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LION GLOBAL INVESTORS LIMITED
In September 2005, two major companies in Singapore's asset management industry, OCBC Asset Management Limited ("OAM") and Straits Lion Asset Management Limited ("Straits Lion") joined forces to create one of the largest asset management companies in Singapore. Known as Lion Global Investors Limited ("Lion Global Investors"), Lion Global Investors combines the asset management businesses of OAM and Straits Lion.
Lion Global Investors is 70% owned by Great Eastern Holdings Limited and 30% owned by Orient Holdings Private Limited, a wholly-owned subsidiary of OCBC Bank.
Lion Global Investors is now one of the largest asset management companies in Singapore and the region, with total assets under management of about S$32 billion and a staff strength of about 140. Lion Global Investors is headed by Chief Executive Officer and Chief Investment Officer, Mr Daniel Chan, who is a veteran in the fund management business.
Lion Global Investors has one of the most experienced teams dedicated to regional and global equities and fixed income markets. The average years of experience of each member of the investment team spans more than 10 years. Lion Global Investors' investment capabilities are greatly enhanced by its specialised teams of experienced analysts and investment managers. The firm's investment approach will be team-based and research-intensive, combining in-depth market insights with comprehensive sector knowledge.
Lion Global Investors offers a comprehensive suite of investment products covering all asset classes to statutory boards, educational institutions, public and private companies, charities, non-profit organisations and retail investors.
The investment process draws upon the specialist knowledge of the investment team and translates that into investment actions by effectively combining the inputs of top-down macro analysis and rigorous bottom-up asset selection research.
For equity markets, Lion Global Investors utilises a rigorous research methodology and process aimed at uncovering high conviction ideas which are trading at significant discounts to fair value. We have an objective and disciplined implementation of these ideas using sound portfolio risk controls and portfolio construction rules.
The underlying philosophy is that securities prices will ultimately reflect underlying economic fundamentals. In the short to medium-term however, technical factors including behavioural factors, liquidity may distort prices. By staying focused on the long-term, we avoid selling too early or overtrading the portfolio.
The key is to design and implement a research process that would help us to identify businesses that have most, if not all, of the following characteristics:
- A clearly understandable business model and value add proposition
- Competent and forward looking management
- Sustainable top line and bottom line growth
- Adopt healthy corporate governance practices
- Strong free cash flows or has the potential to generate such
- Exhibit strong profitability in terms of net profit margins and return on equity
- Strong balance sheets
- Sustainable competitive edge
- A proven track record of growth and profitability through both good and weak economic conditions
- Whose share price is trading at a deep discount to fair value
- Relatively stable earnings
- Top-Down Approach
The top-down approach involves country analysis (of individual market) which employs three forms of analysis to add value in the areas of country, duration, yield curve and currency.
Fundamental analysis: This encompasses the assessment of economic growth, inflation, monetary policy, fiscal policy, and other factors that drive bond yields.
Technical analysis: This includes the assessment of supply and demand conditions in the various bond markets.
Valuation analysis: This examines yield spreads across different market sectors and relative values within each sector.