SINGAPORE: In a conference held on 29Th October at Kuwait, Quantum Stride stated that the Investment Companies in the region face challenge of attracting/retaining the assets under management and reaping profits from their investments.
Dr. Sandeep Gupta, Chairman of Quantum Stride stated that investment management industry suffers from fierce competition with about 400 companies in the arena having an estimated $100bn asset under management.
The Assets under Management for the investment companies in GCC Countries has seen steep decline of more than 50% from top in 2008 mainly attributed to fall in stock markets in the region.
However, the future for the industry seems bright; the GDP of GCC countries is close to a trillion dollars that leaves the scope for the assets under management with the industry to grow to $200 to $250bn in coming few years.
Quantum Stride further stated that the plausible solutions to the challenges faced by the industry are- implementing proper and adequate diversification, holistic approach to risk management, enhancing the returns by improving the stock picking skills, improving the timing of entry to and exit from the stocks and usage of quantitative tools under surveillance of a judicious investment advisor and manager.
Dr. Gupta further emphasized the need of geographical diversification in a portfolio and usage of various asset classes such as- Equities, Bonds, Foreign Exchange, Real Estate and Commodities to maximize the risk adjusted returns in a portfolio.
In addition, employment of sound infrastructure and compliance are of paramount importance for better risk management stated Quantum Stride. Quantum Stride also emphasized application of ‘emotional stages’ for timing the entry to and exit from the markets.
Quantum Stride Ltd. - “World’s Very First GUBIC Fund” intends to invest in diverse asset classes such as equities, bonds and foreign exchange providing excellent diversification, stated Dr. Gupta.
Quantum Stride Singapore Pte. Ltd. is an advisory firm offering advice to corporates and high networth individuals to meet their financial goals. The sister concern, Quantum Stride Investment Management Company is focused on managing assets for high networth individuals and sophisticated investors.
Together both the companies are promoting Quantum Stride Ltd. The Fund by virtue of investing in 10 stock markets provides unmatched geographical diversification. The Fund focuses on risk management practices that minimizes risk of operational failure and systematic risks and thus maximizes chances of preservation of capital; and it intends to produce high reward to risk ratio.
Furthermore, the Fund uses Shari’a Compliant Stocks for Better Diversification. Shari’a Compliant Stocks by their nature are in conservative businesses and have much lesser risk on their balance sheets (by limiting the debt/equity ratio) as compared to non-shari’a compliant stocks. This is why we believe Shari’a Compliant Stocks can provide an excellent way of further diversifying the portfolio. We are the first fund to understand this and apply this in practice, stated ‘Quantum Stride’.
-Ends-
CONTACT:
Dr. Sandeep Gupta
Quantum Stride Singapore Pte. Ltd.
6 Battery Road
Level 30, Raffles Place
Singapore 049909
sgupta@quantumstride.com.sg
www.quantumstride.com.sg
© Press Release 2009
