Chapter 4


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Chapter 4

  1. 1. Chapter 4 Company Profile
  2. 2. HDFC Asset Management Company Limited (AMC) HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. The registered office of the AMC is situated at Computer Age Management Services Pvt. Limited New No. 10, Old No. 178, M.G.R. Salai, Nungambakkam, Chennai - 600 034. In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.169 crore. The present equity shareholding pattern of the AMC is as follows: Particulars % of the paid up equity capital Housing Development Finance Corporation 59.98 Limited Standard Life Investments Limited 39.99 Other Shareholders (shares issued on exercise 0.03 of Stock Options) Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India. The AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory approvals.
  3. 3. On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows: Former Name New Name Zurich India Equity Fund HDFC Equity Fund Zurich India Prudence Fund HDFC Prudence Fund Zurich India Capital Builder Fund HDFC Capital Builder Fund Zurich India TaxSaver Fund HDFC TaxSaver Zurich India Top 200 Fund HDFC Top 200 Fund Zurich India High Interest Fund HDFC High Interest Fund Zurich India Liquidity Fund HDFC Cash Management Fund Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration from SEBI vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1, 2010 to December 31, 2012.
  4. 4. Products Children's Gift Fund Fund of Fund Schemes Children's Gift Fund Invests primarily in other scheme(s) of the same mutual fund or other mutual funds Debt/ Income Fund Fixed Maturity Plan Invest in money market Invest primarily in Debt / and debt instruments and Money Market Instruments provide optimum balance and Government Securities. of yield. Equity / Growth Fund Liquid Funds Invest primarily in equity Provide high level of and equity related liquidity by investing in instruments. money market and debt instruments. Exchange Traded Funds Quarterly Interval Fund Invest primarily in equity Generate regular income and equity related through investments in instruments. Debt / Money Market Instruments..
  5. 5. Vision Statement Sponsors Housing Development Finance Corporation Limited (HDFC) HDFC was incorporated in 1977 as the first specialized Mortgage Company in India. HDFC provides financial assistance to individuals, corporate and developers for the purchase or construction of residential housing. It also provides property related services (e.g. property identification, sales services and valuation), training and consultancy. Of these activities, housing finance remains the dominant activity. HDFC has a client base of around 12 lac borrowers, 9 lac depositors, over 2 lac shareholders and about 25,000 deposit agents, as at March 31, 2011.
  6. 6. HDFC had raised funds from international agencies such as the World Bank, IFC (Washington), USAID, DEG, ADB and international syndicated loans, domestic term loans from banks and insurance companies, bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the seventeenth year in succession. HDFC Standard Life Insurance Company Limited, promoted by HDFC was the first life insurance company in the private sector to be granted a Certificate of Registration (on October 23, 2000) by the Insurance Regulatory and Development Authority to transact life insurance business in India. Website: Standard Life Investments Limited Standard Life Investments was launched as an investment management company in 1998. It is the dedicated investment management company of the Standard Life group and is a wholly owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a wholly owned subsidiary of StandardLifeplc. With global assets under management of approximately US$251.9 billion as at March 31, 2011 Standard Life Investments Limited is one of the world's major investment companies, operating in the UK, Canada, Hong Kong, China, Korea, Ireland and the USA, and is responsible for investing money on behalf of five million retail and institutional clients worldwide. The Standard Life Assurance Company was established in 1825 and has considerable experience in global financial markets. The company was present in the Indian life insurance market from 1847 to 1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the Indian market in 1995, when an agreement was signed with HDFC to launch an insurance joint venture.
  7. 7. In April 2006, the Board of The Standard Life Assurance Company recommended that it should demutualise and Standard Life plc float on the London Stock Exchange. At a Special General Meeting held in May voting members overwhelmingly voted in favour of this. The Court of Session in Scotland approved this in June and Standard Life plc floated on the London Stock Exchange on 10th July 2006. In order to meet the different needs and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio covering all of the major markets world-wide, which includes a range of private and public equities, government and company bonds, property investments and various derivative instruments. The company's current holdings in UK equities account for approximately 1.8% of the market capitalisation of the London Stock Exchange. Website: Trustees HDFC Trustee Company Limited, a company incorporated under the Companies Act, 1956 is the Trustee to HDFC Mutual Fund vides the Trust deed dated June 8, 2000, as amended from time to time. HDFC Trustee Company Ltd is wholly owned subsidiary of HDFC The Board of Directors of HDFC Trustee company Limited consists of the Mr. Anil Kumar Hirjee Mr. Vincent Joseph O’Brien Mr. Shishir K. Diwanji Mr. Ranjan Sanghi Mr. V. Srinivasa Rangan
  8. 8. Registrar & Transfer Agents Registered Office: Computer Age Management Services Pvt. Limited New No. 10, Old No. 178, M.G.R. Salai, Nungambakkam, Chennai - 600 034. Computer Age Management Services Pvt. Ltd., Rayala Towers - I, 158 Anna Salai, Chennai 600002. Tel : (+91) 044 2852 0516 Fax : (+91) 044 4203 2952 Website : Custodian HDFC Bank Limited Lodha - I Think Techno Campus Office, Floor 8, Next to Kanjurmarg Railway Station Kanjurmarg (East), Mumbai - 400 042. Website: Citibank N.A. Global Securities & Fund Services (SFS), India, 3rd Floor, Trent House, Plot No. G-60, Bandra Kurla Complex Bandra East, Mumbai – 400051 Website:
  9. 9. The Bank of Nova Scotia 91-94, 3rd North Avenue, Maker Maxity, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051 Website: Currently, The Bank of Nova Scotia has been appointed as the custodian of Portfolio Deposit (i.e. Physical Gold) for HDFC Gold Exchange Traded Fun SWOT ANALYSIS Strength  Well-regained and reputed brand of HDFC.  Experience of Standard Life Investment.  Young and well qualified staff.  Well aware of customer need.  Large portfolio of schemes. Weakness  Awareness of HDFC mutual Fund, separate from HDFC, is less.  Less presence of HDFC MF in rural market. Opportunities  Day by day increasing Knowledge about Mutual Fund.  Due to high volatility of market investors may move towards mutual fund  Only instrument with proper corporate governance and comparatively high return with lesser risk.
  10. 10.  Rural market is totally untapped. Threat  Increase in competition and competitor.  Threat of new foreign Players.  Cut-throat competition from broking houses  Stiff Competition from Banks  Market based on technology