ASK Golden Decade Fund – Series II

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About Company

ASK Investment Managers Limited (ASKIM) is a renowned asset and wealth management firm focused on India’s HNI and UHNI markets. Our company was one of the first to get a Portfolio Management Services license in India, and we are now one of the leading providers of discretionary equity portfolio management services in the country.

Ask Financial was the first Portfolio Management Company to open up operations in GIFT city for international investors, and we also introduced India’s first AIF with digital client onboarding, which is a paperless and simple procedure. Through segregated accounts and commingled funds, they invest only in listed Indian stocks for our clients who are India domiciled as well as overseas.

Fund Snapshot

Fund Name: ASK Golden Decade Fund – Series II
Structure: Close ended, Long-only Category III, Alternative Investment Fund
Term: 4.5 years (from date of Final Closing), may be extended up to 2 years with necessary approvals
Sponsor: ASK Investment Managers Limited
Investment Manager: ASK Investment Managers Limited
Trustee: Amicorp Trustees (India) Private Limited
Custody: Deutsche Bank A.G.
Registrar and Transfer Agent: KFin Technologies Limited
Minimum Commitment Amount: Rs 1 Cr and multiples of Rs 1 Lakh thereafter Final Closing Within 12 months from the date of First Closing Lock-in Period Nil
Exit Charge: 5% in Year 1, 4% in Year 2, 3% in Year 3; 1% in Year 4; Nil post Year 4, all from Final Closing.

Inspiration for ASK Golden Decade Fund – Series II

  • Opportunity today is not only large, but it is structural. It is not episodic and is expected to sustain for a longer period of time
  • The structural character anticipated to the growth of the economy has a deep impact on the valuations in the markets.
  • In a digital world, the value creation of firms whose cost of capital can be moderated will be enhanced as compared to the past
  • Government is facilitating ease of doing business and vacating the turf for the private enterprises to create value 
  • Power of digital, reduction in cost of capital, startup ecosystem, data & payment revolution, manufacturing & infrastructure related changes will fuel the coming Golden Decade

India : On the Cusp of Digital Revolution

  • For a population of 1.3 billion, India’s wireless subscriber base is at 1.2 billion and broadband subscriber base at 0.8 billion.
  • Entrepreneurs are creating digital businesses across domains – from fintech to food tech to edutech – which has resulted in 42 unicorns in 2021 alone. This trend is expected to continue
  • Today one out of 13 unicorns globally is born in India. One unicorn has been added every five days within the first two months of 2022, and India is expected to have 100+ new unicorns in 2022. 

Digital India: Exponential Growth in Digital Payments in India

  • Demonetisation triggered increasing Financialisation of the economy by accelerating Digital modes of payment
  • In FY15-21, total value of Digital Payments increased by 5x, while number of Transactions increased over 10x
  • Since 2012, Number of Debit Cards in the country has expanded by ~30 Cr to over 90 Cr currently

Manufacturing to Significantly Ramp Up

  • For a length of time, manufacturing in India took a back seat. That is set to change in the coming years
  • Make in India & PLI Schemes have full potential to change the manufacturing landscape dramatically
  • Manufacturing prowess, in today’s world, is also important for strategic considerations from the safety and strength in security of the country

India : Next Factory of the World

PLI Scheme affects the entire value chain & the benefit which comes out of that is not arithmetic but geometric

New Processes

  • Ease of Doing Business
  • GST
  • Corporate Tax Reduction

New Sectors

  • Major FDI reforms and inflows

New Approach

  • Make in India
  • Digital India
  • Skill India

New Infrastructure

  • Key Infrastructure and Urbanization
  • Dedicated Industrial Corridors

New Innovation and R&D

  • India – Design & Innovation
  • Start Up India
  • Intellectual Property Rights

New Mind-set

  • From red tape to red carpet

Expected Key Beneficiaries of Value Migration

New Business Models Emerge on the Back of a Shift in Economic Landscape

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Value migration occurs when there is a disconnect between customer priorities & existing business designs

  • Inter country migration
  • Inter industry migration in same country
  • Inter company migration in same industry
  • One segment to another in same company

Value Shift to Better Run Private Sector Insurers

  • Private Players have been gaining on LIC every Year
  • In terms of sum-assured as a % of GDP, India ranks one of the lowest in the world.
  • The protection gap, or the level of under-insurance, for India is estimated at 83%, one of the highest in the world, against 70%-76% for ASEAN peers and 55%-60% for South Korea-Japan.

