Investment management is the professional asset management of various securities (shares,
bonds and other securities) and other assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds). The term asset management is often used to refer to the investment management of collective investments, while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management often within the context of so-called "private banking". The provision of investment management services includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff. Fund manager (or investment advisor in the United States) refers to both a firm that provides investment management services and an individual who directs fund management decisions. According to a Boston Consulting Group study, the assets managed professionally for fees reached an all-time high of US$62.4 trillion in 2012, after remaining flat-lined since 2007. [1] Furthermore, these industry assets under management were expected to reach US$70.2 trillion at the end of 2013 as per a Cerulli Associates estimate. The global investment management industry is highly concentrated in nature, in a universe of about 70,000 funds roughly 99.7% of the US fund flows in 2012 went into just 185 funds. Additionally, a majority of fund managers report that more than 50% of their inflows go to just three funds. Investment Management (Overview)
Purpose The Investment Management (IM) component provides functions to support the planning, investment, and financing processes for: Capital investments, such as the acquisition of fixed assets as the result of-house production or purchase Investments in research and development Projects that fall primarily under overhead, such as continuing education of employees or establishing new markets Maintenance programs The term investment, therefore, is not limited only to investments you capitalize for bookkeeping or tax purposes. An investment in this context can be any measure that initially causes costs, and that may only generate revenue or provide other benefits after a certain time period has elapsed (for example, plant maintenance projects).
The IM component contains functions for managing investments in the area of fixed assets. Financial assets are managed in the Treasury component. Implementation considerations For information on implementing the IM component, refer to the Implementation Guide (IMG) for Investment Management. Choose SAP Customizing Implementation Guide Investment Management. Integration The investment program and the appropriation request are objects that originate in the IM component. In order to represent the measure, the IM component uses internal orders from Overhead Cost Controlling - Overhead Orders (CO-OM-OPA) and Plant Maintenance (PM), as well as work breakdown structure (WBS) elements from the Project System (PS). The integration with Asset Accounting (FI-AA) enables you to easily capitalize the costs of internal orders and WBS elements that require capitalization to a fixed asset. Costs that do not require capitalization can be settled to cost accounting. You can post acquisitions to a measure in the Logistics components of the SAP System.
Sub-Components of Investment Management and their Integration The integrated planning process allows you to roll up planned values from appropriation requests and measures on the investment program to which they are assigned. You carry out budgeting of measures, on the other hand, from the top down within the investment program. You can transfer expected depreciation on all planned investments to management accounting in the form of planned costs. Features Investment Management consists of the following components: Component Used for Investment Program cyclical planning and management of investment budgets for a number of measures, throughout your whole enterprise Appropriation Requests management of the planning and approval phase of investments and other types of measures Investment Measures parallel handling of cost accounting and financial accounting needs for individual investments. Measures take the form of internal orders, projects and maintenance orders. Investment Programs
Purpose You can use investment programs as a supplement for any planning for individual measures and for budgeting in the following areas: Planning Administration Monitoring of a global budget Investment programs support the annual creation of an investment plan and budget if these are to be monitored globally. You can obtain an overview of planning and budgeting processes in complex enterprise structures for all investments and large projects of the group, while at the same time maintaining strict budgetary control. Features The Investment Programs component provides functions for planning and monitoring of investment budgets encompassing many different measures, on a cyclical basis, of an entire corporate group. You can benefit from the integration of this component with the Investment Measures and Appropriation Requests components. Measures and appropriation requests can be assigned to investment program positions. By rolling up their plan values in the investment program, these measures and appropriation requests are integrated in the comprehensive investment planning process. At the same time, you can budget and oversee the measures using the investment program. Comprehensive investment programs in the SAP System offer the advantage of their direct integration with the individual measures (orders or WBS elements), in contrast to non-integrated planning systems. By means of this integration, you are quickly made aware if your comprehensive budget is overrun. You can also monitor expenses for both external acquisitions as well as internal costs (activity allocation, overhead). The Investment Programs component includes the following processes and functions: Process/Function Areas Used Structure of the Investment Program Investments listed in a hierarchy Planning and Budgeting of Investment Programs - Bottom-up: Planning investments in an investment program - Top-down: Budget distribution Fiscal Year Change Carrying forward a current investment program into a new approval year
