MACRO ANALYSES

The starting point for developing our investment strategy is a thorough top down analyses of key macro data. We develop hypotheses or expectations of the near future given our understanding of current and future macro conditions. These conditions include:

• Domestic liquidity cycles
• Exchange rate movements
• Fiscal and monetary policies
• Interplay between domestic and global economic liquidity forces

As economic data emerge to validate or invalidate our expectations and hypotheses, we modify our investment strategy accordingly.

Part of the top down analyses of key macro data involves regular meetings among senior management, fund managers and analysts where market information and opinions are shared and debates conducted. The objective of each meeting is to understand the current and future macro conditions, determine the stage of a market cycle and assess which asset classes are more attractive. A key outcome of these meetings is the determination of the percentage of each portfolio‘s value to be put at risk in equity markets.

Our macro analyses investment technique has not changed over the years. It has served our clients particularly well during volatile times and when correlations across markets are high.