Private & Confidential
Profile | Approach | Solutions | Track Record
CENTRUM – Our Family for Yours
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Private & Confidential
Who we are… and what sets us apart
The Team… that made it happen
Centrum Wealth… an introduction
Investment Advisory… our approach
The Centrum Edge… our advisory track record
Family Office Services… solutions beyond investment advisory
Family Office Set-up… getting stated and engagement framework
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Private & Confidential
The power of being a boutique
Intensive client engagement
Creating a customer centric eco system
Plug and Play – Focus on finding solutions
Old Fashioned Values
The sacred role as a custodian of client’s wealth
Caution and Care – watchwords
Firm conviction in the belief that old fashioned values make sound business sense
Long term Employee Customer Alignment
Employee Ownership builds long term value
Freedom and Independence tempered by controls
Open door and Open mind policy
The value of Start Up thinking
Nurtures an Entrepreneurial Spirit
Differentiates in a world of commoditized offerings
Fosters resource consciousness and prudence
Leaves no room for complacency
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What sets us apart
Private & Confidential
1997
2001
Forex business launched
India’s largest asset financing syndicate
Merchant Banking started
Bond house started
Top 10 Debt mobilisers
Equity desk started
Top 10 retail money changer
Project finance business
started
Centrum Direct started
Retail Wealth management foray
Top 4 debt mobilizer
Centrum Broking started Top 3 Retail Money Changer
“Mid Cap” Equity House
1998
Forex business hived off into a separate subsidiary
Geographical Expansion 1999
2000
2002
2005
2006
Registered as an NBFC with the RBI
Centrum Infrastructure & Realty launched 2009
CRFS Foray - launch of Wealth Management and Retail Broking
business with a new professional team
2010
2011
Centrum Commonwealth Advisors Hong
Kong (JV for Asset Management)
2014
Centrum Wealth awarded Best
Equity Research Fundamental
Analysis Award at India Market
Analyst Awards of Zee Business
Exclusive tie- up with Jet Airways to sell FOREX cards 2012
Acquired Visas Of The World (VOTW) and commenced
visa operations under ‘Centrum Global Visa Services’ 2013
Strategic alliance with Future Group
Acquisition of Club 7 Holidays 2008
2015 Launched Buyforex.in
Centrum Wealth Ranked Best Private Bank in Asiamoney Polls across multiple parameters
2001 Global Expansion- UAE
Centrum’s journey so far… Over the last 20 years
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2016
Centrum Wealth Ranked
Best Private Bank in Asia
money polls
Private & Confidential
THE CENTRUM YOU KNOW, THE CENTRUM YOU DON’T KNOW
• Centrum has evolved into a leading integrated financial services group offering Investment Banking,
Institutional and Retail Equity Broking, Wealth Management, Asset Management – PMS, Forex and Travel,
Debt Advisory and Fund Raising, Alternative Assets and Structured Financing
• A SEBI registered Category-I merchant banker (listed on BSE) with over two decades of experience in capital
markets across market cycles
• Centrum Wealth has been rated Best Private Bank in 2016 AsiaMoney polls across multiple parameters and
Best Equity Research Fundamental Analysis Award at India Market Analyst Awards of Zee Business in 2014
• Collective deals worth INR 10 trillion and INR 1.6 trillion closed till date
• Presence in 46 cities. Relationship with 1 million HNI and retail investors. Relationships with over 500+
companies and promoters
• India’s 2nd largest company in retail foreign exchange offering a wide range of forex, visa and leisure travel
services. Also the largest seller of prepaid forex travel cards in the country
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Expertise across IPOs, FPOs, Rights Issues, QIPs, ADRs, GDRs,
Buybacks, Delisting, Takeovers, Valuation Certification etc.
