Investment flow

FC Asset Management strictly oversees the investment flow from formulation of strategy for the investment portfolio, and creating the investment portfolio to the execution of investment management in order to monitor and control risks and maximise the investment returns for customers.

• (1) Internal evaluation

  FC Asset Management's professional R&D team periodically publishes or updates internal study reports based on the political environment, macro-economy, changes in industrial policies as well as quantitative financial model and technological securities analysis.

• (2) Formulation of investment strategy

  Investment managers formulate asset allocation and investment strategy in regular investment decision-making meetings according to investment standards, micro- and macro-economic, industrial and individual stock analyses, as well as external study reports.

• (3) Building investment portfolios

  FC Asset Management selects representative key stocks in different industries from constituent stocks of indices. Investment teams select individual stocks with investment value by taking reference of the company's financial position, profit and growth prospects and corporate governance, etc., and tracks their performance, making necessary corrections and adjustments. Investment teams also select and invest in individual stocks based on face-to-face meetings and company site visits, analyze buying and selling prices as well as formulate an investment proportion based on intrinsic values and technical analysis, so as to build a fund investment portfolio.

• (4) Execution of transactions

  Transaction instructions are passed to our internal trading room or to external brokers to execute.

• (5) Risk management and performance evaluation

  FC Asset Management constantly conducts risk management and performance evaluation on researchers, fund managers, investment decision-making meetings and its internal trading room or external brokers. Regarding investment strategies, it also assesses the liquidity, credit, operational and legal risks to ensure that the risks involved in each of the investment processes are minimised.