tata portfolio management services
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TATA PORTFOLIO MANAGEMENT SERVICES
TATA ASSET MANAGEMENT LTD.For Private Circulation
THE TATA GROUP
One of India’s largest business Group
Diverse businesses in 7 sectorsDiverse businesses in 7 sectors
Operations in over 80 countries
Products and services exported to over 85 countriesProducts and services exported to over 85 countries
Largest employer in private sector with over 400,000 employees
Source: www.tata.com
AMONG TOP 50 GLOBAL BRANDS
Source : Financial Express, Issue dated: 22nd March, 2011
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 excellenceof USA for business excellence
International business
Serve India‐investments of investors from Japan, Europe & middle east through p , p g
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.
INTRODUCING…
TATA PORTFOLIO MANAGEMENT SERVICESServing investment needs across asset classServing investment needs across asset class
OUR GUIDING PHILOSOPHY
“What comes from the
people should go back topeople should go back to
them many times over”
‐ J R D Tata
PORTFOLIO MANAGEMENT SERVICES
An investment solution across asset classes to meet specific investment objectives
Possibility of portfolio diversification within broad asset classesBenefits Availability of professional expertise to manage investments
Personalized Investment Service
S it bilitHigh Net worth IndividualsNRISuitability NRIsCorporate/Institutions
Regulator SEBIegu ato S
‘ TRUST’ – OUR GUIDING PRINCIPLES
Transparency: : Aimed at developing and nurturing long standing relationships p y p g g g g p
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 situationsin companies and situations
Service : Aimed at bringing in a high degree of personalization to provide
bespoke investment solutions backed by round‐the‐clock servicesp y
Technology: Latest & best technology to complement strengths in intellectual
capital and services through complex portfolio, cross‐sectional analysis software
& online access
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
f l k f lPortfolio Tracking: Continuous portfolio monitoring
Convenience: Access you account @ www.tatapms.com
Transparency: In all dealings with stakeholdersTransparency: In all dealings with stakeholders
Dedicated Relationship Manager: The one point contact for personalized services
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
INVESTMENT PROCESS
INVESTMENT SOLUTIONS ‐ BLUE CHIP PORTFOLIO
Investment objective Generate capital appreciation with relatively lower risk over the long term
Investment Style Portfolio will be managed in a conservative fashion and will be diversified across various sectors of the Indian economy
Benchmark BSE SensexBenchmark BSE Sensex
Type Open‐Ended
Investment horizon Minimum 2 years suggestedInvestment horizon Minimum 2 years suggested
Internal Risk Control Investment limit in a single stock : 10%Investment limit in a single sector : 30%g
INVESTMENT SOLUTIONS ‐ BLUE CHIP PORTFOLIO
Characteristics Companies’ which have gone through various business cycles
Companies’ would be leaders in their respective industryCompanies would be leaders in their respective industry
Management of these companies would have a long and
consistent track record
F d t ll t fi i l tFundamentally strong financial 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
INVESTMENT SOLUTIONS ‐EMERGING OPPORTUNITIES PORTFOLIO
Investment objective
Generate capital appreciation with relatively higher risk over the long term
Investment Style 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
Benchmark BSE 200
Type Open‐Ended
Investment horizon Minimum 3 years suggested
Internal Risk Control
Investment limit in a single stock : 10%Investment limit in a single sector : 30%g
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
opportunitiesopportunities
We are looking at tomorrow’s potential blue chips
Market‐cap not a constraint for stock selection
INVESTMENT SOLUTIONS –CONSUMPTION PORTFOLIOCONSUMPTION PORTFOLIO
Investment objective
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
Investment Style 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%Internal Risk Control
Investment limit in a single stock : 10%Investment limit in a single sector : 35%
INVESTMENT SOLUTIONS –CONSUMPTION PORTFOLIO
Characteristics Portfolio will endeavor to capture the transformational changes of the Indian economy on the basis of changing demographic
CONSUMPTION PORTFOLIO
profile, rapid urbanization and resilience of rural demand