‘Customised Solutions’ approach with dedicated client
teams – focus on building strong long-term client
relationships
Full-service Capabilities
Competencies across Private Equity Syndication, PIPE Advisory and Placement, Stake Sales, Structured Finance Solutions, Business
Combinations and Mergers & Acquisitions Advisory, Cross Border
acquisitions, Venture Funding
Corporate Finance business seeing significant growth
– Strong relationships with mid-cap Corporates and Private Equity
Funds entail good traction in M&A and PE
Developed Strong Competencies
Expertise across primary and secondary bonds placement as well as
project finance
Working on both sides of the Bank’s Balance Sheet
– Investment in Bonds, NCDs
– Arranging funds for Tier I and Tier II capital of Banks & NBFCs
Significant presence in the infrastructure space and expertise in
ensuring bank ability of projects
Strong presence in CDRs and wide experience in debt restructuring
and stressed assets resolution
Reach to over 750 bank treasuries, pension funds, trusts, PDs to
ensure placements in difficult times
Unmatched Service Proposition Full-service Capabilities
Membership of BSE, NSE, MCX, NCDEX, CDSL, registered in US with NASD
Empanelled with 130+ institutional investors across geographies
Over 120 corporates under coverage from prominent sectors like Automobiles, Cement, Chemicals, Education, Financial Services, Hotels, IT Services, Logistics, Media, Pharmaceutical, Power, Telecom, etc
Research focus with extensive placement reach amongst banks/PF’s/ pension trust/ QIB/HNI/retail
Ranked research house by Asiamoney for small cap
AN ESTABLISHED ECM BUSINESS FAST GROWING CORPORATE FINANCE BUSINESS
A LEADER IN DEBT SOLUTIONS ROBUST INSTITUTIONAL EQUITIES PLATFORM
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Private & Confidential
Public Issue
Indian Overseas Bank Issue Management
Rights Issue
Godrej Consumer Lead Manager
QIP
Magma Fincorp Lead Manager
QIP
Indiabulls Financial Services Lead Manager
QIP
Talwalkar Fitness Lead Manager
QIP
Escorts Tractors Lead Manager
QIP
Prime Focus Lead Manager
Rights Issue
Federal Mogul Lead Manager
Open Offer
Lloyds Steel Sole Advisor
Select Deals
IPO
Adlabs Films Lead Manager
Term Loan INR 20,000 Mn
Manappuram Gen. Finance &
Leasing Ltd. Lead Arranger
Bond Issue INR 8,500 Mn
Steel Authority of India
Lead Manager
Bond Issue INR 7300 Mn
Bank of India Lead Manager
Bond Issue INR 10,000 Mn
National Highway Auth. of India
Lead Manager
M&A
ADF Foods Limited Buy Side Advisor
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Private & Confidential
The Team
Sandeep Upadhyay Managing Director & CEO Infrastructure Advisory
11+ years of experience in advisory and financing infrastructure projects Previously worked with SBI Caps, IL & FS, Gammon
S. K. Verma Head Credit & Structuring
40+ years of experience in the Banking & Financial services sector. Previously Head- Large Corporate Vertical of Union Bank of India.
Chandir Gidwani Chairman Emeritus
A Chartered Accountant by training and a first generation entrepreneur by passion An astute investor and an accomplished banker
K. R. Menon Executive Director Project Finance
30+ years experience in Banking especially foreign branches and credit. Previously Head – Union Bank of California.
T.C. Guruprasad Managing Director Foreign Exchange
16 + years of experience in foreign exchange services. Previously worked with LKP Forex Ltd.
19+ years of experience in equity structuring and debt finance structuring and placement He has leading the team for the entire debt business during which time Centrum rose to
being one of the top mobilisers of Debt funds in India
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Rajendra Naik Managing Director Investment Banking
Jaspal Bindra Executive Chairman Former Asia Pacific CEO of Standard Chartered Bank
A Veteran Banker with over three decades of experience in Indian and International Markets
Private & Confidential
The Team
R Shankar Raman CIO –Third Party products
20+ years of experience in Research, Products & Advisory Services Previously Head of Investment Advisory for HSBC Wealth, India and BNP Paribas Private
Banking.
Arpita Vinay Executive Director Head- Family Office Services
Previously Head of Premier Banking for HSBC, India Over a decade of experience in the manufacturing & financial services sector with MBA in
finance from Faculty of Management Studies, Delhi
S. Ganashyam Executive Director Head- Wealth Management
20+ years of experience across ABN Amro, Anand Rathi Securities, Dalal Street Journal Group, Stellar Asset Management & AF Ferguson.
Previously, he was Head of Wealth Management, HSBC India
V. Sriram Executive Director Head of Operations
13+ years of experience in the finance industry across Essar Group, Reliance Capital, Anagram Finance, amongst others.
He is an Electronics Engineer with an MBA from IIM- Bangalore
Rajnish Bahl MD & CEO Group Retail Finance Service
Previously worked with HSBC as Regional Head of Distribution in their Middle East & North Africa, overseeing 18 countries.
Has also held senior positions at Citibank, ANZ Grindlays and Standard Chartered
Kunj Bansal Executive Director CIO- Equities
20+ years of experience in Money Management and Capital Markets Previously worked with Sanlam (A South African group), Kotak and Reliance.
Sandeep Nayak Executive Director CEO- Broking
Over two decades of experience in the financial services sector; previously Head- Private Client Business of Kotak Securities
He a Chartered Accountant; All-India First Rank, Gold Medalist & a First rank Cost Accountant
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Private & Confidential
Centrum Wealth Management
• Amongst the fastest growing Private Wealth firms in the country. Aggregate client assets deployed through
Centrum Wealth (Relationship Value) – INR 60 billion. Average asset growth of over 45% y-o-y since
inception
• Started four and a half years back on the Centrum platform, it has been set up and run by a team of
extremely well-regarded professionals with each member of the core team having a long and distinguished
track-record across large and reputed institutions.
• The Private Wealth firm has been conceived and is run with a boutique mindset that calls for a sharp
delivery of value add relevant to each client’s specific requirements
• The firm has been able to attract top of the line talent from large Indian and MNC private banking and
wealth management firms - advisors on an average have at least 10-15 years of experience of dealing with
clients with their financial advisory and wealth management requirements.
• Employee ownership (with about a third of the firm owned by employees) has created a valuable DNA that
is longer term, customer-centric and entrepreneurial in character , thus creating value for all stakeholders..
