Making Investment in Tough Time Is This Right for Investment Indias Growth Story to Continue for Lon

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pms.systematixshares.com
SYSTEMATIX PORTFOLIO MANAGEMENT SERVICE we make
money work for you !
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Systematix Portfolio Management Services

• Discussion Points
• Why Systematix Portfolio Management Services
• Offering from Systematix PMS
• Investment Process
• PMS Fee Structure
• Clarification on Key Terms

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Systematix 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

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Need 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.

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Why 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

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Our 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

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Offering 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

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Value 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

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Absolute 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

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Dynamic 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

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NDPMS 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

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Key Comparison of Portfolios
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Our Approach
Investment Universe
PCG Research
External Research
Fund Management Research
Qualitative Quantitative Analysis
Combination of Top-Down Bottom-Up Approach
Portfolio construction
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Stock 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

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Risk 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

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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
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What 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
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What is High Watermarking?
Contd.
Plan 2 gt15 profit ? 15 profit sharing and
high water watermark applicable
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Clarification 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.
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Periodic 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

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PMS 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.

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PMS 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 [phone]
  8000, Fax [phone]
• Registered Office EGA Trade Center, 4th Floor,
  809, Ponamalle High Road, Kilpauk,
  Chennai-600010, Tel [phone] / 80, Fax
  91 44 26612190
• Email pms_at_systematixshares.com
• Website pms.systematixshares.com
• SEBI PMS Registration No. INP000002692

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Systematix Portfolio Management Service
we make money work for you!



so you get more time for you.
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Thank You
Corporate Office 3rd floor, J.K. Somani
Building, British Hotel Lane, Bombay Samachar
Marg, Fort, Mumbai 400001. Tel. [phone]/
66198085 (Direct Line), 91 22 30298000/ 66198000
(Board Line). Fax [phone].
E-mail pms_at_systematixshares.com Website
pms.systematixshares.com