All investment decisions are ratified by an investment committee which consists of senior experts within the company. The investment committee meets every quarter with the following objectives:
- To monitor and review the performance of existing stocks – both qualitative and quantitative factors are taken into account.
- To evaluate any new investment strategy or new product offering for our clients aimed at improving performance or providing new opportunities for diversification.
- To decide whether to continue with an existing company in case of recent drop in performances, after having analyzed in detail all the reasons for the drop. These may include macro environmental or internal factors at the company’s end.
IPRO’s investment philosophy can be resumed by the following beliefs:
We believe that extensive research is fundamental to sound investment decisions. Our team of experienced analysts and fund managers regularly gathers in-depth, first-hand information on the local market and the underlying companies.
We believe that an investment decision should not be made lightly. In addition to providing extensive research, our investment professionals go to great lengths to determine the difference between the fundamental value of a company and its price in the marketplace. We also evaluate the management of the companies we invest in as we believe that they are value drivers of the company.
We believe in a long-term approach. It is part of the big picture view our investment professionals take on the companies we invest in. Rather than trade stocks frequently (except when market dynamics change), we rely on a few worthy picks per year, researched and examined over many months. The selections are chosen for their ability to generate impressive profits, pay high dividends, and/or to leverage a growing economy.
Asset allocation and diversification:
We also strongly believe that an optimal mix of stocks, bonds, and cash is vital in portfolio construction and management. Being broadly diversified, with exposure to all parts of the stock and bond markets, reduces the amount of risk to which the portfolio is exposed within the set risk/return structure.
Based on an approved investment plan, the local portfolio is built within the specific risk-return targets. We are conscious that the portfolio should perform better than a composite index based on the given asset allocation and therefore adhere to the set framework.