Structure of the Investment Program
Use The system displays the program structure in maintenance transactions in the form of a horizontal tree diagram. You can assign investment measures and appropriation requests to the investment program positions. Features Creating the Program Structure and Program Positions When you create or change the tree diagram, you can also directly define the corresponding program positions and assign them to the desired position in the hierarchy using fast entry. The system uniquely identifies each program position based on its: Investment program name and approval year Position ID that has a maximum of 24 characters
The maximum number of hierarchy levels is 99. There are limitations on how complex the investment program can be, due to performance considerations. Since performance is strongly dependent on your system configuration, we can only offer a figure for orientation: If your investment program has more than 10,000 positions, you should contact your SAP consultant. You can make organizational assignments for each program position (such as, assignment to a company code, business area, plant, or cost center). When you create new program positions below existing positions in the hierarchy, the system automatically copies the assignments and the general data from the higher-level position to the new lower-level position you are creating. However, if you later change the organizational assignment of a program position that has subordinate positions in the hierarchy, the system does not automatically copy the changes to these subordinate program positions. There is a report you can use to check the consistency of the organizational units in investment programs (refer to Inheritance of Organizational Units). Top Positions and Controlling Area You have to assign the top positions of a program to a controlling area. The system then automatically copies this controlling area to all subordinate positions. In this way, it is guaranteed that a subtree of an investment program always belongs to a given controlling area. Measures The program positions that do not have any subordinate positions assigned to them in the hierarchy are called end nodes The individual measures of the investment program can be assigned to these end node positions. You can assign internal orders, maintenance orders and WBS elements to investment programs as measures (refer to Connection between Programs and Measures). You can make one of the following specifications for an end node position: The individual measures assigned to the end node can be budgeted separately, and the totals of these budgets are compared with the budget for the program position only on a periodic basis in reports. (TheBudget dist. overall indicator is not set.) The individual measures assigned to the end node receive their budget directly from the program position. (The Budget dist. overall indicator is set.) In this case, the subordinate measures can receive their annual budget, in addition to their overall budget, by direct budget distribution from the program position, if theBudget dist. annl. (budget distribution of annual values) indicator is set in the program definition. A consistency check then guarantees that only the amount of overall and annual budget available on the program position can be distributed to its measures (refer to Distributing the Budget from the Program Position to the Measures). Deletion and Reassignment of Sub-Trees Subtrees can be deleted only if their program positions do not have any budget or plan values. When you reassign a subtree, the system automatically transfers its budget and plan values along with it.
Industry scope[edit] The business of investment has several facets, the employment of professional fund managers, research (of individual assets and asset classes), dealing, settlement, marketing,internal auditing, and the preparation of reports for clients. The largest financial fund managers are firms that exhibit all the complexity their size demands. Apart from the people who bring in the money (marketers) and the people who direct investment (the fund managers), there are compliance staff (to ensure accord with legislative and regulatory constraints), internal auditors of various kinds (to examine internal systems and controls), financial controllers (to account for the institutions' own money and costs), computer experts, and "back office" employees (to track and record transactions and fund valuations for up to thousands of clients per institution). Key problems of running such businesses[edit] Key problems include: revenue is directly linked to market valuations, so a major fall in asset prices can cause a precipitous decline in revenues relative to costs; above-average fund