At PIAS, our model portfolios take a Beta Plus strategy with the objective of generally achieving slightly higher returns when markets are up, and slightly less losses when markets are down. Nonetheless, the portfolios aim to target returns relative to their respective markets.
Our portfolios are well diversified across asset classes, regions and managers. The instruments used are tailored to cater to different risk profiles of our clients and the portfolios are managed by considering the overall fluctuations of the portfolios as a whole. We prefer liquid instruments over less liquid ones.
In selecting the funds, we look for fund managers with good track records and consistent performance. When we have serious concerns about any of the funds in the portfolios (changes in the management team or process), we will make a call to switch to the next best alternative. We keep in touch with the fund managers via face-to-face interviews, teleconference calls or emails to update ourselves on their investment strategies and their performance attribution.
Our Tactical Asset Allocation (TAA) calls are medium to long-term in nature. Attempts will be made to reduce risk to the portfolios in special situations e.g. when market valuations become too expensive, or when a major event has potential negative impact on the market. Conversely, we may increase risk when markets are considered cheap.
In general, we also recommend our clients to rebalance their portfolios annually or when there are very significant market movements.