Asset Management
Asset Management

GBCM strictly follows the investment strategy designed to suit the mandate received from its clients. Generally for the clients, the emphasis is on normal (higher than the benchmark) returns with importance on capital preservation. In certain cases, the emphasis is on aggressive trading to capitalise on the volatility in markets. Overall, GBCM’s objectives for all asset management clients are to achieve superior returns outperforming the relevant benchmarks.

A look into our Investment Philosophy

Our core investment philosophy is that equity markets are inefficient, and this inefficiency can be exploited by an active fund manager. These inefficiencies are more pronounced in the emerging and frontier market landscape, such as the middle-eastern markets. This basic investment philosophy of the asset management initiates with a top-down methodology. The outcome of this is blended with the bottom-up approach to identify undervalued sectors and securities with a potential for superior returns.

In short, this synthesis involves an understanding of inter-linkages between global/regional economics-financial markets-geopolitical events to uncover investment opportunities. Hence, our investment philosophy is a description of the market anomalies that we as investors are seeking to exploit, either at the macro or stock specific level.

We understand that at times, the undervalued stocks could underperform for a long period of time after purchase, and therefore, identification of the trigger to set the underlying theme in motion becomes imperative to reduce the dull period.

Additionally, portfolio diversification is another aspect, which makes the portfolio management process more efficient in terms to keeping up with the core portfolio strategy while participating in the market on a tactical basis. This part also helps to reduce the dull period while seeking to generate excess returns over the benchmark.

Current Investment Strategy offered from AMD

The Investment strategy is currently offered under both a pooled vehicle (a regulated mutual fund) and via discretionary portfolio management route. However, the return-risk objective will vary according to the client profile.

An Overview on our Operational Controls

  • Consistently mapping of our regulatory requirements directly with the compliance department.
  • Organizing our activities so that they can be controlled by establishing clear structures and procedures. These includes allocating specific responsibilities as per the job descriptions, construct procedures relevant for the activity - including structure, workflow, "owner" of specific activity, maintaining records, ensuring portfolio/fund limits, key risks, regulatory requirements etc.
  • Documenting the procedures: This is comprehensive and structured such that in event of staff leaving the firm, role of the temporary staff is formulated, till suitable replacement is found.
  • Apart from these, we have our control procedures for new business/activity/product, Outsourcing security with importance given to access of infrastructure and internal data, Client privacy protection including data on clients, Insider trading, Conflicts of interest etc.

Trading Procedures Involved under our portfolios/funds

Transactions (purchases and sales) are done in designated client accounts and are communicated at the time order is placed with the broker. The efforts is to put our clients’ interest first and foremost, and the asset management unit’s trading practices prohibit unfairness and seek to avoid any conflict of interests or resolve such conflicts in the client’s favour. In case of any trade related errors, the efforts are directed to identify and correct the same as promptly as possible without disadvantaging the client.

Brokerage Policy of Asset Management Division(AMD)

The brokerage policy of the asset management department works to ensure the basic tenet of efficient execution along with keeping the commission costs in control. It is well understood that external research is equally important to generate excess returns while the commissions are property of the client.

While choosing brokers for execution of trades, it is the firm’s endeavour to get the best possible balance between efficient executions, good ground level research at the least possible commission charges. To achieve this, there is a constant review of the impaneled brokers.

Asset Management :

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