Asset management company Lion Global Investors (LGI), a subsidiary of Oversea-Chinese Banking Corporation (OCBC), has set up a Curated Portfolios Team (CPT) to provide retail investors with access to “private banking” solutions.
The team will also oversee the investors’ needs and demands across the entire investment value chain.
Curated Portfolios, which involves asset allocation, active fund selection, portfolio monitoring and rebalancing, were previously available only to LGI’s high-net-worth clients.
Now, retail investors get to enjoy access to such solutions, which will be delivered in partnership with and through digital players in the market.
According to the company, the team differentiates itself by the way it helps investors with their investment decisions. Using data driven insights through its partner Inalytics, the team dives deeper into understanding how a particular fund is managed during the secondary stage of its research process.
Instead of relying simply on the fund’s historical performance, Inalytics also adopts a proprietary approach by looking at a fund manager’s “high frequency” decisions, particularly in the areas of research and portfolio construction.
The Inalytics tool is also said to provide LGI with insights such as the manager’s research capabilities, position sizing as well as “alpha decay” and the discipline to “run winners and cut losers”.
”With Inalytics, we are better equipped to establish the link between process and performance, a link which is often ignored by just focusing on performance numbers,” says Gerard Lee, CEO of Lion Global Investors.
“And having a good grasp of a fund manager’s process-performance link will help us figure out whether good performance is due to skill or luck. Armed with this rigour, it will give LGI a competitive advantage in curating a portfolio of funds for our clients,” Lee adds.
“I am delighted that LGI has decided to use our analysis of investment skill to build their curated portfolios. The service is used by asset owners and fund managers in 10 countries and LGI will be the first fund house to collaborate with Inalytics in Singapore,” says Rick Di Mascio, CEO and founder of Inalytics.
