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Risk Management

We Provide the

Principle rules of investment

Successful wealth management is formulated around the principal rule of investment: Risk Management. Investors should understand the basic correlation between investment risk and the potential return; that is to say that returns can only be achieved by committing to a certain level of risk, with the desired level of return being comparable with the risks that must be taken.

Diligent selection processes

At Guangdong International Capital , we place risk management as the ultimate priority when determining and monitoring the practicality of an investment. At each stage of our due diligence and monitoring processes, we work to reduce the frequency and severity of capital depreciation by adhering to a hands on combination of traditional prowess and modern analytical technology.

Before committing to an investment we undertake a comprehensive assessment to determine the level of risk. Typically we analyze and cross reference the potential of a security based on the following attributes;

Our Risk Management Process

A proven process that successfully served our global client base through a series of economic cycles. We identify value, determine it's potential and capitalize on the returns once that potential is uncovered.

Security risk level

Before committing to an investment we undertake a comprehensive assessment to determine the level of risk. Typically we analyze and cross reference the potential of a security based on the following attributes;

  • Comparable level of diversification
  • Optimal weight as part of a diversified portfolio
  • Effect on volatility as a result of incorporation
  • Overall long/short potential gains

Portfolio risk level

The introduction of a fresh security into a pool of existing assets can affect the overall balance of the portfolio. To make the incorporation process as smooth as possible we perform a series of evaluations based on the potential performance fluctuations caused as a result of including the asset as part of an active portfolio under management.

  • Historical attribution
  • Leverage horizon
  • Long/short exposure
  • Geographical exposure
  • Portfolio modification

Quantitative analysis

The specific metrics used to determine the quality level of a potential investment is a measure of our dedication and commitment to risk management. We examine the following characteristics as part of a continuous process;

  • Historical performance
  • Correlation efficiency with existing holdings
  • Volatility under a range of economic conditions
  • Capitalization and sector positioning
  • Liquidity and leverage
  • Counter-party exposure and obligatory position