It's common that investors lack a clearly-defined approach to exit positions when market conditions change and emotional decisions can take controls especially in panic situations. Through years' of hard work, study and experience, we developed mechanical trading system - AIA Trader (Trend-Following - Long-Term) to enter/exit positions and manage market risks. We do not keep an opinion of the market. Profits are made from reacting to the market, not by anticipating it. With the market is in a trend, AIA Trader will inform us of the changing market conditions. We don't strive to enter at the exact bottoms and exit at the exact tops. Our system is to profit from a large part of the trend while keeping us off the market when the trend is against us to control the risk exposure.
Long-term trends capture large price moves caused by fundamental factors. When you look at the long-term price chart, you can see clearly that the markets are characterized by uptrend, downtrend and sideways price movements. The task of a portfolio manager is to profit from the trends. Market generally leads economic data. Investment is best left to the analysis of price than to the analysis of the lagging economy indicators. The most accurate economist is the market itself.
We use only measurable market indicators to measure the risk and reward potential that exists in the market. The indicator values are used as input and the system will generate sell/buy signals as shown in our AIA Market Compass. The practical usages of the system beat the market indexes consistently.
The market indicators used in AIA Trader system:
1) 2 Market Cycle Indicators:
2) 2 Value Indicators:
3) 3 Trend Indicators:
50/200-day moving averages
4) Sentiment Indicators:
VIX - Fear/Volatility Index
5) Fed Policy
Interest Rate Policy
6) Breadth/Momentum Indicators:
Percentage of Stocks over/under their 200-day Moving Average
Advance/Decline Line, New Highs/New Lows
ROC/PPO and Divergence
The AIA approach provides a competitive rate of return, and avoid the emotional pitfalls with decision makings.
How Do We Buy: Techno-Fundamentals
We are Techno-fundamentalist and apply both FA and TA in our stock selection. The fundamental aspect for the industry as a whole (Supply and Demand, Life Cycle) and the specific stock (ROE and growth prospect) are the bases of the stock selection. We developed Stock-Filter internally for us to scan stocks to buy. Relative price strength (Momentum), out of all the possible variables, fundamental and technical, seems the only growth variable that consistently beats the market. The AIA Stock Filter starts with the fundamentals of an industry and companies, then the price momentum and other TA indicators. Our Value plus Momentum approach works well under different market conditions.
We only buy and hold the strongest stocks (5-10 equities) using our criterion. Our portfolio performance outpaced the market indexes consistently. At the same time, the down-side risks are at control. Our stock selection criteria can avoid us from most of the bad situations in the stock market and we can manage others by risk management developed through the market skills of our Portfolio manager.
* Disclaimer: All performance data represents past performance and is not necessarily indicative of future performance.
** All funds and transactions are held and monitored by TD Bank (Custodian).
*** Guaranteed Fund is available. Please call us for details ("Three and 30" fee structure).
AIA Market Compass
AIA Growth Fund
This is a growth fund and is managed with the objective of achieving medium to long term capital appreciation and value by investing in US, China and Canada equities. To assist in achieving this objective, the Fund may focus on its assets in specific industry sectors, asset classes and growth companies based on the analysis of the market trend, business cycles, industry prospect, company profit prospect and company managements.
Key Fund Facts
Inception Date: January 1, 2016
Fund Status: Open
Launch Price: CA$1.00
Current Price: CA$12.98
Manager of Fund: AIA Financial LP **
Management Fee: 2% annual
Performance Fee: 20% of excess of hurdle rate (8%)
Minimum Investment: CA$100,000
Minimum Investment Term: 90 days (3% penalty)
(Guaranteed Fund is available ***)
Chief Portfolio Manager: Steve Jia, Ph.D.
FCSI® (Fellow of CSI, 加拿大证券学院院士);
CMT® (Chartered Market Technician Charterholder, Credential ID: 2687) (See credential);
CIM® (Chartered Investment Manager) (See credential)
The fund produced 87.13% average annual return over the past five years. If you had invested $10,000 in the fund 5 years ago, your investment would now be worth $129,771. In addition, our investors could convert ordinary income into long-term capital gains on their tax returns and save an enormous amount of money (an additional 10% plus gain, totally legal). Fund Performance as at September 30, 2021 (net of fees):
Year Return Total Return
2012 14.38% 14.38%
2013 20.17% 37.45%
2014 13.80% 56.42%
2015 -4.46% 49.45%
YTD 39.06% 107.83%
Growth of $10,000 investment as compared with the Benchmark index since 2016: *
Current benchmark: S&P/TSX Composite Index
Best and worst performance periods in the last 5 years: