hexagon\'s services
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HEXAGON CAPITAL ADVISORS PVT. LTD.
Investment Management
Financial Planning
Family office
ABOUT US
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Based in Bangalore, Hexagon is a niche wealth management
company with specialized investment management skills, excellent
risk management techniques and some of the best client support
the industry has on offer, Hexagon caters to the financial needs of
large families, trusts and institutions and Individuals.
We were awarded by CNBC TV18 as South India’s best
performing Individual Financial Advisor for the Year
2006 and have a client retention ratio of 92%
Hexagon’s investment team pride themselves on being solution-oriented
people who have worked with their clients, to provide them with solid returns
for their investments, while keeping their entire financial picture in mind. Our
Team has a cumulative experience of 32 years in the business
HEXAGON offers investment solutions tailored to your financial needs, with an
ideating process that keeps YOU in the focus. It is what we
do best; get your money to work for you.
OUR PROMOTERS
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Mr. T Srikanth Bhagavat , Managing Director
Engineer with a Post – Graduate Degree in Management Studies from Symbiosis, Pune.
Experience in Corporate Finance and Merchant Banking prior to starting Hexagon.
Mr. T.K.K.Bhagavat, Chairman
Reputed banker with more than 40 years experience in Central Banking (Reserve Bank of
India) and Commercial Banking in India and other Emerging Economies. Advisor to IMF.
Chairman & Managing Director of Indian Overseas Bank, Bank of Maharashtra and Vysya
Bank.
Mr. Vijaykumar Yadalam
Managing Director , Ramkumar Mills Pvt. Ltd., Bangalore. Former President of the
Bangalore Management Association . Former Deputy Chairman, Karnataka Textile Mills
Association.
Mrs. Hemanti Phadke
President of the D.S.Kulkarni Group of Companies, a reputed and successful property
developer of Pune and Mumbai.
OFFERING
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Our Advisory Products include Mutual Funds, Insurance, Gold, Art, Realty, Bonds, Private Equity &PMS.
Service Offering
Investment
Management
Financial
Planning
Family office
INVESTMENT MANAGEMENT
STEPS IN OUR INVESTMENT PROCESS
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PRE-INVESTMENT CONSULTATION
PORTFOLIO CONSTRUCTION
ONGOING PORTFOLIO REVIEWS
PRE-INVESTMENT CONSULTATION
Risk Tolerance and Analysis
Our first step towards planning your investments would be to obtain a clear understandingof your f inancial needs, current situation and investment objectives. It is essential that wedetermine your risk appetite for investing before we advise you on what is best. This is donethrough the use of a questionnaire and personal discussion.
Asset Allocation
The process of risk analysis will determine the proportion of higher risk investments versuslower risk investments in your portfolio, also called your asset allocation.
Customized Portfolio Construction
At Hexagon, we provide investment advice on Mutual funds, Private Equity products, Bonds,PMS, Fixed Deposits, Insurance, Gold, Real Estate and Art. We use these asset classes for acustomized portfolio construction.
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PRE-INVESTMENT CONSULTATION
Investment Plan
A final Investment Plan is then created which is backed up by a document detail ing the
funds’ performance; your risk appetite, our macroeconomic perspective and taximplications. Once the plan is documented & approved, it is executed.
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ADVISORY SERVICES
Buy Recommendations
Your Advisor will choose the best suited funds for you, as per our research and your need, risk appetite &
asset allocation. Funds are graded internally based on the same risk categories (as client risk mapping) toensure the fund choice too is tailored to your risk appetite.
Sell Recommendations
If a fund is underperforming in your portfolio or there is some tactical call to be taken based on the market
outlook, a sell recommendation with justified rationale comes to you from your Advisor.
Dedicated Advisor
When you invest your money with advice from Hexagon, you are in fact, investing in a relationship. A
Dedicated Advisor is the primary contact assigned to you to provide personalized services. Advisors, throughfrequent association with you, are closely acquainted with your financial situation and make theirrecommendations accordingly.
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ADVISORY SERVICES
Portfolio Monitoring
It is not enough that we allocate your money across different asset classes based on your risk tolerance. In adynamic market scenario we guide you towards successfully managing change. Once the investments are made,your Advisor monitors the performance of your investments to advise you on entry and exit points to ensure thatyou receive maximum returns for your investments.
In-depth Reviews
We conduct portfolio reviews every year apart from frequent personal communications to keep you updated onwhat is happening with your portfolios and evaluate the actions taken. The investments are reviewed in relevance tothe investment plan and recommended asset allocation. The service includes funds’ performance evaluation, reviewof the market situation, changes in asset allocation along with strategy and goal check.
The various reviews we cover are:
Asset Allocation & Scheme Performance Review
Financial Plan Review
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RESEARCH-BASED SERVICES
Weekly Market Briefs
Our Research Desk is on constant endeavor to keep you informed and updated about the financial marketson a weekly basis.
Communiqué
In depth research is regularly featured in our newsletter – Communiqué. The research covers the investmentenvironment and data on top performing funds and market outlook.
Fund Analysis & Fund Selections
A handful of top performers from over 1000 funds are distilled; based on internationally acceptedperformance parameters like risk adjusted return, returns variability etc. Apart from these parameters;factors like fund manager’s competence, investor-friendly behavior of the fund, ethics of the fund managerand investment and economic environment are also considered.
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OPERATIONAL SUPPORT
Completing requirements for KYC & PAN card
Filling of forms as per Client Information Record
Transaction Processing
All the transactions like purchases, switches, redemption etc. are taken up by our operations wing.
Account Management Services
If you decide to change your bank account, change your address, change your nominees or any other personal information, we do the needful for you.
Transaction Statements
An updated list of all transactions executed by you shall be provided, which can be used for accounting purposes.
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OPERATIONAL SUPPORT
Capital Gains Statement
To smoothen your tax filings, we also organize for the Capital Gain Statements from the Asset ManagementCompany and facilitate the process for your auditors.
Logistics
Our endeavor to provide convenience takes a new dimension when we pickup and drop cheques andtransaction papers from or to your doorstep or a place of your convenience.
Portfolio Statement
Your updated portfolio statement will be sent to you through e-mail.
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PORTFOLIO REVIEWS
For each financial year, 4 reviews will be conducted. Out of this, 2 reviews will be detailed and2 reviews will present the macro picture.
Asset Allocation & Scheme Performance Review: (detailed review)
Review of all the actions taken in the portfolio since the last detailed review
Impact of the actions taken
Net investments made
Market Value and performance tracking since last review
Asset Allocation Charts (Current versus the Target Asset Allocation)
Style diversification chart
Snapshot of Scheme diversification
Scheme Performance table
Note on Market outlook and strategy
Snapshot of cash levels in portfolio
Liquid versus illiquid assets
Update on chosen Active Strategy
Peer performance tables for funds
Fund Notes
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PORTFOLIO REVIEWS
Asset Allocation & Scheme Performance Review: (Macro Review)
Net investments made
Market Value and performance tracking since last review
Style diversification chart
Scheme Performance table
Note on Market outlook and strategy
Snapshot of cash levels in portfolio
Update on chosen Active Strategy
Asset Allocation Charts (Current versus the Target Asset Allocation)
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ACTIVE STRATEGIES FOR INVESTMENT MANAGEMENT
Our choice of Active Strategies for investment management
enable you book profits at specified profit levels, dynamically
re-balance your asset allocation and also take advantage of
investment opportunity presented by economic cycles.
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FAMILY OFFICE
SERVICE CATEGORIES
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Office Platinum
• Financial Planning
• Investment advisory
• Integrated reporting
• Advisor evaluation
• Computation of investment gains
• Tax assistance
• Estate Planning
• Owner-level advice
• Assistance on philanthropic activities
Office Gold
• Financial Planning
• Investment advisory
• Integrated reporting
• Advisor evaluation
• Computation of investment gains
• Tax assistance
• Estate Planning
Office
• Financial Planning
• Investment advisory
• Integrated reporting
• Advisor evaluation
• Computation of investment gains
SERVICE DESCRIPTION
Financial Planning:
Financial Planning at Hexagon is a systematic and disciplined process of enabling our clients to identify
their life goals along with timelines for achieving them. It also includes evaluating the risks involved in the
process and guarding adequately against them. Our active strategies for goal management ensure that the
journey is steady and worry-free.
Investment Advisory:
Our team of advisors with a cumulative experience of 32 years in the field of Investments is committed to
presenting you with practical advice to streamline your investments with your risk appetite and needs.
Integrated Reporting:
A report of all your investment holdings including:
Single snapshot of investments held with all advisors
Tracking and steering overall asset allocation towards the prescribed asset allocation
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SERVICE DESCRIPTION
Integrated and individual views of performance of all advisors, based on data supplied by the
individual advisors
Performance of portfolios measured against benchmark indices for outperformance or
underperformance
Asset class-wise analysis of performance
Owner-level advice:
There are times when business families need to restructure their businesses to prepare it for the future
generation. This service helps one do that and also helps in identifying a growth path for the business.
