With the flood of mutual funds and other financial products in Hong Kong, the average investor could be forgiven for feeling dazed and confused. What confronts them is a seemingly endless choice of funds, providers, risks and variables, which can easily leave someone, who wants to put aside a few thousand dollars a month, unsure about what to do or where to turn.
To plot a path through the maze, Convoy Asset Management has launched a new investment management advisory service in co-operation with Standard & Poor's (S&P). The aim is to provide market data and a range of fund selection models, allowing clients and consultants to make better informed decisions about asset allocation and portfolio management.
'It is like an investment platform,' said Eric Ng Ka-wai, managing director of Convoy Asset Management. 'S&P provides us with market information and analysis, so we can select funds and our consultants can see which are most suitable for the client.'
He said S&P would give a concise, third-party view of economic trends and individual markets, updated on a daily basis. There will also be interpretation of, for example, the impact of a United States Federal Reserve rate cut and what it may mean for investors. Such analysis is intended to complement ongoing in-house research and consultants' knowledge of alternative financial products.
Mr Ng said that, with model portfolios as a point of reference, clients could choose funds 'like a set dinner or a la carte' from the roughly 200 mutual funds Convoy recommends.
There is a possibility S&P may also act as 'gatekeeper' to monitor and advise on funds included in the platform. This will serve as a stamp of quality, helping clients make their own choice, but giving them a risk-graded portfolio and, in theory at least, additional peace of mind.
