Compounding Core Wealth Allocation Strategy

Compounding Core Wealth Allocation Strategy

Strategy Objective

The objective of the Compounding Core Wealth Allocation Strategy is to participate in long-term wealth creation by investing in fundamentally strong businesses and diversified asset classes, with a focus on consistent compounding over market cycles rather than short-term return optimization.

Investment Philosophy

This strategy is built on the principle that long-term compounding is best achieved through discipline, quality selection, and appropriate asset allocation.
Instead of reacting to short-term market movements, the strategy emphasises staying invested in quality assets and allowing time and earnings growth to drive returns.

Asset Allocation Approach

The portfolio follows a core-satellite allocation framework, where:

• The core portfolio consists of diversified long-term equity exposures (large-cap, quality mid-cap and small cap stocks).
• The allocation may include selective opportunities for growth, sector diversification,  exposure based on valuation and risk assessment.

Asset allocation is periodically reviewed and rebalanced to maintain alignment with the client’s risk profile and market conditions.

Equity Selection Framework

Equity investments under this strategy are evaluated based on:

• Sustainable revenue and earnings growth
• Strong balance sheet and cash-flow generation
• Reasonable leverage levels
• Quality of management and governance
• Business scalability and competitive advantage

The focus is on business fundamentals rather than short-term price movements.

Risk Management & Volatility Control

Risk management is integral to the strategy and includes:

• Diversification across sectors and market capitalisations
• Avoidance of excessive concentration
• Periodic portfolio review and rebalancing
• Focus on drawdown management rather than return maximisation

The strategy aims to manage volatility and downside risk while remaining invested for long-term growth.

Investment Horizon & Suitability

• Recommended investment horizon: Long term (5+ years)
• Suitable for investors with a moderate (minimum 5 years investment horizon) to aggressive risk profile.
• Best suited for investors seeking steady compounding and wealth accumulation over time

Review & Monitoring

Portfolios under this strategy are:

• Reviewed periodically for alignment with objectives
• Rebalanced when required due to market movements or change in client circumstances
• Adjusted in line with evolving business fundamentals and macroeconomic conditions

Important Disclosure

This strategy is designed for long-term investing and does not assure or guarantee returns.
Investments are subject to market risks. Past performance is not indicative of future results.