The investment process will be underpinned by fundamental research with investment strategy based on both quantitative and qualitative methods targeted to produce positive returns over the short, medium and longer-term. The investment philosophy will integrate economic analysis, security analysis, and portfolio management into a comprehensive process that seeks to achieve the maximum total return consistent with the minimum acceptable risk.
A top down strategy will be used to construct asset allocations focusing on the structural changes occurring in Sri Lanka and key investment sectors. Meanwhile, a bottom up strategy will be used to select stocks based on fundamental stock analysis focusing on in-house economic models, the financial strength of companies and an analysis of companies’ business models and competitive advantage.
The timing of stock purchases and sales will be based on valuations, news flow and liquidity analysis. The portfolio will be constantly monitored and investments re-appraised, particularly through company visits. Equity selection will comprise of companies that are relatively undervalued compared to their true profitability, have robust management, are cash generative and have improving economic value added.
The investment philosophy of ATML is geared to provide attractive investment opportunities across fixed income and equity asset classes. The management team operates within the framework defined by the investment committee which comprise of eminent professionals in the industry.