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Why invest with
Principal PNB Asset Management Co. Pvt. Ltd.
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
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Our Value Proposition to Investors is:
•
The Principal Financial Group's ® global expertise, experience and excellent track record of over
132 years in asset accumulation and asset management
•
Backed by the trust & brand equity of Punjab National Bank - 3rd largest bank in India with over
5650 branches and over 72 million loyal customers
•
The asset management company in India imbibes the ethical standards of the “Principal Financial Group”
(Named as one of the world's most ethical companies for the fourth consecutive year
by Ethisphere Magazine. March 2010)
•
True to label fund management and rigorous risk management practices to optimize the risk & return
proposition for the benefit of investors in adherence to our fiduciary capacity
•
Process oriented investment approach with high standards of hygiene in terms of risk policies
•
Retail Investor Focus - We care more, know more and do more to help deliver better asset management
services
Principal Financial Services Inc. - Our Sponsor
(A member of Principal Financial Group ® Inc.)
Assets Under Management by Source
$392.2 Billion
September 30, 2012
• Fortune 500 company
• 18.2 million customers
• Offices in 18 countries
• 13,100 employees worldwide
Retirement &
Investor Services
53%
• 132 year history
• Full range of retirement savings,
investment and insurance solutions
for SMBs* & their employees;
individuals; and institutions
Principal
Global
Investors
25%
* SMB - Small to Medium Sized Businesses.
Principal
International
17%
Corporate
1%
U.S.
Insurance
Solutions
4%
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
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Global Presence of Principal Financial Group ®
About Punjab National Bank - Our Sponsor
With over 72 million satisfied customers and over 5650 domestic branches, Punjab National Bank is the one of
the largest nationalized Banks in the country in terms of Branch Network, Total Business, Advances, Operating
Profit and Low Cost CASA Deposits.
The Bank offers a wide variety of banking services including corporate and personal banking, industrial
finance, agricultural finance, financing of trade and international banking and enjoys strong fundamentals,
large franchise value and good brand image. Over the years, it has remained fully committed to its guiding
principles of sound and prudent banking irrespective of conditions.
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
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Disciplined Approach To Investments
ü True to Label Investment Management – We at Principal PNB AMC strictly adhere to the 'Investment
Mandate' and 'Investment Objective' of the respective schemes to ensure that investors get what they
read in offer documents.
E.g. A Large Cap Scheme will, at all points in time, be invested in Large Cap stocks; a Short Term
Income Fund will always maintain its cap on Average Maturity.
All the scheme mandates mentioned in the offer document are adhered to irrespective of the market
conditions and fund manager's views.
Therefore it takes care of the investors investments made on the basis of his/her risk profiling.
ü Risk Management - We believe superior returns are best achieved for our investors through the
integration of: Focused fund management and Disciplined Risk Management.
We have internal investment policies which are in-line and in certain cases stringent than the regulatory
requirements. The AMC has dedicated Risk Management team to continuously monitor scheme
details and ensure compliance to all the stated regulatory and internal policy guidelines.
ü Meeting Global Standards:
Principal PNB AMC is GIPS compliant!!!
The goals in developing and evolving the Global Investment Performance Standards (GIPS) are to
establish them as the recognized standard for calculating and presenting investment performance
around the world and for the GIPS standards to become a firm's “passport” to market investment
management services globally.
The GIPS standards are ethical standards for investment performance presentation to ensure fair
representation and full disclosure of investment performance. In order to claim compliance, firms must
adhere to the requirements included in the GIPS standards.
Meeting the objectives of fair representation and full disclosure is likely to require more than
simply adhering to the minimum requirements of the GIPS standards. Firms should also adhere
to the recommendations to achieve best practice in the calculation and presentation of
performance.
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
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PROCESS BASED FUND MANAGEMENT
Equity: Investment Philosophy & Process
Investment Philosophy: Deliver performance that consistently tracks benchmark and at all times strive to
outperform it whilst complying with internal risk policies, investment processes and regulatory requirements.
Our core beliefs:
ü Integration of traditional and quantitative fundamental research
•
Breadth through a sophisticated comparative framework
•
Depth through focused due diligence and expertise
ü Three key attributes that distinguish superior stock selection
Fundamental
Change
Expectations
Valuations
Global Research Platform – A sophisticated comparative Framework
The Global Research Platform (GRP) is a powerful proprietary research tool combining fundamental insights
with systematic disciplines and serves as the cornerstone of our research process and focuses our efforts on the
“true Winners”.
Fundamental Due Diligence – Providing depth and focus
The initial screening of the companies is done through Company Due Diligence and analyzing Industry
perspectives. This will provide an initial list of stock recommendations.
Equity Investment Process
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
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Fixed Income: Investment Philosophy & Process
Investment Philosophy:
We believe superior returns are best achieved for our investors through the integration of :
• Rigorous credit and economic research
• Focused fund management
• Disciplined Risk Management
Duration based approach
The Fixed Income / Debt schemes are positioned and managed based on the 'Duration” risk.
This ensures the investor invests in funds which are best suited to his/her risk appetite.
Our fixed income investment process includes the following elements:
•
Research
- Macro-economic Analysis
- Credit Risk Management
- Liquidity forecasting, Asset allocation matrix
•
Fund Management
- Portfolio Construction
- Trading and Duration management
- Dealing: Trade Placement and Execution
•
Risk Management
- Limit monitoring/compliance
- Volatility management, stress testing for various risks
FIXED INCOME/DEBT INVESTMENT PROCESS
RESEARCH
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K
M
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N
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G
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N
T
SEBI Guidelines, KIM, SID,
Investment Manual, Scheme
Specific Investment Objective,
Risk Profile
Risk Management/
Performance Monitoring/
Peer Analysis
Compliance
checks / Monitoring
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
Investment Committee,
FI Team discussions,
Asset Allocation Matrix,
Liquidity Forecasting
Credit Process:
IC Approved Issuer Universe,
Monitoring and addition/
deletion of companies
F
U
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D
M
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G
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Trading/Deal execution/
Limits checking by system/
Deal settlement
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DEDICATED PRODUCTS FOR RETAIL INVESTORS
Principal PNB is the only AMC in the country which offers products dedicated to Retail Investors.
Corporate/institutional investments are in very large amounts and usually tactical and short term in nature.
These investment which are usually in liquid and debt oriented funds enhance the volatility of returns in these
funds.
To shield the retail investors from such volatility, we have 2 schemes which are earmarked for Individual
investors:
1. Principal Retail Equity Savings Fund
2. Principal Debt Savings Fund - Retail Plan
FACILITIES PROVIDED FOR SELLING THROUGH BANK NETWORK
Dedicated Toll Free lines for PNB Branches has been setup
PNB Branches can now call the below Toll Free phone number directly for any service queries.
In the event they are not satisfied by the response of the PNB Sales Support Centre; they should write to the
email: [email protected]
Both PNB Customers & branches are invited to visit the Principal PNB AMC website: www.principalindia.com:
for the latest mutual fund scheme features/ details and NAVs and a lot more information on Principal PNB AMC
and the mutual funds managed by it.
PNB Sales Assist User Guide (7)
Version 1/Dec 2012
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