Presentation on theme: "QUANTUM ADVISORS PVT.LTD. September 2003. 2 About Us Portfolio management and investment advisory services is what we do First organization in India."— Presentation transcript:
QUANTUM ADVISORS PVT.LTD. September 2003
2 About Us Portfolio management and investment advisory services is what we do First organization in India to provide equity research services (1990) Registered with SEBI as a discretionary Portfolio Manager (1997) Currently advising FIIs in Indian equities and managing portfolios for individuals
3 Our History Offered advisory services to : Walden Nikko India Ventures Fund - US$ 25 million venture capital fund ( ) Prolific India Opportunities Fund – US$ 11 million open-ended fund. Prolific’s total exposure to the Indian market was over US$ 40 million ( ) Prior to 1995… Assisted global houses like Kleinwort Benson/Asian Capital Partners, Barings, and Jardine Fleming in their research on Indian equities
4 The Quantum Team Ajit Dayal, the founder of Quantum Advisors, has over 18 years of experience in the Indian capital markets and is regarded as one of the pioneers of investment analysis and money management in India. He has a Bachelor of Arts degree in Economics (Bombay University) and an MBA from The University of North Carolina at Chapel Hill. I. V. Subramaniam has 12 years of experience in the Indian capital markets and 8 years in investment analysis. He is a qualified lawyer, Company Secretary, and has a Diploma in Business Finance. R. Shankar has over 9 years of experience in financial services and 8 years in investment analysis. In the past, he has worked with Templeton Emerging Markets Group and BNP. He is a qualified Chartered Accountant and holds a Diploma in Finance from Indian Institute of Management, Bangalore.
5 Investment Style Intensive fundamental analysis: Our investible universe comprises of companies with strong fundamentals, mostly large to medium market cap companies. Typically, such companies can be found in the broader BSE 200 Index. Portfolio construction is based on “Active monitoring but not incessant churning”. Risk control is an integral part of our portfolio management process. We avoid speculation. The profile and risk preference of the client dictates the portfolio asset allocation.
6 Portfolio Construction Each client’s portfolio is a separately managed account This segregated structure enables us to customize the portfolio to meet the client’s investment objectives The structure of the portfolio can be broadly categorized as: Low risk Medium risk High risk.
7 Risk/Return Characteristics Low Risk Portfolio: In a low risk portfolio the investment philosophy would be to reduce the risk and set a lower target return. The portfolio would have less exposure to cyclical, technology, and media sectors and more exposure to defensive sectors like FMCG, banking, and utilities Medium Risk Portfolio: In a medium risk portfolio the investment philosophy would be to limit the risk and set a moderate target return. The portfolio would have comparatively more exposure to cyclical, technology, and media sectors and less exposure to defensive sectors like FMCG, banking and utilities. High Risk Portfolio: In a high risk portfolio the investment philosophy would be to increase the risk and set a high target return. The exposure to cyclical, technology, media & pharmaceuticals would be relatively more compared to defensive sectors like FMCG, banking & utilities.
9 Our Stock Selection Process Clients get best of bottom-up ideas with risk control measurements on sector basis < 40 stocks Portfolio of stocks that trend towards sector weights are selected for 3 types of portfolios: Low Risk, Medium Risk, High Risk Sector weights are also reviewed at same meeting Regular meetings to review ideas and approves stocks for database 100 stocks Analysts choose stocks in their sector Universe of stocks > 200 stocks
10 Returns Composite v/s Benchmarks 3 M (%)12 M (%)Since inception (%) August-00 Medium Risk Composite BSE-30 Index NSE-50 Index Alliance Equity Birla Advantage HDFC Growth N.A Templeton India Growth Source: own database, mutualfundsindia.com and trend
11 Returns Composite v/s Benchmarks
12 Performance Disclaimer Our past performance is no guarantee of future performance QAPL does not wish to convey any notion of guaranteed returns in the future. Investing in equity is a risky proposition as equity prices can increase or decrease in value. Investors wishing to ‘double their money’ in one year or having short term return objectives in mind should not seek the advice of QAPL as the investment style followed by QAPL typically considers a longer term horizon. This is not an offer to buy or sell any securities.
13 Advantages of Portfolio Management Portfolio Management v/s Own Management Portfolio Management v/s Mutual Funds
14 Portfolio Management v/s Own Management Expert Guidance Professional Management Ease of investment - No hassles of interacting with brokers, depository participants, bankers Record Keeping- Regular update of your portfolio Audited performance reports
15 Portfolio Management v/s Mutual Funds Your money gets individual attention Customization Regular feedback of portfolio performance Interaction with the fund manager
16 To be a client Documents required to register with QAPL: Resident Indian (RI) Non resident Indian (NRI) Foreign Institutional Investor (FII)
17 Resident Indian Application Form Savings account opening form Demat account opening form Individual client registration application form (off line broking) of Practical Financial Services Private Ltd. Power of Attorney to operate the Demat account Letter of Mandate to operate the bank account Signed copy of portfolio management agreement
18 Non Resident Indian In addition to the documents required from resident Indians: Permission from R.B.I. for purchase and sale of shares in Indian companies with or without repatriation benefits Date and cost of acquisition of shares An NRE/NRO account with a bank, exclusively for portfolio transactions
19 Foreign Institutional Investor Client to be registered with SEBI as an FII Agreement with QAPL
20 Fee Structure For Retail Clients Payable quarterly Exclusive of brokerage charges Exclusive of demat charges * US$ 1= Rs 50 Portfolio value (million)Fee structure (p.a.) Rs. 0.5 to 1US $ 0.01 to 0.02Rs. 10, 000 Rs. 1 to 10US$ 0.02 to 0.2*1.0% Rs. 10 to 30US$ 0.2 to % Rs. 30 to 50US$ 0.6 to % Rs. 50 and aboveUS$ 1.0 and above0.5%
21 Contact Us Mr I.V.Subramaniam or R.Shankar Directors Quantum Advisors Pvt. Ltd. 153, B-Wing Mittal Court Nariman Point Mumbai Tel: ( 91-22) , Fax:( 91-22) Website: Registered,Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993 Regn No:PM/INP 187