The Investment Committee Members meet, at the end of each month, to review the past month and if needed re-calibrate the future investment strategy based on:
Portfolio performance absolute as well as relative to the benchmark(s)
Major changes in our company coverage from that would affect the valuation (fundamental approach) or/and the market timing (tactical approach)
General impacts from a macroeconomic and political point of view
Evaluation of local stock market sentiment (margin levels, broker/retail sentiment)
Evaluation of international market sentiment towards emerging and frontier markets (monitoring money flows)
We apply a Disciplined Value Investing Approach through Bottom-Up Stock Picking. Besides the primary research we carry out for our holdings, we also take secondary research from brokers and comment on it.
TIM performs detailed analysis of a company’s business directly via company management information, market research data, our own market study and judgement on several aspects: products and their markets, industry trends domestically and regionally, firm’ competitive advantages, firm’s strategies, commitment of managers, transparency of administration.
All assessments are then quantified into a valuation model which comprises largely of discount cash flow methodology and partly of relative valuations with reference to domestic and/or regional peers. Assessments are reviewed at least on a quarterly basis when companies release their quarterly results, and on an ad-hoc basis when there are changes that we deem as having material impacts on valuations.
Thanks to our fundamental valuation with a high weighting in discount cash flow methodology, our target prices are less impacted by market volatility which can be high in a frontier market like Vietnam. Furthermore, a steady fair valuation provides us with high level of confidence to buy or sell shares, especially when the general market experiences overreactions.
For market timing purpose, we are applying a Technical Trend Following system as a layer to our core company coverage that we analyze based on our fundamental research approach. The main goal of using the Technical Trend Following system is to capture large uptrend movements in a 100% systematic way, hence without second-guessing.
Samples of Primary Research Materials
Our Research team is consistently producing a variety of Company, Macro and Market publications. Please download some previous reports below. If you are interested in receiving our Research feel free to contact us.