Company Profile:Portfolio Construction



	Introduction of Company
	Management
	Investment Philosophy
	Portfolio Construction

Portfolio Construction

Investment Method

KPA has made an investment universe as below

KPA classifies investment stocks into Growth Stocks, Value Stocks, and Internet Stocks. Investment methods are different by the classification.
Growth Stocks
	We estimate forward earnings per share (EPS) based on the management strategy. We judge the validity of their current valuation comparing with price earning multiple (P/E) or other appropriate valuation measurement. We finally pick out individual stocks taking account of your risk tolerance over the investment period.
Value Stocks
	We search for excessively undervalued stocks by looking into various indicators. We examine the reasons from all angles why they are so cheap. We choose only those stocks, considering your targeted rate of returns, whose cheapness is due to externally caused short-term or psychological factors but not attributable to management problems.
Internet Stocks
	We select "true" internet stocks which could survive over the next several years maintaining the current high growth rate. They may not be the same popular stocks which are currently catching investors' attention thanks solely to forerunners' profits.

Portfolio Construction

What does a "portfolio which suits you" mean?

We think that composition of investment assets should be all different individually, reflecting each investor's circumstances, investment purpose, risk preference and tastes. KPA does not press you to use its ready-made portfolio, but proposes the one which fits your needs based upon a close dialogue via internet.

The portfolio recommendation by KPA is basically a certain combination of growth, value and internet stocks. We try, however, to satisfy your requests by adjusting its composition if you have different tastes or when you are judged to be in little need to follow our basic formula because of other reasons.

Moreover, we could devise a portfolio whose ratio of large vs. small caps to match their respective going popularity, while considering the current market capitalization of component stocks.