HRG Emerge

HRG’s Team of executives and analysts have worked together for almost a decade and recognize that dynamic markets demand a diligent approach. The research and analysis employed by HRG adds innovative concepts and external inputs to traditional financing methods, creating a more transparent and interdisciplinary investment process.

With this in view, HRG focuses solely on offering investment solutions to capture high momentum disruptive innovation within the services industry. Our clients can rest assured that their investments will be working in a highly scalable environment.

We at HRG ease and mediate the investment process for the client in order for his/her portfolio to expand over time. We also believe in complete transparency, which is why our team will guide you through the steps and require your involvement

Step 1- Understanding the client : The first and the foremost step of investment process is to understand the client or the investor his/her needs. After getting an insight of the goals and restraints of the client, it is important to set a benchmark for the client’s portfolio management process which will help in evaluating the performance and check whether the client’s objectives are achieved.

Step 2- Asset allocation decision: This step involves decision on how to allocate the investment across different asset classes, i.e. fixed income securities, equity, real estate etc. It also involves decision of whether to invest in domestic assets or in foreign assets. The investor will make this decision after considering the macroeconomic conditions and overall market status.

Step 3- Portfolio strategy selection: Third step in the investment process is to select the proper strategy of portfolio creation. Choosing the right strategy for portfolio creation is very important as it forms the basis of selecting the assets that will be added in the portfolio management process. The strategy that conforms to the investment policies and investment objectives should be selected.

There are two types of portfolio strategy.

1. Active Management Process
2. Passive Management Process

Active portfolio management process refers to a strategy where the objective of investing is to outperform the market return compared to a specific benchmark by either buying securities that are undervalued or by short selling securities that are overvalued.  In this strategy, risk and return both are high. This strategy is a proactive strategy it requires close attention by the investor or the fund manager.

Passive portfolio management process refers to the strategy where the purpose is to generate returns equal to that of the market. It is a reactive strategy as the fund manager or the investor reacts after the market has responded.

Step 4- Asset selection decision: The investor needs to select the assets to be placed in the portfolio management process in the fourth step. Within each asset class, there are different sub asset-classes. For example, in equity, which stocks should be chosen? Within the fixed income securities class, which bonds should be chosen?

Also, the investment objectives should conform to the investment policies because otherwise the main purpose of investment management process would become meaningless.

Step 5- Evaluating portfolio performance: This is the final step in the investment process which evaluates the portfolio management performance. This is an important investing process step as it measures the performance of the investment with respect to a benchmark, in both absolute and relative terms. The investor would determine whether his objectives are being achieved or not.

The services sector (including real estate and business services, hospitality, transport, communication, personal and social services) is thelargest in Dubai’s economy, recording a share of 37.2% of total GDP.

Within Dubai’s services sector transport ranks first, accounting for 14.8% of Dubai’s GDP, followed by real estate and business services (14%), hospitality (5.5%) and personal and social services (2.9%), for the same period. The hospitality services sector however is the fastest growing sector for the last three years, up by roughly 15% on average.

According to the Dubai Statistics Centre (DSC), the total number of workers in the services sector increased at an average of roughly 13% per year to 776,670 workers representing 33% of Dubai’s total workforce. According to the 2020 Expo’s strategic objectives, an estimated 277,000 new jobs will be created over the next six years with 70% of this (or 193,900 jobs) directed to the services sector.

What you can do is to set your objectives on how you plan to use your investments after you know how what is your goal. One or more of the following objectives could be included in your goals:

• Protection for your family
• Retirement
• Education for your children
• Wealth Accumulation

Divide your goals into long-, medium-, and short-term targets. This will assist you in deciding what form of investment to make. For instance, if you want to send your child to study overseas in three years and need to save for tuition and living expenses, you’ll need a low-risk investment. Consider when you’ll need the funds, as this will assist you establish the investment’s time horizon.

The investor can enjoy stable passive returns as HRG handles the operations of the assets.