Investment Philosophy
At ING Private, our philosophy is to be a catalyst in enhancing both the quality and efficiency of your investments portfolio. We strive to achieve this by staying front and centre of the evolution in financial solutions underway here in India, and globally.
ING Investment Management believes in active management. We hold that original research conducted with a disciplined process produces an information advantage that helps our portfolio managers identify unrecognized value and attractive investment opportunities ahead of consensus.
We believe that above-benchmark returns can be:
- Generated by focusing proprietary research on inefficiencies in the markets and identifying unrecognized value
- Enhanced by establishing a multi-boutique organizational structure that empowers portfolio management teams to apply their own unique investment approaches and holds them accountable for the results
- Delivered consistently in conjunction with a state-of-the-art diagnostics and risk management infrastructure
- Supported by robust client service and business management capabilities within the investment engine
Investment Process for the Quantitative Strategies:
The quantitative strategies developed and implemented at ING Private have ING’s proprietary model at the core of each strategy.
The key parameters revolve around risk and returns for the investment universe as the input. Expected return and risk parameters are estimated from ING’s proprietary model.
- Risk parameters - Risk parameters encompass estimation of volatility; semi standard deviation; Maximum drawdown for the investment universe. Selective parameters are used for a given strategy, driven by the objective of the strategy.
- Return estimate - Return estimate for the investment universe is carried out using various factors ranging from momentum factors, value factors and growth factors to name a few. Interdependency of the universe constituents is incorporated in the return model using statistical concepts like correlation, covariance, co integration, copula etc. Concepts of Black Litterman and Opinion Pooling enhance the flexibility of the model by enabling incorporation of view for the investment universe.
Portfolio optimization model generates portfolios for the stated objective within the defined constraints of the strategy.