PMS advisory Note- Sept 2017sainathinvestment.com/wp-content/uploads/2017/09/PMS... · 2017-09-18 · Professional Management services Consistent Alpha on ... QGLP –The investment

Confidential: For Limited Circulation only

PMS advisory Note- Sept 2017


I. Benefits of Investing through PMS platform

II. Fund manager & managed PMS Strategies

III. MOSL bouquet of PMS offerings

IV. Performance update of PMS offerings

V. Risk Return Analysis

VI. Fee Schedule


Professional Management services

Consistent Alpha on benchmark

Managed Risk + Liquidity

Focused Strategies

(build around 15 to 25 stocks)

Consistent to Investment Style

Low Portfolio Churn

High engagement & transparency

Customization of fees

(Fixed Fees model or Profit sharing model)

Value proposition for Investors

Po

rtf

oli

o M

an

ag

em

en

t S

er

vic

es

Suitable for HNIs,

corporates, NRIs (except

USA & Canada).

Long term investment

Horizon 3 to 5 years.

Investment done

through cheque or

stock transfer.


Four key investment attributes:- Size of the opportunity | Earnings Growth | Value | Quality of Business.

QGLP – The investment philosophy has been framed out of 20 years of annual wealth creation studies authored by our co–

founder, Raamdeo Agrawal.

PMS Strategies revolve around….

Earnings Growth

Longevity

Value Quality of Management

Margin of Safety

Size of opportunity

Solid Business Model

Own Skin in the Game


ASK IM PMS:-We have ASK Investment Manager’s India Entrepreneur Portfolio.

MOAMC PMS:- We have offering of MOAMC’s 3 portfolios Value Strategy | India Opportunity Portfolio | Next Trillion Dollar

Opportunity Strategy

Fund Manager & managed PMS strategy.

Raamdeo Agrawal - Co-Founder & Joint MD,

MOFSL

Manish Sonthalia- Head Equity PMS & AIF,

MOAMC (Fund Manager)

Kunal Jadhwani- Co-Fund Manager,

MOAMC

Mythili Balakrishnan- Co-Fund Manager,

MOAMC

Bharat Shah- Executive Director, ASK Group

Prateek Agarwal- Business Head & CIO, ASK

Investment Managers

Sumeet Jain- Portfolio Manager, ASK

Data as on 31st Aug, 2017


Our bouquet of PMS offerings

VALUE IOP IEP NTDOP*

AMC Motilal Oswal AMC Motilal Oswal AMCASK Investment

ManagersMotilal Oswal AMC

Fund ManagerManish Sonthalia

Kunal JadwaniManish Sonthalia

Mythili BalakrishnanPrateek Agarwal

Sumeet JainManish Sonthalia

Kunal Jadwani

AUM (Cr.) Approx. 2,606 3,305 5,939 5,919

Earning Growth Style

Superior Business Model

Quality of Management

Company's Promoter Stake

Valuation

Focused Portfolio

No. of Stocks 15 20 20 24

Market Cap Style Large Cap Mid & Small Cap Multi Cap (60 L:40 M) Multi Cap (60 L:40 M)

Risk-Return Profile Medium High Medium to High Medium to High

Data as on 31st Aug, 2017 L:M- Large Cap : Mid Cap

*Currently, we are accepting additional application in NTDOP Strategy for MOAMC PMS existing clients.


A comprehensive basket of PMS offerings

Value Strategy

• Large Cap Portfolio

• Focused portfolio

approach

• Currently strategy has 15

stocks in its portfolio.

• Buy Right & Sit Tight

approach to stock

investing

• Multi Cap Portfolio

• The portfolio consist

of 20 stocks.

• The Strategy is built

primarily on

entrepreneur

concept.

• Investments with

Long term

perspective.

• Mid & Small Cap

Portfolio

• Focus Theme for Next

Five year

• Investments with Long

term perspective.

• The portfolio consist

of 20 stocks.

India Opportunity Portfolio

India Entrepreneur Portfolio

Next Trillion Dollar Opportunity Strategy*

• Multi Cap Portfolio

• The portfolio consist of

24 stocks.

• Buy Right & Sit Tight

approach to stock

investing

*Currently, we are accepting additional application in NTDOP Strategy for MOAMC PMS existing clients.

MOSL PMS product bouquet



Value Strategy- PMS

● Buy Right & Sit Tight approach to stock investing

● Value PMS has delivered 25.06% annualized returns since

inception versus 17.12% of Nifty 50; INR 1 Cr. invested in Value

PMS in March 2003 is worth INR 25.31 Cr versus INR 9.81 Cr in

CNX Nifty.

● Focused portfolio approach, currently strategy has 15 stocks in its

portfolio.

Returns is as on 31st August, 2017

MOAMCMOAMC

PerformancePerformance(%ge) Value of 1 cr. invested

Value PMS Nifty 50 Value PMS Nifty 50

1 Month -0.38 -1.58 1.00 0.98

3 Months 4.48 3.08 1.04 1.03

6 Months 14.39 11.69 1.14 1.12

1 Year 13.44 12.88 1.13 1.13

2 Year 10.65 11.54 1.22 1.24

3 Year 14.64 7.63 1.51 1.25

4 Year 24.45 16.03 2.40 1.81

5 Year 17.88 13.53 2.28 1.89

Since Inception 25.06 17.12 25.31 9.81

Portfolio (Top 10 Stocks)

Scrip Name (%) of Market value

HDFC Bank Ltd. 9.81

Bharat Petroleum Corpn. Ltd 9.19

Eicher Motors Ltd. 8.99

Bosch Ltd. 7.68

Kotak Mahindra Bank Ltd. 7.44

Asian Paints Ltd. 7.09

Housing Development Finance Corporation Ltd. 6.60

Bajaj Finserve Ltd. 5.94

InterGlobe Aviation Ltd. 5.81

AU Small Finance Bank 5.62

Top 5 sectors

Sector Name (%) of Market value

Banking & Finance 35.40

Auto & Auto Ancillaries 27.20

Oil and Gas 9.19

FMCG 7.09

Airlines 5.81

Inception Date Benchmark Fund Manager

24-Mar-03 Nifty 50 IndexMr. Manish SonthaliaMr. Kunal Jadhwani


IOP Strategy- PMS

● The Strategy aims to generate long term capital appreciation by creating a

focused portfolio of high growth stocks having the potential to grow more

than the nominal GDP for next 5-7 years

● The Strategy at present has a concentration in 20 stocks.

● Focus Theme for Next Five year: REVIVAL IN CAPEX CYCLE | MAKE IN INDIA

| THIRD TRILLION DOLLAR OPPORTUNITIES

● Investments with Long term perspective.

● In last 1 year, IOP PMS has delivered positive return of 33.68% versus

18.91% of Nifty Midcap100.


MOAMC


IOP PMSNIFTY

Midcap100IOP PMS

NIFTY Midcap100

1 Month -1.58 -1.28 0.98 0.99

3 Months 0.40 4.38 1.00 1.04

6 Months 15.76 10.90 1.16 1.11

1 Year 33.68 18.91 1.34 1.19

2 Year 27.94 18.30 1.64 1.40

3 Year 28.43 18.04 2.12 1.65

4 Year 32.64 29.05 3.10 2.78

5 Year 24.47 20.93 2.99 2.59

Since Inception 18.09 13.04 3.51 2.52



Development Credit Bank Ltd. 9.76

Birla Corporation Ltd. 9.21

Quess Corp. Ltd. 6.88

Canfin Homes Ltd. 6.77

Aegis Logistics Ltd. 6.47

Gabriel India Limited 6.39

AU Small Finance Bank 5.94

Mahanagar Gas Ltd. 5.51

Kajaria Ceramics Ltd. 5.46

Ttk Prestig 5.08

Top 5 sectors



Cement & Infrastructure 12.34

Oil and Gas 11.98

Consumer Durable 10.54

Pharmaceuticals 9.98


15-Feb-10Nifty Midcap

100 IndexMr. Manish Sonthalia

Ms. Mythili Balakrishnan


ASK IEP Strategy- PMS

● The strategy is market cap agnostic and builds portfolio which has

companies with more than 25% promoter holdings, high ROCE & high non-

dilutive compounded EPS. Identify business with competitive advantage

that is significant sized (min. 100 Cr. PBT). The Strategy is built primarily on

entrepreneur concept.

● The portfolio consist of 20 stocks.

● Investments with Long term perspective.

● In last 3 years, IEP PMS has delivered positive return of 19.50% versus

10.80% of BSE 500.


ASK IM


IEP PMS BSE 500 IEP PMS BSE 500

1 Month 0.40 -1.00 1.00 0.99

3 Months 6.30 4.30 1.06 1.04

6 Months 16.00 13.00 1.16 1.13

1 Year 14.00 16.30 1.14 1.16

2 Year 14.60 14.30 1.31 1.31

3 Year 19.50 10.80 1.71 1.36

4 Year 30.80 19.80 2.93 2.06

5 Year 27.30 15.70 3.35 2.07

Since Inception 21.40 10.00 4.37 2.06



Bajaj Finance Ltd. 8.60

Bajaj Finserve Ltd. 7.40

IndusInd Bank Ltd. 6.73

Britannia Industries Ltd. 6.07

Motherson Sumi Systems Ltd. 5.89


Cholamandalam Investments 5.63

M R F Ltd. 5.14

Page Industries Ltd. 4.79

Astral Poly Technik Ltd. 4.71

Top 5 sectors



FMCG 19.49


Pharmaceuticals 5.49

Plastics 4.71


25-Jan-10BSE 500 Index

NIFTY IndexMr. Prateek Agrawal

Mr. Sumit Jain


NTDOP Strategy- PMS

● The strategy aims to deliver superior returns by investing in

focused themes which are part of the next trillion dollar GDP

growth opportunity. It aims to predominantly invest in small &

mid cap stocks with a focus on identifying emerging stocks/

sectors.

● The portfolio consist of 24 stocks.

● In last 3 years NTDOP PMS has delivered positive return of

30.33% versus 18.04% of Nifty Midcap100.

Returns is as on 31st August, 2017 MOAMC


NTDOP PMSNIFTY

Midcap100NTDOP PMS

NIFTY Midcap100

1 Month -0.10 -1.28 1.00 0.99

3 Months 5.26 4.38 1.05 1.04

6 Months 15.40 10.90 1.15 1.11

1 Year 17.58 18.91 1.18 1.19

2 Year 19.15 18.30 1.42 1.40

3 Year 30.33 18.04 2.22 1.65

4 Year 40.79 29.05 3.93 2.78

5 Year 33.76 20.93 4.29 2.59

Since Inception 19.19 8.22 5.53 2.16



Kotak Mahindra Bank Ltd. 10.71

Bajaj Finance Ltd. 9.13

Voltas Ltd. 8.61

Page Industries Ltd. 7.37


Max Financial Services Ltd. 5.48

Bosch Ltd. 5.40

Hindustan Petroleum Corporation Ltd. 5.22

Godrej Industries 4.43

City Union Bank Ltd. 4.24

Top 5 sectors




FMCG 15.00

Diversified 13.04

Oil and Gas 7.32


11-Dec-07Nifty Midcap

100 IndexMr. Manish Sonthalia

• Note: Currently, we are accepting additional application in NTDOP Strategy for MOAMC PMS existing clients.


