Asset management philosophy
November 4, 2021

Thanks to the long-lasting work of our specialists in the financial markets, we have developed the Signet Pensiju Pārvalde IPAS client asset management philosophy and have formulated the basic operating principles that we adhere to when making transactions in the global securities market:

  • Strategic investment decisions are mainly based on the fundamental analysis. Our experience shows that stock markets are often irrational, and there are things happening that are difficult to explain from the point of view of a rational mind.
  • Our main task is to be in the right place at the right time. We don't stay in the falling market, hoping for a turnaround and telling ourselves that in a couple of years everything will be back to normal, because we do know that another alternative can always be found.
  • Everyone makes mistakes and we are no exception. We are no prophets and do not claim the "highest" titles of the financial gurus and our investment decisions can at times be wrong. However, the fundamental principle is that at all times we are clearly aware of the risks we are taking.
  • We always pay close attention to wide but reasonable diversification of the investment portfolio. By reasonable diversification we understand that the portfolio may contain a large number of investment positions that provide maximum capital protection, but at the same time it significantly reduces the chances of earning more income.
  • Most investment firms compare their performance with an index i.e., the benchmark. Here we are not an exception, but for us a benchmark is just a tool to evaluate our own performance. We do not support a strategy where one simply follows its benchmark regardless of the external circumstances. Based on the fundamental analysis, we prefer to exclude certain securities from the investment strategy rather than reduce our share by a couple of percent compared to the benchmark. And the other way around - we significantly increase the share of promising securities when we find them.
  • Sometimes it is better not to invest at all and wait for turbulent times to pass, no matter how long it takes.
  • We're not trying to be everywhere. It would be foolish to try to prove to someone that we are the best manager to work with shares in the Senegalese or Trinidad and Tobago markets. Therefore, we focus only on those markets and instruments that we understand and have extensive experience with.
  • There is always healthy skepticism in us. We've seen enough cataclysmic events in the market to resist euphoria or panic. At the same time, we can acknowledge our strategic mistakes and take timely action to correct them.
  • We follow strict financial discipline - before we buy anything, we already know, where we will sell it.
  • We are not trying to attract a customer using every trick in the book just to charge a commission for managing the funds. We want to be a reliable partner and a financial advisor to our clients who choose to maintain and increase their capital in the long term by investing their capital in the global financial markets. We want to be proud of the trust and loyalty of our customers.
  • We are not trying to earn all the money in the world, because our main task is to achieve the planned results. At the same time, we are aware that it is better to miss a profit than hit a loss.

Signet Pensiju Pārvalde IPAS
Antonijas Street 3, Riga, LV-1010
+371 6700 2777

Business hours:
I-IV: 09.00-17.30
V: 09.00-14.30

[email protected]
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