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Johannesburg - Asset management firm Third Circle said on Tuesday it had devised a formula combining maths and psychology to assist investors.
The method uses mathematics with psychological profiling to develop customised portfolios for their clients.
“Your personal expectations as well as your goals and tolerance levels are determined after joint consultation with your financial advisor and psychological profiler,” said Third Circle’s Chief Investment Officer Hugo Snyman.
Under the new system, Third Circle said it aims to tailor make portfolios for its clients. Several different portfolios have been designed to reflect risk preferences ranging from CPI +3% to CPI +8% with different asset classes.
It said it had extended the period of economic analysis to 1925 to better understand investment trends and market sentiments.
Equity investments have a propensity for greater returns over the long term, said Third Circle’s Chief Economist Christo Luüs.
“Real returns have exceeded 7% per annum on share portfolios for virtually all holding periods since 1925 that were valued or sold at the end of 2010,” he added.
The method uses mathematics with psychological profiling to develop customised portfolios for their clients.
“Your personal expectations as well as your goals and tolerance levels are determined after joint consultation with your financial advisor and psychological profiler,” said Third Circle’s Chief Investment Officer Hugo Snyman.
Under the new system, Third Circle said it aims to tailor make portfolios for its clients. Several different portfolios have been designed to reflect risk preferences ranging from CPI +3% to CPI +8% with different asset classes.
It said it had extended the period of economic analysis to 1925 to better understand investment trends and market sentiments.
Equity investments have a propensity for greater returns over the long term, said Third Circle’s Chief Economist Christo Luüs.
“Real returns have exceeded 7% per annum on share portfolios for virtually all holding periods since 1925 that were valued or sold at the end of 2010,” he added.