1. Duplication of stocks are limited across our offerings.

2. Concentrated portfolio with 15 to 25 stocks ideas.

3. Exposure to companies in line with investment theme.

Stock Universe of our PMS offerings

Stock Universe No. of Stocks

Universe of Stocks 79

Unique no. of Stocks across PMS offerings

63

Stocks common across PMS offerings

14

Strategies(Total No. of stocks)

VALUE (15) IOP (20) IEP (20) NTDOP (24)

VALUE (15) 7 (47%) 1 (6%) 3 (18%) 2 (12%)

IOP (20) 1 (6%) 16 (81%) 0 (0%) 3 (12%)

IEP (20) 3 (15%) 0 (0%) 12 (57%) 3 (17%)

NTDOP (24) 2 (9%) 3 (6%) 3 (21%) 14 (45%)

Note : Unique stocks & allocation mentioned in highlighted cells

Data as on 31st August, 2017


Large Cap: >20,000 Cr. | Mid Cap: 19,999 Cr.-3,000 Cr. | Small Cap: <3,000 Cr.

Weighted average market cap calculated of all the Portfolio

Market Cap Style

Source: Capital LineData as on 31st August, 2017

54,448.18

61,256.35

8,224.52

5,86,548.83

NTDOP

IEP

IOP

Value

Market Cap

72%

75%

4%

94%

28%

25%

83%

6%

12%

NTDOP

IEP

IOP

Value

Large Cap Mid Cap Small Cap


Performance Track Record 1/2

25.28x in Value PMS vs 9.81x in NIFTY since March 2003 (14 years)

3.51x in IOP PMS vs 2.52x in NIFTY Free Float Midcap 100 since Feb 2010 (7 years)

4.36x in ASK IEP PMS vs 2.06x in BSE 500 & 1.98x in NIFTY since Jan 2010 (7 years)

5.53x in NTDOP PMS vs 2.16x in NIFTY Midcap 100 since Dec. 2007 (9 years)

Returns as on 31st Aug, 2017

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

Mar

-12

Mar

-13

Mar

-14

Mar

-15

Mar

-16

Mar

-17

Value Benchmark

NTDOP Benchmark

Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17

IOP Benchmark

IEP NIFTY BSE 500


Performance Track Record 2/2

VALUE IOP IEP NTDOP

FY-04 153% -- -- --

FY-05 28% -- -- --

FY-06 82% -- -- --

FY-07 -2% -- -- --

FY-08 29% -- -- -25%

FY-09 -29% -- -- -38%

FY-10 81% 9% 1% 117%

FY-11 12% 8% 22% 10%

FY-12 3% -1% 3% 12%

FY-13 0% 0% 13% 16%

FY-14 21% 21% 34% 40%

FY-15 61% 53% 73% 72%

FY-16 -10% -9% -5% 2%

FY-17 19% 60% 24% 38%

FY-18* 10% 11% 11% 11%

VALUE IOP IEP NTDOP

CY-03 154% -- -- --

CY-04 23% -- -- --

CY-05 64% -- -- --

CY-06 24% -- -- --

CY-07 52% -- -- --

CY-08 -44% -- -- -53%

CY-09 74% -- -- 110%

CY-10 20% 28% 29% 23%

CY-11 -12% -25% -13% -19%

CY-12 23% 36% 30% 57%

CY-13 3% 2% 22% 18%

CY-14 58% 48% 70% 78%

CY-15 0% 5% 8% 16%

CY-16 2% 26% 6% 13%

CY-17* 25% 35% 27% 31%

VALUE IOP IEP NTDOP

Q1FY16 -3% 3% 1% 11%

Q2FY16 -6% -6% -4% -4%

Q3FY16 1% -1% 1% 0%

Q4FY16 -2% -5% -2% -4%

Q1FY17 7% 10% 10% 12%

Q2FY17 7% 27% 10% 16%

Q3FY17 -9% -5% -11% -10%

Q4FY17 14% 20% 14% 17%

Q1FY18 3% 13% 6% 6%

Q2FY18* 6% -2% -5% 5%

VALUE IOP IEP NTDOP

Nov-16 -6% -9% -9% -9%

Dec-16 -2% -4% -3% -4%

Jan-17 5% 7% 6% 8%

Feb-17 4% 8% 3% 5%

Mar-17 4% 4% 5% 4%

Apr-17 2% 7% 5% 3%

May-17 3% 4% 0% 2%

Jun-17 -2% 3% 1% 0%

July – 17 7% 0% -1% 5%

Aug- 17 -0.4% -1% 0% 0%

Fin

anci

al Y

ear

on

ye

ar P

erf

orm

ance

Q-O

-Q P

erf

orm

ance

up

dat

eM

-O-M

Pe

rform

ance

Cale

nd

ar Y-O

-Y P

erfo

rman

ce

Returns as on 31st Aug, 2017* FY-18 is as on 31st Aug 2017 | CY-17 is as on 31st Aug 2017


