Executive Summary- Acaml PDF

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Executive Summary This is a report about the information of a company named Alliance Capital Asset Management Limited. We met with one of ACAML’s manager to collect information.

ALLIANCE CAPITAL ASSET MANAGEMENT LIMITED is an emerging investment and consultancy management organization in the country. It started to work from 2011 but reach an admirable position over the years. ACAML has an extraordinary team of investment analyst who have long experience, world class skill set, and relevant education that make the very best in financing. Most of the team players are Bangladeshi, knows the local economy and culture that make them fit for local fund management. So, ACAML knows the level of inefficiency of Bangladesh stock market and therefore better know how to maximize the benefit out of it. ACAML’s analyst and fund managers never try to be STARS themselves but try to make the clients so. ACAML mostly works on: Mutual Fund ; Alliance Capital is the Asset Manager of the MTB Unit Fund, a balanced, Open-End Mutual Fund launched in 2011. It has consistently provided investors with capital growth and dividend income through a proactive, disciplined investment philosophy. Corporate Advisory; ACAML's Corporate Advisory business provides classical strategic and tactical advice and unparalleled execution to public and private companies. The diverse professional and academic experience of our team is a critical factor in ensuring the high standards of deliverables expected of Alliance Capital. Portfolio Management; Alliance Capital believes in a relationship-driven, customized approach to investment management. Our Investment Management team has a cumulative 80 years of direct experience and is able to leverage their expertise to advise and manage institutional portfolio clients on how to best deploy their portfolio objectives. Dynamic Portfolio Management, Proprietary Research Complemented by Market Intelligence, Inefficient Market, Efficient Team, Long Term Investment Horizon, Knowing Behavior and Psychology of the Market etc. makes ACAML different from others & also great contribution to the economy of Bangladesh overtime.

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Introduction The world is tremendously competitive now. In every sphere of life and business, competition has become more and more furious. Every firm tries to obtain and retain efficient employees to meet the future challenges. In this rivalry, obtaining and retaining the best employees has become very important, as employees are that factors who make a firm alive and proceed to the path of profit.

1.1 Background of the study We worked as an Interviewer in Alliance Capital Asset Management Limited. After completing interview we have to make a Report. This report covers capital financing of the company. This report gives a narrative overview of the financing system in Bangladesh. This report does explain the nature and objective of the solution of financing system in Bangladesh. However, since the information of sales and marketing are confidential and sensitive in nature, so that we tried to construct this report with the help of available information.

1.2 Significance of the study Knowledge and learning become perfect when it is associated with theory and practice. Theoretical knowledge gets its perfection with practical application. As our educational system predominantly text based, inclusion of practical orientation program, as an academic component is as exception to the norm. This Report is an important partial requirement of the course. As the parties; educational institution and the organization substantially benefit from such a program, it seems a “win-win situation”. That is why practical orientation is a positive development in professional area.

Scope of the study As we were visitor, our scope was very much limited and restricted. We had maintained some official formality for the collection of data of my report.

Objective of the study • The broad objective of the study is to prepare report on Alliance Capital Asset Management Limited. • To identify the activities of Alliance Capital Asset Management Limited. • To gather knowledge about the function of financing. • To identify the different financing project. • To recommend suggestions for the Management.

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1.3 Methodology The study requires a systematic procedure from selection of the topic to preparation of the final report. To perform the study, the data sources were to be identified and collected, to be classified, analyzed, interpreted and presented in a systematic manner and key points were to be found out. The overall process of methodology has been given as below.

1.3.1 Research Design This is an “Exploratory Research”, which briefly reveals the overall activities of Alliance Capital Asset Management Limited and also analyzes the financing availability in Bangladesh. Both primary and secondary data have been collected to conduct this report. I have gathered primary data by personal interview of the Executives. Mainly I discussed with them verbally. I collected information from them and the annual report, journals, brochures, manuals and several books to prepare this report. In short, the sources of data outlined below:

1.3.2 Sources of Data There are two types of data: a) Primary Data b) Secondary Data

1.4 Limitation of the Report Although, we have tried to know more information but we had some limitations .We could not spend sufficient time for my report because the time limit given for submitting the report was very short. • Data insufficiency since all the officers were very much busy, they were not always able to provide me much time, I received co-operation from the officials. Since Alliance Capital Asset Management Limited is a one of the reputed financing company; there is not enough data to analyze the proper growth according to market economy. Moreover, all strategic Information is not possible to collect. • Lack of records insufficient books, publications, Facts and figures narrowed the scope of accurate analyses • Fear of disclosure Another limitation of this report is company’s policy of not disclosing some data and information for obvious reasons, which could be very much useful. • Because of the limitation of information, some assumptions were made. Our perception about some observation may not be correct.

