Aggregate Asset Management is a fund management company that holds a Capital Markets Services (CMS) License for fund management activities under the Securities and Futures Act, Singapore; and is regulated by the Monetary Authority of Singapore (MAS).
I believe in the management team’s capabilities and the long-term performance prospects of the fund.Professor Kishore Mahbubani, Chairman, Aggregate Asset Management
Aggregate Asset Management is one of the earliest and rare fund management companies that aligns clients’ interests with our own – we do not charge management fees; clients only pay performance fees when they enjoy absolute returns.
Because of Singapore regulations, we can only serve Accredited Investors. An Accredited Investor is defined according to the Securities and Futures Act, as an individual with net assets of at least S$2 million (maximum of S$1 million net in primary residence), or an annual income no less than S$300,000, or net financial assets of at least S$1 million.
(A) Zero management fee, perfect alignment of interest.
(B) Extensive diversification.
AAM holds more than 1000 stocks in its portfolio. AAM recognizes that investing in stocks is a risky endeavor – and a unique and effective method that AAM pioneered to reduce risks substantially is by extensive diversification. Traditionally, most fund management companies hold stock positions of between 20-50. Holding too few stocks can result in highly volatile results and a mistake made in stock selection can be punishing to performance for the entire fund. AAM’s breakthrough method of extensive diversification of hundreds of stocks results in a fund with low volatility and reduces the chances of permanent loss substantially. With extensive diversification, clients and fund managers can sleep better at night.
(C) AAM serves individual investors.
AAM was set up with a focus to help individual investors meet their retirement goals. The minimum investment amount to get started is S$100,000 – a relatively friendly entry level because we want more people to have a chance to experience the powerful effects of compounding. We are a firm set up by individuals for individuals because we see so many people struggle with meeting their retirement needs. AAM pioneered the concept of a 5% withdrawal rate. What this means is that every investor has the flexibility to withdraw 5% of their total investment funds every year. For example, a client with $1M dollars in investment, can withdraw $50,000 every year to fund his retirement cash flow needs. The value investing approach used by AAM will ensure that the retiree will not run out of money despite the annual withdrawals made AND potential market corrections/volatile market swings. The value of this concept is that at the end of the day, he will still be able to leave a sizeable amount for his beneficiaries. The 5% withdrawal rate is made possible because the long-term rate of return far exceeds the 5% withdrawn. Many of our clients use the fund as a long-term savings plan by making regular contributions to the fund.
(D) AAM is a small boutique firm owned and operated by its founders.
The founders of AAM dedicate themselves to a single focus on clients by delivering stellar investment results that would enable them to meet their goals of retirement, wealth preservation or leaving a legacy for future generations. Unlike most other funds out there, the founders are personally invested in the fund. They contributed capital at startup, and have re-invested their returns into the fund. Their financial well-being is tied to the growth of the fund, aligning their interests with clients. They worry when clients worry and rejoice along with clients when the fund does well. In other words, the founders are eating from the same pot that they are cooking for their clients.