NJ Equity PMS NJ Equity PMS Multi Cap Portfolio Dynamic Stock - - PowerPoint PPT Presentation

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NJ Equity PMS NJ Equity PMS

April 30th, 2016

Multi Cap Portfolio Dynamic Stock Allocation Portfolio

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NJPMS ADVISOR NJPMS ADVISOR

DETAILS OF

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ARTHVEDA FUND MANAGEMENT (AVFM) ARTHVEDA FUND MANAGEMENT (AVFM)

Fund Management Arm of DHFL Group Fund Management Arm of DHFL Group (NSE: DHFL, Rating: AAA by CARE) (NSE: DHFL, Rating: AAA by CARE)

DHFL Group: Leading Financial Services Group with AUM of > $14 bn Housing Finance: DHFL (3rd largest housing finance company in India ), Aadhar (JV with IFC Washington, World Bank Subsidiary), First Blue Home Finance (Formerly Deutsche Bank Post Home Finance)

Mutual Fund: DHFL Pramerica Mutual Fund – JV between DHFL and Prudential Financial (NYSE: PRU). DPMF has acquired Deutsche Asset Management (India) in 2015. Life Insurance: DHFL Pramerica Life Insurance – JV between DHFL and Prudential Financial (NYSE: PRU)

Asset Management: ArthVeda Fund Management (AVFM) Other Financial Services: Educational loans through Avanse Financial Services

Traded Markets (ArthVeda Capital)

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ARTHVEDA CAPITAL ARTHVEDA CAPITAL

ArthVeda Capital, a global asset manager specializes in creating structured value investing strategies designed to generate high return with low risks for Ultra HNIs, Pension Funds and Family Offices



Value investing: followed by renowned investors like Warren Buffett, Peter Lynch, Ben Graham, John Templeton who have consistently multiplied capital by investing at a discount to intrinsic value



It has also been rigorously evaluated to generate excess returns by Nobel prize winners and academicians like Eugene Fama, Robert Shiller, French and others The team at ArthVeda Capital through intense research and rigorous evaluation has distilled over the years, various value investing principles into a structured proprietary value investment strategy that broadly falls under the Smart Beta umbrella but consistently beats market and generates superior returns Strategy model audited by Ernst & Young and Deloitte. Daily NAV’s live on Reuters for public tracking. Strategies deliver returns that beat indices, active funds and Smart Beta variants.

Value Investing Smart AlephTM Best In Class Offering

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• Vikas is the inventor and architect of the Smart Aleph concept. He espouses a value-oriented investment

philosophy, in the mold of Graham-Buffett.

• He has 20+ years of experience in research, strategy and operations in various CxO-level roles.
• He formerly served as Professor and research faculty at IIT Kharagpur and University of California, Irvine. He

has a B.Tech from IIT Bombay and earned his Masters and Doctorate from Columbia University, New York.

• Varun is devising and rigorously analyzing and evaluating structured value-investing strategies.
• He brings in nearly a decade of quantitative experience and a scientific approach to the value-chain of

investment strategy design, development and management. Previously, he has worked at ING and Masan group .

• He has a B.Tech from IIT Roorkee and earned his MBA from IIM Bangalore and EDHEC School of Business,

France.

Ashwini Shami: Vice President & Senior Portfolio Manager

• Ashwini is managing portfolios, devising asset allocation and investment strategies.
• He brings in more than a decade of experience in the financial services industry. Before ArthVeda, he was

working with Goldman Sachs as equity research analyst. His expertise lies in developing investment strategies to harvest returns by focusing on intrinsic business value.

• He has a B.Tech and M.Tech from IIT Bombay and earned his MBA from IIM Lucknow and Toulouse Business

School, France.

Varun Sood: Vice President & Portfolio Manager

• Dr. Vikas V. Gupta: Executive Vice President & Chief Investment Officer

INVESTMENT MANAGEMENT & RESEARCH TEAM INVESTMENT MANAGEMENT & RESEARCH TEAM

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• Viraj is developing investment products and evaluating investment strategies.
• He brings in several years of experience in conducting fundamental investment research and maintenance
• f portfolio models. Prior to ArthVeda, Viraj was working with J.P. Morgan as equity research analyst.
• He has a B.Tech and M.Tech from IIT Bombay and earned his MBA from ISB Hyderabad.