performance is difficult to sustain, and clients may not be patient during times of poor performance; successful fund managers are expensive and may be headhunted by competitors; above-average fund performance appears to be dependent on the unique skills of the fund manager; however, clients are loath to stake their investments on the ability of a few individuals- they would rather see firm-wide success, attributable to a single philosophy and internal discipline; analysts who generate above-average returns often become sufficiently wealthy that they avoid corporate employment in favor of managing their personal portfolios. Representing the owners of shares[edit] Institutions often control huge shareholdings. In most cases they are acting as fiduciary agents rather than principals (direct owners). The owners of shares theoretically have great power to alter the companies via the voting rights the shares carry and the consequent ability to pressure managements, and if necessary out-vote them at annual and other meetings. In practice, the ultimate owners of shares often do not exercise the power they collectively hold (because the owners are many, each with small holdings); financial institutions (as agents) sometimes do. There is a general belief [by whom?] that shareholders in this case, the institutions acting as agentscould and should exercise more active influence over the companies in which they hold shares (e.g., to hold managers to account, to ensure Boards effective functioning). Such action would add a pressure group to those (the regulators and the Board) overseeing management. However there is the problem of how the institution should exercise this power. One way is for the institution to decide, the other is for the institution to poll its beneficiaries. Assuming that the institution polls, should it then: (i) Vote the entire holding as directed by the majority of votes cast? (ii) Split the vote (where this is allowed) according to the proportions of the vote? (iii) Or respect the abstainers and only vote the respondents' holdings? The price signals generated by large active managers holding or not holding the stock may contribute to management change. For example, this is the case when a large active manager sells his position in a company, leading to (possibly) a decline in the stock price, but more importantly a loss of confidence by the markets in the management of the company, thus precipitating changes in the management team. Some institutions have been more vocal and active in pursuing such matters; for instance, some firms believe that there are investment advantages to accumulating substantial minority shareholdings (i.e. 10% or more) and putting pressure on management to implement significant changes in the business. In some cases, institutions with minority holdings work together to force management change. Perhaps more frequent is the sustained pressure that large institutions bring to bear on management teams through persuasive discourse and PR. On the other hand, some of the largest investment managerssuch as BlackRock and Vanguardadvocate simply owning every company, reducing the incentive to influence management teams. A reason for this last strategy is that the investment manager prefers a closer, more open and honest relationship with a company's management team than would exist if they exercised control; allowing them to make a better investment decision. The national context in which shareholder representation considerations are set is variable and important. The USA is a litigious society and shareholders use the law as a lever to pressure management teams. In Japan it is traditional for shareholders to be low in the 'pecking order,' which often allows management and labor to ignore the rights of the ultimate owners. Whereas US firms generally cater to shareholders, Japanese businesses generally exhibit a stakeholder mentality, in which they seek consensus amongst all interested parties (against a background of strong unions and labour legislation. Size of the global fund management industry[edit] Conventional assets under management of the global fund management industry increased by 10% in 2010, to $79.3 trillion. Pension assets accounted for $29.9 trillion of the total, with $24.7 trillion invested in mutual funds and $24.6 trillion in insurance funds. Together with alternative assets (sovereign wealth funds, hedge funds, private equity funds and exchange traded funds) and funds of wealthy individuals, assets of the global fund management industry totalled around $117 trillion. Growth in 2010 followed a 14% increase in the previous year and was due both to the recovery in equity markets during the year and an inflow of new funds. The US remained by far the biggest source of funds, accounting for around a half of conventional assets under management or some $36 trillion. The UK was the second largest centre in the world and by far the largest in Europe with around 8% of the global total. [2]
Philosophy, process and people[edit] The 3-P's (Philosophy, Process and People) are often used to describe the reasons why the manager is able to produce above average results. Philosophy refers to the overarching beliefs of the investment organization. For example: (i) Does the manager buy growth or value shares, or a combination of the two (and why)? (ii) Do they believe in market timing (and on what evidence)? (iii) Do they rely on external research or do they employ a team of researchers? It is helpful if any and all of such fundamental beliefs are supported by proof-statements. Process refers to the way in which the overall philosophy is implemented. For example: (i) Which universe of assets is explored before particular assets are chosen as suitable investments? (ii) How does the manager decide what to buy and when? (iii) How does the manager decide what to sell and when? (iv) Who takes the decisions and are they taken by committee? (v) What controls are in place to ensure that a rogue fund (one very different from others and from what is intended) cannot arise? People refers to the staff, especially the fund managers. The questions are, Who are they? How are they selected? How old are they? Who reports to whom? How deep is the team (and do all the members understand the philosophy and process they are supposed to be using)? And most important of all, How long has the team been working together? This last question is vital because whatever performance record was presented at the outset of the relationship with the client may or may not relate to (have been produced by) a team that is still in place. If the team has changed greatly (high staff turnover or changes to the team), then arguably the performance record is completely unrelated to the existing team (of fund managers). Investment managers and portfolio structures[edit] At the heart of the investment management industry are the managers who invest and divest client investments. A certified company investment advisor should conduct an assessment of each client's individual needs and risk profile. The advisor then recommends appropriate investments. Asset allocation[edit] The different asset class definitions are widely debated, but four common divisions are stocks, bonds, real estate and commodities. The exercise of allocating funds among these assets (and among individual securities within each asset class) is what investment management firms are paid for. Asset classes exhibit different market dynamics, and different interaction effects; thus, the allocation of money among asset classes will have a significant effect on the performance of the fund. Some research suggests that allocation among asset classes has more predictive power than the choice of individual holdings in determining portfolio return. Arguably, the skill of a successful investment manager resides in constructing the asset allocation, and separately the individual holdings, so as to outperform certain benchmarks (e.g., the peer group of competing funds, bond and stock indices). Long-term returns[edit] It is important to look at the evidence on the long-term returns to different assets, and to holding period returns (the returns that accrue on average over different lengths of investment). For example, over very long holding periods (e.g. 10+ years) in most countries, equities have generated higher returns than bonds, and bonds have generated higher returns than cash. According to financial theory, this is because equities are riskier (more volatile) than bonds which are themselves more risky than cash. Diversification[edit] Against the background of the asset allocation, fund managers consider the degree of diversification that makes sense for a given client (given its risk preferences) and construct a list of planned holdings accordingly. The list will indicate what percentage of the fund should be invested in each particular stock or bond. The theory of portfolio diversification was originated by Markowitz (and many others). Effective diversification requires management of the correlation between the asset returns and the liability returns, issues internal to the portfolio (individual holdings volatility), and cross-correlations between the returns. Investment styles[edit] There are a range of different styles of fund management that the institution can implement. For example, growth, value, growth at a reasonable price (GARP), market neutral, small capitalisation, indexed, etc. Each of these approaches has its distinctive features, adherents and, in any particular financial environment, distinctive risk characteristics. For example, there is evidence that growth styles (buying rapidly growing earnings) are especially effective when the companies able to generate such growth are scarce; conversely, when such growth is plentiful, then there is evidence that value styles tend to outperform the indices particularly successfully. Performance measurement[edit] Fund performance is often thought to be the acid test of fund management, and in the institutional context, accurate measurement is a necessity. For that purpose, institutions measure the performance of each fund (and usually for internal purposes components of each fund) under their management, and performance is also measured by external firms that specialize in performance measurement. The leading performance measurement firms (e.g. Frank Russell in the USA or BI-SAM [1] in Europe) compile aggregate industry data, e.g., showing how funds in general performed against given indices and peer groups over various time periods. In a typical case (let us say an equity fund), then the calculation would be made (as far as the client is concerned) every quarter and would show a percentage change compared with the prior quarter (e.g., +4.6% total return in US dollars). This figure would be compared with other similar funds managed within the institution (for purposes of monitoring internal controls), with performance data for peer group funds, and with relevant indices (where available) or tailor- made performance benchmarks where appropriate. The specialist performance measurement firms calculate quartile and decile data and close attention would be paid to the (percentile) ranking of any fund. Generally speaking, it is probably appropriate for an investment firm to persuade its clients to assess performance over longer periods (e.g., 3 to 5 years) to smooth out very short term fluctuations in performance and the influence of the business cycle. This can be difficult however and, industry wide, there is a serious preoccupation with short-term numbers and the effect on the relationship with clients (and resultant business risks for the institutions). An enduring problem is whether to measure before-tax or after-tax performance. After-tax measurement represents the benefit to the investor, but investors' tax positions may vary. Before- tax measurement can be misleading, especially in regimens that tax realised capital gains (and not unrealised). It is thus possible that successful active managers (measured before tax) may produce miserable after-tax results. One possible solution is to report the after-tax position of some standard taxpayer. Risk-adjusted performance measurement[edit] Performance measurement should not be reduced to the evaluation of fund returns alone, but must also integrate other fund elements that would be of interest to investors, such as the measure of risk taken. Several other aspects are also part of performance measurement: evaluating if managers have succeeded in reaching their objective, i.e. if their return was sufficiently high to reward the risks taken; how they compare to their peers; and finally whether the portfolio management results were due to luck or the managers skill. The need to answer all these questions has led to the development of more sophisticated performance measures, many of which originate in modern portfolio theory. Modern portfolio theory established the quantitative link that exists between portfolio risk and return. The Capital Asset Pricing Model (CAPM) developed by Sharpe (1964) highlighted the notion of rewarding risk and produced the first performance indicators, be they risk-adjusted ratios (Sharpe ratio, information ratio) or differential returns compared to benchmarks (alphas). The Sharpe ratio is the simplest and best known performance measure. It measures the return of a portfolio in excess of the risk-free rate, compared to the total risk of the portfolio. This measure is said to be absolute, as it does not refer to any benchmark, avoiding drawbacks related to a poor choice of benchmark. Meanwhile, it does not allow the separation of the performance of the market in which the portfolio is invested from that of the manager. The information ratio is a more general form of the Sharpe ratio in which the risk-free asset is replaced by a benchmark portfolio. This measure is relative, as it evaluates portfolio performance in reference to a benchmark, making the result strongly dependent on this benchmark choice. Portfolio alpha is obtained by measuring the difference between the return of the portfolio and that of a benchmark portfolio. This measure appears to be the only reliable performance measure to evaluate active management. In fact, we have to distinguish between normal returns, provided by the fair reward for portfolio exposure to different risks, and obtained through passive management, from abnormal performance (or outperformance) due to the managers skill (or luck), whether through market timing, stock picking, or good fortune. The first component is related to allocation and style investment choices, which may not be under the sole control of the manager, and depends on the economic context, while the second component is an evaluation of the success of the managers decisions. Only the latter, measured by alpha, allows the evaluation of the managers true performance (but then, only if you assume that any outperformance is due to skill and not luck). Portfolio return may be evaluated using factor models. The first model, proposed by Jensen (1968), relies on the CAPM and explains portfolio returns with the market index as the only factor. It quickly becomes clear, however, that one factor is not enough to explain the returns very well and that other factors have to be considered. Multi-factor models were developed as an alternative to the CAPM, allowing a better description of portfolio risks and a more accurate evaluation of a portfolio's performance. For example, Fama and French (1993) have highlighted two important factors that characterize a company's risk in addition to market risk. These factors are the book-to-market ratio and the company's size as measured by its market capitalization. Fama and French therefore proposed three-factor model to describe portfolio normal returns (Fama-French three-factor model). Carhart (1997) proposed to add momentum as a fourth factor to allow the short-term persistence of returns to be taken into account. Also of interest for performance measurement is Sharpes (1992) style analysis model, in which factors are style indices. This model allows a custom benchmark for each portfolio to be developed, using the linear combination of style indices that best replicate portfolio style allocation, and leads to an accurate evaluation of portfolio alpha.
Union Bank of India Union Bank of India (UBI) (BSE: 532477) is one of the largest government-owned banks of India (the government owns 60.13% of its share capital). It is listed on the Forbes 2000, and has assets of USD 13.45 billion. All the bank's branches have been networked with its 6420 ATMs. Its online Telebanking facility are available to all its Core Banking Customers - individual as well as corporate. It has representative offices in Abu Dhabi, United Arab Emirates, Beijing, Peoples Republic of China, London, Shanghai, and Sydney, and branches in Hong Kong,Dubai(Dubai International Financial Centre) and Antwerp, Belgium. The bank is in the process of upgrading its representative offices in London and Sydney to branches. UBI is active in promoting financial inclusion policy and is a member of the Alliance for Financial Inclusion (AFI). History[edit] Union Bank of India (UBI) was registered on 11 November 1919 as a limited company in Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in 1947, UBI only had four branches - three in Mumbai and one in Saurashtra, all concentrated in key trade centres. After Independence UBI accelerated its growth and by the time the government nationalised it in 1969, it had grown to 240 branches in 28 states. Shortly after nationalisation, UBI merged in Belgaum Bank, a private sector bank established in 1930 that had itself merged in a bank in 1964, the Shri Jadeya Shankarling Bank. Then in 1985 UBI merged in Miraj State Bank, which had been established in 1929. In 1999 the Reserve Bank of India requested that UBI acquire Sikkim Bank in a rescue after extensive irregularities had been discovered at the non-scheduled bank. Sikkim Bank had eight branches located in the North-east, which was attractive to UBI. UBI began its international expansion in 2007 with the opening of representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China. The next year, UBI established a branch in Hong Kong, its first branch outside India. In 2009, UBI opened a representative office in Sydney, Australia. At present, the offshore banking operations of Union Bank of India are led by its branches in Hong Kong and newly opened branch in Dubai at Dubai International Financial Centre.
Established in 1995, as the 8th indigenous Bank, Union Bank is positioned to be the preferred Bank for the Small and Medium Enterprises and Retail sectors in Sri Lanka. As one of Sri Lanka's fastest growing Banks, Union Bank offers its preferred customer segments a range of comprehensive financial solutions to support the development and growth of these sectors. Known for its strong shareholder strength which includes high caliber local and foreign investors, financial stability, innovative range of technology-driven products, supported by superior service delivery enables Union Bank to forge ahead as a key player in the Banking industry in Sri Lanka. In order to deliver the Bank's unique value proposition to customers, Union Bank continues to expand its reach rapidly in Sri Lanka through its growing branch network which also includes 7 branches in the Northern and Eastern provinces in the country. A number of new branches are expected to open in several new areas in the coming year and beyond, which is specially focused and geared to grow Union Bank's SME portfolio. Listed in the Colombo Stock Exchange in March 2011, the Bank's Initial Public Offering (IPO) received overwhelming response making the IPO one of the highest oversubscribed in Sri Lanka and globally further highlighting public confidence in Union Bank as a rapidly progressing and potential business entity. The Bank's expansion also includes the Bank actively pursuing opportunities for related diversifications in the Finance Industry and as such acquired 51% stake in National Asset Management Limited, Sri Lanka's premier Asset Management Company in February 2011 and subsequently in November 2011, acquired 98% of voting shares with a strategic foreign investor Shorecap in The Finance and Guarantee Company Limited, one of Sri Lanka's oldest finance companies established in 1961. August 2014, UBC announced it has entered into an investment agreement with Culture Financial Holdings Ltd. an affiliate of TPG, a leading global private investment firm with over $59Bn of capital under management. The investments is one of the largest foreign direct investments into Sri Lanka in recent years and places Union Bank amongst the top 5 banks in Sri Lanka. Under the agreement, TPG will invest up to approximately US$117 million ( or LKR 15Bn) in UBC through a combination of primary and secondary shares, representing up to 70% of the issued share capital.
Union bank Asset Management Group Union Banks Asset Management Group offers you a complete range of financial planning, investment and estate servicesall from the same source you already rely on for your personal and business banking. Regardless of the current value of your savings, portfolio or estate, Union Banks experienced advisors are happy to work with you to develop a plan and identify strategies that will help you manage your money and assets to meet your goals. Our wide range of expertise includes: Investment Management from advisory to fully managed accounts Personal Trusts with the fiduciary services you expect Retirement Strategies tailored to your lifestyle Estate Services covering both planning and settlement Commercial Client Services including escrow, investment management and custodial accounts Investment Management All of our clients are unique. That's why from the very first moment we meet with you, we listen. We believe listening is the basic ingredient of all good relationships. What we learn from you forms the basis for our recommendations. Understanding your present need is crucial to laying the foundation for your investments and for your familys future. Add a strong local presence to our experience, and the result is excellent service, insight and care that you can count on over time. We believe you deserve that! Our investment strategy balances your risk with careful diversification to reduce your overall exposure. We offer: Advisory accountsfor investors who like a hands-on approach to their investments, but whom also want to work with an expert. Custodial accountsincludes safekeeping of securities and record keeping. A custodial account can also be a retirement account managed for eligible employees by a custodian. Fully managed accountscompletely managed personalized asset management and investment portfolios tailored to your specific needs. Personal Trusts
Protecting your assets just makes sense, and to do that well you need the counsel of a trustworthy financial advisor. Union Banks expert staff, long history and solid reputation ensure you that the guidance and service you receive will help establish your financial security. One of the most effective means of guarding your estate is setting up a trust. The trust can include a variety of assetsmoney, real estate, furniture, etc. The trust itself is a financial agreement used to benefit either a person (child, spouse or whomever) or group of people (a charity, other non-profit or cause, etc.). Living trusts" provide for the control and use of your assets during your lifetime and are distributed when you die as directed by the trust. The probate process is avoided for assets put into the trust. Testamentary trusts" take effect when you die and are tied to a will. A testamentary trust can help distribute your assets to those you wish to inherit at a future date. A Union Bank Asset Management advisor can offer you the financial services and management required to deliver on your wishes, including: A revocable trust is in place as long as the grantor is still living; at any time, the grantor can revoke the trust. An irrevocable trust cannot be changed. A charitable trust is an irrevocable trust set up to benefit a charitable organization. A supplemental needs trust is for someone who has special needs or requirements.
Retirement Strategies
It is never too early to consider your retirement. A Union Bank Asset Management advisor can create a multifaceted plan for your retirement that matches your goals and dreams. We select among traditional and non-traditional investment vehicles based on your income, assets and lifestyle so that your hard work pays off. We also keep an eye to how your retirement investments should be structured given the stage of life you are in. Long-term vision and sensible balancing of your portfolio can make all the difference. Retirement services we offer include: Traditional IRAs Roth IRAs Rollovers Investment Management
Estate Services
Estate Planning & Settlement The best way to ensure that your beneficiaries receive what you wish them to is to have a clear, well-thought-out, documented plan of action, with due consideration given to taxes and other issues. Union Bank Asset Management advisor will give you the guidance you need to ensure that your wishes are followed and that those you care for are the recipients. As executor of your estate, we will relieve family members from the daunting tasks of satisfying debts, settling taxes and distributing assets following the passing of a loved one. Most of all, we'll afford you the piece of mind knowing that your matters will be dealt with in the most professional of manners.
Commercial Client Services
Union Bank's Asset Management Group offers escrow, investment management and custodial services to commercial clients. Escrow Investment management Custodial services
Union KBC Mutual Fund
Union KBC Asset Management Company Private Limited (the AMC) offers approved investment funds, open-ended equity funds and other structured products, so as to bridge the gap of investor's financial needs. The AMC will leverage on KBC Asset Management's expertise in the global fund markets and KBC Asset Management's Joint Support Model with Union Bank of Indias unrivalled brand value, knowledge of their customers and extensive network, which will represent the perfect blend of ingredients to create a strong asset management business in India.
Sponsor: Union Bank of India and KBC Participations Renta Trustee: Union KBC Trustee Company Private Limited Investment Manager: Union KBC Asset Management Company Private Limited Statutory Details: Union KBC Mutual Fund has been set up as a Trust under the Indian Trusts Act, 1882
PHILOSOPHY / VISION & MISSION STATEMENT Vision "Be the bridge of opportunity for investors to achieve sustainable prosperity through responsible investing in the capital markets" Mission "We want to be recognized as the mutual fund that provides the right product to the right client at the right time. We want to be known for our knowledge-based customized approach that helps us offer the right financial solutions to our customers by understanding their needs better. We want our employees to work towards and help us create an industry role model. We want to promote an investment culture that believes in long term, systematic wealth creation. We want to reach out to the ever growing number of aspiring investors through our strong distribution network."
EQUITY SCHEMES
Equity schemes of a mutual fund invest predominantly in equity shares of companies (Equity shares are share in the capital of a company. A shareholder receive dividend from the profits made by the company) and equity-related investments like convertible debentures. These schemes offer long term appreciation of the capital subject to the movement of the equity markets over the term that the capital is invested. Equity Funds are also subject to volatile changes in the value. The level of equity funds can differ depending upon the investment strategies adopted by the fund manager managing the respective scheme; however equity funds can be considered to be medium to high risk investments
UNION KBC EQUITY FUND The Scheme has the following Plans across a common portfolio: Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with Union KBC Mutual Fund and is not available for investors who route their investments through a Distributor. Investors who purchase/ subscribe Units in the Scheme through a Distributor will be allotted units under the Scheme but not under the Direct Plan. The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan. UNION KBC TAX SAVER SCHEME
The Scheme has the following Plans across a common portfolio: Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with Union KBC Mutual Fund and is not available for investors who route their investments through a Distributor. Investors who purchase/ subscribe Units in the Scheme through a Distributor will be allotted units under the Scheme but not under the Direct Plan. The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
DEBT SCHEMES
Liquid schemes of a mutual fund are primarily used as a cash management tool.Liquid funds basically invest in short term debt and money market securities. The maturity of such securities is less than or equal to 91 days, for example commercial papers, CODs, treasury bills. The main source of income in such a short term security is interest, because in such a short tenure price fluctuation is less and hence risk of NAV fluctuation is also low. The return with such a fund is low as compared to the others because of the higher safety of principal and liquidity. They are predominantly used by those investors who want to invest their excess funds for a short tenure.
UNION KBC DYNAMIC BOND FUND
Plans The Scheme has the following Plans across a common portfolio: Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with Union KBC Mutual Fund and is not available for investors who route their investments through a Distributor. Investors who purchase/ subscribe Units in the Scheme through a Distributor will be allotted units under the Scheme but not under the Direct Plan. The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
Options The Scheme has the following Options across a common portfolio: Growth Option:This option is suitable for investors who are not looking for current income but who invest only with the intention of capital appreciation. Dividend Option:This option is suitable for investors seeking income through dividend declared by the Scheme. Under this Option, the Scheme will endeavour to declare dividends from time to time. The dividend shall be dependent on the availability of distributable surplus. The Dividend option has the following facilities: Reinvestment Payout Sweep
In cases where the investor fails to opt for a particular Option at the time of investment, the default Option will be Growth. If the investor chooses Dividend Option and fails to mention facility then the default facility will be Reinvestment.
HYBRID / CAPITAL PROTECTION SCHEMES
Hybrid Schemes of a mutual fund invest in various asset classes and gives the investors a higher return.
UNION KBC ASSET ALLOCATION FUND - CONSERVATIVE PLAN
Plans The Scheme has the following Plans across a common portfolio: Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with Union KBC Mutual Fund and is not available for investors who route their investments through a Distributor. Investors who purchase/ subscribe Units in the Scheme through a Distributor will be allotted units under the Scheme but not under the Direct Plan. The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
The Direct Plan shall have a lower expense ratio to the extent of distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Plan.
Options The Scheme has the following Options across a common portfolio: Growth Option:This option is suitable for investors who are not seeking dividend but who invest only with the intention of capital appreciation. Dividend Option:This option is suitable for investors seeking income through dividend declared by the Scheme. Under this Option, the Scheme will endeavour to declare dividends from time to time. The dividend shall be dependent on the availability of distributable surplus.
The Dividend option has the following facilities: Dividend Reinvestment Facility Dividend Pay-out Facility Dividend Sweep Facility In cases where the investor fails to opt for a particular Option at the time of investment, the default Option will be Growth Option. If the investor chooses Dividend Option and fails to mention Facility then the default Facility will be Dividend Re-investment Facility. If the dividend payable under the Dividend Sweep Option is equal to or less than Rs. 500 then the dividend would be compulsorily reinvested in the existing option of the Scheme. If an investor opts for Dividend Sweep Option, the investor must meet the minimum balance criterion in the target scheme and in the same folio; else the dividend will be compulsorily re- invested in the source scheme.