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    Geojit BNP Paribas-Portfolio Management Service

    Uploaded by

    Shankar Senthanthan
    Geojit BNP Paribas Portfolio Management Services offers discretionary portfolio management services through a team with extensive experience in equities markets and financial analysis. The portfolios are constructed predominantly of mid and small-cap stocks selected based on factors like management quality, strong fundamentals, earnings growth potential, and favorable market perception. Portfolios are normally diversified across 10-15 stocks in different sectors, with no single stock comprising over 15% of the portfolio. Fees include a fixed annual fee of 3% of the average portfolio value or 1% plus a 20% performance fee on annual returns above 12%. Minimum investment amounts and tax treatment of gains are also outlined.

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    Geojit BNP Paribas-Portfolio Management Service

    Uploaded by

    Shankar Senthanthan
    306 views18 pages
    Geojit BNP Paribas Portfolio Management Services offers discretionary portfolio management services through a team with extensive experience in equities markets and financial analysis. The portfolios are constructed predominantly of mid and small-cap stocks selected based on factors like management quality, strong fundamentals, earnings growth potential, and favorable market perception. Portfolios are normally diversified across 10-15 stocks in different sectors, with no single stock comprising over 15% of the portfolio. Fees include a fixed annual fee of 3% of the average portfolio value or 1% plus a 20% performance fee on annual returns above 12%. Minimum investment amounts and tax treatment of gains are also outlined.

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    Geojit BNP Paribas Portfolio Management Services offers discretionary portfolio management services through a team with extensive experience in equities markets and financial analysis. The portfolios are constructed predominantly of mid and small-cap stocks selected based on factors like management quality, strong fundamentals, earnings growth potential, and favorable market perception. Portfolios are normally diversified across 10-15 stocks in different sectors, with no single stock comprising over 15% of the portfolio. Fees include a fixed annual fee of 3% of the average portfolio value or 1% plus a 20% performance fee on annual returns above 12%. Minimum investment amounts and tax treatment of gains are also outlined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    306 views18 pages

    Geojit BNP Paribas-Portfolio Management Service

    Uploaded by

    Shankar Senthanthan
    Geojit BNP Paribas Portfolio Management Services offers discretionary portfolio management services through a team with extensive experience in equities markets and financial analysis. The portfolios are constructed predominantly of mid and small-cap stocks selected based on factors like management quality, strong fundamentals, earnings growth potential, and favorable market perception. Portfolios are normally diversified across 10-15 stocks in different sectors, with no single stock comprising over 15% of the portfolio. Fees include a fixed annual fee of 3% of the average portfolio value or 1% plus a 20% performance fee on annual returns above 12%. Minimum investment amounts and tax treatment of gains are also outlined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Geojit BNP Paribas Portfolio Management Services

    Geojit has extensive experience in capital market operations having been in the broking business for two decades. PMS is managed by a team of experts who have years of indepth experience in equities market, financial market operations, fundamental analysis and stock picking. BNP Paribas is the largest global banking group in the world, head quartered in Paris with operations in 84 countries. Geojit has Discretionary PMS. An exclusive premium offering for select individuals and institutions.

    Summary of Portfolio Management Services

    Advantage Portfolio Portfolio Construction Stock Selection criteria Portfolio and performance PMS Fee structure Requirements to start PMS Tax on PMS

    Advantage Portfolio

    Positioned to invest predominantly in equities of mid & small cap companies. The fund will normally invest in stocks of mid & small cap companies having sound track record, quality management, strong fundamentals, earnings and growth potential.

    Portfolio construction
    Portfolio Construction
    Stock Level Allocation : 0.00% to 100% No. Of Stocks 10 to 15 Stocks Maximum Allocation per stock: 15% (At cost)

    Sector Allocation
    Maximum Allocation 30 % to 35%(At cost)

    Cash : 0.00% to 100.00%

    Stock Selection criteria


    Quality of management measured in terms of honesty and integrity, competence, vision (not blurred by passion for unrelated diversification) and professionalism. Quality of business that ensures global competitiveness backed by strong technology and marketing skills in a sunrise industry with good business prospects in liberalised era. Sustainability of earnings where growth could be financed by cash accruals and minimal degree of debt financing, so as not to jeopardize stockholders' interest. Good track record of earnings and profitability measured in terms of return on capital employed and return on networth, with vibrant growth prospects. Favourable market perception for founders, management and products.

    Investment Philosophy of Advantage Portfolio

    High Absolute returns on Investment over 2 -3 year perspective. Bottom up stock picking. Focused portfolio of 15-20 stocks. Growth stocks in companies that are able to generate strong cash flows.

    Stock Picks of the Portfolio: Abbot India

    Abbot India Ltd: AIL, 65.14% subsidiary of Abbot, USA, provides healthcare solutions through its four business unit. AIL has embarked on aggressive mission of being leader in its core therapy areas within next 5 years.

    Stock Picks of the Portfolio: Clariant Chemicals

    Clariant Chemicals: Clariant is a diversified specialty chemicals company operating in Textile, Leather & Paper Chemicals, Pigments & Additives, Functional Chemicals and Master batches catering to diverse industries which de risk its business of dependence on any one large single industry.
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    Stock Picks of the Portfolio: Merck

    Merck Ltd., 51.8% subsidiary of Merck KgA, Germany, is a predominant player in vitamins. Thru aggressive marketing strategies, company took U turn since parent appointed 45 years young Dr. Marek Dziki as Managing Director. Company has set target to reach sales of around Rs. 700800 crore by 2012 organically (2009 sales Rs 473 Crore). To grow aggressively, Merck has adopted multi-pronged strategy.
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    Stock Picks of the Portfolio: Rallis India

    Rallis India: Rallis has manufacturing capabilities in crop protection chemicals encompassing different chemistries with ability to develop new processes and formulations supported by capability to register new products. innovative products (introduced in past 4 years) contribute 30% of sales and growing well. Company has sufficient product pipeline till 2012 - 2013.
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    Performance of Advantage Portfolio

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    Portfolio Holdings

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    Comparison of Geojit PMS with 5 star rated Mutual Fund schemes

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    PMS Fee structure


    Structure 1
    Fixed Fee of 3% per annum charged in 4 equal instalments on the average of opening and closing NAV of that quarter.

    Example
    Investor A has invested Rs. 500,000 on January 25th and the NAV as on March 31 is Rs. 600,000; then the PMS charge will be (500,000 + 600,000) / 2 X 3/100 X 65/365 = Rs. 2,938/-

    Structure 2
    Fixed Fee of 1% per annum charged in 4 equal installments on the average of opening and closing NAV of that quarter plus a performance fee of 20% on the return above 12% will be charged yearly at high water mark concept.

    Example
    Investor A has invested Rs. 500,000 on August 25th and the NAV as on 24th August next year is Rs. 600,000; then apart from the PMS charge of 1%, a performance fee also will be charged. 600,000 500,000 =100,000 & 12% of 500,000 = 60,000 (100,000 60,000) = 40,000 X 20/100 = Rs. 8,000

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    Requirement to start PMS

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    Tax on PMS
    Short Term Capital Gain Tax @ 15% Long Term Capital gain Exempt

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    THANK YOU

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