PORTFOLIO MANAGEMENT

PUNEET ADVISORY SERVICES PVT LTD. [PASL] is licencsed by the Securities and Exchange Board of India to provide Portfolio Management Services to all the entities in India and Non-Resident Indians as well as to the Foreign Institutional Investors [FIIs].

Since its inception in 1995, PASL has focused on key asset management areas like Money Market, Equity Funds management, Off-shore Funds Advisory services along side its other investment banking activities. PASL has been managing the funds to the tune of USD25 MILLION consistently for over last 10 years. PASL expertise includes Government Securities, Corporate Bonds, Equities and Equity-linked instruments. PASL was appointed as the Indian Investment Advisor to a UK based FII in 1997 for its USD 50 MN Debt Fund and for that purpose, PASL, was approved as investment advisor by London Stock Exchange. PASL management has deep insights and experience in the Indian capital and money market which results into the better portfolio management for its clients who are High Net Worth Individuals, Corporates, Banks, Institutions and even Pension Funds.

PASL’s vision is to emarge as a leading professional asset manager providing capital and risk solutionsl to global clients, excelling against benchmarked performance in fund management, with a high level of client service.

PALS is a profit making private company and has developed a unique concept of portfolio management by adopting a fund of funds approach.  

DISCRETIONARY AND NON-DISCRETIONARY PORTOFOLIO

The portfolio management services [PMS] can be both discretionary and non discretionary. In the former case, PASL would be taking investment decision on its own and in the latter case there would be a prior approval of its client for each and every buy and sell decision.

SALIENT FEATURES OF PASL PMS:

1. Eligible to Manage Pension Funds (Provident & Gratuity Funds)
2. Manages Equity Investments
3. Advisory Services in Treasury Management, money market, investment strategies, risk management and helping clients develop systems and processes in financial services.
4. Multi-Manager System of PMS meaning thereby that PASL involves the services of the best Portfolio Managers in the country to manage its clients’ portfolio thereby spreading the risk and taking advantage of the best talent of fund managers available in the market. PASL remains completely involved in monitoring and rating these various funds managers purely on the performance thereby maximizing the returns on investment to its esteemed clients.
5. Proprietary Software and Risk Management System in Place.
6. Strong Research group to constantly watch the events in every sector and in every company in capital market.
7. Excellent Reporting Standards.
8. Excellent Corporate Governance by remaining away from Broking business. Achieving Return by investment and not by churning.

Investment Strategy and Methodology:

In case of all discretionary portfolios, we adopt the bottoms-up approach of investment. There is a heavy reliance on the research and stock-picking abilities of our fund managers. All investments ideas are generated based on historical and forecast numbers using models including proprietary models. The investment style can be both aggressive as well as the conservative depending upon the client’s desire and the fund manager’s style. The client can have the option to invest in the derivatives as well as in the stocks. In case of investment in derivatives, there will be an element of higher risk coupled with the higher return as well as the position taking in long as well as shorts.

The likely investment strategy of our fund managers in Equity Market can be summed up as:

1. Bottom-up based Fundamental Research. Invest in specific companies rather than broad themes and attempt to uncover undervalued growth opportunities early.
2. Focus on high growth companies in th early and middle stages of their life cycles. Utilising focused research, takes advantage of price inefficiencies in the market, identifying companies that will benefit from the changing Indian economic environment.
3. Occasionally use top-don approach by looking at the usual macro-economic factors, including exchange rates and then culminating in sector selection.
4. Seek long positions in long-term growth stocks, value stocks, and restructuring stories.
5. On futures, on the short side, look for overvalued companies with pedestrian growth, companies with problematic business models and those that possess event driven catalysts. Opportunistic shorting is occasionally performed.
6. Investment strategy will be quantitative market neutral strategies; stock valuation model will assess a stock’s fair value based on fundamental variables. For example, past earnings per share, anaylsts’ consensus forecast, 10 year Bond Yield, current price, EPS momentum, liquidity, market capitalization and seasonality. Emphasis on quality earnings growth, free cash flow, strong balance sheets and shareholder oriented management teams.
7. PASL itself will all the time monitor and basic factors such as political developments, monetory policies, currency fluctuations and equity market valuations.
8. Continuing focus on Indian small and mid-cap investments with particular strengths in the consumer product and retail sectors.

The likely Investment Strategy for our Fund Managers in Debt Market can be summed up as :

1. Guidelines for selection are fundamental credit analysis-know companies and industries, diversification. Capitalize on improving sovereign credit risks worldwide.
2. Distressed securities investing, following a “top-down” approach on sectors as well as “bottom-up” approach on individual investments.
3. Risk Arbitrage, Special Situations corporate bonds.
4. Consistently out perform the Index through investments in a diversified portfolio or non-sovereign fixed income securities, such as fixed-rate and floating-rate debt instruments with asset-backed securities.
5. Trade in interest rate instruments, undertake fundamental analysis along with price and market analysis.
6. Advising on SLR securities as per RBI guidelines.
7. Investing on YTM rather than current yield basis.

The common philosophy among our all investment managers is the Prudence and diligence to support our clients’ financial goals. The portfolio is constantly reviewed to analyzes the performance of the portfolio versus given portfolio benchmarks and accordingly maintain positions.

Performance numbers of one of our STAR Investment Managers for the last two years in its Equity Portfolio:

HOW DO YOU INVEST IN PASL PMS?

The procedure is quite simple. If you have a portfolio of securities or the Funds valued at RS.50 Lacs and above [USD100000], please drop an email to us at pms@puneetindia.com and we will revert back to you immediately.

The Basic procedure is as under:

1. Enter MoU with PASL to open PMS account as per SEBI rules.
2. Execute necessary power of attorney in favour of PASL to take buy/sell decisions.
3. Deposit securities/Funds to the PMS account.
4. Receive regular MIS and reports from PASL.

You have a range of PMS products to choose from which include even the Capital protection schemes. You can also choose a range of investment products to choose from like private equity funds, real estate funds, mutual funds, corporate short term papers and so on. The investment product and PMS product selection will depend upon the time horizon, risk appetite and liquidity requirements of the investor. PASL can advise you on how to choose the right PMS product and a right investment product.

Contact: pms@puneetindia.com