Title: Making Investment in Tough Time Is This Right for Investment Indias Growth Story to Continue for Lon
1pms.systematixshares.com
SYSTEMATIX PORTFOLIO MANAGEMENT SERVICE we make
money work for you !
2Systematix Portfolio Management Services
- Discussion Points
- Why Systematix Portfolio Management Services
- Offering from Systematix PMS
- Investment Process
- PMS Fee Structure
- Clarification on Key Terms
3Systematix Portfolio Management Service
- Systematix Portfolio Management Service is an
investment vehicle which offer to Manage Advise
Assets of - High Net-Worth Individuals
- Non-resident Indian
- Indian Corporate bodies
- Financial Institutions
4Need for Portfolio Management Service
- Discretionary Portfolio Management Service
Access to an institutional process of money
management - Customized Investment Solutions Take into
consideration unique circumstances and objectives
of each investor - Most Effective Portfolio Diversification
Reduce overall portfolio volatility and enhance
risk-adjusted returns over the long-term - Provide clients exclusivity and personalised
service - Wealth creation based on a disciplined investment
process is at the crux of PMS primary goals.
5Why Systematix Portfolio Management Service?
- Sound Strong Management
- Smart Class of products service offerings
- Focus on continuous innovation
- Consistency in Performance
- Widespread geographical presence and dedicated
team for investors services
6Our Strengths
- Investment Expertise across Asset Classes
- Established track record of Wealth Management
PCG Services - Strong research set-up
- Experienced Investment Management Team
- Management enjoy strong networking with
Corporates across the industries - Consistent performance on Arbitrage Strategies
arise with corporate actions including buy-back,
open-offer etc is unique in industry - Widest range of product offerings and inclination
towards continuous product innovation
7Offering of Systematix PMS
- Systematix PMS offer range of portfolios to help
meet the varied need of clients requirements that
provide further customization and flexibility - Discretionary Portfolio Management Service
offerings include - Value Enhancer PORTFOLIO
- Dynamic Investment PORTFOLIO
- Absolute Freedom PORTFOLIO
- We also offer
- Non Discretionary Portfolio Management Services
- Advisory Services
8Value Enhancer PORTFOLIO
- Objective
- Value Enhancer Portfolios main objective is to
generate long-term capital appreciation through
investment in equities and equity related
instruments with an emphasis on companies
perceived to be under valued from point of view
of there long term growth prospect and potential. - Features
- Balanced diversification across companies and
sectors by investing in a basket of medium to
large cap. companies. - Not more then 30 stocks.
- Sector concentration limited to 30
- Stock concentration limited to 10
- Suitability
- For investors with long term investment horizon
- Moderate equity risk profile
- Ideal Tenure
- 36 months
9Absolute Freedom PORTFOLIO
- Objective
- The main objective of the Absolute Freedom
Portfolio is to generate medium to long term
capital appreciation through investment in
equities and equity-related instruments, with an
emphasis on companies across a wide range of
service and manufacturing sectors. The broad
nature of this Scheme is to invest in companies
having long term strategies to capture high
growth opportunities and poised to benefit from
growth in sector. - Features
- Balanced diversification across companies and
sectors. Investing in a basket of medium to large
cap. companies. - Not more then 30 stocks.
- Sector concentration limited to 30
- Stock concentration limited to 10
- Suitability
- For investors with medium to long term investment
horizon - Moderate to high equity risk profile
- Ideal Tenure
- 24 months
10Dynamic Investment PORTFOLIO
- Objective
- Dynamic Investment Portfolio follows opportunist
and momentum play strategy, coupled with active
profit booking. The broad nature of this scheme
is to take advantage from the opportunities
available by way short-term market anomalies,
catching the momentum etc., which are likely to
emerge from changing sector dynamics, structural
changes in the sectors responsible for growth of
particular business or companies. - Features
- Balanced diversification across sectors and
capitalization may or may not achieve. - Dynamically concentrated portfolio of 1-10 stocks
- Sector and stock concentration may be higher than
the limit mention in other schemes - Suitability
- For investors with medium term investment horizon
- Moderate to high equity risk profile
- Ideal Tenure
- 12 months
11NDPMS Advisory Services
- Non Discretionary Portfolio Management Services
- The objective is to advice clients on various
investment instruments depending on the clients
needs and risk-return profile. - Provide administrative services for execution of
transaction as per the mandate from the client. - Client will decide his own investments.
- Portfolio Manager's role is limited to providing
investment advice, research and facilitating the
execution of transactions.
- Advisory Services
- Advising on the portfolio strategy, investment
and divestment of individual securities on the
clients' portfolio - Client is responsible for Execution of
transactions - This service is entirely at the client's risk
12Key Comparison of Portfolios
13Our Approach
Investment Universe
PCG Research
External Research
Fund Management Research
Qualitative Quantitative Analysis
Combination of Top-Down Bottom-Up Approach
Portfolio construction
14Stock Selection Procedure
- Step-1 Idea generation through mix of internal
and external research - Step-2 Management contacts (combination of
management meetings, plant visits and/or
conference calls), analyst meetings other
background research - Step-2 Creation of earning model, Forecasting of
revenue and profitability. Active monitoring
based on quarterly results and fundamental news
flows - Step-3 Periodic follow up meetings with
management to re-evaluate earlier assumptions - Step-4 Based on earnings estimates valuation
screen is created - Step-5 Valuation screen used extensively for
studying absolute valuations, valuations relative
to sector, peer group, own history and market
conditions - Step-6 Purchase / Sale decisions formulated
based on key learning from Valuation Screen - Step-7 Management quality and attractive
valuations help determine weight of stock in
portfolio
15Risk Control Guidelines
- Sectoral Bets
- Sectoral risk is mitigate through effective
diversification. - Any single sectoral allocation to be caped at 30
- Stock Bets
- Individual stock concentration is limited to
10. - Fund Manger also try to limit exposure to any
Single Corporate group - Hedging
- Hedging Strategies to be actively used with
discretion of Fund Manger
16 PMS Fee Structure
Contd.
