Since every investor is different, the MBSL Investment Management process is designed to identify individual needs, and present a portfolio that is appropriate and adaptable to any future changes in circumstances. It has never been more important to plan for future financial security. However, there are more investment opportunities available now and hence the company has constructed a range of solutions with the aim of providing active ongoing financial management to achieve results and guarantee peace of mind to investors.
MBSL Investment Management aims to offer a professional and tailor-made fund management service to investors achieved by: A precise and simple risk analysis assessment process that identifies each individual investor’s risk profile and investment requirements, actively managed investment portfolios that are subject to constant review and due diligence checks, optional access to alternative investment funds where preferred by the investor and appropriate within the risk profile assessment process, regular investor risk profile assessment and protecting the investor and the manager through detailed reporting when required by the investor.
As clients needs change, so will their investment profile; between that of a higher risk, more aggressive strategy and a low risk, defensive (less volatile) strategy. Realigning the investment strategy is straightforward – all that required is a consultation and the completion of a risk profile assessment form, which is then processed by MBSL.
The correct investment strategy will always be maintained by regular reviews of the clients’ needs and objectives, based on the risk appetite of the investors. The first consideration is the investment time horizon, which is pivotal to deciding on the degree of risk that can be taken. Here risk is measured as the extent to which a paper (or an actual) loss of value can be tolerated over a given period, and the level of gains the investor ideally wishes to achieve over the life of the investment.
For example, although stock markets have generally provided greater upside potential over the longer term, there will almost certainly be periods (possibly of several years) when stock markets will fall. Stock market exposure therefore has a lesser allocation in the defensive portfolio categories and a higher allocation in the aggressive portfolios.
Asset allocation examples
The portfolios above are an illustration of the diversification offered by the MBSL Investment Management. It is not indicative of the positions that the fund would hold on an ongoing basis, as these positions would change in line with future investment management decisions.
The portfolio models are initially constructed by deciding asset allocation, which is derived from the risk profile of the investors, then by selecting a range of exceptional fund managers running specialist strategies within each asset class. This method has several objectives, including: Lower risk – a broad spread of underlying investments diversified by asset class; enhanced performance – access to best stocks based on in-depth research; and management – realignment of portfolios within each risk profile.
MBSL Midcap index also providing signals for investment management. As it picks the Midcap stocks of the Colombo Stock Exchange with growth potential as per the guidelines, it provides an indication of stocks that could move to next level of market capitalisation. By keeping a close monitoring of the midcap index high growth potential socks, possibilities of share prices moving were more than the market movement could be picked up. This will help investors to gain beyond average market return.
Managing investor’s money is not just about the numbers – the vital ingredients to success are the people responsible; their expertise, their values and their creativity. MBSL has established an enviable reputation for meeting these criteria: by listening to clients’ needs and addressing them.
As an organisation MBSL is able to keep these qualities intact, leading to a proven track record in the investment arena. The investment team therefore makes its allocation decisions objectively, on the merits of asset class, manager skill and the client’s chosen risk profile.