Active investment aims at excess return versus market based on researching fundamental
Team management pursues specialization by dividing role between analyst and fund manager.
Active management byactively using market inefficiency
Team Approach + grant a certain amount of discretionary power to individual fund manager
Meeting for asset management
Meetings for Model Portfolio
Meeting on Model Portfolio
|STEP||Decision making process||List of factorsto be determined||Participants for decision making||Decision making period|
|Standard setting||Benchmark||Selection of optimal BMand analysis on Scenario by clients||Asset management committee, client’s Mandate||When the fund is placed|
|Market Outlook||Macro/Micro Outlook||Economy/rates/yield curve outlook, Sector outlook||Asset Management Committee management team/investment strategy part/ credit research part||Monthly|
|Strategic asset allocation||Model Portfolio||Duration Target maturity or sector composition||Asset Management Committee management team/investment strategy part/ credit research part||Monthly|
|Investment Universe||Valuation||Credit Line individual stock Valuation or Bond Universe||Credit research part management team||Weekly Daily|
|Tactical Asset allocation||Actual portfolio on bond MP adjustment||Target Durationadjustment of individual stocks||Meetings on investment strategy by investment management team/ investment strategy team/ credit research group||Weekly Daily|
|Monitoring||Measure of performance||Performance measure and factor analysis relative/ absolute evaluation||Investment strategy team/ risk management team||Monthly Weekly|
Check mutual decision making
Quant Analysis Model
Invest the stock whose multiple is inexpensive.
Invest the enterprise whose financial structure and liquidity is good.
Avoid the skyrocketing stock in short-term.
Invest the enterprise whose estimated revenue is increasing.
Invest the enterprise whose growth outstands against market and peer group.