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Asset
Management
Achieving financial success is a complex and
confusing challenge to even the most experienced investors. Corfina is
experienced in understanding the unique needs of investors and offers a
program designed to deliver the potential for superior after-tax
returns. To meet our clients investment objectives we have the
expertise to invent in a diverse sense of asset classes, both fixed
income and equities. Our investment style is propietary and research
driven. The result is a well-tuned asset management process designed to
respond to the investors needs while also responding to the dynamics of
the capital markets.
Our
Investment Process
Our portfolio strategy begins with an investment
analysis then graduate through the portfolio construction process in
which multiple asset classes and style allocations are combined to meet
our investor investment objectives.
Step 1. Determine the investor risk profile and investment
objectives.
Every investor has different needs and objectives. Corfina
professionals will provide assistance in determining whether the
investment focus is those that produce income, growth or a combination
of both. Furthermore, we will also provide assistance in defining the
investment time horizon and risk profile.
Step 2. Set asset allocation policy.
Research has shown that asset allocation decision, i.e. how the
investments are diversified among stocks, bonds, and cash, accounts for
over 90% of the variation in a portfolio's returns. This is why
determining the most appropriate asset allocation policy is paramount
to our investor investment success.
Step 3. Diversify across asset classes and within
styles.
Once the investor asset allocation policy has been developed, we
diversify the investment portfolio across multiple asset classes and
multiple investment styles. This approach mitigates the volatility
inherent in any single investment style. In addition, allocating a
portion of assets to international stock and bond investments can
further reduce the portfolio's overall risk and improve potential
return. Corfina Capital is currently involved in the mutual fund (Reksa
Dana) business. Currently we have established a Rupiah based fixed
income fund.
Step 4. Rebalance portfolio.
To control risk, we incorporate a formal portfolio-rebalancing program
that uses state-of-the-art technology to maintain the asset class
exposures within the boundaries of our investors asset allocation
policy. This provides the added benefit of a built-in "sell high, buy
low" strategy.
Step 5. Report the results.
To report our portfolio performance, we produce one of the most
comprehensive and easy-to-understand reporting packages available. It
includes a consolidated account statement of activity, quarterly
account-level performance reporting and detailed annual report.
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