Assistance in philanthropic activities:
Identification of causes
Conduct due diligence on the NGO if required
Structuring the mode and execution of the charity
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FINANCIAL PLANNING
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360o view of your
Financial Situation
Your Assets
Your Liabilities
Maximum Tax
efficiency
Adequate Life cover
Adequate Health Cover
Plan for an emergency
fund
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Plan your retirement
with Hexagon
Disciplined Asset Rebalancing in
the post-retirement years and continuous advisor support
We follow the Depleting Corpus Methodology to
arrive at retirement
corpus
Sudden changes and additions to income can be incorporated
Tax-efficient and Cost-efficient methodology
used
Your advisor is always at hand to ease any sort of worry about
your plan
Scenario Analysis and stress
testing assumptions on returns to make
a robust plan
RESEARCH AT HEXAGON
BROAD OUTLINE OF HEXAGON’S FUND RECOMMENDATION PROCESS
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Filt
er 1
Asset Management Co. / Funds:
Ethical Practices
Fund Philosophy
Consistency of fund
Investor Friendly Behavior
Age (at least 3 years’
performance)*
Filt
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Quantitative metrics:
Risk
Quality of Return+
Fund Manager’s
outperformance
Performance consistency
Res
ult
Fund
Recommendation
from Hexagon’s
Research Desk
*Not applicable to the NFOs werecommend. NFOs are rarelyrecommended unless we feel there isgood potential in the investmentphilosophy and fund outlook. If fund is lessthan three years, it is accorded a higherrisk rating.
+ What risk was taken to achieve the said return?
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We place qualitative filters such as investor friendly behavior in
the highest priority while selecting our funds.
(Investor “un-friendly” behavior is maybe the fund taking investment calls which benefit some large
institutional investor but hurt the retail investor.)
As you can see, we filter funds for these parameters before looking
at returns.
THE PROCESS
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Group into Quartiles
Measure contribution of fund manger
Quality of ReturnsDid the return justify the amount of risk taken?
Measurement of Risk and ReturnPoint – to – Point return Categorize to low/ mid/ high risk
Analyze Suitability of corpus size in relation to the fund category
Determination of fund categoryLarge / Mid / Blend/ Sector / Thematic Short / Floating / Income / G-sec / Liquid / Hybrid
THE PROCESS
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Make a fund recommendation
Study of Macro Economic indicators
Map the risk characteristics of fund to client’s risk profile
Classification of funds according to riskAggressive Moderate Conservative
Analyze for Trends
Shortlist Top Quartile performers
THE RESULT
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Individual rating of all the mutual funds based on parameters
which are held paramount in Hexagon’s system.
These ratings can be directly mapped to your individual risk
profile to give you a recommendation tailored to your risk
profile.
PERFORMANCE OF MODEL PORTFOLIO
ASSET ALLOCATION : AGGRESSIVE
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Equity80%
Debt20%
PORTFOLIO COMPOSITION
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Fund Allocation Corpus
HDFC Equity 15% 750,000
DSPBR Top 100 15% 750,000
Bi rla SL Frontl ine Equity 10% 500,000
ICICI Pru Focused Equity 10% 500,000
Rel iance Regular Savings – Equity 5% 250,000
Bi rla SL Midcap 5% 250,000
Sundaram BNP SMILE 5% 250,000
ICICI Prudentia l Infrastructure Fund 15% 750,000
Templeton India Ultra Short Bond Fund 5% 250,000
Templeton Floating rate – Long Term 5% 250,000
Templeton India Short Term Fund 5% 250,000
BSL Dynamic Bond Fund (Medium Term) 5% 250,000
100% 5,000,000
BENCHMARK PORTFOLIO
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Nifty 4,000,000.00 80%
Fixed Deposits 1,000,000.00 20%
5,000,000.00
Benchmark Portfolio - Asset Allocation
PERFORMANCE
Value as on Benchmark portfolio Hexagon's Portfolio
1-Mar-09 5,000,000.00 5,000,000.00
17-Mar-10 8,827,458.00 9,406,490.11
Portfolio Returns (Annualized) 72% 83%
Performance of Model Portfolio v/s Benchmark Portfolio
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Investment Value,
50,00,000
Benchmark Portfolio
Value, 88,27,458
Hexagon's Portfolio
Value, 94,06,490
