Beruflich Dokumente
Kultur Dokumente
Competition 2010
Grand Finals Portfolio Presentation
Sponsored by:
Disclaimer
Information in this presentation is solely of our
own opinions and should not be considered as
an offer, or solicitation, to deal in any of the
funds or products
Frontier Investment Fund
Fore FRONT
• Market Trends and Developments
• Latest Information
Motto
• Investing
• Exponential
• Returns
Situational Analysis
Landfall in New York State
Major infrastructural damage to NY
Property values decimated
Businesses interrupted, ports standstill
Situational Analysis
Macroeconomic Level
Panic selling of shares
Major market indices down
Flight to safety: Gold, Bonds
Increase in commodity prices
Materials for reconstruction
Rising food demand
Situational Analysis
Macroeconomic Level
Housing prices decrease
Negative effect on Mortgage backed securities and insurance
firms
Rising unemployment
Net wealth decrease, consumer spending decrease
Manufacturing and Retail suffer short term decline
Situational Analysis
Microeconomic Level
Change in consumption patterns
Primary demands
Renewable energy and healthcare second priority
Destruction of transportation assets
Transportation sector suffer near term losses
Destruction of properties
Real estate companies hit hard
Construction firms benefit from increased demand for
rebuilding
Objectives
Protection
Capitalise on Opportunities
Reassure investors
Strategy
L.E.A.D
Limit
Exploit
Assure
Draw
Original Portfolio
Diversified
Across different sectors and asset class
Moderate
Balanced allocation of funds, bonds, equities and cash
Growth and Potential
Target growth sectors and companies with potential
Original Portfolio
Asset Class
Cash Bonds
5% 20%
Funds
45%
Equities, 25%
Original Portfolio
Sector Allocation
Healthcare Commodities Renewable Energy
Transportation Emerging Markets Others
20% 4% 20%
8%
25%
23%
New Portfolio
Diversified
Across different sectors and asset class
Moderately Conservative
Overweight on bonds and underweight on equities
Increased cash
Safety of Principle
Uncertain conditions
New Portfolio
Asset Class
Funds
Cash/Money Markets 30%
15%
Bonds
25%
Options Equities
15% 15%
New Portfolio
Sector Allocation
Others Construction
29% 7%
Commodities
29%
Healthcare
14%
Emerging Markets
21%
Construction
Strategy
Firms with large government contracts chosen
Firms who specializes in municipal and state
projects rather than private projects favored.
Construction
Counter chosen: US Sterling Construction
Co Inc
Strategy
Investment grade bonds with low risk of default
Politically and economically stable countries and companies
Long run view, capitalise on projection of strong growth
United Glb Emerging Mkts Portfolio S$
Fund United Glb Emerging Mkts
Portfolios S$
Region Emerging markets
Asset Allocation Fixed Income
Size of Fund SGD 40.20 million
3 yr Sharpe ratio 0.43
3 yr Risk reward ratio 0.76
5 yr return 6.84%
United Glb Emerging Mkts Portfolio S$
Ageing population
Rising standard of living in emerging markets
China Medical Technologies
Limit
Draw
Exploit Assure
L.E.A.D STRATEGY
Strategic Analysis
Methodology Overview
Implementation details
What?
Which?
How? When?
LIMIT .E.A.D
Strategic Analysis
Panic selling expected in the short run
Global financial systems on the downside
Sentimental forces directing the markets rather
than value mechanisms
Strategically identified sectors expected to
outperform market indexes
LLIMIT
IMIT .E.A.D
Methodology Overview
Implementing equal holdings in short and long
positions
Shorting the market indexes
Adopting a long approach on financial
instruments in mentioned sectors.
Certain amount in liquid money market
instruments and debt instruments
LLIMIT
IMIT .E.A.D
Implementation Details
70% in long positions and 15% in short
positions
15% in money market instruments 25% in bonds
Short positions value increase targeted to exceed
decrease in long positions
Bottoming out dependent on certain market
indicators
Trading volume, interest rates, bond prices
L. EXPLOITEXPLOIT .A.D
• Strategic Analysis
• Value mechanisms to take over from voting
mechanisms as market bottoms out
• Sectors previously on the upward trend and sectors
benefiting from the crisis to outperform market on
the upside.
L. EXPLOIT .A.D
Methodology Overview
Implementing equal holdings in short and long
positions
Shorting the market indexes
Adopting a long approach on financial
instruments in mentioned sectors.
Certain amount in liquid money market
instruments and debt instruments
L. EXPLOIT .A.D
Implementation Details
70% in long positions and 15% in short
positions
15% in money market instruments 25% in bonds
Long positions value increase targeted to exceed
decrease in short positions
Fears of fairly valued equities factored in
L.E. ASSURE .D
• Strategic Analysis
• Un-allayed fears of crisis to lead to flight to
safety
• Safe havens such as debt instruments and
cash deposits preferred
• Fears of fairly valued equities at buy-in price
L.E. ASSURE .D
• Methodology Overview
To maintain a comparatively optimal risk return
level as compared to competitors
To stem the short term outflow of investors by
promising healthy returns in the short run and
higher returns in the long run
Subsequent adjustments of greater emphasis on
long positions.
L.E. ASSURE .D
Implementation Details
Bonds of AAA selected for bond funds
15% of fund set aside to increase liquidity in
money market funds
Healthy balance of equities and bonds to
manage optimal risk return ratio based on
historic levels
L.E.A DARAW
L.E.
. SSURE .D
LIMI EXPLOIT
T
ASSURE
RISK PROFILING
Risks
Liquidity risk
Worse than expected effects of the windstorm
leading to prolonged closure of NYSE
Credit squeeze and positions on market frozen
RISK PROFILING
Mitigation measures
Healthy diversification in various currencies
Equal holdings in long and short positions in
neutral fund
Fund geared towards sectors rather than
demographic regions
Q&A
Thank You