Investment Planning 

Why invest through Ambiton

Ambiton Financial Services embarked on a unit trust survey at the end of 2008 in collaboration with different Fund Managers which included RMB, Coronation, Prudential SIM and Cadiz Asset Managers. 

Our objective was to structure portfolios to meet with the different risk profiles of our clients and also to structure the investments in such a way to ensure that we give our clients exposure to the different asset classes which include Cash, Bonds, Property, Equity and Foreign Equity.

The key benefit of having exposure in the different asset classes is negative correlation.  All the asset classes do not behave in the same manner (negative correlation) when there is market fluctuation thus ensuring limited sharp up and down movements in an investment portfolio.  A pure balanced portfolio will basically have 20% exposure in each asset class.  The more conservative portfolio will have more exposure in Cash and Bonds and an aggressive portfolio will have more exposure in Equity.

Our fund selection was driven by three components:

A good understanding of the research and stock picking methodology and investment philosophy of the respective Asset Manager

We only researched funds with a track record of 5 years and more

We only researched funds that were in the top quartile from a performance point of view

Ambiton Financial Services understand that past performance is not an indication of future performance, but it is a fact that well managed portfolios/funds outperform its peers on a consistent basis.

Ideally we would like to structure our portfolios in such a way that we do not have to restructure portfolios or change funds on a regular basis.  We do however follow a rigorous process in ensuring that our funds adhere to the drivers as set out in our fund selection process and we will therefore test the robustness of our portfolios and underlying funds on a regular basis and we will change funds once they do not adhere to the respective benchmarks.

Since the beginning of our stock exchange equity has consistently outperformed inflation. It is however important to have a long term investment outlook when making an investment.  Our suggestion for any investment of less than 2 years will always be cash.  History has proven that a well balanced investment with a term of 5 years and longer has always outperformed inflation and cash.

All our portfolios carry a margin of risk and it is therefore important to understand that there will be fluctuation in investment values from time to time.  We are however confident that our portfolios are structured in such a way that we will be in a position to give our investors positive returns over any 4 year rolling periods.