Consumption theme has wide sectoral scope which includes sectors like Auto Consumer Durables & Non durables Educationsectors like Auto, Consumer Durables & Non‐durables, Education services, Healthcare services, Media & Entertainment, Retailing etc…
Companies possessing sustainable competitive advantages andbrand loyalty
Key Portfolio Terms
Suggested Minimum Investment
Rs. 25 lakhs at time of initial investment
Set Up Fees Upto 2.00%
PMS Management 2 50% p a / charged quarterly on average AUM
Fees2.50% p.a. / charged quarterly on average AUM
Termination Fees (% of AUM)
0‐12 months : 2 %12‐24 months: 1 %,
(% of AUM)Above 24 months :Nil
Partial Withdrawal NIL(Any withdrawal amount over and above the capital
Fees(Any withdrawal amount over and above the capital contribution)
MODEL PORTFOLIO PERFORMANCES AS ON 30th November 2012 30 o e be 0
Returns (%) 1 month 3 month 6 month 1 year 3 year 5yearSince Inception
(April’06)Returns (%) 1 month 3 month 6 month 1 year 3 year 5year (April 06)
Blue Chip Portfolio
Absolute Returns Annualized Returns
Portfolio 4.00 10.78 21.58 26.67 8.54 4.79 10.30
BSE Sensex 4.51 10.96 19.25 19.95 4.54 ‐0.02 8.42
Absolute Returns
Portfolio 4.00 10.78 21.58 26.67 27.88 26.33 92.19
BSE Sensex 4.51 10.96 19.25 19.95 14.26 ‐0.12 71.45
Emerging Opportunities Portfolio
Absolute Returns Annualized Returns
Portfolio 5.21 12.66 25.40 31.67 12.06 6.24 10.54
BSE 200 4.98 12.50 19.29 22.35 4.31 ‐0.53 8.20
Absolute Returns
Portfolio 5.21 12.66 25.40 31.67 40.73 35.34 95.00
BSE 200 4.98 12.50 19.29 22.35 13.49 ‐2.64 69.15
Consumption Portfolio
Absolute ReturnsSince Inception
(Dec'10)
Portfolio 6 75 14 60 26 56 36 48 NA NA 33 08
PERFORMANCE DEPICTED ABOVE ARE MODEL PORTFOLIO PERFORMANCE CONSTRUCTED USING TIME WEIGHTED RATE OF RETURNPAST MODEL PORTFOLIO PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS OF THE CLIENT PORTFOLIOS.
Portfolio 6.75 14.60 26.56 36.48 NA NA 33.08
S&P CNX Nifty 4.63 11.82 19.41 21.68 NA NA 0.29
CLIENT COMMUNICATION
Portfolio Disclosure: Clients can access their portfolio online on a daily basis with the given login id and passwordthe 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
www.tatapms.com
Capital Flow Summary
Portfolio Summary
Asset Allocation Summary
Trade transactions
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 ofThe investments may not be suited to all categories of investors. The past performance ofthe Portfolio Manager in any Portfolio is not indicative of future performance. Investors arenot being offered any guaranteed or indicative returns through any of the Portfolios. Thenames of the Portfolios do not in any manner indicate their prospects or returns. Theperformance of the Portfolios may be adversely affected by the performance of individualcompanies changes in the market conditions micro and macro factors and forces affectingcompanies, changes in the market conditions, micro and macro factors and forces affectingcapital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestmentrisk. Derivatives / Futures and Options products are affected by various risks including butnot limited to counter party risk, market risk, valuations risk, liquidity risks and basis risks.Derivative products are specialized instruments that require investment techniques and riskanalysis different from those associated with stocks and bonds. The use of a derivativerequires an understanding not only of the underlying instrument but also of the derivativeitself. Derivatives may require maintenance of adequate controls to monitor thetransactions entered into, the ability to assess the risk that a derivative adds to the portfolioand other related capabilities. In the case of stock lending, risks relate to the defaults fromp g,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 responsibleor liable for any loss resulting from the operations of the Portfolios. Each portfolio will beexposed to various risks depending on the investment objective, investment strategy andthe asset allocation Non‐Diversified Portfolio tends to be more volatile than a diversifiedthe asset allocation. Non‐Diversified Portfolio tends to be more volatile than a diversifiedportfolio. In case of small / mid‐cap companies liquidity risks are likely to be high. Furtherprices of stocks in small / mid‐cap companies are also likely to be more volatile. Please readthe Disclosure Document before investing.
THE BEST RELATIONSHIPS KEEP GROWING…
Thank You
Tata Asset Management Ltd.
f9th Floor, Mafatlal Centre,
Nariman Point, Mumbai – 400 021
Toll Free : 1800‐209‐0301
: (022) 6615 7987/86
: [email protected] : www.tatapms.com