Data as on 31st August 2017, Average 1 yr rolling return has been calculated on daily basis Risk free rate has been taken as 7%. Past

performance may or may not be sustained in future

Risk return parameter of all the strategy based on its benchmark

Risk Return analysis

Risk parameter VALUE IOP IEP NTDOP Interpretation

3 years average rolling return 14% 26% 19% 27% Higher the better

Standard Deviation 15% 17% 15% 17%Lower the better

(volatility Risk)

Beta (Slope) 0.96 0.83 0.92 0.88Lower the better

(Market Risk)

Jensen's (Alpha) 6% 10% 8% 11%

Higher the better

Information Ratio 0.95 1.56 1.23 1.60

Sharpe Ratio 0.49 1.14 0.77 1.19

Treynor Ratio 8% 23% 13% 23%

Data as on 31st August, 2017


*HWM- Higher Water Mark

Fees Schedule

Fee Schedule

VALUE IOP IEP NTDOP

Fixed Fees Variable Fees Fixed Fees Variable Fees Fixed Fees Fixed Fees Variable Fees

Set Up Fees Upto 2% Upto 2% Upto 2% Upto 2% Upto 2% Upto 2% Upto 2%

Management Fees 2.50% 1.50% 2.50% 1.50% 2.50% 2.50% 1.50%

Custodian Fees 0.25% 0.25% 0.25% 0.25% 0.05% 0.25% 0.25%

Performance Base Fees NA

If profit <15%; 15% profit share above 10% PA on

HWM*NA


HWM*NA NA


HWM*

If profit >=15%; 20% profit share above 10% PA on

HWM*


HWM*


HWM*

Depository Charges

As applicable at actualsBrokerage

Other Statutory levies



Motilal Oswal Securities Ltd. (MOSL) Member of NSE, BSE & MSEI - CIN no.: U65990MH1994PLC079418

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com.

Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Registration Nos.: NSE (Cash):

INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE(Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSEI(Cash): INB261041231; MSEI(F&O): INF261041231;

MSEI(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset

Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOSL. Motilal Oswal Wealth

Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML which is a group company of MOSL. *Motilal Oswal Securities Ltd. is a distributor of Mutual

Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPOs. *Commodities are offered through Motilal Oswal Commodities Broker Pvt. Ltd. which is a group company of MOSL. *Real Estate is

offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. *Private Equity is offered through Motilal Oswal Private Equity Investment

Advisors Pvt. Ltd which is a group company of MOFSL. *Research & Advisory services is backed by proper research and does not pertain to purchase or sale of any particular commodity. Please

read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Details of Compliance Officer: Name: Neeraj

Agarwal, Email ID: [email protected], Contact No.:022-30801085. **Business Partner is an authorized sub-broker Motilal Oswal Securities Ltd. ^Account would be open after all procedure

relating to IPV and client due diligence is completed. ^Accounts would be open by using esign and all proofs would be collected in soft form.

* AUM Mentioned here is combined AUM of MOSL in all investment Products ( PMS, MF, fixed income, IREF)

Products mentioned in presentation are Third party product offered by MOSL

Investment in securities market are subject to market risk, read all the related documents carefully before investing.

18

Thank You !

http://www.motilaloswal.com/

mailto:[email protected]

Documents

PMS advisory Note- Sept 2017sainathinvestment.com/wp-content/uploads/2017/09/PMS... · 2017-09-18 · Professional Management services Consistent Alpha on ... QGLP –The investment