Efficient Frontier Capital Advisors Sdn Bhd is licensed by the Securities Commission of Malaysia as an Investment Advisor. We provide a complete range of financial planning services with special focus on investment advisory.

Investment Advisor License: (C/A0103/IA(FP)/2004)

Our Services

Institutional clients

We provide comprehensive investment advisory services comprising the followings:

• Investment policy
• Asset allocation strategy
• Instruments identification
• Fund managers selection
• Implementation, reporting and monitoring

Individual clients

We provide comprehensive financial planning services encompassing the followings:

• Investment planning
• Risk Management and Insurance planning
• Retirement Planning
• Tax Planning
• Estate Planning
• Debt Counseling and Management

Our Mission

To realize your objectives through independent & intelligent construction, efficient implementation and effective monitoring of financial and investment strategies.

Our Directors

Executive Director, Munawir Mohammad
BSc (Southampton), PNA (Australia), CFP , MMIM

Munawir Mohammad graduated from the University of Southampton, United Kingdom. He is also a Professional Member of the Australian National Institute of Accountants (NIA) and a Certified Financial Planner (CFP) charter holder.

Munawir has extensive experience in the securities and investment management industries. He was previously attached to Hillier Hopkins Chartered Accountants (UK), Permodalan Nasional Berhad, Petroliam Nasional Berhad, Securities Commission and MIDF Sisma Securities Sdn Bhd. Prior to joining Efficient Frontier Capital Advisors, Munawir was the Chief Executive Officer of Phillip Mutual Berhad, an internationally affiliated unit trust management company.

Investment advisor representative license: P/A0529/IR(FP)/2005

Email: munawir@efficient-frontier.com.my

Managing Director, Zarina Omar
BA (Kent), PNA (Australia), CFP

Zarina Omar is the founder of Efficient Frontier Capital Advisors Sdn Bhd. She graduated from the University of Kent, United Kingdom. Zarina is also a Professional Member of the Australian National Institute of Accountants (NIA) and a Certified Financial Planner (CFP) charter holder.

Zarina has extensive experience in fund management and investment analysis. She was previously attached to Aseambankers Bhd, Seacorp-Schroders Capital Management Sdn Bhd, BHLB Asset Management Sdn Bhd (now SBB Asset Management) and Permodalan Peladang Berhad. In 1996, one of her funds was ranked 2nd worldwide by Failaka International, an independent Islamic rating organization.

Investment advisor representative license: P/A0500/IR(FP)/2004

Email: zarina@efficient-frontier.com.my

Executive Director, Razak Ahmad

ADIA (UITM), CA (M)

Razak Ahmad graduated from University Technology Mara, Malaysia. He is also a member of the Malaysian Institute of Accountants (MIA).

Razak has extensive experience in the Capital Market, having served Bank Negara Malaysia, Capital Issues Committee and The Securities Commission. He was also a Fund Manager's Representative with PJB Capital Holdings Sdn Bhd, a subsidiary of Johor Corporation. At The Securities Commission, Razak was attached to the Securities Issues Department and Trust & Investment Department where he was responsible for evaluation of listing, acquisition and restructuring proposals as well as those pertaining to collective investment schemes and venture capitals.

Investment advisor representative license: P/A0731/IR/2007

Email: arazak@efficient-frontier.com.my 

Efficient Frontier

Efficient frontier was conceptualized by Harry Markowitz in his groundbreaking paper that launched Modern Portfolio Theory. Portfolio theory explores how risk-averse investors construct portfolios in order to optimize expected returns for a given level of market risk. The theory quantifies the benefits of asset allocation and diversification. In a universe of risky assets, an efficient frontier of optimal portfolios can be constructed. Each portfolio on the efficient frontier offers the maximum possible expected return for a given level of risk. Investors should hold one of the optimal portfolios on the efficient frontier and adjust their total market risk by leveraging or de-leveraging that portfolio with positions in the risk-free asset.

