|Funds Managed||Asset Class||License|
|Impress PMS||Multi cap||PMS|
|Portfolio Plus||Multi cap||PMS|
Anand Rathi Advisors Ltd. is a part of Anand Rathi Group (ARG) completing 25 years in the Financial Services Industry. Anand Rathi Global Finance Limited (ARGFL) was incorporated on 3rd February, 1982.
They have presence in Retail Broking, Franchisee/Channel Partner ,Private Wealth Management with AUM of Rs. 20,000 crores offering both discretionary and non-discretionary PMS.
The AMC is also registered with SEBI with Registration No. INP000000282 .
ARG has more than 4 lakh clients, 2500 employees and presence at 1000 locations.
The Founder & Promoter is Anand Rathi – Rathi on acquiring a Chartered Accountancy qualification had a long, successful and illustrious career of over 40 years as a core member of the legendary late Mr. Aditya Birla’s business group. He was actively involved in all strategic initiatives, being instrumental in shaping the group’s cement business, and spearheaded its foray into diverse businesses in manufacturing and services
Mayur Shah – Fund Manager – Shah is CFP and has done post-graduation in MBA Finance .He has more than 15 years of experience in Investment Advisory, Product Development and Portfolio Management. He had started Career with Kotak Securities Ltd. in 2005 as an Investment Advisor from last 13 years he is a part of Anand Rathi group and worked across Portfolio Management and Private Client Group Equity Advisory.
Vinod Vaya – Senior Manager – Vaya has done PGDBM from Mumbai. He worked with Standard Chartered Securities , Religare Securities, Enam Securities. He is currently part of Fund Management Team with more than 12 years of experience in Investment Advisory and Portfolio Management.
Investment philosophy (for firm)
Success comes from process
Their philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism.
Create – They believe in creating enough opportunities for clients to invest in.
Preserve – Their team constantly strives to preserve clients wealth by offering solutions in form of varied assets or investments based on their goals.
Grow- They make sure that the investments of clients grow in line with returns.
Return Optimization by investing in multicap portfolio rising enterprises with sound corporate track record and sustainable business model keeping balance between value and growth strategy.
Investment Process :
Source: AnandRathi website
Since inception Impress strategy has delivered a CAGR of 8.3% vs NIFTY 500 of 15.9% , an underperformance of 7.6%
Allocations – Market capitalization
- Large cap: 33%
- Mid cap: 46%
- Small cap: 21%
- Cash: 0.30%
It consists of 15-20 stocks diversified across sectors.
Multicap Portfolio – Balanced between Value and Growth
Fees & charges
Setup fee : 1% (Upfront one time)
AMC fees : 2.5% p.a (Charged Pro-rata at end of each quarter)
Brokerage : 0.25% on Equity delivery transaction
Exit Load : 3% -1 st Year, 2% – 2 nd Year, 1% – 3 rd Year
Other Charges: GST, Other charges levied by Exchange, Custodial charges levied by custodian and any other statutory charges.
Objective: To deliver consistent Returns over the long term portfolio of companies with
- Good corporate governance and track record
- Consistency of earnings over the last 3-5 years
- Earnings visibility with predictable business model
- Large cap: 52.3%
- Mid cap: 42.5%
- Small cap: 4.1%
- Cash: 1.2%
It consists of 19 stocks diversified across sectors.
Objective: Focus on consistency of return and risk moderation by investing in Multinational Companies listed in India.
Investments into listed companies in India in which the foreign shareholding is over 50% and/or the management control is bestowed in foreign company and/or the technological and managerial know-how brought in by foreign partner/investor.
- Large cap: 61%
- Mid cap: 34%
- Small cap: 2%
- Cash: 3%
Portfolio Performance :
|Portfolio Name||Date of Inception||1-4-2019 to 31-3-2020||1-4-2018 to21-3-2019||1-4-2017 to 31-3-2018|
|Impress Portfolio||31 May 2017||-24.04%||-6.13%||8.45%|
Source: PMS Bazaar
Mayur Shah in his interview with ETMarkets’ Investors Guide highlighted how investing in MNC benefited his portfolio strategy . Shares of multinational companies have fared better than the benchmark equity indices on Dalal Street over the past one year. The Nifty MNC index has declined less than 1 per cent since June 2019 while NSE Nifty is down 14 per cent for the same period.
He mentioned that as MNC in India has good brand recall and wider presence in several other countries,free cash flow,great asset turnover, better corporate governance standards which contributes to its good returns on investment . He further added on how they bifurcate sectors which are likely to grow with more focus on consumables in the portfolio strategy .
When asked about their plans to invest in MNC stocks abroad , he denied that they are not planning it as of now as it requires a deeper understanding of foreign markets with other specific arrangements to be made.
- How are you planning to grow MNC PMS or are you planning to go with the same strategy?
- Impress PMS has underperformed by 7.6% , can you explain the reasons for it and how would you tackle such future underperformance?
- Which strategy would you prefer to an investor and why?
- Investment process mentions sound corporate governance , how do you assess an individual company’s corporate governance?
- All strategies have majority allocations to large cap and mid cap, do you consider to incorporate strategy which has majority small cap allocations , if not why?
- Disclosure statements include a few non-discretionary portfolios which are not mentioned in your site , is there a reason for it?
- How long would you prefer an investor to stay invested in any of your PMS and why?
1- Company’s philosophy is not clear.
2. The allocation mentioned for liquidity is quite less. The minimum should be approx 3%. why?
3. The portfolio’s are underperformed. How will the company generate returns in future?
4. Does the company avoid Market timing?
5. How does the company decide their sectoral allocation?
6. Out of 3 strategies only MNC PMS is outperforming so what are the risk measures taken by the company to manage the other 2 strategies?
7. What are the company’s latest returns? Disclosure shows returns of period 2017 and 2018.
Prepared by Janvi Panchal
Date 1 May 2021