Why Us? | aggregate

(A) Zero management fee, perfect alignment of Interest.

Typically most funds charge a management fee as a fixed percentage of assets under management (AUM). This incentivizes funds to chase growth of AUM instead of performance for their clients. Aggregate revolutionises this by being the first fund management company in Singapore that offers a zero-management fee model in it’s one

and only flagship fund - The Aggregate Value Fund. It aligns the interest of clients with the company. At AAM, clients only pay a fee when their investments are profitable. (In investor parlance, only a performance fee is levied when the fund hits a new high water mark). This is unheralded in the fund management industry in Singapore. AAM’s asset under management has grown quite significantly to S$450M from its inception 4+ years ago. Evidently, investors appreciate the AAM’s philosophy of giving investors a fair bargain.

(B) Extensive diversification across Asia.

AAM holds more than 600 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 across Asia 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.

AAM’s objective is to deliver net returns of 10% p.a. over the long term. So far, since inception 4+ years ago, AAM has returned an average of net 11+ % a year, exceeding its targeted return. This was achieved despite a difficult period of the last few years against a backdrop of the Euro crisis, Brexit, commodity bust, correction in oil price. Since inception, $1.0M dollars invested in AAM in Jan 2013 has resulted in net returns after all fees and expenses of $1.6+M in 2017. AAM is confident of its stated objective of delivering net returns of 10% p.a. in the next 5 years. At a 10% rate of return per year, $1M invested will grow to $2M in 7 years and $3M in 11 years.

(D) AAM serves individual investors.

AAM was set up with a focus to help individual investors meet their retirement goal. The minimum investment amount to get started is S$150,000 – a relatively friendly entry level because we want more people to have a chance to experience the wonders of value investing and 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.

(E) 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.