Vishap Rana: Assistant Vice President & Investment Manager Kshitij Gupta, CFA: Vice President & Portfolio Manager

• Vishap is analyzing investment strategies and assisting in product development.
• He brings in several years of experience in investment banking and value-oriented investment research.

Earlier, he was working with European hedge fund, Shannonside Capital.

• He has a B.Tech from IIT Roorkee and earned his MBA from XLRI Jamshedpur.

Viraj Vajratkar: Assistant Vice President & Investment Manager

• Kshitij has many years of experience in financial service industry, including JP Morgan.
• He has a rich experience of performing equity research on stocks in emerging market
• Kshitij has a B.Tech & M.Tech from IIT Kharagpur and is a CFA charter holder

INVESTMENT MANAGEMENT & RESEARCH TEAM INVESTMENT MANAGEMENT & RESEARCH TEAM

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NJPMS MULTI CAP PORTFOLIO NJPMS MULTI CAP PORTFOLIO

Adviced by

PRESENTING

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STRATEGY SNAPSHOT STRATEGY SNAPSHOT

Note:The current fund philosophy may change in future depending on market conditions or fund manager’s views.

A strategy that seeks to achieve long term capital A strategy that seeks to achieve long term capital growth by investing in a select portfolio of best 25 growth by investing in a select portfolio of best 25 stocks from across the Indian equity market stocks from across the Indian equity market

STRATEGY STRATEGY INDIAN EQUITY MARKET INDIAN EQUITY MARKET

ULTRA ULTRA LARGE LARGE CAP CAP UNIVERSE UNIVERSE LARGE LARGE CAP CAP UNIVERSE UNIVERSE MID MID CAP CAP UNIVERSE UNIVERSE SMALL SMALL CAP CAP UNIVERSE UNIVERSE

BEST 25 INVESTMENT OPPORTUNITIES BEST 25 INVESTMENT OPPORTUNITIES

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VALUE-ORIENTED SMART ALEPH VALUE-ORIENTED SMART ALEPHTM

TM FRAMEWORK

FRAMEWORK

Smart Aleph: A patent pending sophisticated “discount to intrinsic value” (D2IV) investment framework

Value Characteristics Originality Originality Character Patience

Value Investing Value Investing Philosophy Philosophy Rules-based Rules-based Framework Framework

 Preservation of Capital  Margin of Safety  Discount to Intrinsic

Value

 Structured Value Investing  Based on published

fundamentals

 Rigorous analysis &

evaluation

ArthVeda ArthVeda Smart Smart Aleph AlephTM

TM

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STRATEGY CONSTRUCT STRATEGY CONSTRUCT

Stable Businesses Strong Balance Sheets Value Creators

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MULTI CAP PORTFOLIO MULTI CAP PORTFOLIO

Strategy NJ Multi Cap Portfolio Objective Long term capital appreciation with focus on return and safety Benchmark Nifty 500 Universe Indian Equity Market Selection criteria 25 stocks available at highest discounts to intrinsic value Portfolio Allocation Equi-weighted, 4% allocation to each stock at portfolio creation and rebalancing Portfolio Review Annually rebalanced # of Stocks in Portfolio 25 stocks

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sub-title

Auto Auto Ancillaries Banks Construction Project Consumer Non Durables Finance Industrial Capital Goods Minerals/Mining Non - Ferrous Metals Oil Software

MODEL HOLDING MODEL HOLDING

Please Note: These allocations are a part of the model Multi Cap Portfolio as on April 30th, 2016. These sectors may

• r may not be bought for new clients. Past performance may or may not be sustained in future and should not be

used as a basis for comparison with other investments. The sectors mentioned above are only for the purpose of explaining the concept and should not be construed as recommendations.

