Zeus

• What is Zeus’s investment philosophy? Who are its primary investors? What are the issues surrounding individually managed accounts (IMA)? What are the differences between IMAs and mutual funds with regard to their management and target investors?

Zeus’s investment philosophy is based on the belief that superior investment results can be achieved over many years by following a conservative, risk-averse, quality-oriented approach to investment management. In other words, the firm believes in active management instead of passive management, which means the primary job of portfolio managers is to outperform the benchmark’s performance working within the risk and other constraints specified in the client’s mandate. In detail, the equity fund aims to seek long-term growth of capital through investments in a high quality portfolio of stocks, whose earnings are expected to grow at above-average rates. That is the growth investment style of active management. Besides, the bond fund seeks to maximize total return in a way that was consistent with the preservation of capital, which is done through an actively managed portfolio of high quality. However, the balanced fund seems to be a little different, since its objective is to minimize risk while generating competitive returns over longer periods, which is more like a semi-active approach.

Unique investment philosophy obviously shows the difference between Zeus and general fund managements. Zeus believe that risk adverse and long term investment will generally give investors successful outcome, in contrary, short term investment will bring high cost of turnover and low probability. For example, the balanced fund of Zeus is managed with strategic asset allocations, which focus on long term movement. Furthermore, they invest on medium to large capital-growth fund (mimicking the institutional growth-stock portfolio), which also follow the risk–adverse rule.

Zeus Asset Management clients were both foundation-orientated...