• The firm has been the winner of the ‘Best Equities – Fundamental Research’ award in 2014 by Zee Business
and has been rated in 2015 by Asiamoney as among the top three private banking firms in the categories it
operates in. and the best in several operating parameters.
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Private & Confidential
Advisory Process
Risk Profiling Invest Policy & Mandate
Asset Allocation &
Portfolio Construction
Product / Solution Selection
Client Approval
Investment Execution
Periodic Review &
Consolidated Reporting
Annual Review &
Audit
Investment ideas by the Advisory Team and Solution Experts before recommendations are made
Recommendations accompanied with a product note clearly explaining the investment rationale, merits, costs and risks
A Review Committee to assess the suitability of investment ideas on a periodic basis assess to ensure it is in line client Risk-return and
Liquidity profile
Client has the final discretion at the portfolio level to take the final decision
One an investment decision is taken, Service Manager shall approach for executing the investment decision
Solution experts shall meet to understand requirements on the value-added services front - Taxation Advisory, Estate Planning, etc
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Private & Confidential
Components of Investment Policy Statement
• Clarity and brevity of investment objective
• The investment universe
• Laying down a negative list could provide a
clear definition
• Risk Controls
• Portfolio Diversification
• Asset allocation – asset class limits
• Exposure limits, credit rating limits etc
• Internal authorization hierarchy and execution
process
• Delegating operational and decision-making
responsibilities
• Monitoring and Review
• Periodicity, actionables
• Audit and Controls
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Investment Policy Statement
Investment Objective
Investment Horizon
Asset Allocation
Risk Management
Exposure Limits
Monitoring and Review
Private & Confidential
Portfolio Construction- A systematic process
UNDERSTAND PROPOSE
REVIEW IMPLEMENT
• Look at overall assets, current and anticipated income and liabilities, and any debts and commitments
• Identify key areas of personal/ business risks and concerns
• Obtain an accurate picture of investment profile (including risk appetite
• Defining the investment objective and investment horizon
• Structuring for Asset Protection & Wealth Preservation
• Areas of potential concern include: Tax implications, risk mitigation and succession considerations
• Well-diversified investment portfolio targeted towards sustainable growth
• Conduct thorough discussions aimed at helping to clarify investment queries and obtain agreement to implement agreed solutions
• Balancing liquidity, volatility, tax-efficiency & return requirements
• Review portfolio on regular basis to ascertain that it is in line with the your investment strategy and adapts to changing financial and family circumstanced
• Ongoing course corrections in line with economic/market cycles
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01 02
03 04
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Investment Advisory Need for Active Advisory
Asset class
performances
vary across
market cycles
Diversification
and Portfolio
Rebalancing is
the key
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Private & Confidential
Asset Allocation : Getting the right mix
GDP growth
estimates
Demand conditions
Interest rates
Global liquidity
conditions
Inflation / Currency scenario
Politics & Governance
Evolving macro-economic conditions
Current and expected market trajectory
Liquidity Age
Individual Profile
Horizon
Risk appetite
Financial position / Tax Status
FII activity Market
sentiment
Earnings growth
estimates/ Projection
Relative market
valuations
Liquidity / Flows
Technical set-up
Investor Profile
Individual Asset Allocation
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Private & Confidential
Rebalancing and Tactical strategies
Operates within the strategic asset allocation bands – in response to changes in market / macro conditions
Scope for alpha generation in the portfolio + maximize risk-adjusted returns
For instance,
Secondary tax-free bonds, preference shares in 2012
Increasing equity exposure between Aug-Sep’13
Building exposure to a IT/ Software fund in Mar – Apr’15
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Private & Confidential
Common Approach to Fund Selection
History based quantitative models– such ‘hind-sighting’ and ‘filtration’ methods lack predictive power
“Past Performance is not an indicator of future returns”
Mainly due to :
Changes in the wider economic environment
Market cycle changes
Individual fund manager style and investment strategies
Changes in fund management teams
Emerging new ideas
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Private & Confidential
Investment Advisory Need for Active Advisory
Huge dispersion/ polarization of returns across funds
Bull Market of 2009 -
2010
Bear Market of 2010 –
2011
Flat market 2014 – 2015
Sensex 156% -28% 0.17%
Best Performing Fund
HDFC Equity 244%
UTI Ops Fund
-16%
FT Prima Plus
19%
Average of Top Quartile Funds
206% -20% 15%
Worst Performing Fund
BNP Paribas Equity
112%
