W&F Issue 10 2018

www.wealthandfinance-news.com 22 Wealth & Finance International - Issue 10 - 2018 There can be little doubt that the investment industry is changing rapidly with the swift rise of technological development in the sector. Where some are seeing new opportunities for growth and reimagining their investment strategy from the ground up, others are refining their approach, weathering the storm, and giving due consideration to the options available. Compass Invest believes in the merits of the latter, as they look to perfect their unique stratagem for their discerning clientele. To begin, Ivo offers insight into the firm’s services and operations. “Our services are suitable for institutional investors, businesses and high-net- worth individuals. Apart from identifying suitable investment opportunities in line with our clients’ risk tolerance levels, investment preferences, expected return etc., and setting up clear investment ob- jectives, we are in a position to develop com- prehensive wealth and investment management strategies through careful evaluation of our clients’ goals and priorities.” “In addition, Compass Invest manages seven UCITS mutual funds with different investment strat- egies and risk tolerance to meet the increasing de- mand for innovative thematic and core style funds from both institutional and individual investors.” Ultimately, this tailored approach and client-centricity plays directly into the firm’s ability to distinguish themselves from their competitors, as Dragomir explains “In order to stand out, our approach is to offer tailor-made solutions according to the needs of our clients. We offer flexibility when it comes to man- aging client assets and a constant process of opti- mising the investment strategies. Each of our clients have their own unique risk preferences and needs for liquidity and profitability. Our goal is to construct portfolios that fully meet their requirements.” As with all investment firms, a consideration of risk has played a vital role in Compass’ success. In this, Dragomir emphasises the importance of the firm’s in-house real time management of risk. “Throughout the years, we have developed in- house risk management monitoring system based on long term experience and world-class practices. We regularly monitor the portfolios in terms of fundamental values and quantitative measures, we follow strict stop-loss rules and pre-defined exit strategies to maximise the return on investment.” Dragomir continues: “In order to minimize execution risk, Compass Invest relies on international partners, experienced investment firms, effective trade volume selections, differentiation between core and trading positions and four-eye principle in trade execution. Active monitoring includes daily discussions to analyse recent market develop- ments, daily market surveillance designed to as- sess different factors impacting the portfolios and strategic weekly market overview. Regular stress- tests, sensitivity and worst-case scenario analysis are also crucial when managing risk.” There can be no doubt that Compass Invest’s investment strategy is comprehensive and thorough, orientat- ed around a commitment to achieving results. Compass Invest offers professional, tailor-made discretionary portfolio management to their clients by helping them pursue their wealth management goals. In September 2018, Compass Invest was recognised in Wealth & Finance International Magazine’s Alternative Investment Awards programme with the title of ‘Best Asset Management Company in Bulgaria’. Following this achievement, we spoke to the firm’s Chief Investment Officer, Dragomir Velikov, and Executive Director, Ivo Angarski, to find out more about the firm’s innovative approach to investment. Bulgaria’s Leading Asset Management Company AI180028 The conversation soon moves to the finance industry as a whole, and Dragomir explains how Compass is navigating the current investment landscape. “The state of the finance industry in our region is characterized by one of the lowest ratios in the EU in terms of funds and asset management services market share as a percentage of GDP. This can be explained by the lowest financial literacy rates in the region compare to the rest of EU. As a result, there is a very low demand for investment solutions other than real estate and bank deposits, leading to an overconcentration of clients’ assets in these segments.” Dragomir concludes: “On the other hand, this rep- resents a tremendous opportunity for exponential market growth for our industry through education of potential clients, who are simply not aware of the alternatives global capital markets can offer. We are able to present a variety of investment opportunities to diversify their wealth in more asset classes. The younger generation is also opening more and more for new solutions as they realize the need to begin investing earlier in life to secure their future.” As we come to the close of the interview, Ivo takes a moment to discuss Compass Invest’s future in the sector. “Compass Invest will continue to focus on delivering best in class boutique type of wealth management services to all our clients. Our main goal in this highly competitive market is to keep up with the outstanding results and business performance.” Company: Compass Invest and Compass Global Trends Address: 19 George Washington Street, Sofia, Bulgaria Website: www.compass-invest.eu E-mail: [email protected] Telephone: +359 2 421 9518 “As part of our risk management process we regularly access risk magnitude levels via risk valuation, historical and predictive stress-tests, and sensitivity analyses.” – Dragomir Velikov