Asset Allocation & Diversification
Sino Link Japan’s advisers pride themselves on their attention to detail when it comes to prudent asset allocation and diversification within those asset classes. Put simply, a portfolio that is well diversified should eclipse a portfolio comprised of holdings in only one or two stocks.
Diversification is a cornerstone of our approach and, when teamed with active portfolio management and quantitative research, we believe that this philosophy stands the best chance of delivering the required results.
Although there are no minima and maxima, many of our clients are 80% invested in equities and 20% in fixed income and money market securities. These categories allow for significant diversification within sub-categories including market capitalization, industry sector and geographic location.
Asset allocation focuses upon asset class rather than the diversification within. Although fixed income and equities provide the mainstay of many Sino Link Japan portfolios, commodities represent an interesting avenue that can yield excellent returns. We offer our clients access to commodities via ETFs that track the prices of the underlying assets without the need for clients to arrange for taking delivery. Most wouldn’t appreciate barrels of light, sweet crude oil arriving on their doorstep.
A Sino Link Japan client will always be kept apprised of the performance of their portfolio. This will aim to measure absolute return compared to target growth for funds allocated and it will evaluate the portfolio manager’s performance compared to relative benchmarks.
Sino Link Japan provides comprehensive statements of the overall portfolio’s performance on a regular basis and can also, if you wish, make this vital information available to you in an online, password-protected, private account. Regular client meetings or teleconferences with the Sino Link Japan team seek to review the current portfolio relative to the target asset allocation. If necessary, we will rebalance your portfolio depending on circumstances ranging from your or your family’s cash flow needs right up to shifts in macro-economic trends. Clients should be aware that portfolio rebalancing cannot guarantee a profit or offer absolute protection against losses in declining markets.