Reliance Vision
-35%
IPru Top-100
- 0.25%
Average of Bottom Quartile Funds
126% -32% 1.68%
Winners of one cycle may not be the winners in the next
Scheme Name
Period Return/ Rank
Period Return/ Rank
HSBC Equity Fund
Jan’08- Mar’09
-53% Mar’09- Nov’10
115%
5/29 30/31
IPru. Focussed Bluechip
Nov’10- Dec’11
-20% Sep’14- Oct’15
6.29%
3/34 23/34
Reliance RSF- Equity
Aug’13- Jan’15
118% Nov’10- Dec’11
-35%
2/34 34/34
UTI Opportunities Fund
Nov’10- Dec’11
-16% Aug’13- Jan’15
80%
1/34 27/34
“Past Performance is not an indicator of future returns” - Proper Mutual fund selection is important
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Private & Confidential
Investment Advisory Need for Active Advisory
“Past Performance is not an indicator of future returns” - Proper Mutual fund selection is important
Concentration/ Diversification strategies and performance can be unrelated
Scheme # of stocks held
Top 5(%) Return (1-yr)
MOST Focused 30 Midcap 21 38% 20.5%
DSPBR Microcap 60 19% 19.2%
FT Prima Plus 62 23% 5.4%
DSPBR Focused 25 25 35% 5.2%
Fund size – no bearing on performance – smaller funds can be more nimble. Smaller AMCs can have fire in the belly
Scheme AuM (Cr) Category 2 Yr 3 Yr
JP Morgan Mid & Small Cap
655 Mid/Small 46%
(11/39) 31%
(9/38)
FT Smaller companies
2568 Mid/Small 48%
(9/39) 35%
(3/38)
Mirae Emerging Bluechip
1015 Mid/Small 48%
(7/39) 33%
(5/38)
FT Prima Plus 5889 Large/Mid
22% (2/43)
31% (3/43)
SBI Bluechip 3026 Large/Mid
21% (3/43)
28% (9/43)
Reliance Equity Opportunities
11500 Large/Mid 20%
(5/43) 31%
(2/43)
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Private & Confidential
Elements of our Fund Selection Methodology
• Fund dynamics (AUM, # stocks, index linkages) • Fund manager’s view on market / economy
• Sharp and steady fund positioning – across market cycles • Mapping the walk and the talk- Consistency of strategy implementation in portfolio
• Style (Top down/ Bottom up, Value/ Growth) • Investment Strategy (cash calls, buy-hold, thematic)
• No bias on any strategy – endeavor matching strategies with the environment
• Prefer a mix of various investment styles – within this, the portfolio slant would be determined by the evolving environment
Investment Advisory
Different investment strategies perform better in various phases of the economic / market cycle
Macro Conditions What can work?
High growth economic conditions with buoyant asset markets -> Growth-oriented, momentum-led equity strategies
Heightened volatility, flat equity markets -> Actively managed equity (cash calls, sector rotation strategies
etc.)
Listless equity markets, slowing economic growth -> Conservative, quality conscious funds
Volatile g-sec markets -> Active duration management funds
Falling interest rates -> Dedicated duration, High yield funds (lock-in)
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Our Experience – Equity MFs Staying Ahead of the Curve - Early identification of ideas
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Our Experience – Market-linked debentures
What has worked - Strategy selection basis better pricing & longer-term fundamental view on markets
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Our Experience - Debt
Focus on 3 pillars – Duration + Accrual + Tax Efficiency
Strategy Rationale Performance
Active dynamic bond funds
vs. passive income funds
Shift in monetary policy conduct – Persistent 2-
way volatility in bond markets
~10.5% vs 9.3% CAGR
over 2-yrs
Accrual Selective approach – prefer players with proven
skill-sets / institution backed players
~10.5 – 10.6% CAGR over
2-yrs.
Tax Free Bonds, Pref. Shares
(Tax Efficiency)
Attractive tax-free yields with liquidity, tax
efficient options for the 1.5 – 3 yr. tenor
~13 – 17% IRR over a 2-
yr period
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Private & Confidential
Our Experience - Alternatives
What has worked ? Focus on sharp positioning & governance structure
Orios – Early stage, software/market place cos CAT 1 AIF
• Identified well ahead of the market in Jan’14
• Marquee advisory board – likes of MD Google India, Founder – Shaadi.com
Reliance Yield Maximiser. – Residential RE-NCD, CAT II AIF
• Excellent track record of managing real estate fund successfully across market cycles & returning
investor monies
• Realized IRR of 20 – 22% on earlier tranches
Indianivesh Growth & Special Situations Fund
• PE-VCF focused on domestic consumption demand led, high growth, SME businesses in segments
such as apparel, food, industrial products.
• Sound track-record, relevant experience
• Blends well the prevailing RE-oriented, contemporary (Web/Software) ideas
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Private & Confidential
Our Experience – High Yield NCDs
INR 700 Crores raised across structured debt transactions with an average client IRR of 17-18%
Type of Structures Asset backed funding, Promoter funding, Brand/IPR backed funding
NCDs, OCDs, Structured Loans, Profit share
Sectors covered Manufacturing, Auto-ancillary, Pharma, Media & Entertainment, Education, Technology and Real Estate
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Private & Confidential
Fam i ly O f f i c e
Track Record
• Over a ‘difficult’ 5-year period, we have been mostly able to spot the ‘cherries’ and avoid the ‘lemons’ (e.g.
