of three asset classes; Stocks, Bonds and Cash (T-Bills/ Bank Deposits).Diversification among asset classes reduces the volatility of portfolio return and hence the overall risk. It is a well-known fact that good performance is mainly attributed to wise asset allocation among asset classes; i.e. low equity exposure at market peak and high equity exposure at trough. The second contributor to good performance is picking the right securities within each asset class; a process referred to as "stock picking".At EPMG, there is a track record of wise and fairly aggressive changes in asset allocation to benefit from market cycles.As for stock picking, EFG-Hermes follows a bottom-up approach in making investment decisions. Its potential universe of stocks includes only solid companies with healthy financial position and sustainable profits. The firm thus pay a lot of attention to Fundamental Analysis. But timing is what counts in investments so the firm uses a few Technical models as well to determine the target buy/sell levels.At EPMG, the firm has a product for clients with different risk tolerance levels. The Indexed Portfolio is for clients who follow the market closely, believe in asset allocation and who would like to form a portfolio which replicates the performance of the market as represented by an index. This is the only Indexed Portfolio designed for the Egyptian market so don't bother looking elsewhere. For a less aggressive client with a normal risk tolerance level, EFG-Hermes offers its Balanced Portfolio which depends on its capability in making aggressive asset allocation and stock picking as well. The aim for Balanced Portfolios is to achieve a descent return over a 3-4 year investment horizon while safe guarding the principal in any environment.For the very cautious client who does not mind giving away potential high returns for a safer investment, EFG-Hermes offers the Capital Guaranteed Portfolio in which a First Class Bank (...
