Portfolio Management Service (PMS)

July 2023

The presentation followed here is provided solely on the basis of request received from prospective investors and should not be construed as an Investment advice. It neither should
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Introduction
• Piper Serica is a Mumbai based Asset Management company founded in 2003.

• It manages about US$ 100 million in long-only public and private market funds.

• Its senior management team has more than 100 years of cumulative fund management
experience across companies like JP Morgan, Citibank, SBI MF and Reuters.

• Piper Serica has license from SEBI to manage PMS for HNIs and family offices.

• It also advises Piper Serica Numero Uno India Fund, a FPI based in Mauritius.

• It manages Piper Serica Angel Fund that invests in promising start-ups.

• Our investors include renowned HNIs and family offices from around the world.

• Please refer to www.piperserica.com for more details.

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Key Team
Leadership team

• Abhay Agarwal, CEO & Founder

• Experience: 30 Years of experience in investment management
• Education: MBA (JBIMS), B.com (Sydenham college)
• Prior Companies: Fund Manager CITI Bank, Director J.P Morgan Chase

• Rajni Agarwal, Director & Head - Research

• Experience: 30 years of experience in research & developing portfolio strategy
• Education: MBA (JBIMS), B.A in Eco Honours, Master degree in economics
• Prior Companies: Fund Manager, SBI MF

• Ajay Modi, Vice President - Research

• Experience: 10 years of experience in research & portfolio management
• Education: B.Tech, CFA, Investment Management Program, CISI, (UK)
• Prior Companies: Research, Thomson Reuters

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 Changing investor’s mindset
– a great India growth story unfolding !!

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 Investor behaviour
Growing opportunity for PMS investment

High level of Optimism High level of pessimism

Level 1 Level 2 Level 3 Level 4 Level 5

Cognitive Error: Cognitive Dissonance
13 Right
25 75
100
Cognitive Error:
22 Right 100
Chauffeur Knowledge 36 Right
9 Wrong Hold…

60 Right 14 Wrong Hold…

100 decisions

40 Wrong
24 Wrong

Hold…
Hold…

Big Opportunity lies here

• Buying on Tips • Holding on to Loss • Booking Profits • Fear of Missing out

(FOMO)
• Anchor Bias • Sunken Cost Fallacy

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Changing Investment needs
Growing opportunity for PMS investment

Self actualization
1 Product: PMS | AIF | Direct Portfolio | Model Funds

Esteem
Level 2
Sophisticated MF (Thematic) | PMS | Modelfunds

Social Belongings
Level 3 Mutual Fund | Stocks | Large Cap Funds

Safety Needs
Level 4
Insurance Plans | Emergency Funds

Phycological Needs
Level 5 Bank Account | Insurance | Fixed Deposits

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Current Scenario – PMS business
Growing opportunity for PMS investment
More than 350+
Regd PMS
As per SEBI website there are
more than 350+ registered PMS
with SEBI. This number is
expected to grow substantially
as more investors explores the
Equity market for wealth
creations.
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Our Team
YOUR SUBTITLE HERE
More than 2000+ Competitive Convergence Infinite Opportunities
Portfolio Strategy Model of Operations Few benefits
Evert portfolio manager follows a Every PMS looks similar and While Investing in equity markets
defined strategy and model operates similarly. As an investor offers infinite wealth creation
which is core to the investment or a financial distributor, it often opportunities, but very few are
philosophy. This often creates a becomes difficult to differentiate lucky to enjoy the benefits of
bottleneck in time of no the various Portfolio strategies. speculation all through the
performance as it often fails to Also since evert portfolio market cycle. It is because
deviate from the core managers follow a similar Portfolio manager operates as a
philosophy. Sticking to investment strategy, their product and not as a service.
philosophy becomes a priority performance cycle becomes
than creating wealth is a biggest predictable.
problem.
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Portfolio Creation Process
3 major investment process and philosophy

(Business, Management, Products)

Quality
Zone - 3 Zone - 1

Quality at Reasonable Price (QARP) Growth in Value strategy

Growth / Opportunity (TAM)

Zone - 2

Growth at Reasonable Price (GARP)

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Return track record
Solid Alpha generation

Since
Inception 5 Year 3 year 2 Year 1 Year 6 Months 3 Months 1 Month
(Feb-2015)

Piper Serica
19.10% 18.70% 23.30% 9.40% 27.70% 14.90% 23.20% 7.70%
PMS

Nifty 50 9.30% 11.60% 21.60% 8.60% 17.50% 2.40% 6.80% 3.50%

BSE 500 11.50% 11.50% 23.10% 8.10% 17.50% 1.80% 8.20% 4.10%

▪ Returns on end clients differ on based on their vintage and mandated risk level.
▪ Past performance is not indicative of future results. We do not guarantee returns.
▪ All returns are post expense. Returns for 1 year and above are annualized.
▪ PMS returns are calculated by an independent Fund Accountant and RIA returns are audited by an independent auditor.
▪ Since inception : Feb-15 to June-23 (including returns under RIA)

