TATA PORTFOLIO MANAGEMENT SERVICES

Transcription

1 TATA PORTFOLIO MANAGEMENT SERVICES For Private Circulation TATA ASSET MANAGEMENT LTD.

2 THE TATA GROUP One of India s largest business Group Diverse businesses in 7 sectors Operations in over 80 countries Products and services exported to over 85 countries Largest employer in private sector with over 400,000 employees Source:

3 AMONG TOP 50 GLOBAL BRANDS Source : Financial Express, Issue dated: 22nd March, 2011

4 ABOUT TATA ASSET MANAGEMENT LTD. Domestic Business Established in March 1994 Presence in 80 locations across the country. Distribution tie ups with all major financial intermediaries in India viz Banks, Distribution companies, Online Platforms, IFAs etc. The only asset management company in India to adopt the Malcolm Baldrige model of USA for business excellence International business Serve India investments of investors from Japan, Europe & middle east through exclusive partnerships Fully owned subsidiary & team in Mauritius with FII registration from SEBI to service international investors. Manages 4 India dedicated equity strategies for international investors.

5 INTRODUCING TATA PORTFOLIO MANAGEMENT SERVICES Serving investment needs across asset class

6 OUR GUIDING PHILOSOPHY What comes from the people should go back to them many times over J R D Tata

7 PORTFOLIO MANAGEMENT SERVICES An investment solution across asset classes to meet specific investment objectives Benefits Suitability Regulator Possibility of portfolio diversification within broad asset classes Availability of professional expertise to manage investments Personalized Investment Service High Net worth Individuals NRIs Corporate/Institutions SEBI

8 TRUST OUR GUIDING PRINCIPLES Transparency: Aimed at developing and nurturing long standing relationships towards comfortable, confident and satisfied clients Research: Leverages professional expertise towards providing prudent investment solutions Understanding: Portfolio Construction/Advice based on clients needs to invest in companies and situations Service : Aimed at bringing in a high degree of personalization to provide bespoke investment solutions backed by round the clock services Technology: Latest & best technology to complement strengths in intellectual capital and services through complex portfolio, cross sectional analysis software & online access

9 ADVANTAGE TATA PMS Professional Management: Aim to deliver consistent risk adjusted returns Risk Control: Robust risk management platform without human intervention wired into the systems Portfolio Tracking: Continuous portfolio monitoring Convenience: Access you Transparency: In all dealings with stakeholders Transparency: In all dealings with stakeholders Dedicated Relationship Manager: The one point contact for personalized services

10 PORTFOLIO INVESTMENT STRATEGY Portfolio construction in line with the Investment theme selected by the client Analysis of macro trends to arrive at broad long term sectoral allocations Micro level portfolio construction based on the best ideas filtered from likely beneficiaries of the broad macro trends Sensitive to the distance between the intrinsic value and current valuations of the underlying security out of the approved list Institutionalized risk management framework being one of the guiding posts for portfolio construction Constant monitoring to capture early warning signals

11 INVESTMENT PROCESS

12 INVESTMENT SOLUTIONS BLUE CHIP PORTFOLIO Investment objective Investment Style Benchmark Type Investment horizon Generate capital appreciation with relatively lower risk over the long term Portfolio will be managed in a conservative fashion and will be diversified across various sectors of the Indian economy BSE Sensex Open Ended Minimum 2 years suggested Internal Risk Control Investment limit in a single stock : 10% Investment limit in a single sector : 30%

13 INVESTMENT SOLUTIONS BLUE CHIP PORTFOLIO Characteristics Companies which have gone through various business cycles Companies would be leaders in their respective industry Management of these companies would have a long and consistent track record Fundamentally strong financial i parameters A well diversified portfolio with high quality stocks available at attractive valuation A combination of large, and mid cap stocks with higher proportion of large caps

14 INVESTMENT SOLUTIONS EMERGING OPPORTUNITIES PORTFOLIO Investment objective Investment Style Benchmark BSE 200 Generate capital appreciation with relatively higher risk over the long term Stock selection would be based on various valuation parameters and the attempt would be to invest in stocks which are available well below their intrinsic value Type Investment horizon Internal Risk Control Open Ended Minimum 3 years suggested Investment limit in a single stock : 10% Investment limit in a single sector : 30%

