Wealth Management

Wealth Management

Our philosophy at A.M Donati entails leveraging on diversification to achieve risk minimization. We are also committed to the right asset class investment while monitoring costs and taxes closely. Thus, we have helped our clients enjoy a secured financial future with no mistakes. The Investment Management Service we offer at A.M Donati comes in five steps.

1. Assessing the Risks We start with determining how much risk a client can handle. This is accurately determined using the FinaMetrica Risk Profiling System – an Australian system developed with the assistance of the University of New South Wales’ Applied Psychology Unit. Over the last four years, the FinaMetrica Risk Profiling System has become more prominent worldwide as the best profiling system, notably because of its efficiency and ease-of-use. Considering the changing nature of risk tolerance, we do a retest every three years.

2. Designing your portfolio The next step is to create a unique portfolio, based on the 3-Factor Model of Equity Returns as created by Kenneth R. French, Ph.D. and Eugene F. Fama, Ph.D. French is from the Dartmouth’s Tuck School of Business, while Fama came from the University Of Chicago Booth School Of Business. The portfolio is always a reflection of extensive global diversification, focusing on more exposure on stocks of small and value companies. Furthermore, we shape the volatility of the portfolio to match the risk tolerance of the client using cash instruments and investments in short term high quality fixed income.

3. Investment Policy Statement This is a written document describing all aspects of the investment, including the portfolio investment strategy, calculated returns and risk level, portfolio allocation, taxation matters, and roles of client and investment advisor. Both parties always sign it.

4. Implementation and Management The next step is to select the right investments that match the tax status of the investors and ultimately invest the portfolios. The allocation starts changing on investment. The portfolio becomes less profitable and riskier when left unattended to. To curb this, we apply a conditional bi-weekly rebalancing option. We review all portfolios every two weeks to evaluate the targeted allocations against the actual investment allocations. The shares are sold when the investment shows sufficient appreciation to warrant the cost of trading, and this restores the actual allocation to the same level as the target allocation. While this doesn’t translate to a market direction forecast, doing this repeatedly leads to a “buy low and sell high” technique.

5. Reporting We collaborate with a trusted and reliable 3rd party Asian based financial custodian saddled with the responsibility of providing periodic position and transaction statements every month. Our clients can always assess their comprehensive performance reports through their portal on our website. We also offer comprehensive report package for every quarter, containing the current and past performance of the portfolio, market summary and commentary, and details of fees and billing. The annual report, provided every year, is where you find the realized gain and loss, as well as potentially tax-deductible management fees.

Financial and pension planning

Today's investor is faced with a choice between three competing investment philosophy's; Conventional Management, Indexing and Evidence Based Investing. Conventional Management is based on the belief that markets are inefficient, enabling investors to outperform through superior stock or bond selection and/or market timing. Unfortunately, when we examine the record of Conventional Managers we find little evidence to support these claims. On the contrary, Conventional Managers as a whole consistently underperform markets by an amount equal to their inherently high costs and tax inefficiencies.

Indexing offers an alternative to Conventional Management. Rather than trying to outperform stock and bond markets, Indexing, by replicating popular stock and bond indexes, delivers low cost and broad diversification. Despite predictions to the contrary, more often than not settling for an index fund has led to above-average returns. However, we believe that Indexing can be improved upon.

A.M Donati endorses a prudent alternative to Conventional Management and Indexing - Evidenced Based Investing. Based on rigorous academic research and over eight decades of empirical data, Evidenced Based Investing is an evolution of the traditional Passive/Indexing approach and is anchored on four important principles.

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Private - Institutional Divisions

Phone: +44 207 6601 476 - London

Location's

Financial Centre Asia

Level 22, 14b 3 Temasek Avenue, Singapore


Administration Division

Via Guido Monaco 80 Arezzo (AR) 52100 Italy


Private - Institutional Divisions

26 Canada Square , Canary Wharf , E14 5LB

Email

Financial Centre Asia

Email: banking@amdonati.com


Administration Division

Email: administration@amdonati.com


Private - Institutional Divisions

Email: tradingfloor@amdonati.com