The Client has the option of selecting one of the
two fee plans offered by the Portfolio Manager
viz.
Plan 1. Variable Profit Sharing Plan
Plan2. Fixed Management Fees Variable Profit
Sharing Plan
Applicable only if exit before 1year
17What is High Watermarking?
High Watermarking means Performance based fees
are charged only when there are incremental
profits (see example given below) are not all the
profits. This is known as High Watermarking. High
Watermarking would be adjusted for infusion and
withdrawal. Example (Details on calculation of
High Water Marking and Performance based
management fees) Illustration Mr. X has given
Rs. 100 Lacs in cash for Portfolio management
Services. Following is the performance of the
portfolio with calculation for performance fees
and High Water Marking.
Plan 1 20 profit sharing and high watermark
applicable
18What is High Watermarking?
Contd.
Plan 2 gt15 profit ? 15 profit sharing and
high water watermark applicable
19Clarification on Key Policies Terms
Anniversary Year Systematix PMS shares profit at
the end of Anniversary year. This means after a
year from the date of activation of clients PMS
account. Taxation Portfolio Management
Services follow pass-through taxation structure
i.e. liability to pay Income tax is on the
investors and Systematix PMS will provide reports
on the basis of that tax liability can be
assessed whether gains are from short-term / long
term investments or dividend income etc.
20Periodic Reporting Client Servicing
- Superior Distributor and Investor Servicing
Transparency - Continuous interactions of PMS Relationship
Managers - Periodic interactions with PMS Portfolio Managers
- Financial summary comprising income statement,
transaction details, etc. - Annual audit of the portfolio
- Opinion from leading Tax consultants on
investment related Tax issues - Password protected interactive web-access
providing updated details on the portfolio - Daily NAV can be checked online
21PMS Risk Disclosure Disclaimer
- Investments in Securities are subject to market
and other risks and there is no assurance or
guarantee that the objective of any of the scheme
will be achieved. - Investors in the PMS Product are not being
offered any guaranteed/assured returns. - Past performance does not indicate the future
performance of the same scheme or any other
future schemes of the Portfolio Manager. - The names of the schemes do not in any manner
indicate their prospects or return. - The investments may not be suited to all
categories of investors. - The material is based upon information that we
consider reliable, but we do not represent that
it is accurate or complete, and it should be
relied upon as such. - Neither Systematix Shares Stocks (I) Ltd., nor
any person connected with it, accepts any
liability arising from the use of this material.
The recipient of this material should rely on
their investigations and take their own
professional advice. - Opinions expressed are our opinions as of the
date of appearing on this material only. While we
endeavor to update on a reasonable basis the
information discussed in this material, there may
be regulatory, compliance, or other reasons that
prevent us from doing so. - Recipient shall understand that the
aforementioned statements/presentation cannot
disclose all the risks and characteristics. The
recipient is requested to take into consideration
all the risk factors including their financial
condition, suitability to risk return profile,
and the like and take professional advice before
investing. As with any investment in securities,
the Value of the portfolio under management may
go up or down depending on the various factors
and forces affecting the capital market.
Disclosure Document shall be obtained and read
carefully before executing the PMS agreement and
any time thereafter.
22PMS Risk Disclosure Disclaimer
Contd.
- Prospective investors and others are cautioned
that any forward - looking statements are not
predictions and may be subject to change without
notice. - For tax consequences, each investor is advised to
consult his / her own professional tax advisor. - This presentation is not for public distribution
and has been furnished solely for information and
must not be reproduced or redistributed to any
other person. Persons into whose possession this
document may come are required to observe these
restrictions. No part of this material may be
duplicated in any form and/or redistributed
without Systematix Shares Stocks (I) Ltd.s
prior written consent. - Distribution Restrictions This material should
not be circulated in countries where restrictions
exist on soliciting business from potential
clients residing in such countries. - Corporate Office 3rd Floor, J.K. Somani
Building, British Hotel Lane, Bombay Samachar
Marg, Fort, Mumbai 400001, Tel 91 22-3029
8000, Fax 91 22 30298029 - Registered Office EGA Trade Center, 4th Floor,
809, Ponamalle High Road, Kilpauk,
Chennai-600010, Tel 91 44 30588078 / 80, Fax
91 44 26612190 - Email pms_at_systematixshares.com
- Website pms.systematixshares.com
- SEBI PMS Registration No. INP000002692
23Systematix Portfolio Management Service
we make money work for you!
so you get more time for you.
24Thank You
Corporate Office 3rd floor, J.K. Somani
Building, British Hotel Lane, Bombay Samachar
Marg, Fort, Mumbai 400001. Tel. 91 22 30298085/
66198085 (Direct Line), 91 22 30298000/ 66198000
(Board Line). Fax 91 22 30238029/ 66198029.
E-mail pms_at_systematixshares.com Website
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