Our Investment Strategy

IEI-ANCHOR in line with PENCOM guidelines and its internal investment management policy has designed an investment strategy that makes use of both active (Trend following) and passive (Buy and hold) Investment strategies. The active investment strategy is to enable her achieve or surpass the industry rate of returns while the passive strategy is to minimize the inherent risk in these investments. The adoption of the two strategies is to spread the investments in such a way as to ensure the minimization of potential losses and the maximization of return which goes a long way in enhancing the value of our accounting unit. Assets classification is of essence under this strategy for effective investment decisions.


Investment windows are selected based on the following priority criteria

  1. Safety- This refers to the risk of potential loss of principal, interest, or a combination of both. The objective is to select only those investments that guarantee preservation of capital in the overall portfolio and mitigation of credit and market risk.
  2. Yield- This is the potential earnings an investment can generate and is usually referred to as rate of return. The IEI-Anchor objective is to attain at least 2% above the real rate of return.
  3. Liquidity- This refers to the marketability of an instrument. Instruments that can easily be liquidated or whose liquidation period is certain, fall within this criteria.

The exit strategy is very key in our investment decision making as it enables IEI-Anchor maximize return and reduce inherent risk. A proper exit time determines when to sell a security so that we do not sell a performing stock or hold on to some securities when the underlying fundamentals have changed. These situations can lead to loss and missed profit opportunities. As a policy we exit an investment under the following conditions:

  1. If the investment fails to meet the original condition for buying them
  2. To enable us cut down our losses.
  3. Failure to meet original condition

    For us to invest in a security, we make use of both technical and fundamental analytical methods to ensure that the security meets certain criteria. Once the security fails to maintain the original criteria for selection, we exit it. Also, we cut Losses for any stock with a 20% decline or exhibit a Take Profit position may be adopted for gains of up to 10%-20%.

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