NSEL)
• Based on time-tested principles of Asset allocation & Diversification - Old fashioned, but remain extremely
relevant across cycles
• Path between ‘state of the art’ and ‘proven and tested’, prefer the ‘sensible’ to the ‘sexy’
• Prefer compact portfolios with sharply positioned products with meaningful exposures
• Portfolio Shifts –
• Generally ‘Buy and Hold’ across a market cycle
• Discard the ‘lemons’ in the portfolio - under normal situations, with a sufficient wait period of 1 – 1 ½
years; shorter periods only when exceptional events materialize (e.g. Gold ETF - when outlook on gold
changed materially)
• Benchmarking of portfolio performance basis predetermined customized indices with performance
attribution on an annual basis
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Private & Confidential
Fam i ly O f f i c e
Track Record – Equity Advisory
Performance of our Equity Advisory recommendations, CONTEMPORARY PORTFOLIO – A basket of 15 select Ideas
Benchmark Return* (since 11-Nov-14) Return %
Contemporary Portfolio Ideas 31.6%
BSE 500 Index 3.1%
Note: Portfolio Return calculated with the assumption of equal weight across stocks Data As on 28-Jun-2016
Our Equity Themes that played out
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Current Market Price as on 4th Jul 2016
Date purchased Themes Stock Initial Price Current Market Price Absolute returns Times Initial Value 9/12/2013 Auto/ Auto Ancillaries Eicher Motors 4732 19420 310% 410%
30/07/14 Auto/ Auto Ancillaries Igarashi 193 685 255% 355%
6/2/2014 Auto/ Auto Ancillaries Bharat Forge 346 777 125% 225%
9/4/2014 Auto/ Auto Ancillaries Atul Auto 177 490 177% 277%
12/3/2014 Microfinance SKS Microfinance 203 763. 276% 376%
17/01/14 Home Finance Repco Home
Finance 324 774 139% 239%
5/1/2015 Home Finance Can Fin Homes 577 1214 110% 210%
19/12/13 Port & services Gujarat Pipavav 60 164 173% 273%
30/3/14 Consumer Page Industries 6194 13950 125% 225%
Private & Confidential
Fam i ly O f f i c e
Track Record – Equity Advisory
Winners in last 10 years
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• We analyzed BSE 500 stocks* for last 10 years and found the ones which have generated most returns.
• The top 20 return generating stocks were from the following sectors
• 6 Financials (4 private banks and 2 niche NBFCs)
• 6 Pharma stocks
• 4 Building materials including Cement
• 2 FMCG
• 2 Auto & Auto Ancillaries
Private & Confidential
Fam i ly O f f i c e
Track Record – Equity Advisory
Winners in last 10 years
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Private & Confidential
Fam i ly O f f i c e
Track Record – Equity Advisory
Winners in last 10 years
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• These stocks have high margins (or have shown marked improvement over the years).
• High return ratios and are mostly asset light businesses
Private & Confidential
Fam i ly O f f i c e
Track Record – Portfolio Management Services
• Our flagship PMS offering ‘WEALTH CREATOR’ seeks to deliver long term wealth creation while meeting liquidity needs.
• It follows a bottom up & value stock picking strategy identifying deep value stocks, emerging themes, outperforming sectors.
• Around 50-60% of portfolio invested in deep value & mid cap stocks and remaining in large cap stocks.
Index/ PMS Models
PMS Absolute Portfolio Returns PMS CAGR Portfolio Returns
12-M 24-M 36-M 48-M 24-M 36-M 48-M
BSE 500 -2.4% 16.9% 44.6% 71.4% 8.1% 13.1% 14.4%
Wealth Creator -3.4% 71.1% 94.9% 125.2% 30.8% 24.9% 22.5%
Performance as of 31st May 2016; M-month ^Return less than 1-year are absolute and over 1 year are annualized
Index/ PMS Models PMS Absolute Portfolio Returns PMS CAGR Portfolio Returns
12-M 24-M 36-M 42-M 24-M 36-M 42-M
BSE 500 -2.4% 16.9% 44.6% 71.4% 8.1% 13.1% 14.4%
Deep Value - I -1.8% 68.4% 103.9% 134.6% 29.8% 26.8% 23.8%
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Private & Confidential
Fam i ly O f f i c e
Solutions beyond Investment
Advisory
Family Office Services
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Private & Confidential
Fam i ly O f f i c e
Family Office Advisory Board
K. R. Kamath
He has been the Chairman of Indian Banks’ Association (IBA) and Governing Board of Institute of Banking Personnel Selection (IBPS).
Has also been the President of Indian Institute of Banking & Finance (IIBF) and Bankers’ Club, Delhi. Has been the member of Governing Board of National Institute of Bank Management (NIBM), Pune and Governing
Council of Institute for Development & Research in Banking Technology (IDRBT), Hyderabad. Ex- Chairman and Managing Director of Punjab National Bank
Ramesh Jogani
Steven Pinto
Vivek Vig
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• Has served with Citibank N.A. as Director (Marketing) - Samba (Citibank), Saudi Arabia and Business Head - Poland & Taiwan and thereafter as the Country Head (Consumer) of Citibank, Turkey and Saudi Arabia.
• Has also served as the Country Head (Retail Bank) of Centurion Bank of Punjab in 2004, where the Bank acquired Bank of Punjab and Lord Krishna Bank before its merger with HDFC Bank Ltd. in 2008.
• His last assignment was as the Managing Director & Group CEO of Destimoney Group of Companies.
