Motilal Oswal (AIF)

Funds managed

Fund nameAsset ClassLicense
Focused Emergence FundLong Only EquitySEBI AIF Cat 3
Value Strategy Equity Concentrated (Large Cap)PMS
India Opportunity PortfolioEquity Concentrated (Small & Mid Cap)PMS
India Opportunity Portfolio 2Equity Concentrated (Small & Mid Cap)PMS
Business Opportunities PortfolioEquity Concentrated (Multi Cap)PMS
Next Trillion Dollar Opportunity StrategyEquity Concentrated (Multi Cap)PMS

In total they manage 3 funds under the AIF category. (info could be found for one only)

https://www.motilaloswal.com/site/MostWealth/HTML/636481610892698900/index.htm (info about the above fund)

About the AMC

Motilal Oswal Trustee Company Limited (Trustee Company) was incorporated on November 14, 2008  and is the Trustee to Motilal Oswal Mutual Fund vide Trust deed executed between the Sponsor i.e. Motilal Oswal Securities Limited and Trustee Company.

Motilal Oswal Wealth Management Ltd. (“MOWML”) was registered with SEBI as an Investment Manager, a Category III Alternative Investment Fund vide registration no. IN/AIF3/13-14/0044 under SEBI (Alternative Investment Funds) Regulations, 2012

In order to consolidate all its asset management business under one entity, MOWML had transferred its AIF business to MOAMC w.e.f. September 29, 2016.

MOAMC undertakes the following activities other than that of managing the Schemes of MOMF and has also obtained NOC from SEBI for the same: a) MOAMC is registered with SEBI as a Portfolio Manager vide registration no. INP 000000670 under SEBI (Portfolio Managers) Regulations 1993. b) MOAMC acts as an Investment Manager to the Schemes of Motilal Oswal Alternative Investment Trust (MOAIT) and is registered under SEBI (Alternative Investment Funds) Regulations, 2012 as Category III AIF bearing registration number IN/AIF3/13-14/0044. c) MOAMC has incorporated a wholly owned subsidiary in Mauritius which acts as an Investment Manager to the funds based in Mauritius. d) MOAMC has incorporated a wholly owned subsidiary in India which currently undertakes Investment Advisory Services/Portfolio Management Services to offshore clients.

One of the largest AIF managers in India within a span of two years, with an AUM of Rs 26 bn in Q1FY19 (Rs 8.7 bn in Q1FY18).

  • key staff – 
  1. Mr. Aashish P Somaiyaa (MD & CEO)
  2. Mr. Akhil Chaturvedi ( Associate Director – Head Sales & Distribution)
  3. Ms. Aparna Karmase ( Head – Compliance, Legal and Secratarial)
  4. Mr. Yatin Dolia ( Head – Operations & Finance)
  5. Mr. Ashish Agarwal (VP- Head Dealing)
  6. Mr. Gulam Siddique (VP – Head – Risk Management & Internal Audit)
  7. Mr. Santosh Singh ( Sr. VP – Head of Research)

Fund Manager – Manish Santholia

  • Bachelor Degree in Commerce (Hons), ICWAI, CS, MBA Finance, FCA
  • Total Exp – 22 Years, With Motilal – 11 Years
  • He has authored a paper ‘A Rising Consumer Class on Indian markets’, published by the Global World Economic Forum in the year 2010.

Investment Philosophy (for firm)

Focused Emergence fund is closed ended fund.

  • Single investing philosophy be it Portfolio Management Services (PMS) or Mutual Funds (MF). Its BUY RIGHT : SIT TIGHT  https://i0.wp.com/www.pms-aif.com/wp-content/uploads/2019/07/Buy-Right-Sit-Tight.jpg?fit=580%2C336&ssl=1

At Motilal AMC, they believe  investment success comes from bottom up stock picking and buying “High Growth Quality Stocks and holding them for long periods of time. Their strength lies in understanding long term businesses and identifying stocks with economic moats. The endeavour is to generate absolute return with a target for portfolio companies doubling their earnings in 4 years on a weighted average basis. Such investment strategy creates long term sustainable and predictable returns.
They are keen on continuing to manage all their products with the defined Investment philosophy of “Buy Right: Sit Tight” in equity and have no plans to add any hedged or long short strategies.

Media

Difference Between AIF/PMS & Mutual Funds , AIF-PMS World

https://www.pms-aif.com/videos/

In AIF – PMS funds the behaviour of an investor is isolated from other, whereas the case with Mutual funds is different, their sum total behaviour of investors impacts the behaviour of other investors.

Manish Sonthalia (MOAMC) at MOCA 2020, YouTube

https://www.youtube.com/watch?v=siLFL0xfBZY&list=PL4yxZDLRngMCYAzsM0pYFlcq8khZb3SmX&index=9

This was their official conference on Alternatives. No much relevant stuff discussed on their CAT 3 funds

Analyst questions

  1. Why only equities? Why are you not planning on adding hedge funds, long short strategies?
  2. How do you generate alpha, what is your competitive advantage, do you have informational, analytical or behavioral advantage over the peer?
  3. How many stocks do you hold in the long only fund? What is the matrix that you use to calculate risk?
  4.  What is your target AUM ? Are you raising funds only from domestic investors or also even from the rest of the world?

Prepared by – Ridhima Jaisinghani

 Date – 5th May 2020

Peer review- Vanshika Bagrecha

date- 11 may

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