MIRA INFORM REPORT
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Report
Date : |
20th
May, 2006 |
IDENTIFICATION
DETAILS
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Name : |
FIDELITY INDIA SPECIAL SITUATIONS FUND |
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Registered
Office : |
56, 5th
Floor, Maker Chambers VI, 220 Nariman Point, Mumbai –
400 021, Maharashtra, India |
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Country
: |
India |
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Legal
Form : |
Open ended equity growth scheme. |
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Line
of Business : |
Subject is a highly respectable Fund. |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
-- |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
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Subject is a highly respectable fund and can be considered
good for any normal business dealings. |
LOCATIONS
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Registered
Office : |
56, 5th
Floor, Maker Chambers VI, 220 Nariman Point, Mumbai –
400 021, Maharashtra, India |
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Tel.
No.: |
91-22-66554000 |
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Fax
No.: |
91-22-66554200 |
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Website
: |
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Trustee
: |
Fidelity Trustee Company Private Limited 56, 5th
Floor, Maker Chambers VI, 220 Nariman Point, Mumbai – 400 021, Maharashtra, India |
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Sponsor
: |
Fidelity International Investments Advisors Pembroke Hall, 42, Crow Lane, Pembroke Hamilton, HM19,
Bermuda |
DIRECTORS
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TRUSTEE
COMMITTEE : |
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Name : |
Mrs. Ann Stock |
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Designation
: |
Director |
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Address
: |
Flat 2, 130 Tonbridge Road, Tonbridge, Kent TN11 9EW, UK |
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Other
Directorships : |
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Name : |
Mr. S S Sodhi (Justice – retired ) |
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Designation
: |
Director |
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Address
: |
51, Sector 9, Chandigarh – 160 009, India |
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Other
Directorships : |
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Name : |
Mr. K R Ramamoorthy |
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Designation
: |
Director |
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Address
: |
42, 18th Main Road, J P Nagar, Phase II,
Bangalore – 560 078, India |
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Other
Directorships : |
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Name : |
Mr. Rajesh Kapadia |
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Designation
: |
Director |
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Address
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9-C, Woodlands, 67, Dr. G Deshmukh Marg, Mumbai – 400 026,
Maharashtra, India |
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Other
Directorships : |
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ASSET
MANAGEMENT COMMITTEE : |
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Name : |
Mr. Simon
Haslam |
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Designation
: |
Director |
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Address
: |
Flat 1,
130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9EW |
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Other
Directorships : |
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Name : |
Mr. Ramesh Savoor |
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Designation
: |
Director |
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Address
: |
201, Pine
View, 9, Edward Road, Bangalore - 560 052, Karnataka, India |
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Other
Directorships : |
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Name : |
Mr. Arun Duggal |
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Designation
: |
Director |
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Address
: |
43,
Prithviraj Road, New Delhi - 110 011, India |
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Other
Directorships : |
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Name : |
Mr. Rattan Chugh |
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Designation
: |
Director |
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Address
: |
9th
Floor, DLF Square, Jacaranda Marg, DLF City, Phase II, Gurgaon-122 002,
Haryana, India |
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Other
Directorships : |
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KEY EXECUTIVE
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Name : |
Amarchand and Mangaldas and Suresh A. Shroff and Company |
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Designation
: |
Fund Legal Advisors |
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Address
: |
5th
Floor, Peninsula Chambers, Peninsula Corporate Park, Ganpatrao Kadam Marg,
Lower Parel, Mumbai – 400 013, Maharashtra, India |
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Name : |
Mr. Ashu Suyash |
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Designation
: |
Head of Business |
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Date
of Birth/Age : |
39 years |
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Qualification
: |
B.Com., A C A |
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Experience
: |
17 years |
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Assignments
Held : |
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Name : |
Mr. Arun Mehra |
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Designation
: |
Fund Manager (Equity) |
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Date
of Birth/Age : |
38 years |
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Qualification
: |
B E , M S (USA), M B A (USA) |
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Experience
: |
17 years |
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Assignments
Held : |
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Name : |
Mr. Vijay Venkatram |
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Designation
: |
Head of Sales and Marketing |
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Date
of Birth/Age : |
39 years |
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Qualification
: |
B Com., A C A |
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Experience
: |
19 years |
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Assignments
Held : |
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Name : |
Mr. Srikar Baljekar |
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Designation
: |
Head of Operations |
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Date
of Birth/Age : |
46 years |
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Qualification
: |
B Com, A C S, C P A (USA) |
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Experience
: |
19 years |
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Assignments
Held : |
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Name : |
Mr.
Rajesh Singh |
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Designation
: |
Fund
Manager (Equity) |
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Date
of Birth/Age : |
37 years |
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Qualification
: |
B Tech.
IIT Kanpur, MBA IIM Ahmedabad CFA |
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Experience
: |
14 years |
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Assignments
Held : |
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Name : |
Mr.
Hemang Bakshi |
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Designation
: |
Head of
Legal and Compliance |
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Date
of Birth/Age : |
41 years |
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Qualification
: |
B. Com.,
A C A, C.P.A. (U.S.A.) |
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Experience
: |
19 years |
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Assignments
Held : |
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Name : |
Mr.