SECTOR ALLOCATION

Source: ArthVeda Research; Internal

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1 year 3 years 5 years 10 years 12 years Since Inception

• 5

5 10 15 20 25 30 9.41 26.72 15.14 19.24 24.64 27.94

• 2.39

12.38 7.38 7.95 13.08 17.43 Multi Cap Portfolio Nifty 500

% Returns

PERFORMANCE PERFORMANCE

Disclaimer: The Above strategy returns are of Model Client as on April 30th, 2016. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Strategy returns are shown above are post management fees. Transactions costs, service tax and other expenses have not been considered. Returns above 1 year are annualized. Returns have been calculated using back-tested data. Strategy returns comprises of price movements and reinvestment of dividends.

NJ Multi Cap Strategy is a mirror image of Arthveda AlphaPlus Extreme25

Strategy Inception date: Jan 3rd, 2003 Source: ArthVeda Research; Internal

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GROWTH OF Rs. 1 CRORE GROWTH OF Rs. 1 CRORE

Strategy Inception date: Jan 3rd, 2003 Source: ArthVeda Research; Internal 1 year 3 years 5 years 10 years 12 years Since Inception

• 5.00

0.00 5.00 10.00 15.00 20.00 25.00 30.00 1.09 2.04 2.02 5.81 14.06 26.70

• 0.98

1.42 1.43 2.15 4.37 8.51 Multi Cap Portfolio Nifty 500

• Rs. Crores

Disclaimer: The Above strategy returns are of Model Client as on April 30th, 2016. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Strategy returns are shown above are post management fees. Transactions costs, service tax and other expenses have not been considered. Returns above 1 year are annualized. Returns have been calculated using back-tested data. Strategy returns comprises of price movements and reinvestment of dividends.

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NJ DYNAMIC STOCK NJ DYNAMIC STOCK ALLOCATION PORTFOLIO (DSAP) ALLOCATION PORTFOLIO (DSAP)

PRESENTING

Equity Portfolio Adviced by

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PORTFOLIO OBJECTIVE PORTFOLIO OBJECTIVE

Provide long term capital Provide long term capital appreciation with lower appreciation with lower volatility through dynamically volatility through dynamically managed portfolio of equity managed portfolio of equity and debt securities and debt securities

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STRATEGY CONSTRUCT STRATEGY CONSTRUCT

 Equity Portfolio:

NJ Multi Cap Portfolio adviced by

 Debt Portfolio:

Low maturity debt funds

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PORTFOLIO POSITIONING PORTFOLIO POSITIONING

We will tactically manage asset allocation to endeavor better risk adjusted return

Risk Return Dynamic Stock AllocationPortfolio Debt Portfolio Equity Portfolio

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DYNAMIC STOCK ALLOCATION PORTFOLIO - Characteristics DYNAMIC STOCK ALLOCATION PORTFOLIO - Characteristics

Our Process forecasts not just Our Process forecasts not just RETURNS, but also RETURNS, but also RISK RISK

 When market risk is low, Portfolio is

Returns oriented

 When market risk is high, Focus is on

Risk Reduction

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DYNAMIC STOCK ALLOCATION PORTFOLIO DYNAMIC STOCK ALLOCATION PORTFOLIO

CHARACTERISTICS CHARACTERISTICS

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 Deciding Asset Allocation through quantitative analysis

by a mathematical model

 No reliance on instinct and emotions in the decision

making process

 Follows a disciplined rules-based investment approach

and execution of model without deviations

 Model is tested across various market cycles and long

time horizons

 Portfolio will invest in direct equities adviced by

Arthveda and low maturity debt funds

DYNAMIC STOCK ALLOCATION PORTFOLIO DYNAMIC STOCK ALLOCATION PORTFOLIO

CHARACTERISTICS CHARACTERISTICS

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TIMELINE OF ASSET ALLOCATION CHANGES TIMELINE OF ASSET ALLOCATION CHANGES

Disclaimer: Above asset allocation changes have been implemented in the Dynamic Asset Allocation Portfolio which follows the same quant model. Period: July 2010 – April 2016.

