Almondz Global Securities Ltd (AGSL), one of India’s leading financial services intermediaries, today launched a first-of-its-kind discretionary portfolio management service (PMS) – Compounding Growth Portfolio (CGP) – in association with the UK-based Commander Asset Management Ltd.

The launch comes close on the heels of AGSL (BSE Code: 531400) signing an Advisory Agreement with Commander Asset Management Ltd as its investment advisor to bring world-class PMS to Indian investors.

A unique feature of the open-ended CGP is that trades in equities will be driven by a computerized algorithm in order to provide enhanced returns with a reduced risk profile as compared to the market. The effectiveness of this investment model can be gauged by the fact that real-time simulation in calendar year 2007 resulted in a portfolio return of 60.20% as compared to BSE Sensex return of 47.10%.

The CGP uses a unique combination of passive long position (one half) and trading portfolio (the other half) resulting in a compounding effect over a longer period. The algorithm aids decision making as to when to sell the traded part of a holding and when to buy it back. Hence, investors can enjoy enhanced returns with a reduced risk profile as compared to the market. The portfolio’s intention is to exploit and profit from the excess volatility of individual stocks in the market.

Almondz’s PMS strategy will use cyclical bear phases to increase ownership of its portfolio holdings over time. By reinvesting dividends and profits generated from the sale of shares back into the same shares over long-term produces a compound growth effect. Depending on the investment rationale at any given point of time, 10% to 30% of the CGP will be held in cash.

“The innovative PMS launched by Almondz with Commander as its investment advisor is ideal for investors, be it HNIs or institutions, who are looking for personalized investment solutions for long-term wealth creation. By not making big bets, the portfolio seeks to preserve capital and achieve long-term growth. We believe a broad portfolio, which does not change except occasionally at a twice yearly review, of equal weighted liquid stocks will perform well over the long term,” said Mr. Vinay Mehta, Managing Director, Almondz Global Securities Ltd.

“Our tool uses charts/technical indicators to identify opportunities to sell a position on strength. Conversely, once in cash, the same method is used to identify a buy point. Buy/sell decisions using technical indicators are clinical and objective. CGP is designed to be an investment vehicle for long-term savings and its strength lies in the fact that it can minimize the downside when the market is under the grip of bears and optimizing the upside during a bull run,” said Mr. Mark Randall, CEO, Commander Asset Management Ltd.

The minimum investment threshold to start a PMS account (CGP) with Almondz has been fixed at Rs.25 lakhs. The CGP will create a diversified portfolio of 50 broadly equal weighted liquid, large cap Indian equities so as to generate a positive alpha (outperform the benchmark index). Besides assigning dedicated relationship managers to clients subscribing to CGP services, Almondz will also provide value-added services like weekly portfolio update via e-mail, market commentary, annual audited financials of the client’s portfolio, short-term and long-term gains report.

In league with Commander, which is regulated by the Financial Services Authority (FSA) of the United Kingdom, Almondz aims to preserve clients’ real value of capital and achieve long-term growth by growing their assets in bull markets and preserving capital in difficult markets.

Sourced From: Adfactors Public Relations Pvt Ltd

Tags: calls, daytrading, free calls, intraday, tips

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