Rajendra Khatu |
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Designation
: |
Senior
Manager |
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Date
of Birth/Age : |
31 years |
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Qualification
: |
B. Com.,
A C A |
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Experience
: |
8 years |
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Assignments
Held : |
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Name : |
Ms. Mamta
Verma |
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Designation
: |
Fund
Manager (Fund of Funds) |
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Date
of Birth/Age : |
28 years |
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Qualification
: |
B. A.
(Hons) Economics, Master of Finance and Control |
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Experience
: |
-- |
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Assignments
Held : |
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Name : |
Mr. Amit
Lodha |
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Designation
: |
Research
Analyst |
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Date
of Birth/Age : |
28 years |
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Qualification
: |
M.Com.,
A.C.A, C.F.A. (U.S.A.) |
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Experience
: |
7 years |
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Assignments
Held : |
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Name : |
Mr.
Dhananjay Phadnis |
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Designation
: |
Research
Analyst |
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Date
of Birth/Age : |
29 years |
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Qualification
: |
B.Com.,
A.C.A, PGDM (IIM), C.F.A.(U.S.A.) |
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Experience
: |
9 years |
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Assignments
Held : |
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Name : |
Mr. Varun
Lohchab |
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Designation
: |
Research
Associate |
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Date
of Birth/Age : |
26 years |
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Qualification
: |
AISSCE,
B. E. Electrical PGDM (IIM) |
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Experience
: |
6 Years |
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Assignments
Held : |
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MAJOR SHAREHOLDERS
Shareholding Pattern of AMC
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Names of Shareholders |
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Percentage of Holding |
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FIIA (via
FID Investments (Mauritius) Limited, its subsidiary) |
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75% |
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Minority
Interest held by residents |
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25% |
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FIIA (via
FID Investments (Mauritius) Limited, its subsidiary) |
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100% |
BUSINESS DETAILS
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Line
of Business : |
Subject is a highly respectable Fund. |
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GENERAL INFORMATION
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Custodian
: |
J P Morgan Chase Bank Mafatlal Centre, 9th Floor, Nariman Point,
Mumbai – 400 021, Maharashtra, India |
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Auditors
to the Fund : |
Price Waterhouse Chartered Accountants |
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Address
: |
252, Veer Savarkar Marg, Shivaji Park, Dadar (West), Mumbai – 400 028, Maharashtra, India |
LOCAL AGENCY FURTHER INFORMATION
Fund
The Fund was established by FIIA, as a Trust under the
Indian Trusts Act, 1882, in terms of the Trust Deed dated August 9, 2004 and is
registered under Indian Registration Act, 1908. the Fund has been registered
with SEBI vide Registration No. MF/050/05/01. The office of the Fund is at 56,
5th Floor, Maker Chambers VI, 220, Nariman Point, Mumbai – 400 021,
Maharashtra, India.
The objective of the Fund is to raise monies through the
sale of units to the public or a section of the public under one or more
schemes for investing in securities.
Sponsor
The Sponsor of Fidelity Mutual Fund is Fidelity
International Investment Advisors, a company incorporated in Bermuda in 1983
under registered number EC 10326. FIIA is registered with the following
financial services regulators: the Securities Exchange Commission in US, the HK
Securities and Futures Commission in Hong Kong and the Financial Services
Agency in Japan. FIIA is a wholly owned subsidiary of Fidelity International
Limited, a company established in Bermuda.
Given below is a brief summary of the Sponsor’s financials
(Amounts in US $)
|
Description |
Year ended June 30,
2005 |
Year ended June 30,
2004 |
Year ended June 30,
2003 |
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Total
Revenue |
98231913 |
74656435 |
19759845 |
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Profit
Before Tax |
10886916 |
50589072 |
8113716 |
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Profit
After Tax |
10850032 |
50561184 |
8100272 |
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Free
Reserves |
36293391 |
78665532 |
28104348 |
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Net Worth
|
37043391 |
79307532 |
28139604 |
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Earnings
per share |
14.47 |
78.76 |
229.76 |
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Book
Value per share |
49.39 |
123.53 |
798.15 |
|
Dividend
(%) |
10163% |
0% |
176423% |
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Paid Up
Capital (Equity) |
750000 |
642000 |
35256 |
Trustee Company
Fidelity Trustee Company Private Limited (the trustee) a company incorporated under the Companies Act, 1956, is the Trustee for the
Fund vide Trust Deed dated August 9, 2004.
HIGHLIGHTS
Sponsor:
- Fidelity
International Investment Advisors
Name of the Scheme:
- Fidelity
India Special Situations Fund
Structure:
It is open ended equity growth scheme. The scheme does not
assure or guarantee any returns.
Investment Objective:
The investment objective of the scheme is to generate
long-term capital growth from a diversified portfolio of predominantly equity
and equity-related securities including equity derivatives.
Purchase Price for New
Fund Offer (NFO):
Rs. 10/- per Unit for cash plus applicable Entry Load. Eg.
For purchase attracting an Entry Load (2.25%), the Purchase Price Rs. 10.225.,
for purchases attracting Entry Load (1.25%) the Purchase Price Rs. 10.125., for
purchases not attracting Entry Load, the Purchase Price Rs. 10/-.
Purchase / Redemption
Price during Ongoing Offer:
When the scheme goes open ended after the closure of the
NFO, the price for Purchases and Redemptions will be based on Applicable NAV
subject to applicable Entry Load and Exit Load, CDSC respectively.
