OpusAM uses a top-down investment methodology that begins with an appraisal of the Malaysian economy and its financial markets in the context of global & regional economic trends and capital flows. This sets the basis for the overall asset allocation and maturity structure decision. Credit selection for fixed income portfolios is then carried out after an analysis on the outlook of the broad domestic economy, the individual sectors within the economy, and the companies within each sector. This is usually combined with bottom-up analysis that directly identifies undervalued or potential upgrade credits.
Our investment philosophy is based on correlation of asset prices in different economies as well as between asset classes. Our major shift in investment strategy is based on long term view or secular trend, rather than short-term factors.
OpusAM believes that superior investment returns are obtained by early identification of undiscounted changes in the companies or in environment in which they operate at both macro and micro levels. OpusAM does not view asset classes in isolation but seeks a ‘top-down’ macro view of different asset classes and their inter-relationships before devising an appropriate investment strategy. Investments in fixed income instruments are, therefore, undertaken after an assessment of global and domestic economic trends, and their impact on the fixed income asset class in Malaysia.
Our investment objective is to consistently outperform the benchmark through disciplined investment process within the investment mandate and risk tolerance levels given by our clients.
OpusAM’s focus within the fixed income asset class is to derive consistent, above-average returns from fundamental research rather than from frequent trading. Emphasis is placed on credit-worthy of issuers of debt. A disciplined application of the “top-down” investment process is, therefore, applied with due consideration given to the credit standing of individual issuers. OpusAM also understands the importance of diversification and practises appropriate level of diversification across sectors as well as individual securities to minimise the risk profile of our clients’ portfolio, if necessary. Credit specifics are viewed in conjunction with economic and industry trends. Credit quality, value and yield-spread are considered collectively.