Zeus Asset and Liability Management

Zeus case study

1. What is Zeus’s investment philosophy?

Zeus’s Asset Management uses a customer relationship-oriented approach to money management for institutional and individual clients with high net worth. Its investment philosophy is based on the belief that superior investment results can be achieved over many years by following a conservative, risk-averse, quality-oriented approach to investment management, meaning Zeus’s portfolio managers aim to outperform the relative benchmark’s indices, not only on an absolute basis, but also on a risk-adjusted basis. To be specific, the investment objective of the firm’s equity fund is to seek long-term growth of capital through investments in a high-quality portfolio of stocks, whose earnings are expected to grow at above-average rates; the bond fund seeks to maximize total return in a way that is consistent with the preservation of capital through an actively managed portfolio of high quality, fixed-income securities; Besides, its balanced fund’s objective was to minimize risk while generating competitive returns over longer periods; Also, Zeus established international equity fund to provide further diversification for its clients.

1. Who are Zeus’s primary investors?

The firm has more than 250 institutional and individual clients that subscribed to its investment philosophy. Of its institutional clients, 49% is from foundations and endowments, 47% is from corporations and 4% from insurance companies. The individual investors at Zeus are typically risk-averse, high-net-worth clients who wishes to grow their assets over the long term and to avoid excess volatility in their portfolio. Zeus has a minimum requirement of $2million for individually managed accounts. For those who meet the requirement, the firm customizes portfolios according to their investment objectives and special requirements. Clients that do not meet the minimum required amount are invested in one or more of the mutual funds offered by Zeus.