Options:
The scheme offers Growth Option and Dividend Option. The
Dividend option offers Dividend Payout and Dividend Reinvestment facilities.
Minimum Initial
Application Amount:
Rs. 5000/- per application.
Management details
Mrs. Ann Stock
Mrs. Stock is the Executive Director, Global Oversight
responsible for compliance, internal audit, risk and investigations and
intelligence across FIL Group.
Mrs. Stock is a chartered accountant (ICAEW) with an MBA and
a degree in Economics from Kingston University, England. She has over 20 year
pf professional experience in financial services and related fields of
practice, having previously worked for KPMG and legal and general plc.
Mr. S S Sodhi (Justice
– retired)
Justice (retired) Sodhi, a Lawyer started practicing law in
1958 in the High Court of Punjab and Haryana and served as a Judge in this High
Court during the period 1982 to 1994. During the period from 1968 to 1982, he
also served in various positions like the Legal Remembrancer to the Punjab
Government, Registered of High Court of Punjab, Lok Pal (Ombudsman) Punjab and
Haryana and District and Sessions Judge in Punjab. In 1994, he was appointed as
Chief Justice of the High Court of Allahabad.
In 1997 he was appointed as a Chairperson of Telecom
Regulatory Authority of India. He is currently a trustee of Tribune Group of
Newspaper, Chandigarh. Honorary Rector of the Army Law Institute, Mohali.
Member Board of Governors of Yadavindra Public School, Patiala and Mohali.
Directors Fortis Hospital, Mohali and President, Chandigarh Lawn Tennis
Association.
Mr. K R Ramamoorthy
He is a senior banker, with over 40 years of commercial and
banking experience in India. He was the Chairman and CEO of two leading
commercial banks in India, one a state-owned commercial bank-Corporation Bank
and other Vysya Bank Limited in the private sector. He has also served as an
advisor fo CRISIL for three years, providing expert advice and guidance on
advisory assignments relating to commercial banks in the are of Credit Risk
Rating framework.
After his rewarding career in leadership positions, he has
been consulting for commercial banks in India and other developing countries.
His services are availed by the World Bak , International Monetary Fund, International
Finance Corporation, commercial banks and international investors in many areas
including bank restructuring, strengthening and financial risk assessment.
Prior to joining the Indian banking industry, he gained rich
career exposure in the private sector for nearly two decades, in
pharmaceuticals, entertainment and engineering and consumer product marketing
oraganisations, including Liptons where he servers 15 years.
Currently he serves on the Boards of ING Vysya Bank Limited,
fidelity trustee company private limited, clearing corporation of India, subros
limited, etc. as an independent director. He is also on the Audit and Risk
Management Committees of some of these companies and has also serve on the
various committee constituted by the Reserve Bank of India and the Indian Banks
Association.
Mr. Rajesh Kapadia
He is a Chartered Accountant is a senior partner of the firm
GM Kapadia and Company. Mr. Kapadia has more than 22 years of experience in the
field of audit, taxation, investigations, due diligence, company law and
exchange control.
He was on the Board of Trustee Company of DSP Merrill Lynch
Mutual Fund from 1998 till 2002. Apart from being a Trustee for many Charitable
Trust, Mr. Kapadia is also a director on the boards of various companies.
Mr. Simon Haslam
Mr. Haslam
is the Chief Administrative Officer at Fidelity International Limited
("FIL"). He is a Director of several companies within the FIL Group,
including FIL. Before joining FIL, Mr. Haslam was an audit and consulting
partner at what is now Deloitte & Touche, where he specialised in the fund
management and securities industry. His career in financial services, spanning
more than twenty years has concentrated on financial, compliance and business
matters affecting stockbroking, investment banking and fund management
businesses internationally.
Mr. Ramesh Savoor
Mr. Savoor
retired from Castrol India Ltd, after a long career, 12 of these, as Chief
Executive & Managing Director. In the last two years of Mr. Savoor tenure
with Castrol, Mr. Savoor was also the leader of the business unit comprising
India, Middle East and Africa, managed from India, in addition to his role as
the Chief Executive & Managing Director of Castrol India. In this capacity
as Business Unit Leader, he was also on the Board of Castrol Worldwide. Apart
from being a director on the boards of directors of various companies, Mr.
Savoor is also a director on the Governing Board of the Indian Institute of
Management, Bangalore.
Mr. Arun Duggal
Mr. Duggal
has had a long career with Bank of America and was the Chief Executive Officer
and Managing Director before he chose to take early retirement. For about two
years, Mr. Duggal was also the Chief Financial Officer of HCL Technologies. Mr.
Duggal was also instrumental in establishing the International Asset
Reconstruction Company and now is its non-executive - Vice Chaiman. He is also
an International Advisor to General Atlantic Partners, a leading American
Private Equity firm and an advisor to a number of different institutions.
Mr. Rattan Chugh
Mr. Chugh,
is the Head of Country, India for FIL Group. He led the transition of Fidelity
Technology India Private Limited. (FTIPL), from a start-up phase to a
multifunctional operation. FTIPL is a subsidiary of Fidelity International
which provided till recently Operations and Systems services to the UK and
European business of FIL Group. These services are now provided by another
entity Fidelity Business Services India Private Limited and Mr. Chugh is also a
Director of that company. Mr. Chugh has over 15 years of experience in Systems,
Operations, Strategy, Management and Marketing. He has worked with companies
like CMC Ltd., Tata Unisys Ltd., American Express Bank Ltd., EDS - Electronic
Data Systems (India) Pvt. Ltd.
