Question:
How have the global events in recent years (e.g., Ukraine war, political instability, COVID-19, etc.) changed your investment outlook?
Also, what are your thoughts on alternative assets for building long-term wealth (e.g., property, art, crypto)?
Answer from our CEO, Christopher Tan:
Thank you for participating in this AMA and for your questions. Let me answer your questions accordingly.
The recent global events have not changed Providend’s investment outlook, as we do not try to time the market.
These events are tragic and unfortunate, but at this moment, the world is still functioning in a capitalist system where companies are trying to earn profits. We invest in companies, and so, as shareholders, we participate in these profits. We take a globally diversified approach to investing in stocks; therefore, we are confident we will get the market returns for stocks.
We focus on our investment philosophy when assessing asset classes, so for us to be confident in an alternative asset, we will look at its economic basis for a return, see if there is empirical evidence on it, and see if it can be implemented in a way that keeps costs reasonable.
We feel it is a good way to look at different asset classes when assessing them for inclusion in a client’s portfolio. There are different ways investment firms invest, but I am a big believer that the advisory firm’s investment philosophy must be suitable for the clients they serve and their corporate purpose.
For Providend, we serve clients who are investing towards life goals that cannot be compromised, mainly retirement. As such, we need to find the most reliable way to help our clients get there. That is why our investment philosophy is as such. Hope this clarifies, and thank you.
Our CEO and Founder, Chris, noticed interest and questions on the SingaporeFI subreddit for some time and had the opportunity to conduct an “Ask Me Anything” (AMA) session in October 2023. The above question was selected from the list of many questions that were asked.
If you are interested in viewing the full Reddit list of questions, you can visit this link.
Christopher Tan, is Chief Executive Officer of Providend Ltd, Southeast Asia’s first fee-only comprehensive wealth advisory firm and author of the book “Money Wisdom: Simple Truths for Financial Wellness“. He is also a Certified Ikigai Tribe Coach.
For more related resources, check out:
1. How Much Impact Does The President Have On Stocks?
2. Investing in the S&P 500 Alone is Not the Silver Bullet
3. Money Wisdom Podcast: Why Does Providend Work with Dimensional Fund Advisors?
Through deep conversations with our advisers, you will gain clarity on what matters most in life and what needs to be done to live a good life, both financially and non-financially. Learn more about our investment philosophy here.
We do not charge a fee at the first consultation meeting. If you would like an honest second opinion on your current estate plan, investment portfolio, financial and/or retirement plan, make an appointment with us today.
