FAQs – Marcellus Consistent Compounders
1. What is the investment philosophy of Marcellus Consistent Compounders?
Consistent Compounders Marcellus’s investment philosophy is based on a deep study of the companies. They believe that the insight story of the companies will showcase the historical consistency of the companies. Marcellus buys 10-15 stocks in their model portfolio of PMS and continues to give healthy returns each time despite various disturbances going on in the world.
2. What is meant by Marcellus’s filter-based approach?
The filter-based approach follows three key conditions:
- It filters the long history of companies and chooses them accordingly.
- Holding a portfolio of stocks for a long time.
- Filter-based approach helps to cut out the noise of entry and exit decisions.
3. Is there any contract between Marcellus and its Clients?
Yes, the portfolio manager enters into a written agreement with the client. The contract clearly defines the interrelationship with the client and sets out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities, containing the details as specified in Schedule IV to the SEBI (Portfolio Managers) Regulations, 1993.
4. What are the setup fees, entry load, exit load and lock-in applicable to my PMS account at Marcellus?
There are no setup fees. A client enters and exits at any time he/she wants. There are also no lock-ins applicable. A client at any time can withdraw any asset from Marcellus PMS by giving 30 days prior notice.
5. What fees can a Consistent Compounders Marcellus portfolio manager charge from its clients for the services rendered by him?
A variable fee of 20% on all returns in excess of 8% (no-catch-up) subject to a high watermark annually and a Fixed fee of 2.0% of the Net Asset Value to be given quarterly.
6. What will be the tax structure applicable under Marcellus’ PMS?
Marcellus PMS only invests in equities. An investor should consult a tax advisor for any further tax-related queries. Marcellus provides an audit statement at the end of the financial year. This would also aid in tax-related liabilities.
7. What is the meaning of Marcellus’ ‘no catch-up’?
Here, no catch-up means that profit share will be applicable only on incremental return over and above the hurdle rate.
8. What is the minimum investment size to open a PMS account with Marcellus?
INR 50 lakhs is the minimum investment size for opening a PMS account with Marcellus.
9. What type of companies are part of the Marcellus portfolio?
According to Marcellus philosophy, it only consists of consistent compounder portfolios that are large and liquid stocks of cash generated companies.
10. Can we reinvest the client’s Marcellus dividends in his portfolio?
Yes, as they are directly credited to the client’s PMS account and hence get reinvested into the PMS account.