Portfolio Management Services

Presented by :- Mr. Vishal A. Narvekar

Agenda Introduction Types of PMS How to invest in an PMS account How to open an PMS account Portfolio Management Services Charges & fées PMS Company:-Motilal Oswal Financial Services Management Schemes and plans Balance sheet Corporate governance Ratio Conclusion

Meaning Portfolio Management Services account is an

investment portfolio in Stocks, Debt and fixed income products managed by a professional money manager, that can potentially be tailored to meet specific

investment objectives.

Introduction In simple words, a portfolio management

service provides professional management of your investments to create wealth.

Portfolio Management Service is a tailor made professional service offered to cater the investments objective of different investor classes.

The clients can be Individuals or Institutions entities with high net worth.

Clients have the freedom to tailor portfolio to address personal preferences and financial goals

Portfolio managers may oversee hundreds of portfolios

As per SEBI guidelines, only those entities who are registered with SEBI for providing PMS services can offer PMS to clients

No separate certification required for selling any PMS product

As per the SEBI guidelines, the minimum investment required to open a PMS account is Rs. 5 lacs

However, different providers have different minimum balance requirements for different products

Types of PMS Discretionary PMS –

Where the investment is at discretion of the fund manager & client has no intervention in the investment process.

Non-Discretionary PMS – Under this service, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the investor. However the execution of the trade is done by the portfolio manager.

How to invest in an PMS account There are two ways to invest in PMS :-

• Through Cheque payment• Through transferring existing shares held by the

customer to the PMS account.

How to open an PMS account Customer will need sign a few documents like–

• PMS agreement with the provider, • Power of attorney agreement, • New DEMAT account opening format

Documents to be provided-• Pan,• Address proof ,• Identity proofs are mandatory

PMS for NRI’s NRIs can invest in a PMS NRI can invest through Non-Resident External

(NRE) account or Non-Resident Ordinary (NRO) account

The documentation required for an NRI • A passport copy, • The visa or residence permit of the NRI,• A set of 2 photographs

A checklist of documents is provided by each PMS provider

Portfolio Management Services Charges & fées

Service fee:-• Entry Load• Management Charges• Profit Sharing

Other charges • Custodian Fee• DEMAT Account opening charges• Audit charges• Transaction brokerage

PMS companyMotilal Oswal Financial Services

Introduction Motilal Oswal Securities Ltd. (MOSL) was founded in

1987 as a small sub-broking unit Now it is India’s leading PMS Service Providers, with

Assets under Management of over Rs.1300 crores Motilal Oswal PMS  has one of the largest active

accounts (more than  5,000) on PMS Platform as on 31st  May  2012

Motilal Oswal PMS has active clients in 138 different cities

Motilal Oswal has 1500 plus employees

Management

Motilal OswalChairman and Managing

Director

Raamdeo AgrawalJoint Managing

Director

Nitin RakeshCEO, Asset Management

Business

Srikanth IyengarCEO, Principal Strategies Group

Rajat RajgarhiaHead, Research

Ajay Kumar MenonChief Operating Officer

Sameer KamathChief Financial

Officer

Harsh JoshiHead, Corporate Affairs &

Whole-time Director (MOSL)

Sudhir DharHead, HR &

Administration

Ramnik ChhabraHead, Marketing

Schemes and plans Value Strategy Next Trillion Dollar Opportunity Strategy Invest India Strategy Bull`s Eye Strategy Focused 4 – A Flexi Cap Strategy Focused 5- A Contra Strategy

Corporate governance Motilal Oswal Financial Services ensures

good corporate governance through :-

• Board of director • Committees of the board• External auditors

Board of director Composition Board of Directors :

The Board currently consists of 6 members with 50% composition of Independent Directors

Independent directors plays important role of governing & controlling other board of directors

Independent Directors

Balkumar AgarwalMr Agarwal a is retired IAS officer (1967 batch). He has served as Additional Chief Secretary, Secretary

(Housing), Secretary (Transport), Secretary (Industries) to the Government of Maharashtra.

Praveen TripathiMr Tripathi is the CEO of Magic9 Media & Consumer Knowledge Pvt Ltd. He is the Chairman of the National Consumer Classification System Committee and has also worked with Pidilite, Hansa Consulting, Zenithmedia, Starcom/Leo Burnett etc.

Vivek ParanjpeMr Paranjpe is a consultant in HR & strategic management with companies like Reliance Industries, Blackstone etc. He was the Director, HR Operations at HP Singapore, and has worked with Hotel Corp, Johnson & Johnson,Hindustan Lever etc

Board meetings Number of Board Meetings

The Board of Directors met four times during the year ended 31st March, 2012, on 30th April, 2011, 22nd July, 2011, 17th October, 2011 and 16th January, 2012.

The maximum gap between any two meetings should not more than four months

External auditors External auditors play a role in providing an

independent assessment of MOFS’s financial position

Auditors’ to Motilal Oswal Financial Services • M/s. Haribhakti & Co.

Establishment of committees In order to insure good corporate governance

Motilal Oswal Financial Services has six major Board level Committees :-

• Audit Committee• Shareholders / Investors Grievance Committee• Remuneration / Compensation Committee• Nomination Committee• Risk Management Committee

Balance sheetParticular As at 31-Mar-12

(Rs in Millions)As at 31-Mar-11(Rs in Millions)

I. EQUITY AND LIABILITIESShareholders’ FundsShare Capital 145.12 144.42

Reserves and Surplus 5,439.32 4,981.33

5,584.44 5,125.75Non-Current LiabilitiesDeferred Tax Liabilities (Net) 34.76 23.04

Long-term Provision 1.66 0.89

36.42 23.93Current LiabilitiesOther Current Liabilities 510.10 84.44

Short-term Provision 146.99 276.17

657.09 360.61TOTAL 6,277.95 5,510.29

Particular As at 31-Mar-12(Rs in Millions)

As at 31-Mar-11(Rs in Millions)

II. ASSETSNon-Current AssetsFixed AssetsTangible Assets 1,633.07 168.10

Capital Work-in-Progress --- 1,204.86Non Current Investments 987.02 832.63

Long-term Loans and Advances 138.05 126.782,758.14 2,332.36

Current AssetsInventories --- 2.88Cash and bank balances 11.60 16.08Short-term Loans & Advances 3,454.73 3,158.75Other Current Assets 53.47 0.21

3,519.81 3,177.93TOTAL 6,277.95 5,510.29

RatioParticular Value

Face Value (Rs) 1

Price of the share (Rs) 120.00

Return On Capital Employed(%)

12.01

Dividend Payout Ratio(%) 34.96

Earnings Per Share(RS) 3.88

P/E Ratio(no of times) 44.07

Dividend Yield (%) 1.23

Current Ratio 5.17

Long Term Debt Equity Ratio ---

Debt Equity Ratio ---

Operating Profit Margin(%) 70.05

Gross Profit Margin(%) 68.05

Net Profit Margin(%) 68.69

Debtors Turnover Ratio(no of times)

---

Financial Charges Coverage Ratio(%)

75.85

Conclusion

WebliographyWebsite Link

money control .com http://www.moneycontrol.com/india/stockpricequote/financegeneral/motilaloswalfinancialservices/MOF01

motilaloswal.com http://www.motilaloswal.com/Financial-Services/Products-And-Services/Portfolio-Management-Services/Content/C42/Tab52/

business.mapsofindia.com http://business.mapsofindia.com/finance/top-asset-management-companies.html

tflguide.com http://www.tflguide.com/2011/03/portfolio-management-services-in-india-pms.html