Constitution
In
conformity with the Regulations, Fidelity Fund Management Private Limited, a
company registered under the Companies Act, 1956 and having its registered
office at 56, 5th floor, Maker Chambers VI, 220, Nariman Point, Mumbai 400 021,
has been set up to act as the Asset Management Company (AMC) to the Fund.
In
terms of the Investment Management Agreement ("IMA") dated August 9,
2004 entered into between the Trustee and the AMC, the AMC has been appointed
as the Investment Manager to the Fund.
The
Investment Manager was approved by SEBI to act as the AMC for the Fund vide
letter no. IMD/SB/33960/05 dated February 17, 2005. The AMC manages the Scheme
/ options of the Fund in accordance with the provisions of the Investment
Management Agreement, the Trust Deed, the Regulations and the objectives of
each Scheme / option. The AMC can be removed by the Trustee, subject to the
Regulations.
Type of Scheme
An
open ended equity growth scheme
Investment Objective
The
investment objective of the Scheme is to generate long term capital growth from
a diversified portfolio of predominantly equity and equity-related securities
including equity derivatives.
There
is no assurance that the objective of the Scheme will be realised and the
Scheme does not assure or guarantee any returns.
For
defensive considerations and / or for managing liquidity, the Scheme may also
invest in money market instruments.
The
Scheme may invest in derivatives instruments to the extent permitted under and
in accordance with the applicable Regulations, including for the purposes of
hedging, portfolio
balancing
and optimizing returns.
Hedging
does not mean maximization of returns but only attempts to reduce systemic or
market risk that may be inherent in the investment.
The
performance of the Scheme will be benchmarked against the BSE-200 Index.
Investment Strategy
The
Scheme will primarily be a diversified equity fund which will seek to invest in
undervalued companies for long term investment with key theme focus being
"Special Situations" - these are situations that are
out-of-the-ordinary and which therefore present interesting stock picking
opportunities.
The
types of companies that may fall within the scope of such Special Situations
could include but are not limited to:
-
companies with recovery potential.
-
companies whose growth potential, may not be fully recognised by the market.
-
companies with hidden /undervalued assets whose value, may not be fully
recognised by the
market.
-
companies with interesting product pipelines which could offer good earnings
potential.
-
companies undertaking corporate restructuring.
-
companies which could be potential candidates for mergers and acquisitions
related
activities.
The
investment approach will be bottom-up stock picking – where investments will be
selected primarily on the basis of specific criteria relevant to the company in
question rather than general macro-economic considerations. There will be no
particular bias towards any market cap size or any sector. The Scheme will
endeavour to remain fully invested in equity and related instruments at all
times. A limited exposure to various derivatives instruments is likely - for
the purposes of hedging, portfolio balancing and optimising returns.
In
Fund Manager's opinion, some recent examples of companies offering potential
Special Situations were:
A major
auto manufacturer - (Hidden Value/ Restructuring). The stock is up about 150%
in less than 12 months as the market appears to have recognized underlying
value of insurance and other subsidiaries and potential restructuring efforts
by the management to unlock this value.
A telecoms
company - (Underappreciated Growth). The stock has been re-rated and is up
nearly 10 times in less than 3 years as the company has delivered better than
expected growth
and market
has gained improved appreciation of underlying growth potential of the
business.
These are a
few illustrative examples of what the Fund Manager believes could have been
described as companies in Special Situations. This does not indicate the Fund's
preference for
these
companies over others. Neither does this mean that other companies have not
fared better than these companies. It is also not necessary that the Scheme
will have these companies in its portfolio. These examples are provided only to
help investors get a better understanding of the term 'Special Situations'.
Special
situations are unusual or out-of-the-ordinary circumstances that a company or
its stock can face. For instance, a company could be turning around from a low
ebb while another could be in the midst of a merger or an acquisition. There
could be a company launching a new product or a new business stream. Or, a
stock could be selling at a discount to its underlying value or simply be out of
favour. The list of special situations can go on and each could present
investing opportunities.The challenge lies in identifying and interpreting the
potential of investing in such situations.
Special
situations happen to big and small companies alike, in any sector and in any
market condition. And they need not be once-in-a-lifetime happenings. A company
or a stock can face different special situations at different points of time.
|
Of the
many kinds of Special Situations, some common types are: |
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|
Fidelity India Special
Situations Fund - Fund Facts
|
|
Key Benefits
- Companies facing special
situations often tend to significantly outperform the market. By thinking
out-of-the-box or laterally, the fund manager harnesses these
opportunities for you
- Fidelity, with its time-tested
bottom-up stock picking approach and focus on research, is ideally placed
to identify these ideas
- An ideal 'style diversifier' if
your portfolio is made up of several growth and momentum funds
- No cap bias, no sector bias
- Diversified equity fund with a
focus on investment opportunities in special situations. A universe of
over 6000 listed stocks offers wider choice
- Systematic Investment Plan
available
As Per Web Details
About Fidelity
We
believe that the reason for our success over the years is our approach to
investment. We pick stocks 'bottom-up' focussing entirely on the performance of
a company and the promise of its potential, and on first-hand in-depth research
by our unrivalled global team of investment professionals.
