Investment Process

Stock Screening

  • Bottom-up screening includes earnings quality and growth, valuation, stock liquidity and corporate governance.
  • Top-down overlay focuses on macro-economic indicators, demographics and industry sector attractiveness.

Fundamental Analysis

  • In-depth company analysis includes macro-economic and industry factors as well as the company's competitive position to gain an understanding of its earnings outlook.

Proprietary Indicators and Regular Meetings

  • Ongoing monitoring of key earnings drivers with our proprietary Profitability Index to give us a significant timing advantage.
  • Regular meetings with company management teams and industry sources, quarterly earnings calls and sell-side conferences.

Portfolio Construction & Rebalancing

  • Selecting and sourcing investments that offer the best risk-adjusted returns.
  • Regularly reviewing valuations in light of our up-to-date earnings forecasts to optimise portfolio.

Risk Management

  • We first identify and analyse fundamental factors that affect a security and returns.
  • We then run correlations and back-test these factors.
  • We set portfolio concentration limits that offer optimal risk versus expected returns. These limits are then incorporated into our portfolio and trading software for regular and independent monitoring by our Risk Manager.

At Amwal the investment philosophy is long-term value investing. Fundamental Analysis, Portfolio Construction, Regular Monitoring, and Risk Management constitute the investment process at Amwal. In addition to continuous monitoring of stock price performance and reported earnings, we have also developed a proprietary “Profitability Index”. This serves as a leading indicator in estimating company earnings. Risk monitoring and compliance check is an independent function at Amwal, staffed by highly-experienced professionals and backed by best-in-class systems. As an example, we use Advent’s pre-trade compliance system that flags potential breaches of investment restrictions before trades are placed. We closely monitor of stock prices to take advantage of volatility for our experts believe it is smarter to outperform whilst limiting losses. We are active managers and invest in companies that interest us and are as cause-oriented as we are. We buy companies on reasonable valuations, avoiding bubble valuations as we have successfully done in the recent past. The region’s stock markets are relatively young and inefficient market, so active management does add value. We aim to exploit risks that we understand, and avoid those that we cannot predict.