| What is your wealth management philosophy? |
| My wealth management emphasis is on risk management and investment discipline, where I seek mid- to long-term returns for my clients, based on capital preservation. The key to a prudent wealth management plan is to first manage a client’s cash flow, to ensure there are no issues with his/her future cash flow. In addition, I believe all investments should be carried out within one’s means, and not to undertake excessive risks. Market movements are often unpredictable, hence investors should be aware of market movements, and be strict on stop-loss discipline, to prevent incurring huge loss. |
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| What is the best investment advice that you have given so far? |
| I am most satisfied with my advice in the past few years for clients to invest in high-yield bond funds. After the Great Financial Crisis, most central banks adopted accommodative monetary policies, and with extremely low interest rate environment expected to last for a long time, market liquidity was abundant. Over the last few years, even with an unstable global economic environment, high-yield bond funds had been defensive but yet aggressive at the same time. I am most satisfied with this advice, due to the reason that high yield bond funds could generate more stable returns at lower volatility. Hence, during the past few years where crises of various magnitudes hit markets, they did not correct much. |
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| Favourite investment theme for 2014 |
| I expect markets in 2014 to be a continuation of 2013, where performance of developed markets will be relatively stronger, while rigorous sector selection when investing in emerging markets should be carried out, so as to avoid countries with high current account deficit. US equities had the last laugh after the last five years of quantitative easing, where it became the main beneficiary of a loose monetary policy environment. However, with the Fed tapering bond purchases this year, and based on past performance of different asset classes in this type of environment, US equities may retract, especially the sectors that had benefited from the QE programmes. On the other hand, gold prices looked impressive; ever since reaching a double bottom at US$1200, growth momentum has become increasingly strong. With geo-political risks boosting the value of gold as a risk-averse asset, gold may eventually become the "dark horse" of the year.
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