Our
analysts undertake extensive research at all levels of an organisation to
understand exactly how they are positioned to deliver for investors. We believe
it's only through this first-hand contact - rather than relying purely on
bought-in research - that we can fully evaluate an investment's true potential,
and consistently add value for investors in our funds.
Fidelity
has always believed that the interests of investors are best served by using
the skills of real specialists in the field of fund and asset management. The
independence we enjoy as a privately owned company enables us to concentrate on
developing innovative products and providing the highest levels of customer
service.
Our
performance record has stood the test of time
because fund management is our only business and that means we truly understand
the cycles that the industry goes through. Our size and reputation allows us
unrivalled access to companies and by carefully researching them, we aim to
find stocks whose potential for long-term growth has not yet been fully
recognised.
Fundamentally ahead in performance
One
reason that Fidelity stands in a class of its own is that it single-mindedly
focuses on fund management and hence has a rich understanding of the cycles
that the industry goes through. Across the world, across different asset
classes, our performance record is a testament to the dedication we put
into investment research.
For example over the past 10 years, 84% of our UK-based UT/OEIC funds and 76%
of our Luxembourg-based SICAV funds are ranked in the first or second quartile
for performance within their peer group*.
Our record has stood the test of time – we have delivered performance in
both good times and bad.
Fidelity is
a recognised leader in the field of investment management. In 1946, Fidelity
Management and Research Company (FMR Co) was established in Boston. Today
it is a subsidiary of FMR Corp. In 1979, Fidelity International Limited (FIL)
was established as an independent company.
Together FIL and FMR Corp. have grown into one of the largest and
successful fund management organisations in the world, managing over
US$ 1.2 trillion* in assets.
Awards
Success brings its own rewards
Our dedication to investment has won
accolades that have recognised the quality of our research, the performance of
our funds, our standards of customer service and technical innovation. Over the
recent past, we were selected winners of the following awards: 
Standard
& Poor's 2004 - European Awards
• Overall Best Investment Manager
• European Larger Group award over 1
year
• European Larger Group award over 3
years
• European Larger Group award over 5
years
Standard & Poor's 2004 - UK Awards
• Overall Best UK Investment
Management Group
• Best UK Marketed Funds Group
Lipper Funds Awards 2004
• Best Overall Group
• Best Bond Group
Standard & Poor's 2003 - UK Awards
• Overall Best UK Investment
Management Group
Global Investor Annual Awards
• Winner of Japanese Equities
• Runner-up in High Yield Bonds
Reuters Institutional Investor European Equities Survey
• First for European Research
(seventh consecutive year)
• First for Overall Company Ranking
(buy side) in Asia and Europe Equities
Remember,
past performance is not a guide to future returns. The value of investments,
and the income from them, can go down as well as up and an investor may
not get back the amount invested.
Fidelity in India
Fidelity
set foot in India almost ten years ago to invest in Indian equities for its
clients around the globe. Today, Fidelity has over US$4 Bn or over Rs. 18,000
Crores invested in Indian equities. Across the globe, Fidelity has helped
millions of investors reach their financial goals - and we're looking forward
to helping you do the same.
We
launched our first mutual fund solely for Indian investors in March 2005. The Fidelity Equity Fund has proved exceptionally
popular - it's now the second largest equity scheme in India according to www.amfiindia.com
(31.03.06). In January 2006, we sought to broaden our investment offering to
investors with the launch of two new funds: the Fidelity Tax Advantage Fund and the Fidelity MultiManager Cash Fund.
Fidelity
is committed to expanding our range of mutual funds further, to offer a real
and diverse choice of investment options for all Indian investors - whatever
their investment needs may be. Should you require any information, please contact
us or reach us at our office in Mumbai:
Fidelity
Fund Management Private Limited
56, 5th Floor, Maker Chambers VI
220, Nariman Point, Mumbai – 400 021
Tel: 91 22 6655 4000
Fax: 91 22 6655 4200
Fidelity and you
We
realise that each of our customers have their personal circumstances, their own
reasons for investing and their own appetite for risk. Our goal is to make a
reality of their hopes and ensure that they can invest with us in ways that
suit them best. We therefore continually strive to act in the best interests of
our clients and are committed to:
- Creating innovative fund
products that enable our customers and business partners to make wise
investment choices
- Making it easy for clients and
partners to do business with us however they choose and keeping them
informed and educated in good times and bad
- Investing in exceptional
people, and technology that allows their talents to shine
- Fostering original thinking
among our fund managers and providing first-hand analysis so that they can
base every investment choice on rigorous research
- Focussing on the long-term
interests of our investors by preserving our independence and insisting on
the highest levels of integrity throughout our business
Back to the future
Edward
C Johnson 2nd's goal when founding Fidelity's US affiliate FMRCo., in 1946 was
to make investors' money grow. It may seem obvious today but it was
revolutionary at a time when the usual aim had been simply to preserve the
value of money. Over five decades later, our approach at Fidelity still sets us
apart from the crowd.