Private Banks will Capture Lion’s Share of Consumption Induced Credit Offtake

  • India’s Household Debt to GDP is lower compared to US which will go up as discretionary consumption goes up. This provides a long runway of growth for lenders
  • Number of Credit Cards issued has more than quadrupled to 7.8 Cr in last 10 years
  • ~68% of these are issued by Private Sector Banks

Significant Outperformance of Bankex vs Nifty over long period

  • Banking Sector outperforms the broader market during periods of high GDP growth adding to long term outperformance
  • Infrastructure Capex by the government combined with private sector capex and consumption led credit growth acts as tailwinds to the sector

Key Investment Objectives and Attributes

Key Investment Objectives

  • Capital Preservation over a period of time
  • Capital Appreciation over a period of time

Achieved through

Long term Investments in high quality companies with strong growth prospects

Why invest in ASK Golden Decade Fund – Series II?

  • A pure bottom up, buy & hold multi cap strategy of around 25 high quality companies
  • A fitting confluence of Quality, Valuation, and Time: 3 main drivers for compounding wealth
  • Positioned to capitalize on the impending value migration opportunities in India
  • Key beneficiaries of the economic shift in India: Financials, Consumer Durables, Manufacturing, Chemicals etc

Portfolio Research Methodology and Filtration

  • Top 500 as per market capitalization
  • Subjective evaluation on management quality, their integrity, vision, past track record, execution, capital allocations and distribution skills, corporate governance standards etc.
  • Businesses benefiting from value migration (e.g. ownership migration: PSU banks loosing market share to private sector banks, shift from unorganised to organised, etc)
  • Businesses with RoCE over 25% and Earnings Growth above 20%
  • Selection based on psychographics optimization and valuations

About The Fund Manager

Mr. Kuldeep Gangwar – Portfolio Manager

  • Has over 17 years of experience which includes more than a decade in sell side equity research with his main domain expertise is in Consumer sector (FMCG & Retail).
  • Prior to joining ASK, he was associated with HSBC Securities and Capital Markets (India) Private Limited as a sell side research analyst. He has also worked with Tata Motors for 3 years.
  • Mr. Gangwar is an MBA (Finance) from IIT, Bombay and B. Tech (Electronics & Communication) from IIT Roorkee. He is a CFA Charter holder. He joined ASK in Jan 2018

ASK Golden Decade Fund Fee Structure

Tier / Class of Investor Commitment Amount Set-up Cost Management Fees (p.a.) Performance Fees
A1 / B1 Rs. 1 Cr to < Rs. 5 Cr Upto 2.00% 2.50% p.a. NIL
A2 / B2 Rs. 5 Cr to < Rs. 10 Cr Upto 2.00% 1.75% p.a. NIL
A3 / B3 Rs. 10 Cr to < Rs. 25 Cr Upto 2.00% 1.50% p.a. NIL
A4 / B4 Rs. 25 Cr and more Upto 2.00% 1.25% p.a. NIL
A5 / B5 Rs. 1 Cr to < Rs. 5 Cr Upto 2.00% 1.50% p.a 20% over 10% XIRR
A6 / B6 Rs. 5 Cr to < Rs. 10 Cr Upto 2.00% 1.25% p.a. 20% over 10% XIRR
A7 / B7 Rs. 10 Cr and more Upto 2.00% 1.00% p.a. 20% over 10% XIRR

Portfolio Snapshot

Top 10 Holdings Wt(%)
Patanjali Foods Ltd 8.8
Bajaj Finance Ltd 7.2
APL Apollo Tubes Ltd 7.0
Bajaj Finserv Ltd : 6.9
Navin Fluorine International Ltd: 5.5
Page Industries Ltd : 5.3
AU Small Finance Bank Ltd 5.0
Reliance Industries Ltd 4.8
SRF Ltd 4.7
Infosys Ltd 4.7

Risk Management

  • Integrated risk management and review mechanism throughout the investment process
  • Disciplined Buy and Sell mechanism
  • Discipline of buying businesses with reasonable margin of safety
  • Individual stock cap at 10%
  • No single sector limit
  • Role of compliance & risk management teams – ongoing monitoring and reporting

Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

ASK India Select Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 4-Jan-10
Multi Cap
(PMS)
2,808 Strategy 5.80 10.60 15.30 22.70 6.50 12.90 13.50 17.30 15.70
S&P BSE 500 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 12.80

ASK Indian Entrepreneur Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 25-Jan-10
Multi Cap
(PMS)
18,959 Strategy 3.70 7.20 10.00 20.50 5.00 13.80 14.80 18.40 17.60
BSE 500-TRI 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 13.10

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.