we help our investors not only to mitigate risks but also foster wealth accumulation over time.
• Key aspects of Investment Quality:
  1. Fundamental Analysis: Conduct in-depth fundamental analysis to assess the financial health, management competence, and competitive positioning of the investment.
  2. Margin of Safety: Emphasize investments that may be trading at a discount to their intrinsic value, thereby providing a margin of safety against adverse market conditions.

Part 3: Investment Performance:

Investment Performance serves as the ultimate litmus test of the effectiveness of the investment strategy and the quality of the underlying assets. It encompasses both quantitative metrics such as returns and volatility, as well as qualitative factors such as consistency and risk-adjusted performance. By evaluating past performance and projecting future potential, we gauge the efficacy of various products in our offerings.

• The Philosophy behind Investment Performance: We recognize that investment performance is not solely about maximizing returns but also about managing risks and preserving capital. By prioritizing consistent and risk-adjusted performance, our investors benefit from the sustainable long-term growth while safeguarding against volatility.
• Key aspects of Investment Performance:
  1. Risk-Adjusted Returns: We evaluate the risk-adjusted performance of the investment strategy relative to its benchmark and peers.
  2. Consistency of Returns: Assess the consistency of investment returns over various market cycles to gauge resilience and predictability.
  3. Drawdown Management: Focus on strategies that effectively manage drawdowns and limit downside risk during market downturns.