Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Pramerica Asset Managers Pvt. — Investor Presentation (March 2011)
32 slides from Prudent Corporate Advisory Services's investor presentation, Mar 8, 2011
Slide 1: Pramerica Dynamic Monthly Income Fund
Pramerica Dynamic Monthly Income Fund Monthly Income is not assured and is subject to availability of distributable surplus NFO Opens on : March 8, 2011 NFO Closes on : March 22, 2011 Scheme re-opens for ongoing offer on : April 04, 2011
Slide 2: We are a country of great savers
We are a country… Of Great Savers Our Saving Habits We save 33.4% of the GDP: 6% 11% ` 15,03,000 Crores. Currency 17% This is more than the combined Fixed Return Instruments GDPs of Singapore & Malaysia. Life Insurance 66% Shares and Mutual Funds 66% of our savings are in fixed return investment
Slide 3: Anatomy of Fixed Return Investments
Anatomy of Fixed Return Investments ` 5 Lacs invested Cost of pursuing MBA today @ 8.5% for 5 years ` 5 Lacs Amount received in hand Cost of pursuing MBA after 5 years (post tax) ` 6.7 Lacs ` 8.1 Lacs OR Loss of ` 1.4 Lacs Gain of `1.7 Lacs Investments should aim to protect purchasing power & Fixed
Slide 4: Introducing Monthly Income Funds (MIF)
Introducing Monthly Income Funds (MIF) Stability A Lot of This A Bit of This Power of of Debt Equity Monthly Income Fund
Slide 5: Monthly Income Fund vs Fixed Return Options
Monthly Income Fund vs Fixed Return Options Parameter Fixed Return Options Monthly Income Fund Purchasing Power Moderate High Protection Tax Advantage Low High Indexation benefit Not Available Available Liquidity Available but with penal interest Available (not available for postal products) (subjec
Slide 6: Which type of MIF to invest in: Conservative or Aggressive?
Which type of MIF to invest in: Conservative or Aggressive? Period Sensex Conservative MIF Aggressive I wish I had MIF invested in Bull Market: 79.5% 14.8% 21.2% Aggressive MIF 1st Jan 2005 to 1st May 2006 Sensex: 6602 to 11852 Bear Market -51.2% -2.3% -9.3% Conservative MIF 1st Jan 2008 to 1st Jan
Slide 7: Pramerica Dynamic Monthly Income Fund
Pramerica Dynamic Monthly Income Fund Pramerica Investor’s Dynamic MIF Money Pramerica DART % of asset (Dynamic Asset Rebalancing Tool) allocation using Pramerica DART 70% - 95% 5% - 30% Fixed Income Instruments Equity Instruments Allocation Allocation Actively Managed by Actively Managed by Active
Slide 8: Pramerica DART
Pramerica DART Pramerica DART is a 3 factor model that works on the mean reversion philosophy. Volatility Fundamental Liquidity Volatility Earnings Growth Money Supply F&O Prices Liquidity Intrinsic Value Relative Currency F&O Volumes Valuations Valuations Global Interest Rates Derivative Risk Funda
Slide 9: Pramerica DART: Asset Allocation Illustration
Pramerica DART: Asset Allocation Illustration • Based on the underlying variables, the Pramerica DART tool indicates adjustments to the equity exposure as depicted in the graph. • Data from 01/01/2001 to 10/02/2011. • Above graph is shown for illustration purposes and does not reflect actual perform
Slide 10: Asset Allocation Illustration: 29th April 2009 onwards
Asset Allocation Illustration: 29th April 2009 onwards • Based on the underlying variables, the Pramerica DART tool indicates adjustments to the equity exposure as depicted in the graph. • Data from 29/04/2009 to 10/02/2011. • Above graph is shown for illustration purposes and does not reflect actua
Slide 11: Pramerica DART vs. Conservative/Aggressive MIFs
Pramerica DART vs. Conservative/Aggressive MIFs Period Sensex Conservative Aggressive Pramerica DART MIF MIF simulated portfolio Bull Market: 79.5% 14.8% 21.2% 24.5% 1st Jan 2005 to 1st May 2006 Sensex: 6602 to 11852 Bear Market -51.2% -2.3% -9.3% 0.2% 1st Jan 2008 to 1st Jan 2009 Sensex: 20300 to 9
Slide 12: Pramerica DART: Back-testing of Simulated Portfolio
Pramerica DART: Back-testing of Simulated Portfolio CRISIL MIP Index Pramerica DART Simulated Portfolio Maximum loss -11.24% -9.44% Longest time in loss 456 days 357 days Pramerica DART reduces the investment risks during bear markets. Source: Bloomberg, AMFI Website, AceMF Assumptions: • The equity
Slide 13: Pramerica DART: Back-testing of Simulated Portfolio
Pramerica DART: Back-testing of Simulated Portfolio As compared to CRISIL MIP Index, Pramerica DART Simulated Portfolio 1. Outperformed CRISIL MIP Index during worst & best periods. 2. Delivered Higher Average Returns. 3. Delivered Higher Sharpe Ratio. 1 year 2 years 3 years CRISIL MIP DART CRISIL M
Slide 14: Fixed Income Investment – The Active Manager
Fixed Income Investment – The Active Manager Fixed Income securities constitute more than 70% of any MIF portfolio Every 1% extra return earned on the Debt portion of MIF adds minimum 0.7% to MIF returns while every 1% extra return earned on Equities add a maximum of 0.3% to the MIF returns! For
Slide 15: Source: Bloomberg, AMFI Website, AceMF. Graph shown above is for illustration purpose only and
Source: Bloomberg, AMFI Website, AceMF. Graph shown above is for illustration purpose only and are neither indicative of, nor guarantee actual performance. Past performance is not a guarantee of future returns
Slide 16: Higher returns from the majority (70%-95%) of MIF portfolio