We
believe that markets do not always provide a good reflection of a stock's real
value, so our stock selection process is based entirely on the fundamental
strengths and weaknesses of individual companies. We call this approach
'bottom-up' stock picking. We have unparalleled access to senior managers in
the companies we are researching. So, we find stocks whose potential for
long-term growth has not yet been fully recognised.
Another
Johnson innovation is an important cornerstone at Fidelity - stock selection
responsibility rests in the hands of creative and intellectually curious fund
managers rather than investment committees or business heads. With this freedom
comes accountability and we are pleased to say that our fund managers are among
the most respected in the business.
Our customers think about the
future, we invest in it
The
bedrock of the Fidelity investment process is our continual investment in
research. Fidelity encourages fund managers to develop their individual flair,
while basing every investment choice on the most rigorous research. Apart from
specialising in particular regions and sectors, our analysts tap into the local
knowledge of our offices around the world. We pick stocks 'bottom-up' focussing
entirely on the performance of a company and the promise of its potential, and
on first-hand in-depth research by our unrivalled global team of investment
professionals.This ensures that every security - whether equity or bond - is
investigated as meticulously as possible before we include it in our funds. In
this way, we build our funds from the bottom up, stock by stock, taking account
of market trends but not being driven by them.
Fidelity
operates in an environment where the speed of change is unprecedented. We are
alive to it. The sophistication of the systems we have developed allows us to
manage our funds with maximum efficiency. We have the capability to design and
market products in line with the spectacular growth in our business. This
provides our customers with the service enhancements they have a right to
expect.
Truly,
it is our spirit of innovation that sets us apart as the leading force in the
investments world.
The difference is in the details
Our
substantial investment in resources enables us to implement our approach on a
different scale - both in terms of breadth of coverage and depth of analysis -
so when experience counts, count on us.
- Every 60
seconds, somewhere in the world, a Fidelity analyst is making contact with
a company
- We actively
research over 4,800 companies around the world every year
- Analysts and
portfolio managers typically hold 15-20 scheduled in-house meetings a day
- Fund managers
attend, on average, 10-15 company visits each week
- A fund review
meeting is held every quarter, where the Chief Investment Officer
scrutinizes the portfolio managers' portfolios
- Unrivalled
global team of 600 in-house investment professionals, including those of
Fidelity's US affiliate FMR Co.
- Fidelity
International along with its US affiliate FMR Co., actively covers over
95% of world market capitalisation
- Across the
world, 146 awards for investment excellence in 2005 alone - including
'Fund Group of the Decade'
Contributing to the future of our
communities
Across
the world Fidelity people play a vital role in business success. In
return, we are happy to repay some of the debt that we owe them by
participating in their respective community activities. Fidelity has always
believed in the importance of playing an active role in the communities where
we do business. We encourage our staff to build links with local organizations
and have a long tradition of sponsoring the Arts, medical and educational
initiatives, and community and family-based events.
Corporate Governance
At
Fidelity we believe we have a duty to convince ourselves that the companies we
invest in are managed legally and responsibly. This responsibility is part of
share-ownership and a key element of our commitment to act always in the best
interests of our clients.
As
an active investor and a long-term shareholder, we at Fidelity work towards
establishing an unparalleled contact with companies we invest in, both through
regular meetings and informal dialogue with the senior management.
Press Releases
Fidelity Launches Fidelity India
Special Situations Fund
Mumbai,
March 28, 2006 - Fidelity Fund Management Private Limited today introduced a
new category of funds in India with the launch of its Fidelity India Special
Situations Fund. This is an open-ended equity fund that aims to deliver long
term growth by investing across the spectrum of Indian equities with a focus on
companies in special situations.
Speaking
at the launch, Ashu Suyash, Country Head, Fidelity Fund Management Private
Limited, said: "This launch is another milestone for us and once again
demonstrates our commitment to expanding the market with products that add
value to investors' portfolios while leveraging our international experience.
We believe that regular diversified equity funds, like the Fidelity Equity
Fund, form the core holding of any portfolio. Fidelity India Special Situations
Fund is a more aggressive fund that will strive to add higher alpha to the
portfolio over the long-term through bottom up stock picking and as such,
should be an interesting style diversifier for investors."
Special
situations are out of the ordinary situations that companies find themselves in
from time to time. These situations present an investment opportunity to a fund
manager who can foresee and interpret the implications of that opportunity
early enough.
Rajesh
Singh, Fund Manager, Fidelity India Special Situations Fund, says:
"Special Situation funds are true stock picking funds because at the heart
of their investment strategy is identifying companies in special situations
which requires rigorous 360 degree bottom-up research. This is true to
Fidelity's approach to managing investments which is predicated on bottom-up
stock picking backed by intensive research by our team of investment
professionals."
Fidelity
runs an extraordinarily successful Special Situations Fund in the UK since
1979. This Ł6bn fund has been managed by Anthony Bolton since its launch 25
years ago. Since inception, the fund is up 12124% (as at December 2005), while
its benchmark returned 2761% in the same period. Put differently, it means
Ł1,000 put into the fund in 1979, would today be worth more than Ł118,110 (as at
December 31, 2005).
In
addition, Fidelity also has the American Special Situations Fund (since 1980),
Japan Special Situations Fund (since 1984) and the Asian Special Situations
Fund (since 1994).
As
Ashu Suyash says: "There are a number of 'transformational events' that
are taking place in India today which often put companies in special
situations."
