PMS - Portfolio Management Service - FAMS™ - Financial Assets Managed Simply

PORTFOLIO MANAGEMENT SERVICES ( PMS )
This service is meant only for investors and coporates, who have a long term
perspective and are looking at value based investments. We are extremely selective
about our clients and do not cater to the needs of speculators. We believe in a long term
strategy that looks at minimizing risks and maximizing returns. Our estimated average
investment tick size for individuals is over Rs. 50 lakhs and for corporates is over Rs. 5
crores.
Our PMS is SEBI registered, and operates in such a way that the Portfolio is held in
the client's name, with separate Bank, DP and Trading accounts being opened
specifically for the purpose. We take a specific Power of Attorney to operate the
accounts. Initial paperwork is involved, and after that the client is free from doing any
other formalities.
This is a Discretionary PMS, and we have a system of centralized decision making,

and report to clients every month with Statements and Portfolio Valuations. We also
keep them abreast of the strategy that we propose to adopt, month on month, going by
market and global trends and the macro environment. We invest with medium to long
term view, which is the best way to achieve exponential returns from equities, and go for
stocks that have been thoroughly researched. Our investment philosophy and
perspective is basically to look for hidden gems and value based assets. Capital
preservation and multiplication are both equally important. We do not indulge in day-
trading, speculative derivatives trading, currency trading, commodity trading or any
other such speculative activity. Investors have the unique option of either going in for a
100% conservative model or a 100% aggressive model.
Allocation to different sectors, with weightage, is made, based on the Fund Manager's
outlook and leading stocks are picked within the sector.
We have seen that the PMS has given excellent returns, irrespective of short term
market conditions.
The PMS entry level is Rs 5 lakhs for Resident Indians according to SEBI and is open
for Individuals as well as Corporates.
NSE SEBI Registration No. INB 0230838835 | NSE SEBI Registration No. INF 0230838835 | BSE SEBI Registration
No. INB 010838838 | BSE SEBI Registration No. INF 010838838 | MSE SBI Registration No. INB 041 251431 | PMS
Registration No. PM/INP 000001009 | DP SEBI Registration No. IN-DP--CDSL-312-2005 | MCX Membership
Registration No. 31420 | Forward Markets Commission Code: MCX/TCM/CORP/1175 | AMFI Registration No. ARN
3077 | Paterson Securities P Ltd. Membership Registration No. 32700 SEBI Registration No. INE260838835SEBI
PMS for NRIs.
India presents an attractive investment option for a long term investor who is looking to
diversify equity portfolios across geographies and currencies. The returns comparison
has proved that an investor from the US, was better off investing in equities across the
globe than sticking to investments in US assets. The PMS entry level is Rs 10 lakhs (
INR ) for NRIs.
Type of PMS
We shall operate as discretionary Managers; where the client does not make/take any
decisions on the management of his/her portfolio
Management Charges
• 2% p.a. on Value of portfolio beginning every year from date of capital

introduction and on every fresh capital introduction.
• If for example a client introduces Rs. 2,000 on April 1st 2009 and Rs. 1,000 on
October 1st 2009; then he will be charged 2% on the Rs. 2,000 i.e. Rs. 20 till
March 31st 2010. On the additional Rs. 1,000 the client will be charged @ 2%
p.a. on proportionate basis. Therefore he will be charged Rs. 10 to make it even
till March 31st2010 (for 6 months). Then from April 1st 2010 till March 31st 2011,
he shall be charged on the NAV value as on April 1st 2010 (beginning of year)
Performance Based Fees
No performance based fees will be charged up to the extent of 10% returns. After that
the following tables shows how Performance based fees will be charged to the client as
and how his returns increase due to the Management of his funds by the our Fund
Managers.
Pre-tax Client Profits Performance Based fee
(it is not slab wise but on cumulative basis) (% of client profits)

Upto 10% NIL
11%-15% 10%
16%-50% 25%
51%-100% 30%
101%-200% 35%
Anything above 200% returns 40%
The above table shows the returns that the client earns on a pre-tax basis. The
performance based fees shall be charged on this pre-tax profits generated.
High Watermark system
The performance based fees as above will be charged on high watermark system. To
understand this we will consider Mr. A invests Rs. 1,000 in 2009. Here the watermark at
inception at first year is Rs. 1.000. This goes up to Rs 1,500 in by end of 2009, therefore
a 25% Performance based fee is charged on this 50% returns. Now the water mark has
become Rs. 1.500 at start of second year.
Now in second year it goes up to Rs. 2,250 by end of 2010. Therefore he will be
charged 25% Performance based fees for this 50% returns.
Now the water mark is Rs. 2,250. Let’s say by end of 2011 the value goes down till Rs.
1,800; so No performance based fees will be charged and only Management Fees of
2% p.a. will be charged at beginning of yearly agreement.
Next year the value goes up to Rs. 2,000. Here also no performance based fees will be
charged and only Management Fees of 2% p.a. will be charged at beginning of yearly
agreement. As we have not regained the highest watermark valued at Rs. 2,250.
Next year the value reaches Rs. 3,000, so we can charge a Performance based fee on
Rs. 750 [Rs. 3,000 – Rs. 2,250 (the previous highest watermark)] and a Management
Fees of 2% p.a. will be charged at beginning of yearly agreement.
Partial withdrawal for clients
Clients will have to give in writing their desire to withdraw funds at least 2 weeks prior to
their need. That is once a written request is given, the client shall receive his requested
fund withdrawal after 2 weeks (two weeks).
Discontinue of service / complete withdrawal of funds
If the client wishes to withdraw from the PMS service entirely i.e. discontinue and
withdraw entire amount of funds, then a written request for the same is to be given at
least a month prior to his need of funds. That is once a written request is given, the
client shall receive his funds after a month /4 weeks.
At time of complete withdrawal, the performance based fees shall be applicable and
charged to the client for the returns generated from inception of contract till date of
complete withdrawal.
The client after paying all his dues including the performance based fees can opt to
liquidate his entire portfolio and receive fund payment or transfer his portfolio to another
demat account in his name only to keep holding on to the securities.
In case the performance based fees are not paid in the notice period, then the entire
portfolio will be liquidated and the all charges will be adjusted against the redemption
value before being paid to the client.
About
Paterson & Co. is one of India’s oldest stock broking firms (established in 1935) and has
been a renowned player in this field since inception. As a Founder Member of the
Madras Stock Exchange, we have played an active role in shaping this industry
regionally.
Our Group is engaged primarily in Securities Broking in the Indian capital market (
Members of the National Stock Exchange and Bombay Stock Exchange), Commodity
Broking ( Member Multi Commodity Exchange of India ), Portfolio Management
Service ( SEBI Registered ), and Investment advisory services, Depository
Services ( Through CDSL ), distribution of Mutual Fund products and Insurance
Products. Over the years the Group has built a diversified customer profile consisting
of leading financial institutions, large corporate groups, high net worth individuals and
a large retail clientele.
Over the years the Group has built a diversified customer profile consisting of leading
financial institutions (like LIC, GIC, United India Assurance), large corporate groups,
high net worth individual clients and a large retail clientele of over 10,000.
Many men, able and experienced, have steered the firm over the years, through
changes and developments, yet on the same guiding principles. As a result, the
operations have always been contemporary in their currency, and historic upon review.
The firm was promoted in 1935 by Mr. R. C. Paterson, who was later joined by Mr. H.
Haddow as a partner. Subsequently Mr. K. S. Vaidyanathan and Mr. E. V.
Rajagopalan, successfully steered the Company in the early years and developed it into
a formidable force in the Indian capital markets.
Mr. Vepa Ramesam, who retired in 1993, also played considerable role in the
development of the company.
At present the organisation is headed by Mr. V.Sriram as Chairman and Mr.

M.Amarnath as the Managing Director.
About Fund Managers
The fund will be managed by Mr. Mubin Panjwani and Mr. Yogesh Chabria who are
both value investors and have been known to detect several multi-baggers and
undervalued companies in the past. They are best known in the Indian markets for their
value picks such as Sesa Goa, Indian Hotels, MTNL and Financial Technologies which
have given returns in excess of 100%-500% in the recent past. They are both long term
fundamental investors and believe in investing on the basis of knowledge.
For further information e-mail us at contact@famsinco.com

http://www.famsinco.com

PMS - Portfolio Management Service - FAMS™ - Financial Assets Managed Simply

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PORTFOLIO MANAGEMENT SERVICES ( PMS )

This is a Discretionary PMS, and we have a system of centralized decision making,

• 2% p.a. on Value of portfolio beginning every year from date of capital

Pre-tax Client Profits Performance Based fee

(it is not slab wise but on cumulative basis) (% of client profits)

High Watermark system

Partial withdrawal for clients

Discontinue of service / complete withdrawal of funds

At present the organisation is headed by Mr. V.Sriram as Chairman and Mr.

About Fund Managers

For further information e-mail us at contact@famsinco.com

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