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Company Overview

ALLIANCE CAPITAL ASSET MANAGEMENT LIMITED is an emerging investment and consultancy management organization in the country. It started to work from 2011 but reach an admirable position over the years. ACAML has an extraordinary team of investment analyst who have long experience, world class skill set, and relevant education that make the very best in financing. Most of the team players are Bangladeshi, knows the local economy and culture that make them fit for local fund management (http://www.acaml.com/).So, ACAML knows the level of inefficiency of Bangladesh stock market and therefore better know how to maximize the benefit out of it. ACAML’s analyst and fund managers never try to be STARS themselves but try to make the clients so. Selecting good stocks is half the job done for portfolio management. Therefore, ACAML’s restless effort with all it’s proprietary capabilities, analytics, models, tools and techniques are put into effort to identify the best combination of stocks in a portfolio in continuous manner. ACAML choose composition of stocks that ensure “market beating” return and risk.

ACAML mostly works on :

Mutual Fund Alliance Capital is the Asset Manager of the MTB Unit Fund, a balanced, Open-End Mutual Fund launched in 2011. It has consistently provided investors with capital growth and dividend income through a proactive, disciplined investment philosophy.

Corporate Advisory ACAML's Corporate Advisory business provides classical strategic and tactical advice and unparalleled execution to public and private companies. The diverse professional and academic experience of our team is a critical factor in ensuring the high standards of deliverables expected of Alliance Capital.

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Portfolio Management Alliance Capital believes in a relationship-driven, customized approach to investment management. Our Investment Management team has a cumulative 80 years of direct experience and is able to leverage their expertise to advise and manage institutional portfolio clients on how to best deploy their portfolio objectives. ACAML’s mission & vision are:

Mission Our mission is to give you the best possible return for your money and secure your financial future. We utilize only the best local talents available and comply completely with international norms and standards at every step of the way. Every decision made is completely transparent and undertaken with total professionalism. The interest of our stakeholders is our foremost concern.

Vision ACAML’s vision is to establish Alliance Capital Asset Management Limited as the ultimate investment choice in Bangladesh. ACAML want to develop a rich pool of research tools and strategies that will yield the best possible returns for our stakeholders and investors. (Alliance Capital Asset Management Limited)

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Company Activities 3.1 Mutual Fund Beating the market with passive investment strategy is always an extremely difficult task. Bangladesh equity market is characterized by relatively high riskiness for individual investors and is evidently inefficient that creates opportunity to gain more through careful investment management. The country has two exchanges – Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited, the former one being the major bourse. ACAML has wide experience and expertise of investment in securities primarily in equities in both these exchanges through Mutual Funds. (Source: Bangladesh Bank Annual Publication) Dhaka Stock Exchange Ltd. Market Facts (3 years average as of June, 2014) Average Return

32%

Standard Deviation

35%

Return to Risk Ratio

0.9190

Beat the Market with Investor’s Small Savings It is always easy to beat the market once investment is managed actively by professional hands. At ACAML, they have developed winning Mutual Funds that ensures escalated but steady growth of investment complemented with annual income opportunities. ACAML work hard to secure financial strength – no matter whatever investment size; ACAML bring better return than anyone else in the country. Avail Special Tax Rebate, Invest in Mutual Funds As per the Income Tax Ordinance, 1984, amended in 2013, investment in mutual fund by individuals will get 15% tax rebate. Investor’s dividend up to Tk. 25,000 from mutual fund can be tax exempted.

How ACAML’s Mutual Funds Secures Investors Mutual funds, either Open End or Closed End, are fund portfolios pooled together small or large investments from individuals and institutions that are professionally and actively invested in the securities market and dynamically managed. The primary objective of mutual funds is to diversify the security specific risks away and thus minimize the portfolio risk to the lowest possible level. However, efficient and effective management of mutual funds can also pay off better return than individual, unmanaged, static, and passive investment strategies. ( Financial Architecture of Bangladesh)

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Investors in the mutual funds receive capital gains and dividend income from the fund performance periodically and have the right to oversee how the fund manager is taking care of their money. Therefore, return to the investors depends on how well a fund is managed!

3.2 Discretionary Portfolio Management The aspiration to build wealth is a natural impulse. But as simple as the desire is, the process to do so is just as complex. At ACAML, our financial masters use their combined talents and experience to build up your portfolio of investments with an endeavor to bring out the best in it. Join us in this journey of exploring the potential in your portfolio, with the financial masters from ACAML Portfolio Management Services.   

Alliance Managed Portfolio (AMP) Alliance Portfolio Advisory Services (APAS) S&P Shariah Index Tracking Portfolio

Alliance Managed Portfolio (AMP) Alliance Managed Portfolio (AMP) is a discretionary portfolio management service which emphasizes on a structured approach for institutional investors in capital market, where the investment decision making is delegated to a team of professional investment managers.The main objective is to create value through the active management of the portfolio, risk minimization and protection of capital in any economic condition.