Nifty 500

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5% 3% 5% 3% 3% 5% 3% 35% 10% 5% 3% 21%

sub-title

Auto Auto Ancillaries Banks Construction Project Consumer Non Durables Finance Industrial Capital Goods Liquid Fund Minerals/Mining Non - Ferrous Metals Oil Software

MODEL HOLDING MODEL HOLDING

Please Note: These allocations are a part of the model Multi Cap Portfolio as on April 30th, 2016. These sectors may

• r may not be bought for new clients. Past performance may or may not be sustained in future and should not be

used as a basis for comparison with other investments. The sectors mentioned above are only for the purpose of explaining the concept and should not be construed as recommendations.

SECTOR ALLOCATION

Source: ArthVeda Research; Internal

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1 year 3 years 5 years 10 years 12 years Since Inception

• 5

5 10 15 20 25 30 35 10.48 26.73 15.52 22.81 26.87 30.02

• 2.39

12.37 7.37 7.95 13.07 17.43 DSAP Nifty 500

% Returns

PERFORMANCE PERFORMANCE

Source: ArthVeda Research; Internal Strategy Inception date: Jan 3rd, 2003

Disclaimer: The Above strategy returns are of Model Client as on April 30th, 2016. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Strategy returns are shown above are post management fees. Transactions costs, service tax and other expenses have not been considered. Returns above 1 year are annualized. Returns have been calculated using back-tested data. Strategy returns comprises of price movements and reinvestment of dividends.

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Source: ArthVeda Research; Internal Strategy Inception date: Jan 3rd, 2003

1 year 3 years 5 years 10 years 12 years Since Inception

• 5.00

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 1.10 2.04 2.06 7.82 17.42 33.11

• 0.98

1.42 1.43 2.15 4.37 8.51 Dynamic Stock Allocation Portfolio Nifty 500

Rs . Crores

GROWTH OF Rs. 1 CRORE GROWTH OF Rs. 1 CRORE

Disclaimer: The Above strategy returns are of Model Client as on April 30th, 2016. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Strategy returns are shown above are post management fees. Transactions costs, service tax and other expenses have not been considered. Returns above 1 year are annualized. Returns have been calculated using back-tested data. Strategy returns comprises of price movements and reinvestment of dividends.

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FUND STRUCTURE FUND STRUCTURE

Minimum investment per client Rs.25.25 Lacs and multiple of Rs.1 thereafter

• Min. investment for additional

topup in existing strategy Rs.1 Lac per strategy

• Min. investment for additional

topup in new strategy Rs.5 Lacs per strategy Mode of payment By Cheque and/or Stock Transfer Investment Management & Advisory Fees # 2.50% p.a. Investment Horizon Medium to Long Term (3 Years +) Termination Charges 2% if redeemed within 365 days from date of investments Audit Fees Rs.1,200 p.a. (approx.) Account Activation Next business day of Clearance of funds Portfolio Valuation Closing NSE market prices of the previous day Operations Investments managed on individual basis Servicing Web access for portfolio tracking

# Service tax extra

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Registered Office: Block No.901, 6th Floor, B Tower, Udhna Udyog Nagar Sangh Commercial Complex, Central Road No. 10, Udhna, Surat – 394 210

FUND STRUCTURE FUND STRUCTURE

Service Providers

Auditor SMARK & Co. Depository Central Depository Services Ltd

Portfolio Manager Details

Portfolio Manager NJ Advisory Services Pvt. Ltd. SEBI Registration

• No. as Portfolio

Manager INP000003518

Disclaimer: This report is prepared by NJ Advisory Services Pvt. Ltd. on a confidential basis. The information and contents shall not be disclosed, reproduced or used, in whole or in part, for any unauthorized purposes or furnished to any other persons without the express prior written permission of NJ Advisory Services Pvt. Ltd. No representation or warranty, expressed or implied, is made nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information or content. NJ Advisory Services Pvt. Ltd., its group companies and their directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent mis-statement) for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from, or for any omissions from the report.

Risk Disclosure and Disclaimer

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