Adds
Rajesh Singh, "Fidelity analysts have the unique benefit of bringing a
global perspective on companies and sectors by tapping into insights from their
colleagues across the world. We have a 360 degree approach to research which
means that we speak not just to the company's management but also distributors,
vendors, customers and competitors and can draw upon our global resource base
for experiences in other countries and markets."
The
Fidelity Special Situations Fund’s NFO will be open from March 28 to April 26,
2006.
The
minimum amount for lump sum investments is Rs 5000 and multiples of Rs 1000.
The entry load is 2.25% for each purchase of less than Rs 5 crores. For amounts
greater than or equal to Rs 5 crores or by an FOF or on dividend reinvestment,
the entry load is NIL. There is an exit load of 1% for redemptions within the
first six months for non-SIP investments.
In
keeping with Fidelity's aim of reaching out to a cross-section of investors and
expanding the market, the Systematic Investment Plan (SIP) option will be
available during the NFO period with minimum 6 instalments and each single
instalment for minimum of Rs. 500 totalling not less than Rs. 5000. There will
be an entry load of 1.25% for each purchase less than Rs. 1 lakh and an exit
load of 1% for redemptions within two years for investments made through SIP.
Fidelity
Fund Management Private Limited is the Indian arm of Fidelity International
Limited. Fidelity International Limited has offices in over 20 countries across
Europe and Asia-Pacific. Fidelity International along with its US affiliate,
Fidelity Management and Research Co., actively covers 95% of the world market
capitalization. Central to Fidelity 19s success is a pioneering spirit, a
commitment to innovation that sets new industry standards and an unmatched
investment in research, talent and technology. Driven by an entrepreneurial
culture, Fidelity is known to actively pursue investor education and
distributor training, which it has also begun in the country.
NOTES TO THE EDITOR:
Alpha:
Alpha:
This measures a fund 19s risk-adjusted return in excess of returns generated by
the market. The risk of the fund is measured using beta. If a fund has a beta
of one, then it is expected to generate excess returns in line with its
benchmark index. However, if the fund generated excess returns of 5% in a
period when the benchmark excess return was zero, then the fund creates an
alpha of 5% because it returned 5% more than the returns predicted by its beta.
Alpha could be negative if the fund 19s excess returns are worse than those
generated by its benchmark.
(Beta:
This measures a fund 19s risk in relation to that of the overall market. A beta
of 1.5 means that the fund is expected to deliver 1.5 times the market excess
returns. For instance, if the market excess return is 10%, then we should
expect, on average, the fund return to be 15%. Beta is considered an index of
systematic risk due to general market conditions that cannot be diversified
away.)
Special Situations
"Special Situations" does not refer to a pre-determined list of
situations. Special situations are out of the ordinary situations that
companies find themselves in from time to time. Such situations present an
investment opportunity to a money manager who can foresee and interpret the
implications of that opportunity early enough.
Here
is an illustrative list (not exhaustive) of Special Situations:
· Turnarounds or recovery situations -
Underperforming companies with potential for recovery
· Underappreciated growth - Companies whose
growth characteristics have not yet been adequately recognized
· Asset plays - Companies which sell at a
significant discount to their underlying assets
· New product or new business streams -
Companies having a unique product with strong demand potential or opportunities
to use existing resources for generating new business streams
· Corporate actions - Companies which are
potential candidates for mergers & acquisitions or where managements
undertake significant restructuring of the business
· Out-of-favour stocks - Unfashionable
companies with improving fundamentals
Important information
▪Scheme
Classification: An open ended equity growth scheme. Investment Objective: To
generate long-term capital growth from a diversified portfolio of predominantly
equity and equity-related securities including equity derivatives.
▪Normal Asset Allocation: Equity and equity related securities: 95%,
money market instruments: 5% ▪Terms of issue: Issue of Units at Rs 10 per
Unit for cash plus applicable Entry Load during the New Fund Offer and at
Applicable NAV plus applicable Entry Load thereafter. Minimum purchase amount:
Rs 5,000; additional purchase amount: Rs 1,000; redemption amount/units: Rs
1,000/100 Units. Offer Document, Key Information Memorandum and Application
Forms / Transaction Slips available at the ISCs / distributors' offices.
