At Excon Fuji Securities, we are extremely particular about the types of investments we recommend to clients. This is because we understand that you’re striving towards the achievement of important objectives and we want to provide you with the best chance of succeeding.
The stocks, fixed income products, commodities and mutual fund recommendations we provide are the product of a highly disciplined approach.
We endeavor to identify those that meet our idea of quality investments. They should work well together in a sensibly diversified portfolio and their inclusion in an investment portfolio should be conducive to the outcome you want.
With contemporary markets featuring so many investment options, our research teams begin by shortlisting potential stocks, bonds and other assets based on their compatibility with your risk tolerance. They look at publicly traded stocks, bonds, commodities and mutual funds by researching and identifying the following:
– Track record
– Corporate debt
– Credit risk
– Human Capital
– Industry sector
– Demand dynamics
How we identify stocks
At Excon Fuji Securities, we don’t claim to track the fortunes of every company. Our approach sees us shortlist stocks based on, amongst other things, geo-location, performance record, balance-sheet strength and market capitalization.
We then identify those companies that we deem to have sustainable competitive advantages over their competitors in the same industry. Using fundamental analysis, we determine a fair price for the stock. Obviously, this “fair” price may differ from the actual price the stock fetches on the market so, using technical analysis, we pinpoint the best price at which to invest. Often, this involves waiting for a pullback in prices before we commit funds.
How we choose bonds
The conservation of principal and income is critical to bond investing. Much rests on the “credit risk” – that is, the ability of the bond issuer to meet the interest or coupon payments until the maturity of the bond.
Indeed, our bond researchers regard to credit risk as the most important factor in evaluating individual bonds. We also take other risks into account including interest rate risk since a movement in general interest rates can have an adverse effect on the price of the bond should it be necessary to sell it at some point in the future.
How we choose mutual funds
Mutual funds and exchange-traded funds (ETFs) are a highly-convenient and popular way to gain exposure to assets and markets that may typically be open to investors with large minimum sums to invest. By pooling the capital of many different investors, it is possible to gain access and distribute profits across the funds, various stakeholders.
Our researchers possess the knowledge and experience to select the best of the hundreds of mutual funds and ETFs in the market. Boasting more than a century of collective experience, they ensure that the costs inherent in mutual fund investment are low so they don’t eat into profits but sufficiently high to ensure the mutual fund provider is able to deliver on the fund’s objectives without excessive risk.