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 Peer group Track record
Information & data Source: www.pmsbazaar.com | June 2023

Portfolio Manager Strategy name 1 Month 3 Month 6 Month 1 Year 2 Years 3 Years 5 Years

Abakkus Asset
All Cap 6.16% 14.93% 12.04% 32.48% 13.32% NA NA
Managers

Motilal Oswal AMC NTDOP 1.07% 8.67% 2.81% 11.27% 1.82% 17.67% 6.98%

Marcellus Investment Consistent

4.56% 17.20% 6.31% 19.56% 3.98% 18.00% NA
Managers Compounders

Piper Serica Advisors Leader Strategy 7.70% 23.20% 14.90% 27.70% 9.40% 23.30% 18.70%

Nifty 50 Large Cap Index 3.50% 6.80% 2.40% 17.50% 8.60% 21.60% 11.60%

BSE 500 Multi cap Index 4.10% 8.20% 1.80% 17.50% 8.10% 23.10% 11.50%

Calculated on a TWRR Basis

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Peer group Track record
Information & data Source: www.pmsbazaar.com | June 2023

Peer Group Track Record

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
1 Month 3 Month 6 Month 1 Year 2 Years 3 Years 5 Years

Piper Serica Advisors Leader Strategy Abakkus Asset Managers All Cap Motilal Oswal AMC NTDOP
Marcellus Investment Managers Consistent Compounders Nifty 50 Large Cap Index BSE 500 Multi cap Index

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PMS – A Product or a Service ?
A Popular Myth

o PMS – PORTFOLIO MANAGEMENT SERVICE

o PMS is not a model portfolio approach like an MF. It is not a fund, it is a service.

o A service where every investors risk appetite needs to be understood.

o A service where every investors timing and hence capital deployment needs to be closely calculated

o Since PMS’ don’t get cash inflow regularly, the cashflow has to be created from the existing portfolio.

o Managing the deployment timing, regular profit generation to be reinvested, investing at a below historical average valuation
is essential.

Understand investor’s risk

and return appetite

Investing in businesses with Regular profit booking to create

Spreading the deployment over
sound fundamentals reinvestment opportunity
tranches

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12 Contact at contact@piperserica.com
Piper Serica Strategy
Active Management and generating Alpha

o Timing in the market is important for portfolio to generate returns.

o But when buying stocks what is important?

o Timing

o Position Sizing

o Regular Profit Booking

o Exiting quickly in case of red flags

o Good companies – Ones which have steady growth, decent cash flow generation, clean balance sheet, professional
management team with strong experience, strong distribution/sales network.

o Good investment – Good companies + Great valuation

o Good returns – Good companies + Great Valuation + Regular Profit booking + Appropriate Exit

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Portfolio management
Our Process defines our performance

• Multicap portfolio
• Large caps – 25%
• Mid and small caps – 75%

• Number of stocks – 18 to 22
• Deployment – Initial capital is deployed over 3-5 months period
• Rebalancing – at least once every quarter and mostly every month

• Minimum allocation 3% and maximum 6% per stock

• Constant review of portfolio level valuation metrics
• Diversified across sectors

• Dynamic profit booking and redeployment in case particular stock crosses model portfolio
allocation

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Portfolio of multi-baggers
Some of our picks that created wealth for investors.

A case study of our portfolio company – How regular allocation management creates alpha

Reduced allocation
5500 20

5000 Sold partly 18again

4500
16

4000
14
3500
12
3000 Increased allocation
10
Built
2500position
8
2000

6
1500

1000 4

500 2
Mar-21

Mar-23
Jul-20

Mar-22

Jul-22
May-20

Jul-21

May-22
May-21

Nov-21

May-23
Nov-20
Dec-20

Nov-22
Dec-22
Aug-21

Oct-21

Dec-21

Sep-22
Oct-22
Aug-20

Oct-20

Apr-21

Sep-21

Jan-22

Aug-22
Apr-20

Jun-20

Sep-20

Jan-21
Feb-21

Feb-22

Apr-22

Jun-22

Jan-23

Apr-23
Jun-21

Feb-23

Jun-23
EV/Sales Price

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Our Multi-bagger Stocks
Hidden Treasures. Timely Identified.

South Indian Angel

APL Apollo
Bank Broking
Piper Serica’s
portfolio of multi- CMS
Apollo Pipes Titan
baggers Infosystem

Apollo Dixon
ITC
Hospital Technologies

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The secret of generating Alpha
High Performance. Delivered.