Higher returns from the majority (70% - 95% ) of MIF portfolio! Since 2004, MIFs have largely been focusing on the active management of equity portfolio (comprising of 5% to 30% of the total portfolio) for their performance The major portion of the portfolio - 70% to 95% - invested in fixed inco
Slide 17: The Solution – Dynamic Fixed Income Management
The Solution – Dynamic Fixed Income Management Three main components of debt income Regular interest payments. Higher interest accrual from smart security selection. Gains from portfolio rebalancing in different interest rate scenarios. Active duration management is the an ideal strategy to
Slide 18: Source: Bloomberg, AMFI Website, AceMF. Graph shown above is for illustration purpose only and
Source: Bloomberg, AMFI Website, AceMF. Graph shown above is for illustration purpose only and are neither indicative of, nor guarantee actual performance. Past performance is not a guarantee of future returns
Slide 19: Managing Risks in Debt Portfolio – The Pramerica Way
Managing Risks in Debt Portfolio – The Pramerica Way Managing risks to preserve and grow wealth Interest rate risk Regular ongoing analysis of interest rate outlook. Conservative approach to portfolio construction. Concentration limits, credit quality limits, etc. Maintaining adequate liqu
Slide 20: Investment Strategy: Equity
Investment Strategy: Equity The equity portion of the fund will be managed actively and follow: Sector agnostic strategy : Opportunistic in sector selection A top-down and bottom–up approach : Diamond Model In-house research to identify various investment opportunities Company-wise quantit
Slide 21: Investment Process: Equity – The Pramerica Way
Investment Process: Equity – The Pramerica Way Top down macro approach balanced with a bottom up stock picking overlay Company Analysis Global and Local Macro Research Qualitative Analysis Quantitative Analysis • Competitive Analysis • Profit & Loss Balance Sheet Sector • Industry Analysis and Cash
Slide 22: New Fund Offer Details
New Fund Offer Details NFO Opens on March 08, 2011 NFO Closes on March 22, 2011 Scheme Re-opens for ongoing offer on April 04, 2011
Slide 23: Scheme Objective & Investment Strategy
Pramerica Dynamic Monthly Income Fund: Scheme Objective & Investment Strategy Objective To generate regular returns through investment in Debt and Money Market Instruments and to generate capital appreciation by investing in equity and equity related instruments. Monthly Income is not assured & is
Slide 24: Pramerica Dynamic Monthly Income Fund Asset Allocation
Pramerica Dynamic Monthly Income Fund Asset Allocation Indicative Allocation Instruments Risk Profile (% of Total Assets) Minimum Maximum High/Medium/Low Fixed Income Securities 70 95 Low to Medium Equity and Equity related instruments 5 30 High The allocation between equities and debt shall be ba
Slide 25: Pramerica Dynamic Monthly Income Fund Key Attributes
Pramerica Dynamic Monthly Income Fund Key Attributes Benchmark Index Crisil MIP Blended Index Offer Price `10/- per unit during NFO; At NAV during Ongoing Offer Minimum application amount The minimum application amount is ` 5,000/- and in multiples of ` 1/- thereafter. Minimum additional amount ` 10
Slide 26: Fund Manager
Fund Manager Mahendra Jajoo, Executive Director & CIO - Fixed Income A silver medalist Chartered Accountant C.F.A. from CFA Institute, USA Company Secretary Over 19 years of experience in Indian capital markets Past Experience Head of Fixed Income and Structured Products at Tata AMC and be
Slide 27: Fund Manager
Fund Manager Ravi Gopalakrishnan, Executive Director & CIO - Equity Over 19 years of experience of Indian equity markets MBA Finance & M.S. in Finance (Investments) Top 20 Rising Stars of Hedge Fund – Institutional Investor (June 2007) Past Experience Portfolio Advisor - Hudson Fairfax Group
Slide 28: Important Information: Pramerica Dynamic MIF
Important Information: Pramerica Dynamic MIF Name of the Scheme: Pramerica Dynamic Monthly Income Fund. Scheme Classification: An open ended Income Scheme. Investment Objective: To generate regular returns through investment in Debt and Money Market Instruments and to generate capital appreciation b
Slide 29: Risk Factors
Risk Factors All mutual funds and securities investments are subject to market risks and there can be no assurance that the objectives of the Schemes will be achieved and the NAV of the funds may go up or down depending upon the factors and forces affecting the securities markets. Pramerica Dynamic
Slide 30: Mandatory Information
Mandatory Information The information contained herein is provided by Pramerica Asset Managers Pvt. Ltd., (the AMC). This document may contain confidential information and the recipient agrees to maintain the confidentiality of such information. Distribution of this information to any person other t
Slide 31: Thank You
®& Pramerica MUTUAL FUND THANK YOU
Slide 32: Registered Office
Registered Office Pramerica Asset Managers Pvt. Ltd. 2nd Floor, Nirlon House, Dr. A. B. Road, Worli, Mumbai - 400 030. Tel: +91-22-6159 3000 Fax: +91-22-6159 3100 Branch Offices Ahmedabad - First Floor, Zodiac Avenue, Opp Mayor’s Bungalow, Kanpur - Unit No 112, 1st Floor, KAN Chambers, Law Garden Ro
Pramerica Asset Managers Pvt. — Investor Presentation (March 2011) on 6ix