PORTFOLIO UPDATE:
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All returns are post fees & net of expenses (TWRR). The returns are as on 18th June,2021.
Inception Date & Benchmark:
Consistent Compounders Portfolio: Inception: 1st Dec,2018 Benchmark: Nifty 50
Little Champs Portfolio: Inception:28th Aug,2019 Benchmark: S&P BSE Small Cap
Kings of Capital Portfolio: Inception:28th July ,2020 Benchmark: Bank Nifty (Inception returns are absolute in nature since portfolio has not completed one year)
ILLUSION OF UNDERPERFORMANCE!!
Many of our investors and channel partners have been asking of late as to why Marcellus CCP portfolio has underperformed and is there any cause of concern. Even though we believe one year (specially in bull run) is too short a period to infer anything but still we will share our two cents on the above topic:
- Starting from the bottom of the market for as little a period as one year, it always appears that the not so quality stocks outperform but as shown in the table below even if the horizon is slightly increased to include the tumultuous period in the market, the performance picture changes completely.
Exhibit 1:
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Exhibit 2:
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- While share price wise, Marcellus Consistent Compounder Portfolio may have underperformed in the past one year, fundamentally, the portfolio companies have done significantly better than their peers gaining market share over the same period. As discussed in our recent CCP newsletter (click here to read), over the past 1 year, 5 years, 10 years and 20 years, most CCP companies have compounded their free cash flows consistently at around 25% CAGR in spite of several disruptive events impacting the industries in which they operate.
Exhibit 3: Free Cash Flow growth of Marcellus’ CCP PMS companies over various time periods
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| Source: Marcellus Investment Managers; Ace Equity; FCFE = Operating cash flow less Capex less Investment in Subsidiaries/Strategic investments /Acquisitions less Net debt repayments less Interest Paid less Lease liabilities; *In case of Pidilite, high capex on account of Araldite acquisition skews the CAGR % making it uncomparable, hence w e have taken FY16-20, FY11-20 and FY01-20; ^Divis’ FCFE is for FY02-11 and FY02-21 since company was not listed in FY01; **Page’s FCFE is for FY04-11 and FY04-21 since company was not listed prior to FY04; @Relaxo’s FCFE for FY01-06 and FY06-11 shows NA since company had near ZERO FCFE during those periods | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue is Vanity, Profit is Sanity, and Cash is King.” – Alan Miltz
Please find below links to our latest newsletters and presentations:
**For product/sales related queries please write to sales@marcellus.in**
OPERATIONS UPDATE:
1.Extended 100 % Form Filling support for NRI client offered by Marcellus.
- In our endeavor to smoothen the process of NRI Account opening, we have taken it upon ourselves to pre-fill the NRI application forms for our Partner/Distributor clients.
- We have facilitated a separate process wherein, based on the “Client Information & KYC documents”, we at Marcellus, will prepare the PMS Account opening booklet for your clients.
- The Prefilled Forms with all the requisite Sign & IPV markings, will be couriered to the preferred address of the Partners/Client.
To enable us pre-fill these forms, please help us with the below mentioned:
Client Information Form [CIF] & KYC documents:
- CIF (Client Information Form) to be duly filled with all the details asked for. This is mandatory data required to complete the form. You can download the CIF by clicking on the below link.
Path: https://marcellus.in/customer_information_form/ - Copy of KYC documents as prescribed in the checklist of the CIF form.
- Detailed process is available in the below link.
Path: https://marcellus.in/wp-content/uploads/2021/06/Letter-ccp-partner-nre-hdfc.pdf - In case you still wish to access to the entire NRI booklet of PMS+HDFC Bank form. You can click on the below link.
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We hope to improvise the service level, communication, response time, query solving, account opening TAT and all other operational services, both at Marcellus & our Channel Partner’s end. We look forward to a mutually beneficial and enriching partnership.
2. Accessibility of Audited Financials under Investors Login.
- The Audited statements for FY20-21 are now available under the Investor’s login.
- Please click on this link (https://marcellus.in/how-to-access-your-audited-financials-and-invoices/ ) to see step by step instructions on accessing audited statements online in Investor’s login.
- The complete guidance on accessing portfolio online for Investors, below is the link.
https://marcellus.in/wp-content/uploads/2020/03/Marcellus-Client-Portal-Guide-march2020.pdf
3. PMS Operating Charges
- PMS operating charges applicable with effect from 01-Jul-2021 (i.e. post this quarterly billing).
Marcellus Investment Managers Pvt Ltd
PMS Operating Charges (effective from 01-July-2021)-Excluding Taxes
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| Notes:Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled |
4. Requirement of Addendum for the old version form.
- We have launched our revised Account Opening Document and New Forms are made available on the same Path: https://marcellus.in/distributor/ your easy reference.
- In case wherein DPMS V1 form version or any old version is submitted for the client, we will require the Addendum and revised fee schedule as a part of account opening form. Below is the link for your reference.
- Addendum Agreement
https://marcellus.in/dpms-agreement-addendum-for-intermediate-final/ - New Fee Schedule
Consistent Compounders Portfolio: https://marcellus.in/ccp_partner/
Kings Of Capital : https://marcellus.in/kcp_partner/
Thank you and look forward to your continued support!!
**For operations related queries please write to clientsupport@marcellus.in**
Disclaimer
Team Marcellus
If you want to read our other published material, please visit https://marcellus.in/
Copyright © 2022 Marcellus Investment Managers Pvt Ltd, All rights reserved
Note: the above material is neither investment research, nor investment advice. Marcellus does not seek payment for or business from this material/email in any shape or form. Marcellus Investment Managers Private Limited ("Marcellus") is regulated by the Securities and Exchange Board of India ("SEBI") as a provider of Portfolio Management Services and as an Investment Advisor. Marcellus is also a US Securities & Exchange Commission ("US SEC") registered Investment Advisor. No content of this publication including the performance related information is verified by SEBI or US SEC. If any recipient or reader of this material is based outside India and USA, please note that Marcellus may not be regulated in such jurisdiction and this material is not a solicitation to use Marcellus's services. This communication is confidential and privileged and is directed to and for the use of the addressee only. The recipient, if not the addressee, should not use this material if erroneously received, and access and use of this material in any manner by anyone other than the addressee is unauthorized. If you are not the intended recipient, please notify the sender by return email and immediately destroy all copies of this message and any attachments and delete it from your computer system, permanently. No liability whatsoever is assumed by Marcellus as a result of the recipient or any other person relying upon the opinion unless otherwise agreed in writing. The recipient acknowledges that Marcellus may be unable to exercise control or ensure or guarantee the integrity of the text of the material/email message and the text is not warranted as to its completeness and accuracy. The material, names and branding of the investment style do not provide any impression or a claim that these products/strategies achieve the respective objectives. Further, past performance is not indicative of future results. Marcellus and/or its associates, the authors of this material (including their relatives) may have financial interest by way of investments in the companies covered in this material. Marcellus does not receive compensation from the companies for their coverage in this material. Marcellus does not provide any market making service to any company covered in this material. In the past 12 months, Marcellus and its associates have never i) managed or co-managed any public offering of securities; ii) have not offered investment banking or merchant banking or brokerage services; or iii) have received any compensation or other benefits from the company or third party in connection with this coverage. Authors of this material have never served the companies in a capacity of a director, officer or an employee.
This material may contain confidential or proprietary information and user shall take prior written consent from Marcellus before any reproduction in any form.
