SEPARATELY MANAGED ACCOUNT

We offer customized investment solution to Investors with specific investment needs under our Investment Advisory mandate by the name: Separately Managed Account (SMA). If you are a High Net-Worth individual who has certain preferences OR a Retirement Fund with specific risk-return objectives, our SMA offers a 100% tailor made portfolio management at lower cost to achieve your unique investment objectives.

 

The key advantages of choosing SMA solution versus other generalized options are:

BenefitInvestment Advisory
Customization100% customized as per your investment objectives and needs
Cost StructureLower cost including Advisory Fee and Performance Fee – cost structure linked to performance
ControlTotal control as Advisor acts on your preferences and specific guidelines
OwnershipSecurities maintained in Client’s name in their CDC account
Market TimingsComplete entry and exit in/from the stock market are managed based on view
Goal AlignmentAdvisor shares Client’s objective of generating return and mitigating risk
BenchmarkingFlexible i.e. relative to index OR absolute based on risk appetite

 

The types of SMA mandate suitable for you in terms of convenience and control are:

Discretionary Advisory Client assigns mandate and authority to Investment Advisor (IA) to manage and execute investment decisions keeping within parameters of Investment Policy Statement (IPS) and IA is responsible to deliver performance
Non Discretionary The IA advises the Client on asset allocation and investment opportunities, while the Client executes the investment decisions. The responsibility of performance lies jointly with IA and the Client
Blended ApproachAny combination of the above mandate types can be selected where the Client determines which model is better suited to meet their needs

 

The combinations of asset classes offered under SMA are unlimited, as it wholly depends on the Client’s risk appetite and return objectives. However, following are some common structures of the shelf indicating percentage allocation, benchmark and recommended tenor for each mandate:

MandateAsset AllocationRisk ProfileInvestment HorizonReturn Benchmark
Equity100% EquityHigh3 YrsKSE-100 / KSE-30
Asset Allocation0% – 100% Fixed Income

0% – 100% Equity

Moderate – High

2 YrsCombination of KSE-30 and 6M-KIBOR

on actual allocation

Balanced40% – 60% EquityModerate2 Yrs50% 6M-KIBOR + 50% KSE-30

Conservative70% – 100% Fixed Income

Up to 30% Equity

Low – Moderate

2 Yrs70% 6M-KIBOR + 30% KSE-30

Capital Protected (CPPI)0% – 100% Fixed Income

0% – 100% Equity

Low2 Yrs6M-KIBOR + 2.0%
Fixed Income100% Fixed IncomeLow1 Yr6M-KIBOR + 0.5%

We live in an increasingly complex financial world and our Investment Advisory Team works to assist Clients in achieving their financial objectives by helping with their specific investment needs.We believe in a fully integrated approach which starts with a three-step process. Together with you, our investment advisors will first initiate a discovery meeting to understand and highlight your financial objectives, the risk undertaking and time horizon. We would then examine your existing portfolio to determine whether the financial objectives are being met. Finally,we design a tailor-made proposal including the Investment Policy Statement (IPS) in collaboration with our research analysts to offer you an effective investment advisory solution.