Maxiom PMS – EMERALD Diversified Mutual Funds

The "Roots & Wings" Equity Philosophy

This philosophy guides their stock selection process, blending fundamental business strength with quantitative rigor powered by machine learning algorithms.

• Roots (Wealth Preservation): This component focuses on the foundation of the portfolio. Maxiom targets companies that demonstrate:

  • Financial Discipline: Very low debt levels, ensuring growth is funded by internal cash flows rather than external leverage.

  • Efficiency: Consistently high Return on Equity (ROE) and Return on Capital Employed (ROCE).

  • Governance: High promoter integrity, demonstrated by "skin-in-the-game" (significant promoter ownership) and ethical business conduct.

• Wings (Wealth Creation): This component is designed to capture upside and prosperity:

  • Growth Potential: Companies with long runways that typically grow 1.5x to 3x faster than GDP.

  • Resilience: Businesses that possess strong pricing power, hold dominant market share, and maintain consistent operating cash flows, allowing them to recover faster during downturns.

Technology Integration: Maxiom uses machine learning to analyze thousands of data points, mapping business parameters and stock patterns to remove human emotional bias. Their algorithms simulate millions of scenarios to stress-test portfolios for low drawdowns and faster recovery.

The "LSG" Asset Allocation Framework

The LSG framework provides the structure for how clients manage their overall wealth, ensuring the portfolio is aligned with specific financial needs:

• Liquidity (L): Designed for immediate needs, emergency funds, and short-term expenses. This bucket ensures that clients have accessible cash, preventing the need to liquidate long-term equity investments during market volatility.

• Safety (S): Focuses on capital preservation. This includes high-grade corporate bonds, fixed-income securities, and conservative hybrid strategies to protect the core capital and combat inflation.

• Growth (G): Dedicated to long-term wealth appreciation through equity market participation. This is where the Roots & Wings equity strategy is applied to maximize compounding opportunities.

Summary of Investment Approach

• Process-Driven: They emphasize a "Three-Lens" fund selection framework and avoid reactive or impulsive trading.

• Transparent & Fee-Based: The model is built on transparency, avoiding hidden commissions or products that create conflicts of interest.

• Adaptive: The LSG allocation is not static; it is personalized based on an individual's age, life stage, risk tolerance, and specific financial goals.

By combining the Roots & Wings selection criteria with the LSG allocation model, Maxiom aims to create a robust, resilient portfolio that protects capital during choppy market cycles while capturing sustainable, long-term growth.