General Services: Investors can contact any of the ISCs at its toll-free number
"1-800-180 8000". NAVs will be calculated and published on all
Business Days. Purchase/Redemption on all Business Days. ▪Loads- Entry:
For each Purchase: (a) < Rs 5 crores or through SIP where single instalment
of > Rs 1 Lakh and < Rs 5 crores: 2.25%; (b) >= Rs 5 crores or by an
FOF or as a result of dividend reinvestment or through SIP where single
instalment of >= Rs 5 crores or through switch-in from other equity schemes
of the Fund or through switch-in into the Scheme from Fidelity MultiManager
Cash Fund as provided in the Offer Document: NIL; (c) through STP where (i)
single weekly instalment<=Rs 25,000;(ii) single fortnightly instalment <=
Rs 50, 000; (iii) single monthly instalment <= Rs 1,00,000 or through SIP
where single instalment <= Rs 1 Lakh:1.25%; (d) Through STP other than
above: Entry Load as applicable to any Purchase. A switch-in will also attract
Entry Load like a Purchase except for in cases provided above. Exit: For
Redemption: within 6 months from the date of allotment/Purchase applying First
in First Out basis for investments made other than through SIP/STP or if the
purchase was made through SIP/STP and the Entry Load applicable at the time of
SIP/STP Purchase was Nil/ 2.25% or within 2 years from the date of allotment/Purchase
applying First in First Out basis, if the Purchase was made through SIP/STP and
the Entry Load applicable at the time of SIP/STP Purchase was 1.25%: 1.00%. A
switch-out or a withdrawal under SWP may also attract an Exit Load like any
Redemption. No loads for switches between the options of the Scheme .Risk
factors:▪Mutual funds, like securities investments, are subject to market
risks and there is no guarantee against loss in the Scheme or that the Scheme's
objectives will be achieved. ▪As with any investment in securities, the
NAV of the Units issued under the Scheme can go up or down depending on various
factors and forces affecting capital markets. ▪Past performance of the
Sponsor or the AMC or the mutual funds managed by the Sponsor does not indicate
the future performance of the Scheme. ▪Fidelity India Special Situations
Fund is the name of the Scheme, and this does not in any manner indicate the
quality of the Scheme, its future prospects or returns. ▪Investments in
the Scheme will be affected by trading volumes, settlement periods, volatility,
price fluctuations, inability to sell securities, disinvestment of holdings of
any unlisted stocks prior to target date of disinvestment, credit risk and
interest rate risk and the risks associated with investments in derivatives.
▪ Please read the Offer Document before investing.
Statutory:
Fidelity Mutual Fund ('the Fund') has been established as a trust under the
Indian Trusts Act, 1882, by Fidelity International Investment Advisors
(liability restricted to Rs 1 Lakh). Fidelity Trustee Company Private Limited,
a company incorporated under the Companies Act, 1956, with a limited liability
is the Trustee to the Fund. Fidelity Fund Management Private Limited, a company
incorporated under the Companies Act, 1956, with a limited liability is the
Investment Manager to the Fund.
Fidelity Announces maiden Dividend
in Fidelity Equity Fund
Mumbai,
March 20, 2006 - A year since its launch in India, Fidelity Fund Management
Private Limited has announced its maiden dividend of Rs. 2.00 per unit (Face
Value of Rs.10) in its open-ended equity fund, the Fidelity Equity Fund. All
investors registered in the Dividend Option as on March 22, 2006 will be
entitled to this dividend which will be tax-free in the hands of the investors.
On
the ex-dividend date, the NAV of the dividend option will reduce in line with
the amount of dividend declared. Under the dividend reinvestment option, the
dividend declared will be re-invested at the ex-dividend NAV.
About Fidelity Equity
Fund
Fidelity
Equity Fund was launched in March 2005 as an open ended equity growth fund. The
fund manages over Rs.2984 crores* of assets for over 2.9 lakh investors. Since
its inception in May 2005, the fund has delivered returns of 69.05% (as of
March 17, 2006) outperforming its benchmark index, the BSE 200, by 11.72%.
About Fidelity Fund
Management Private Limited
Fidelity
Fund Management Private Limited is the Indian arm of Fidelity International
Limited. Fidelity International Limited has offices in over 20 countries across
Europe and Asia-Pacific. Fidelity International along with its US affiliate,
Fidelity Management and Research Co., actively covers 95% of world market
capitalization. Central to Fidelity's success is a pioneering spirit, a
commitment to innovation that sets new industry standards and an unmatched
investment in research, talent and technology. Driven by an entrepreneurial
culture, Fidelity is known to actively pursue investor education and
distributor training, which it has also begun in the country.
Fidelity around the
World
|
Americas Bahamas |
Europe Italy |
Africa |
Middle-East |
Asia Pacific |
Contacts Us:
Phone
To
speak to our customer service associates call 1800 180 8000 (toll-free).
Alternatively, call Reliance on 3030900 (if dialling from a mobile phone,
please prefix your city's local code before the Reliance number)
If you are calling from a mobile phone or a non BSNL/MTNL number, please dial
0124 254 2022 (not toll-free). Lines are open 9am to 6pm Monday to Friday.
In person
Visit one of our Investor Service Centres at the following locations. They are
open from 9am to 6pm Monday to Friday.
Ahmedabad:
301,
Raindrops Building, Opp. Cargo Motors, C. G. Road, Ellis Bridge, Ahmedabad,
380006
Bangalore:
402,
4th Floor, HM Geneva House, Cunningham Road, Bangalore 560052
Chennai:
Old
no. 90, Ganesha Towers, Dr. Radhakrishnan salai, Mylapore, Chennai 600 004.
Gurgaon:
Unitech
Business Park, Tower B, South City Phase 1, Gurgaon 122001
Kolkata:
408,
4th floor, Azimganj House, & Carmac Street, Kolkata, 700017
Mumbai:
56,
5th Floor, Maker Chambers VI, 220 Nariman Point, Mumbai 400021
Pune:Unit No. 406, 4th Floor, Nucleus Mall, 1, Church Road, Camp, Pune, 411001
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited transactions
or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders, director,
officer or employee of the company is a government official or a family member
or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.46 |
|
UK Pound |
1 |
Rs.85.94 |
|
Euro |
1 |
Rs.58.32 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |