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Nippon India Equity Opportunities AIF Scheme 11

Nippon Life India Asset Management Limited

About Company

Nippon Life India AIF Management Limited is wholly owned by Nippon Life India Asset Management Limited.The asset manager of Nippon India Mutual Fund is Nippon Life India Asset Management Limited (NAM India) (NIMF). Nippon Life Insurance Company is the promoter of NAM India, owning 74.95 percent of the company's total issued and paid-up equity share capital. NAM India's equity shares are traded on the BSE Limited and the National Stock Exchange of India Limited. Nippon Life Insurance Company ("NLI") is Japan's leading private life insurer, offering a diverse range of financial products, including individual and group life and annuity policies, through a variety of distribution channels, with traditional insurance products primarily sold through face-to-face sales channels. Its primary markets are Japan, North America, and Europe.and Asia, with the company's headquarters in Osaka, Japan. NLI handles assets in Asia through its subsidiary Nissay Asset Management Corporation ("Nissay"), which also manages assets abroad.NAM India is India's largest asset manager, with a client base of over 5 million investors across businesses such as mutual funds, ETFs, portfolio management services, pension funds, alternative investments, offshore strategies, and international advisory services to clients worldwide in asset classes such as debt, equity, and real estate.NAM India has the most extensive reach, with over 42,500 third-party distributors, over 160 customer touch-points, and one of India's largest and most experienced investing teams across Equities, Fixed Income, Quant, and Alternative Investments.

 

Nippon India Equity Opportunities AIF Scheme βˆ’ 11

Fund Snapshot

Type of Scheme

Close-ended, Category III, Alternative Investment Fund

Target Capital Commitment

Rs 750 Crore with a Green Shoe option of Rs 250 Crore

Minimum Commitment Amount

Rs 1 Crore

Benchmark

Benchmark

Initial Drawdown

Up to 25% of Capital Commitment

Commitment Period

Up to 18 months from final closing & further extension of up to 6 months at the discretion of the Investment Manager

Sponsor/IM Commitment

Sponsor / Investment Manager (IM) will make an aggregate commitment of 5% of the corpus or INR 10 Crs whichever is less.

Tenure

84 months (from first closing date) with extension by upto 24 months.

Investment Manager

Nippon Life India AIF Management Limited

Investment Philosophy: β€œMust Five” Quality Framework

 

Business Potential

  • Growth Opportunity (Scale)
  • Sustainable Competitive Advantage

 

Earnings Track Record

  • Consistent Performance across Business Cycle
  • Revenues, EBITDA, Profit Growth
  • Margin Profile
  • Return of Equity (ROE)
  • Return on Assets (ROA)

 

Corporate Governance

  • Treatment of Minority Shareholders
  • Promoters’ Track Record
  • Accounting Red flags
  • Share Pledge

Environment & Social Factors

  • Environmental Factors:
    • Water Management
    • Emission and Affluent
  • Policy Social Factors:
    • Employee Benefits
    • Health & Safety
    • Diversity & Inclusion

 

Capital Allocation

  • Unrelated Diversification
  • Leverage
  • Equity Dilution

 

Quantitative Framework

Strategy – Bottom-up Approach

  • High focus on fundamental analysis and research
  • Improvement in earnings as the Indian landscape provides ample investment opportunities
  • Identify stocks most attractively valued with respect to business model, financial metrics, and quality of management

Risk-Reward

  • Adequate diversification across Nifty 500 companies, across sectors, and across market cap
  • Active approach towards stock selection, with no single stock above 10% and no sector over 30%

 

Research-driven, bottom-up stock selection with sectoral diversification ensures prudent risk-managed investing.

 

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Disclaimer: Investing in AIF, PMS, Gift City or Mutual Fund is subject to market risk. Please read the related documents carefully. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic, and individual company factors. We at ALTPORT do not guarantee any returns in the hands of investors, nor do we take any sort of accountability for the performance of the scheme.

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