Investment Philosophy

Pheim Investment Philosophy of “Never Fully Invest at All Times”, innovated by the Founder/Chief Strategist of Pheim Asset Management, Dr. Tan Chong Koay (whom has been in the fund management industry for 50 years), had successfully weathered through major crises and navigate through the volatile Asian/ASEAN market, and substantially increased the wealth of clients in the long run.

Pheim Investment Philosophy, “Never Fully Invest at All Times”, is a unique, redefined and proven value-investing principle and process that had helped Pheim to produce outstanding long-term track record after weathering through many crises. The principle/process has gained acceptance and recognition that “Never Fully Invest at All Times” is rated as a Timeless Golden Rule of Investment Wisdom.

Pheim strongly believes that strategic asset allocation that takes advantage of major market trends, supported by good stock picks are key to superior out-performance without taking on unduly high risks. We adopt a predominantly value approach to investment. We seek out stocks that are cheap relative to their underlying value, in the expectation that their share prices will rise at some point to more accurately reflect their true worth.

Generally, we seek companies that have focused management, enjoy high profit margins and earnings growth, and low debt equity gearing, and whose shares trade at low price-earnings ratio and/or low price-to-book ratio. At times we may apply a combination of value and growth strategies, or putting greater focus on growth stocks to take advantage of market and business cycles.

As Asian markets tend to display greater cyclicality and price volatility, we believe that an active asset allocation strategy can add value to our investors. Thus, we do not believe in being fully invested at all times. Rather, we seek to trim our equity exposure near market peaks in order to preserve capital, and to be fully invested near market troughs. This is a value-investing process and not market-timing process.

Dr. Tan Chong-Koay’s Enduring Contribution to Asian Fund Management:

The Philosophy of “Never Fully Invest at All Times ” (NFIaAT).

In Asian investing landscape, few philosophies have left as profound and lasting an impact as Dr. Tan Chong Koay ‘s principle of “Never Fully Invest at All Times ” (NFIaAT). Originated in 1976, redefined through decades of crises, and consistently applied in practice, this philosophy stands today as a defining contribution to the way investors in Asia approach the volatile stock market.

Rooted in Asian Market Realities:

Much of the traditional investment doctrine, shaped by Western markets, advocates being fully invested at all times. Such thinking assumes deep liquidity, broad diversification, and a steady long-term compounding effect. But Asian markets, historically, have not offered that same stability. Instead, they are characterised by sharp cycles, sudden inefficiencies, and swings driven by sentiment as much as fundamentals.

In hindsight, this philosophy can be seen as one of Asia’s homegrown investment innovations, shaped by the region’s turbulent financial history. For younger investors and fund managers, it is a practical framework for handling uncertain volatility – not just an abstract principle. NFIaAT should rightly be recognized as one of most significant contributions by Dr. Tan Chong-Koay, an Asian legendary investor to the regional fund management industry who had the courage to practise since 1976.

In short, Dr. Tan Chong-Koay’s Never Fully Invest at All Times is more than just a personal investment style – it is a regional risk management doctrine, a philosophy that has reshaped how to endure and succeed in volatile Asian market.

Never Fully Invest at All Times stands not just as an Investment Strategy but as a legacy of wisdom – a guiding light for fund managers navigating uncertainty. It is a philosophy that balances prudence with courage and preservation with growth. More importantly, it represents one of Asia’s most significant intellectual contributions to global investing: a philosophy forged in crisis, proven in practice, and relevant for generations to come.