Alliance Portfolio Advisory Services (APAS) Alliance Portfolio Advisory Services is focused on reconstruction of existing portfolios by providing advisory services on investing in securities such as stocks, bonds, mutual funds through an experienced portfolio management team. Alliance S&P Bangladesh Shariah Index Tracking Portfolio Service (AS&PBSITP) brings a whole new experience first time ever in the portfolio management industry of Bangladesh with a product which is the combination of many unique features. The key features are:      

Shariah based Islamic index tracking portfolio management under Discretionary Portfolio Management Services Tracking of S&P BMI Bangladesh Shariah Index, designed and calculated by one of the world’s leaders in indices provider; Standard & Poor’s Indices World’s leading and top Islamic scholars as Shariah board members Ability to attract investors of all faiths for good governance

The goal of this service is to provide returns that match or beat the benchmark index. Average return from S&P Bangladesh BMI Shariah Index over the 2014-2016 period was 21.07% higher than that of DSEX index for the same period. In comparison of the average return from the last two years, S&P Bangladesh BMI Shariah Index provided an average return of 23.69% as compared to an average DSEX return of 2.62% and DSES, the shariah index provided by Dhaka Stock Exchange, provided average return of 19.25%.Alliance

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Capital intends to develop and introduce more Islamic services focusing on the capital market in the future. (The main functions of BB are (Section 7A of BB Order, 1972))

3.3 Corporate Advisory ACAML’s Corporate Advisory business provides classical strategic and tactical advice and unparalleled execution to public and private companies and financial sponsors across a broad range of industry sectors. Our success begins and ends with an unstinting commitment to delivering world-class client service. ACAML’s approach in all situations is first and always rooted in serving the client’s best interests, which also means advising a client not to pursue a transaction when it does not enhance their strategic objectives or measure-up to their standards.    

Merger & Acquisition Divestitures & Sale Transactions Structured Finance Joint Venture

Merger & Acquisition In advising companies on the acquisition of a company or set of assets, ACAML evaluate potential acquisition targets, provide valuation analyses, and evaluate and propose financial and strategic alternatives. ACAML also advise as to the timing, structure, financing, and pricing of a proposed acquisition, and assist in negotiating and closing the deal. ACAML’s approach:     

Target Identification/Buyer Identification Valuation of Target/Equity Due diligence of Target/Negotiation with Buyer End-to-end Coordination Financing options for the Transaction

Divestitures & Sale Transactions ACAML advises clients contemplating the sale of certain businesses, assets, or their entire company by evaluating and recommending financial and strategic alternatives with respect to the sale, advising on the appropriate sales process for the situation and valuation issues, and preparing an offering memorandum and other appropriate sales materials. ACAML also identifies and contacts with qualified acquirers and assist in negotiating and closing the sale. ACAML’s approach:     

Target Identification/Buyer Identification Valuation of Target/Equity Due diligence of Target/Negotiation with Buyer End-to-end Coordination Financing options for the Transaction

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Structured Finance ACAML serves as an independent, objective advisor in financing situations. At ACAML, it helps companies raise funds using various financial instruments such as term-loan, syndicated loan in both local and foreign currency, project and infrastructure finance, asset/mortgage backed securitization etc. ACAML’s Services:   

Syndicated Finance Project & Infrastructure Finance Asset/Mortgage Backed Securitization

Joint Venture ACAML advises clients on joint venture deal structuring and negotiations – from identifying potential partners to pressure-testing term sheets and deal concepts and other regulatory & legal activities. ACAML’s market intelligence and relationship with a large number of corporate clients allow us to assist foreign and/or large local companies in finding the right Joint-Venture (JV) partner in Bangladesh. ACAML’s approach:

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Understanding the desired criteria for partner selection Identify potential partners Short-list the best prospects by analyzing compatibility Developing models for equity valuation for the Short-listed firms Arranging required Financing(debt/equity) Negotiation for the client Coordinating regulatory & legal activities

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Review of a Manager of ACAML Md. Shajal Mahamud Senior Manager-Accounts & Finance Alliance Capital Asset Management Limited 87, Rashed Khan Menon Road | Level-15, Eskaton, Dhaka-1000

We ask some questions to Md. Shajal Mahamud and the answer are reviewing herewith. The company Profile & Activities information mentioned earlier is also we get from him . 

How many years of experience have you in here?

-I have started with ACAML in 2012. From its beginning I am here and try upmost to do better for the company . in 5 years experience I have learnt many thing . In financing every moment is a part of learning that will help in future. Investing is always a risky task no doubt. See , we are doing so well . Last year we offered 10% dividend to our investors of mutual fund. 

Tell us about your company strategy.

-At Alliance Capital, we consider investors to be more than simply clients, but as partners. By focusing on transparency, operational efficiency and professionalism, we are able to ensure that the investments in our care are safeguarded to the best of our abilities. 

Can you tell us about your company activities?

 - At Alliance Capital, we provide mainly Mutual Fund investment offer , Corporate Advisory services & Portfolio Management as well as other consultancy services. 

Please tell us about the Mutual Fund.

 - A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. They are generally the most common investment vehicle for retirement plans. Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. The main advantage of mutual funds is they provide stock diversification and professional investors managing the account. The main disadvantage is the fees/expenses charged. There are three structures of mutual funds: open-end funds, unit investment trusts, and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an exchange such as the New York Stock Exchange. Open-end funds that cannot be sold on an exchange can instead be sold back to the fund manager at the close of each business day. 16

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