• Previously, full-time Lead Director of the Chairman’s Supervisory Board at the Emirates Investment Bank, UAE. Now an active Non-Executive Director on several large MNCs in India and Middle East.
• Previously, he has worked with Citibank (India, Korea, Oman & Singapore) across various functions. • In 1977, he assumed the position of CEO of Commercial Bank of Oman. • In 2000, he was appointed CEO of Osool Finance Co and concurrently Head of Retail Banking for Mashreq Bank,
Dubai, post a profitable divestiture in Oman.
• Pioneer in the RE fund space with a realized track record of successful exits and a history of firsts. • Was identified as the ‘Value Builder’ (by Forbes India in 2011). His fund management experience is backed by a
development experience across 2.5m sq ft across Mumbai and Pune over 22 years. • As the Managing Director & CEO of Indiareit, he was instrumental in raising and managing INR 4,200+ crores
across 5 funds and 2 third party mandates. • Has been a Member of National Committee on Real Estate & Housing - Confederation of Indian Industry (CII)
Private & Confidential
Fam i ly O f f i c e
Structuring and Tax Advisory
Legal assistance through our ecosystem of partners on various issues including business structuring, property
and other matters.
Knowing tax implications of investment and divestment decisions helps shape the overall strategy in a
meaningful manner
Our Tax Advisory services include:
Review and advice on residency, substance and potential permanent establishment risk/ opportunities
Advice on tax efficient structuring of investments
Domestic tax compliance
Advice on FEMA implications of investment decisions by the family
Tax efficient repatriation strategy
Wealth transfer planning
Corporate tax, advice and compliance
Assist in various Accounting & Taxation issues relating to Investments and other allied matters. Work closely
with external consultants to communicate client needs & deliverables, advance tax computations, Book-
Keeping records etc.
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Fam i ly O f f i c e
Estate and Succession Planning
Develop Intergenerational Wealth transfer plans and Family governance structure
Provide Estate Planning recommendations and putting necessary testaments and structures in place; drafting of Wills, Execution, Video recording and Registration
Support trustees in fiduciary duties
Legal opinions regarding tax, civil and commercial matters from our ecosystem of experts and in-house lawyer
Advisory concerning laws on inheritances and donations
Creation of asset register of the family with nomination audit check for all the assets
Structuring, drafting, execution and registration of Trust Deeds, Family Agreements and other related ancillary documents
Trusteeship Services Warmond Trustees and Executors Pvt. Ltd Amicorp Trustees (India) Pvt. Ltd.
Lawyers SNG & Partners, Khaitan & Co., Nishith Desai Associates, Mulla & Mulla, Crawford Bayley & Co.
Tax Consultants E&Y, PWC, KPMG, BMR Advisors, NS Global, A. T. Jain & Co and local CA firms.
International Taxation US: Day Pitney & LLP, Grant Thornton, Tax Advisor (Ex- International group tax head for Infosys for 15 years)
Specialist Tie ups
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Fam i ly O f f i c e
Family Business Governance
Governance is a transparent balance of interests that achieves organized accountability among: • The owners of family business (individuals & trustees) • Those who manage the business • The family who’s interests they serve
In order to achieve the family’s version of success
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2
3 1
Ownership
Family Business
4 7 5
6
Stakeholders it represents Self Interest
1 Family members who do not work or ownership in the business
Family life balance with business; prospects for jobs, ownership, wealth. Family reputation & brand
2 External Investors who are not members of the family or work in the business
Return on Investment, liquidity & Information
3 Management & employees Job security, career goals, perceived threat of nepotism
4 Non-working family owners Mixture of 1 & 2
5 Employee owners Mixture of 2 & 3, with some additional loyalty to the family
6 Family Employee but not owner 3 plus appreciation of rules for entry to ownership, prospects
7 The working family owner All the above; how to manage the conflicts & stay focused
A Model for helping a business family plan for future – Harvard Research
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Fam i ly O f f i c e
Corporate Solutions
Advice on fund raising, debt restructuring, M&A, cross-border acquisition, Equity and Debt capital market related
requirements. CENTRUM has engaged with more than 500 companies over the last 5 years
Centrum Capital is a leading Category-I Merchant Banker in India operating in the Mid Cap Space. Expertise across IPOs,
FPOs, Rights Issues, QIPs, ADRs, GDRs, Buybacks, Deli sting, Takeovers, Valuation Certification etc.
Corporate Finance capabilities across Private Equity Syndication, PIPE Advisory and Placement, Stake Sales,
Structured Finance Solutions, Business Combinations and Mergers and Acquisitions Advisory, Cross-Border
Acquisitions, Venture Funding. Industry leader in placement of bonds and syndication of bank finance. Expertise
across primary and secondary bonds placement as well as project finance
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Philanthropy Services
In-depth discussion and engagement with families to devise a philanthropic vision and Formulate strategic philanthropy initiatives Identify cause areas; match interests and passions to needful communities/causes
Research the most productive way to donate towards designing the right structure
Foster family engagement by active participation from all stakeholders Leverage skills of the family members for the betterment of the Beneficiaries
Guidance on selecting sustainable Projects and ensure optimal utilization of resources
Innovate practical and affordable solutions to address key social issues
Private & Confidential
Fam i ly O f f i c e
Record Management
Platform – Capabilities and Experience
Tie –up with Stockholding DMS for secured storage of important documents
EDMS ( Electronic Data Management System) – a powerful suite , comprising of Digitization, Scanning
Image Conversions, Document Archival , Document Retrieval & Tracking
Record Management involves 3 basic steps
- Inwarding : Accommodating your records into the custody and assigning a unique identification code
- Custody: Inwarded documents are preserved in a controlled environment
- Withdrawal : Document retrieval stage sets in and document is returned to the client.
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Authentication and Document
Retrieval
Creation of Client Login Credentials
Scanning and Digitization of
Documents
Document Collection by
SHCIL
Mutual Agreement on
the Storage Architecture
Tripartite Agreement
between Centrum, Client
and Stockholding
Execution and Process
Private & Confidential
Fam i ly O f f i c e
Recovery of Unclaimed Investments
Platform – Capabilities and Experience
Comprehensive Services including legal assistance in resolution of issues related to recovery of
Investments
Conversion of physical shares to Demat , Transfer of shares, Transmission of shares
Family Office Investment Document Streamlining
Recovery of Unclaimed dividends , Unclaimed bonuses , split shares, Unclaimed PF , Insurance and Fixed
Deposit
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Synergies Between Centrum and Share Samadhan
Share Samadhan to open a Demat account
for all its clients
The Recovered Mutual Funds / Old Debentures
Share Samadhan will help execute the
recovery
Centrum will Open all the Demat Accounts
Centrum Will Open a Demat and add to the
AUM
Centrum with its reach across the country where-in the needy
client can be approached
Private & Confidential
Fam i ly O f f i c e
Real Estate Advisory
Offerings
Leasing
Residential Broking
Commercial Broking
Land and Property deal
Structured Finance/NCDs
Preleased Transaction
Advisory Services
Assistance in Resale
Property
LAP & LRD Arrangements
Capital Gains Tax Savings
Advisory
Real Estate Fund - IPAL
Fund Advisers
We Assist in
• Residential Properties
• Commercial Offices
• Township project
• Bungalows
• Yielding Properties
• SEZ
• Shopping Mall
• Hotel
• Hospital
Strong Relationships with
• HNIs
• Wealth Managers
• Real Estate Developers
• Construction companies
• Rating agencies
• Valuation Agencies
• IPCs/Brokers
• Research Firms
• Solicitor Firms
Real Estate Research Inputs Comprehensive pack which covers the options available across Mumbai, Bangalore, Pune, Gurgaon, Hyderabad etc. • Three major sub asset classes within real estate i.e.
Residential, Commercial & Land; deals sourced directly from the developers and our internal supplies
• Includes preleased commercial properties, pre-launch residential, luxury vila, structured residential investment deals
• Micro market overview covering location advantages and recent price trends, technical project specifications, competition analysis, etc
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Private & Confidential
Fam i ly O f f i c e
Foreign Exchange and Travel Services
Platform – Capabilities and Experience
Widest range of foreign exchange services which includes travelers cheques, foreign currencies, foreign
currency pre-paid cards, money transfers and remittance products and currency exports.
Geographical network presence at 80 branches and 16 airport counters.
Largest seller of prepaid travel cards in India.
2nd largest retail money changers in India
Centrum white label card with 8 destination currencies powered by ICICI Bank.
Co-branded travel card with Citibank and Axis Bank.
Travel solutions for individuals and corporates through Club7 (MICE- Meetings, Incentives tours,
Conferences and Exhibitions)
Customized experiential travel solutions crafted by “Club7 Exotic” – destinations include Alaska Cruise
and Canadian Rockies, Best of Spain and Portugal, Best of East Europe, South America, Best of Russia and
Scandinavia.
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Private & Confidential
Fam i ly O f f i c e
Getting Started and
Engagement Framework
Family Office Set-up
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Private & Confidential
Fam i ly O f f i c e
Family Office Structuring
Holding Structure
Beneficiaries
External Advisors
Decision Process
Assets under Advisory
Services Required
Mandate Definition
Family Trust, body corporate or Individuals Reporting requirements and tax efficiency
Multiple beneficiaries, residential status, tax status
Multiple advisors, varied views, differential reporting structure and fee models
Discretionary vs. Non-discretionary, PoA vs. Non-PoA, Investment
Policy
Additional Service Mandates based on specific family needs
Nuances associated with diverse range of financial and real assets
owned by the family
Governance structure, multiple decision makers, management and administration
in everyone’s benefit
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Private & Confidential
Fam i ly O f f i c e
Family Office Set-up Process
Requirement Gathering
Vision, Values, goals and expectation of the Family
The beneficiaries of Family Office
Target setting, Risk Profiling and Liquidity Profile
What portion of the Family’s Wealth is to be managed by the Family Office?
What services are required, and for whom?
Defining the Family Office mandate
Configuration
Authorizations and decision process
Test and implement investment portfolio
Testing custom aggregating and reporting of assets across multiple advisors
Complete documentation check on existing investments
Fine tuning reporting and analytics
Start
Commence Family Office Operations
Educating family members on systems and processes set-up
Continual review as per predefined mandate and investment policy
1 2 3 4
Set-up
The step involves defining:
Defining the holding structure
Investment Policy Statement
Engagement Frequency and Framework
Cost Structure
Measurable benchmarks
Portfolio Reporting Structure and Analytics
Gathering data from external advisors
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Private & Confidential
Fam i ly O f f i c e
CLIENT FAMILY OFFICE
Family Members Personal Advisors
CLIENT ADVISORY TEAM SOLUTION EXPERTS REVIEW COMMITTEE
Client Director Operations Lead Service Manager
Equity Specialist Fixed Income Specialist Real Estate Consultant
Tax Advisor Estate Planning Expert
Insurance Advisor
Market Director Chief Investment Officer
Head- Family Office
Day-to-day engagement with Family Office Client
Communicating & Implementing Advice from Central Investment Advisory & Product Team into the client portfolio
Drawing-on group’s strengths to provide holistic solutions
Solutions as specific to client requirements
Tie-up and engage with domain experts, specialists and service providers offering financial services, asset managers, product providers, legal, taxation, trustee services.
Holistic advice across the gamut of wealth management and related service requirements for the family
Providing Strategic direction and overall supervision of Family Office client requirements, investments and processes
Reviewing suitability, analyzing performance, highlighting deviations, suggesting risk management and control systems in the arrangement
Engagement Framework
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Private & Confidential
Fam i ly O f f i c e
REVIEW CALENDAR
Attendees Frequency Agenda
Family Office Service Manager As required Documentation and investment execution
Client Director, Market Director
Monthly Discuss investment opportunities; portfolio
statement review
Head- Family Office and Solution Experts
Quarterly Portfolio performance review, product level
discussions and value added service requirements
Review Committee Half-Yearly Portfolio Risk Management Review, sharing new
initiatives, receiving feedback on engagement
Performance Risk Liquidity Cost
Dimensions Levels 4
Portfolio Reviews
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Private & Confidential
CONSOLIDATED STATEMENT AND ANALYTICS
Overall view, Market commentary and
Outlook
Portfolio Investments by Individual Family
Members
Unlocking the complete picture – We understand that investments might be spread
across multiple accounts and advisors
Overview of consolidated portfolio holdings for the entire
family
Your Advisors and how their recommendations
are performing
Review of investment decisions
Overview of transactions in your portfolio during the
period
Gain/Loss Statement – Plan Your Tax Fillings
Fam i ly O f f i c e
Consolidated Portfolio Statement and Analytics
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Private & Confidential
Consolidated Portfolio Statement and Analytics
Consolidated
Portfolio
Statement
Executive Summary Snapshot of overall portfolio at Family Level
Portfolio Snapshot - Family Snapshot of portfolio and holding across Family Members
Portfolio Snapshot across Investment Advisors The spread of assets across Advisors
Portfolio Performance by Investment Advisor
Portfolio Performance at Individual Level Gives a sense of how individual level portfolios are performing
Portfolio Performance by Asset Class Gives a sense of how specific investments are performing
Transaction Report by Asset Class Details of transactions during the period
Realized Gain/Loss Statement
Analytics
Statement
Sub Asset Class Allocation
Equity Analytics
Product allocation, sector allocation, market capitalization, top holdings, Performance vis-à-vis benchmark
Equity Mutual Fund- Fund type, sector allocation, Performance vis-à-vis benchmark
Direct Equity- Market capitalization, sector allocation, top holdings, Performance vis-à-vis benchmark
Fixed Income Analytics
Maturity Profile, credit rating, top holdings, Performance vis-à-vis benchmark
Debt Mutual Fund- Credit Rating, Underlying Assets, Performance vis-à-vis benchmark
Direct Debt- Issuer wise allocation, credit rating, maturity profile
Mutual fund Analytics Fund house and Type wise allocation
Fam i ly O f f i c e
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Private & Confidential
Fam i ly O f f i c e
Controls & Governance
Concurrent Audit : performed by an external auditor on the activities done by the desk
Internal Audit : Internal compliance and management team carries out the same once a year and its findings if
any are placed before the Board
SEBI Audit : We are a SEBI registered investment Advisor. As per SEBI mandate, an external auditor undertakes
audit of the activities once a year.
Grievance Redressal : We have a well-drafted and implemented policy for prompt grievance redressal. Clients
can directly escalate the issues they might have to the compliance department by writing on the e-mail ID:
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Private & Confidential
Fam i ly O f f i c e
Disclaimer
The information contained in this document is document is strictly for private circulation on demand received from the client or
person interested to know about the group and the information cannot be circulated or shared with any third party. The
information contained in this document is indicative and by way of bird’s eye view and the same cannot be relied upon or used for
any evidentiary purposes or claim against Centrum Group or management in any form whatsoever
Centrum House, Vidyanagari Marg,
Kalina, Santacruz €, Mumbai 400098
T +91 22 4215 9000 F +91 22 4215 9736
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