© COPYRIGHT 2025 BOHKIEN GLOBAL - ALL RIGHTS RESERVED
Here, we practice The art and science of overseeing and optimizing a portfolio of assets.
Over 80% of our investments are the first check: Pre-Seed, Seed, or Series A. Many start on a whiteboard. Focused on startups and small/young businesses with a good business plan. We partner selectively, care deeply, and strive for excellence. Read our perspective on partnership.
buy-and-hold investors, venture capitalists and angel investors
property and land developers
publicly traded companies
Investing wisely is essential for achieving your financial goals, whether you're planning for retirement, building wealth, or preserving capital. Effective investment management is the key to optimizing returns while managing risk.
Diversification is a fundamental principle of investment management. It involves spreading your investments across a variety of asset classes, such as stocks, bonds, real estate, and commodities, as well as within each asset class.
Effective investment management requires a thorough understanding and management of risk. Investors should assess their risk tolerance, which is their ability and willingness to tolerate fluctuations in the value of their investments.
Investment management should typically be approached with a long-term perspective. Markets can be volatile in the short term, and attempting to time the market or make frequent changes to your investments can lead to overall losses instead of positive ROI.
Asset allocation is the process of deciding how to distribute your investment capital among different asset classes, such as stocks, bonds, real estate, and cash equivalents. It is a critical aspect of investment management.
Risk management is a fundamental component of investment management.
It involves
identifying, assessing, and mitigating various types of risks that can affect your
investments. Here's why risk management is crucial. The primary goal of risk
management is to protect your investment capital. And that's where we come in, offering a comprehensive solution to this particular problem.
ASSET ALLOCATION
As of March 2025, several key trends are influencing asset allocation strategies:
1. Diversification Amid Market Volatility
Recent market fluctuations have underscored the importance of diversification. For instance, Wall Street experienced significant sell-offs due to recession fears and trade tensions, leading to declines in major indices like the Dow Jones Industrial Average and Nasdaq. In such environments, investors are increasingly looking towards assets like gold and silver, which have historically served as hedges during economic downturns.
2. Growth of ESG and Thematic Investing
Environmental, Social, and Governance (ESG) factors continue to gain prominence in investment decisions. In 2021, ESG assets were valued at over $18.4 trillion, with projections suggesting a 12.9% growth by 2026. However, it's important to note that ESG-focused funds have faced outflows recently, highlighting the need for careful selection. Concurrently, thematic investing, which targets investments based on long-term global trends like technological advancements or sustainability, is attracting attention.
3. Active and Thematic ETFs
Exchange-Traded Funds (ETFs) are evolving, with actively managed ETFs gaining traction. These funds allow managers to implement specific strategies rather than merely tracking indices. Additionally, thematic ETFs focusing on areas such as robotics, clean energy, or artificial intelligence are emerging, offering investors targeted exposure to growth sectors.
4. Caution with Concentrated Tech Investments
While U.S. tech stocks have been lucrative, there's growing caution due to market volatility. Financial advisors recommend diversifying portfolios to mitigate risks associated with heavy concentrations in tech stocks. Strategies include allocating investments across global markets and incorporating various asset classes like bonds and gold.
5. Impact of Geopolitical Factors
Geopolitical events, such as trade wars and policy shifts, significantly impact markets. For example, recent U.S. trade policies have led to market volatility, affecting investor sentiment and asset performance. Staying informed about geopolitical developments is crucial for effective asset allocation.
6. Emphasis on Professional Financial Advice
Given the complexities of current markets, seeking professional financial advice is becoming more common. Financial advisors can provide personalized strategies, helping investors navigate market volatility, align investments with personal goals, and manage risks effectively.
In summary, a diversified approach that balances traditional assets with emerging investment themes, while considering ESG factors and seeking professional guidance, is becoming increasingly prevalent in 2025 asset allocation strategies.
INVESTMENT MANAGEMENT
Investment management, often referred to as asset management or portfolio management, is a
complex and critical field that involves the professional management of various assets, such as
stocks, bonds, real estate, and other financial instruments, with the goal of achieving specific
investment objectives. This discipline plays a pivotal role in the world of finance, as it helps
individuals, institutions, and organizations grow and protect their wealth while managing risk.
In this comprehensive text, we will delve into the key aspects of investment management, its
processes, strategies, and the role it plays in the global economy.
In conclusion, investment management is a multifaceted discipline that involves strategic
decision-making, rigorous analysis, and constant adaptation to evolving financial landscapes. It
serves as a bridge between savers and capital-seeking entities, enabling individuals and
organizations to grow and protect their financial assets while contributing to the broader
economic ecosystem. As the investment landscape continues to evolve, the role and impact of
investment management on the global economy will remain significant and continually shape the
financial world.
FREQUENTLY ASKED QUESTIONS FOR INVESTORS
Investment management involves overseeing and making decisions about various
investments to help investors achieve their financial goals.
It's important because
professional management can help optimize returns, manage risk, and ensure that
investments align with specific objectives. Tax planning is essential to optimize
after-tax returns. Strategies such as tax-efficient investing, tax-loss harvesting,
and utilizing tax-advantaged accounts can help minimize the impact of taxes on your
investments.
Hiring an investment manager offers benefits such as expertise, diversification,
risk management, and access to a broader range of investment opportunities.
They can
provide personalized strategies tailored to your goals and risk tolerance.
Stay informed by regularly reviewing your investment statements, conducting periodic
portfolio reviews, staying updated with financial news, and communicating with your
investment manager.
Investment managers typically earn fees based on a percentage of assets under
management (AUM).
These fees can include management fees (annual percentage of AUM)
and performance fees (a share of profits if certain performance targets are met).
Understanding fee structures is crucial, so you know what you're paying for their
services. Online tools and resources can also provide real-time information.
© COPYRIGHT 2025 BOHKIEN GLOBAL - ALL RIGHTS RESERVED