Tracking the Changes

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If institutions are to invest successfully, they need sound portfolio management strategies. But determining such strategies is not simply a matter of tracking markets, analysing corporate results, and interpreting headline data.

To achieve consistent positive returns, it is also vital to take account of other factors which influence investment decisions – and their longer-term implications.

Two decisive factors were covered in the latest instalment of the Hong Kong University of Science and Technology (HKUST) Business Insights Presentation Series, which took place at the HKUST Business Central on April 6.  

The theme of the event was “The Role of Asset Liability Management and Economic Freedom in Investment”, during which two experts provided plenty of food for thought.

Peter Chen, associate professor at HKUST’s department of accounting, noted that value creation depends on the flexibility corporate managers have to invest in growth opportunities, and their ability to make adaptations as conditions change. Economic freedom or institutional factors affect the level of frictions or costs of management in making such investments.