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Coast Investment
Consulting function provides consultancy on strategic
investments to its clients. The service mainly involves
designing optimal portfolios with respect to the specific
needs and expectations of our clients. We are proud to be
the first investment institution in Kuwait and the GCC
region to adopt the most sophisticated asset allocation
software and modeling techniques to better serve our
individual and institutional clients in fund selection and
asset allocation construction. Our investment consulting
group takes our customized, state-of-the-art investment
research and creates asset allocation programs for the
purpose of guiding our clients taking into account the
client’s specific needs.
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Coast asset allocation
methodology involves an effective, internationally
recognized process summarized as follows:
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Develop Asset Class
Inputs
Based on client’s input, Coast analyzes the asset class
to obtain expected returns, standard deviations and
correlation coefficients. The input would later be
utilized for the mean-variance optimization of the
portfolio. Forecasting expected returns is obtained by a
combination of historical returns, current
socio-economic conditions and structural time series
modeling.
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Create Asset Class
Models
Creating asset classes involves the employment of the
statistical analysis to create a Mean Varience
Optimization Model. The goal of optimization is to
identify asset allocation that maximizes return for a
given level of risk or minimizes risk for a given level
of return. MVO combines the asset class inputs to
generate the highest return with the lowest risk.
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Qualitative and
Empirical Investigation
Quantitative and qualitative analysis is based on
investment options to determine the true investment
style. Quantitative analysis contains Return Based Style
Analysis, Alpha and Tracking Error. After the completion
of the quantitative analysis, qualitative analysis will
be applied to review the investment options, such as
manager tenure, investment process style consistency and
regulatry actions.
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Portfolio
Construction
Once the asset class models are determined and the
investment options are analyzed, we come up with the
appropriate combination of investment options using the
alpha-tracking error optimization.
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Portfolio Review
and Rebalancing
Regular reviews are conducted on the constructed
portfolios to insure consistency in its stated stratigic
asset allocation target.
Optimal Portfolio
Simulation Modeling for the Kuwait Equity Market
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