العربية

Discretionary Portfolios

Arab Mafex Bank manages global, multi-asset class strategies across fixed-income, equities, real estate, commodities, alternatives, and cash equivalents. Under our Discretionary Portfolio Management services, portfolios are actively-managed and decisions are made on behalf of our clients, according to the terms of agreed mandates or specified model portfolios.

We aim to mitigate downside risks, as required, for our clients through our disciplined investment process. Client portfolios are optimally positioned and dynamically rebalanced to adapt to changing market conditions and economic cycles. We believe that portfolios that apply optimal asset allocations and hold fundamentally sound investments will yield attractive risk-adjust returns, maintain relatively low volatility and help clients grow their wealth at various rates over their investment horizon.

A Discretionary portfolio mandate allows you to have a highly dedicated and professional team oversee the management of your portfolios on a day-to-day basis.

Process Graph

Investment Process

Our aim is to achieve investment performance which protects and enhances our clients’ wealth over time, according to the client’s stated wishes, whilst managing the overall risk exposure as demanded by the client’s risk appetite. The key principles that
underpin our investment philosophy are as follows:

Active Management Diversification Risk Management Portfolio Monitoring
Process Point

  • Know your
    Clients

    Identify the client’s investment objectives taking into consideration: goals, return objective, risk tolerance, age, income, occupation and time horizon

    Assign a strategy accordingly

  • research
    analysis

    Top down analysis: Comprehensive coverage of global economies to identify industries that are likely to outperform the market

    Bottom up analysis: Exhaustive analysis is conducted through a screening model to identify fundamentally strong companies with attractive upside potential

  • portfolio
    construction

    Using the client's profile as a guideline, a portfolio is constructed and backtested to ensure that client objectives are achieved

    The portfolio is constructed in line with the approved investment strategy, which is consistent with the views of the Bank's Investment Committee

  • execution

    Trade quantities and limit orders are posted in our brokerage platform

    Traders receive and execute orders applying best execution practices

    We trade through several brokers to ensure best price and service

  • Monitoring

    Portfolio monitoring: The portfolio is actively monitored and rebalanced to reflect changing market conditions and ensure adherence to the guidelines

    Risk Management: Regular performance measurement and attribution analysis are conducted to evaluate performance and minimize deviation from the mandate

  • Reporting

    Monthly / Quarterly / Annual detailed portfolio performance reports are sent to the client that include performance, allocations, market commentary and analysis

    Regular meetings with clients are conducted to give an update on developing market conditions and share the investment strategy for the portfolio

Fund Selection Process

Our fund selection is constructed from an investment universe of over 50,000 funds, which is narrowed down to an approved list of best-in-class funds. Our objective is to identify managers that have delivered strong risk-adjusted returns, demonstrate consistency, and justify the level of risk they take. Such fund managers have shown to be resilient through market downturns and have been successful in mitigating downside risks. Our due diligence process also ensures that the fund managers have strong operational risk processes and controls. These funds are one component of our active portfolio management process, complementing direct investments in single name securities.

Fund Selection Process

Investment strategies

Our clients can choose to design their own discretionary portfolios or adopt one of AMBANK’s
own five model portfolios, which are actively managed and have a recognized performance
history that is measured against respective benchmarks.

Model Portfolios

5 model portfolios are available, actively managed and measured against their respective benchmarks.

Model Portfolios

STRATEGIC ASSET ALLOCATION

BENCHMARK
Income
Conservative
Moderate
Growth
Active Growth

Objective

Capital preservation with minimum return volatility and a bias towards cash and fixed-income type instruments

Capital preservation and minimum return volatility with a small exposure to equities

Capital growth over the long-term with an element of current income

Long-term capital appreciation with a bias towards growth investments and the remaining balance among income-oriented investments

Long-term capital appreciation by investing the bulk of the assets in growth investments and a minimal allocation to income-oriented investments

  • Equities
  • 0%
  • 20%
  • 40%
  • 60%
  • 70%
  • Fixed Income
  • 70%
  • 60%
  • 40%
  • 20%
  • 10%
  • Real Estate
  • 5%
  • 5%
  • 5%
  • 5%
  • 5%
  • Commodities
  • 5%
  • 5%
  • 5%
  • 5%
  • 5%
  • Low vol/ Alternatives
  • 5%
  • 5%
  • 5%
  • 5%
  • 5%
  • Cash & Equivalents
  • 15%
  • 5%
  • 5%
  • 5%
  • 5%
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