15 INVESTMENT SOLUTIONS EMERGING OPPORTUNITIES PORTFOLIO Characteristics Companies whose scale of operations will undergo a paradigm shift in future based on the opportunities their sector provides Availability of management bandwidth to capture the opportunities We are looking at tomorrow s potential blue chips Market cap not a constraint for stock selection

16 INVESTMENT SOLUTIONS CONSUMPTION PORTFOLIO Investment objective Investment Style To seek long term capital appreciation by investing primarily in the equity and equity related instruments of companies most geared to capture the Indian consumption story Portfolio will have Companies that has ability to generate sustainable stakeholder value, positioned to capture Indian consumption opportunities Benchmark S&P CNX Nifty Type Open Ended Investment horizon Minimum 3 years suggested Internal Risk Investment limit in a single stock : 10% Control Investment limit in a single sector : 35%

17 INVESTMENT SOLUTIONS CONSUMPTION PORTFOLIO Characteristics Portfolio will endeavor to capture the transformational changes of the Indian economy on the basis of changing demographic profile, rapid urbanization and resilience of rural demand Consumption theme has wide sectoral scope which includes sectors like Auto, Consumer Durables & Non durables, Education services, Healthcare services, Media & Entertainment, Retailing etc Companies possessing sustainable competitive advantages and brand loyalty

18 Key Portfolio Terms Suggested Minimum Investment Rs. 25 lakhs at time of initial investment Set Up Fees Upto 2.00% PMS Management Fees Termination Fees (% of AUM) Partial Withdrawal Fees 2.50% p.a. / charged quarterly on average AUM 0 12 months : 2 % months: 1 %, Above 24 months :Nil NIL (Any withdrawal amount over and above the capital contribution)

19 MODEL PORTFOLIO PERFORMANCES AS ON 30 th November 2012 Since Inception Returns (%) 1 month 3 month 6 month 1year 3year 5year (April 06) Blue Chip Portfolio Absolute Returns Annualized Returns Portfolio BSE Sensex Absolute Returns Portfolio BSE Sensex Emerging Opportunities Portfolio Absolute Returns Annualized Returns Portfolio BSE Absolute Returns Portfolio BSE Consumption Portfolio Since Inception Absolute Returns (Dec'10) Portfolio NA NA S&P CNX Nifty NA NA 0.29 PERFORMANCE DEPICTED ABOVE ARE MODEL PORTFOLIO PERFORMANCE CONSTRUCTED USING TIME WEIGHTED RATE OF RETURN PAST MODEL PORTFOLIO PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS OF THE CLIENT PORTFOLIOS.

20 CLIENT COMMUNICATION Portfolio Disclosure: Clients can access their portfolio online on a daily basis with the given login id and password Newsletter: Fund Managers Commentary sent to all clients on a monthly basis Intellect: An in house Magazine on macro economic data sent to clients on a monthly basis Professor Simply Simple: An in house book on investor education series sent to clients on joining Tata PMS

21 Capital Flow Summary Portfolio Summary Asset Allocation Summary Trade transactions

22 RISK FACTORS Investments in securities are subject to market risks and include price fluctuation risks. There is no assurance or guarantee that the objectives of the Portfolios will be achieved. The investments may not be suited to all categories of investors. The past performance of the Portfolio Manager in any Portfolio is not indicative of future performance. Investors are not being offered any guaranteed or indicative returns through any of the Portfolios. The names of the Portfolios do not in any manner indicate their prospects or returns. The performance of the Portfolios may be adversely affected by the performance of individual companies, changes in the market conditions, micro and macro factors and forces affecting capital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestment risk. Derivatives / Futures and Options products are affected by various risks including but not limited to counter party risk, market risk, valuations risk, liquidity risks and basis risks. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives may require maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and other related capabilities. In the case of stock lending, risks relate to the defaults from counter parties with regard to securities lent and the corporate benefits accruing thereon, inadequacy of the collateral and settlement risks. The Portfolio Manager is not responsible or liable for any loss resulting from the operations of the Portfolios. Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. Non Diversified Portfolio tends to be more volatile than a diversified portfolio. In case of small / mid cap companies liquidity risks are likely to be high. Further prices of stocks in small / mid cap companies are also likely to be more volatile. Please read the Disclosure Document before investing.

23 THE BEST RELATIONSHIPS KEEP GROWING Thank You Tata Asset Management Ltd. 9th Floor, Mafatlal Centre, Nariman Point, Mumbai Toll Free : : (022) /86 : pmsservices@tata.com :