The shaded region corresponds to the achievable risk-return space. For every point in that region, there will be at least one portfolio that can be constructed and has the risk and return corresponding to that point. The efficient frontier is the curve that runs along the top of the achievable region. Portfolios on the efficient frontier are optimal in both the sense that they offer maximal expected return for some given level of risk and minimal risk for some given level of expected return.

Asset Allocation

The Importance of Asset Allocation

Integral to the Modern Portfolio Theory and Efficient Frontier is the concept of asset allocation. Asset allocation refers to the division of investment portfolio across different asset classes with the objective of maximizing returns and minimizing the overall portfolio risk.

The importance of asset allocation in portfolio performance was documented in a study by Brinson, Hood and Beebower (Analyst Journal 1986, Determinants of Portfolio Performance) which found that the variability of funds performance selected was attributed by the followings: asset allocation policy (91.5%), security selection (4.6%), market timing (1.8%) and other factors (2.1%). This finding was later supported by Ibbotson and Kaplan in their paper in the Financial Analyst Journal 2000 (Does Asset Allocation Policy Explain 40,90 or 100 Percent of Performance).

At Efficient Frontier Capital Advisors, we seek to achieve the most optimum asset allocation for your investment portfolio, given your risk tolerance and investment objectives through our systematic Investment Process.

Investment Process

Financial Planning


Investment Planning

Investment planning is an integral part of financial planning focusing on asset allocation and investment selection. In constructing an investment portfolio, factors such as investor's objectives, risk preferences and constraints are taken into consideration. Investment objectives are often dictated by the life cycle of individual/institutional investors, namely the accumulation phase, consolidation phase, spending phase and distribution phase. An investor's risk preference is also likely to be associated with his life cycle with an increasing risk-averse attitude approaching the distribution phase. Investment constraints such as liquidity needs, time horizon, tax concerns and regulatory issues are also important in the portfolio construction process.


Risk Management and Insurance Planning

Risk is best defined as "uncertainty of financial loss from an exposure" and classified as either pure risk or speculative risk. Pure risks, consisting of personal, property and liability risks, where there is a possibility of loss are often the concerns of individuals. Risk management is a systematic approach of handling pure risks faced by individuals and businesses alike. Risk management techniques would usually include a combination of risk avoidance, risk control, risk retention and risk transfer. Risk transfer is the process of transferring a risk that is neither avoided nor retained, through insurance planning.


Retirement Planning

The need for retirement income creates a need for retirement planning. An assessment must be made on one's future income need and how to accumulate sufficient funds to generate the desired income level. Replacement ratio and expense methods are often used to estimate future income. Commonly used funding vehicles are the Employee Provident Fund, private pension scheme and endowments. A financial planner would be able to determine the 'retirement gap' ? funds available at retirement against amount needed at retirement, and assist toward eliminating it.


Tax Planning

Taxes reduce our disposable income. Tax planning attempts to minimize a client's liability by capitalizing on allowances and provisions within the framework of Income Tax Act 1967, Real Property Gain Tax and other related legislations.


Estate Planning

Estate planning is the process of making proper arrangement for the protection, preservation and provision of a person's assets for the benefit of his family and other persons. A comprehensive will is normally the best arrangement to achieve a client's estate planning goal. Under this arrangement, the executor named in the will, would apply for a grant of probate and distribute assets according to the terms of the will. Estate planning for a Muslim is governed by Islamic Law where the percentage of wealth distribution is pre-determined. However, Hibah arrangement has made it possible for Muslims to distribute their assets according to their wishes.

Debt Counseling and Management

Debt management is a vital component of financial planning. Debts are normally necessary to purchase a house or vehicle. Over-indebtedness and uncontrolled spending, however, may lead to bankruptcy. Our debt counseling involves analyzing existing and potential sources of income and liabilities. A plan is then constructed to optimize the client's net cash flow which may result in a complete restructuring of the client's finances and asset holdings.