Achieving financial success is a complex and confusing challenge to even the most experienced investors. Corfina is experienced in understanding the unique needs of investors and offers a program designed to deliver the potential for superior after-tax returns. To meet our clients investment objectives we have the expertise to invent in a diverse sense of asset classes, both fixed income and equities. Our investment style is propietary and research driven. The result is a well-tuned asset management process designed to respond to the investors needs while also responding to the dynamics of the capital markets.
Our portfolio strategy begins with an investment analysis then graduate through the portfolio construction process in which multiple asset classes and style allocations are combined to meet our investor investment objectives.
Step 1. Determine the investor risk profile and investment objectives.
Every investor has different needs and objectives. Corfina professionals will provide assistance in determining whether the investment focus is those that produce income, growth or a combination of both. Furthermore, we will also provide assistance in defining the investment time horizon and risk profile.
Step 2. Set asset allocation policy.
Research has shown that asset allocation decision, i.e. how the investments are diversified among stocks, bonds, and cash, accounts for over 90% of the variation in a portfolio's returns. This is why determining the most appropriate asset allocation policy is paramount to our investor investment success.
Step 3. Diversify across asset classes and within styles.
Once the investor asset allocation policy has been developed, we diversify the investment portfolio across multiple asset classes and multiple investment styles. This approach mitigates the volatility inherent in any single investment style. In addition, allocating a portion of assets to international stock and bond investments can further reduce the portfolio's overall risk and improve potential return. Corfina Capital is currently involved in the mutual fund (Reksa Dana) business. Currently we have established a Rupiah based fixed income fund.
Step 4. Rebalance portfolio.
To control risk, we incorporate a formal portfolio-rebalancing program that uses state-of-the-art technology to maintain the asset class exposures within the boundaries of our investors asset allocation policy. This provides the added benefit of a built-in "sell high, buy low" strategy.
Step 5. Report the results.
To report our portfolio performance, we produce one of the most comprehensive and easy-to-understand reporting packages available. It includes a consolidated account statement of activity, quarterly account-level performance reporting and detailed annual report.