• Well developed investment process

• Process and framework developed over 30 years of investment experience. Removes human biases.

• Deep research
• Primary research based on Michael Porter’s Five Forces model. High touch point scuttlebutt.

• Discipline
• Investment committee led process. No exceptions to the process. Valuation cap is set in stone.

• Risk management
• Model portfolio with pre-defined weightages. Optimal allocation to reduce risk. Profit scalping.

• Temperament and long-term orientation

• Constant search of what is out of favor. Focus on value and not price. Ability to take pain.

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Strong Adherence to Code of Ethics
Owner’s pride. Competitions Envy.

We have adopted the CODE OF ETHICS AND STANDARDS OF PROFESSIONAL CONDUCT laid down by the CFA
Institute (U.S.A) on the following basis:

• Professionalism - Practicing high level of independence & objectivity.

• Integrity of Capital Markets – Strong internal policies to deal with sensitive information and data.

• Duties to Clients – Loyalty, Prudence & Care in dealing with every client

• Investment Analysis, Recommendation & Action – Detailed diligence and a reasonable basis behind every
investment

• Conflict of Interest - To ensure that there is no conflict of interest the Portfolio Manager and his family make
almost all direct investment in the listed equity market in India through the PMS and have no other investment
portfolio. Sponsor has assured a minimum investment of Rs. 15 crore in the PMS.

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Investor friendly practices
Predictable Volatility

• Very few fund managers invest all their money in the funds they manage. We have
always done that so that our interest is fully aligned with the investors.
• Unlike other fund management companies we do not have any ancillary businesses like
broking or custody. Therefore we are able to sharply reduce expenses for our
investors.
• We regularly communicate with our investors through investor letters, social media and
webinars. Our fund manager is regularly invited by financial media channels for his
views on the markets and companies.
• We have probably the lowest churn in AUM in our industry. We are grateful to our
investors for their trust and confidence in us.

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Risk Metric
Managing Risk. Generating high risk Adjusted return.

Standard Deviation Sharpe ratio Beta

20.1 0.8 0.9

Risk Indicator Explanation

A standard deviation (or σ) is a measure of how dispersed the data is in relation to the mean. Low standard deviation
Standard Deviation
means data are clustered around the mean, and high standard deviation indicates data are more spread out.

The Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security
or portfolio compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns
Sharpe ratio
of the investment and the risk-free return, divided by the standard deviation of the investment returns. It represents the
additional amount of return that an investor receives per unit of increase in risk.

Beta (β) is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole.
Beta
Stocks with betas higher than 1.0 can be interpreted as more volatile than the market.

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Key facts & Information
Important Terms and Condition

Key Factor Details

1. 2% per annum (Fixed Management fee)
Fees 2. 1.5% + 15% over 8% hurdle rate (Fixed Fee +Profit Sharing)
3. 20% over 6% hurdle (Only Profit Sharing)

Minimum Investment INR 50 Lakh

Set-Up fees No setup fees

Lock-in Period No lock-in

Exit Load 2% in Year 1, 1% in Year 2 and zero thereafter

Top-Ups Minimum Rs. 1 lakh

Partial Withdrawal Allowed over and above 50 lakh.

Name: Shivam Agarwal

Nodal Officer for grievances redressal:
Email: Shivam@piperserica.com

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 Contact Us

127, TV Industrial Estate,

(+91) 022 – 66545370 contact@piperserica.com www.piperserica.com
SK Ahire Marg,
(+91) 8369974046 (M)
Opp. Glaxo Smith Kline,
Worli, Mumbai 400030.

Piper Serica is a SEBI registered Portfolio manager. The SEBI registration number is INP000006749

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Disclaimer
Please read the documents carefully.

This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be
reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and
conditions. The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment
strategy. It should not be construed as investment advice to any party. All opinions, figures, charts/graphs, estimates and data included in this
presentation are as on date and are subject to change without notice. While utmost care has been exercised while preparing this document, Piper
Serica Advisors Pvt. Ltd. (here-‐in-‐after called “Piper Serica”) does not warrant the completeness or accuracy of the information and disclaims all
liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future
expectations and other forward-‐looking statements that are based on our current views and assumptions and involve known and unknown risks
and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
Readers shall be fully responsible / liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in
whole or in part in any form and/or redistributed without prior written consent of Piper Serica. Readers should before investing in the Scheme make
their own investigation and seek appropriate professional advice. Investments in Securities are subject to market and other risks and there is no
assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services will be achieved. Clients under Portfolio
Management Services are not being offered any guaranteed/assured returns. Past performance of the Portfolio Manager does not indicate the
future performance of any of the strategies.

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