Winners rationale

If there has ever been an ultimate stress test to Lighthouse Canton’s approach to investment advisory, it has certainly been over the last couple of years.

The Singapore-based independent wealth manager designs portfolios able to withstand downside risk and protect client wealth based on the back of the view that traditional asset classes such as equities and bonds have become highly correlated and no longer provide sufficient diversification, particularly during periods of market stress.

That philosophy has naturally led to a skew in portfolio construction towards alternative assets in private markets, and Lighthouse Canton has excelled in sourcing and presenting such opportunities to clients. Drawing on the strength of its strong industry relationships, the independent wealth advisor was able to deliver to clients exclusive private market opportunities in 2021.

Among these were a strategy in partnership with Ivanhoe Cambridge that invests in life sciences-focused real estate in India, while another provides a platform for investing in early-stage companies in the South Asian country.

Lighthouse Canton’s approach has proven effective at defending clients’ capital amid volatile markets. During the indiscriminate market meltdown of early 2020 and in the subsequent months, a growth-oriented Lighthouse Canton portfolio suffered significantly lower drawdowns than the MSCI All Country World Index (ACWI).

Asian Private Banker’s judging panel was impressed by the real-life case studies that Lighthouse Canton shared as proof of the capabilities of its investment advisory business. In one such case, the independent wealth manager re-organised the underperforming investment portfolio of an existing Asian family business client that was heavily tilted towards risky equities and illiquid holdings, as well as being subject to large drawdowns. After replacing some of the high-risk stock positions with higher quality equities and bonds, and using statistical methods to determine an optimum degree of asset class diversification, Lighthouse Canton was able to boost the portfolio’s risk-adjusted return potential. In its first year, the new-look portfolio was able to deliver a 7% return with significantly less volatility and a lower maximum drawdown.

On the product side, Lighthouse Canton made significant enhancements to its private markets proposition during 2021. In the second quarter, it launched a business offering management of private market investment portfolios intended to address issues related to changing regulations, performance analysis and monitoring of less liquid holdings, while being able to source and recommend potential opportunities.

Lighthouse Canton is the winner of Asian Private Banker’s Best Independent Wealth Manager – Investment Advisory at the 2021 Awards for Distinction.