Motilal Oswal Private Wealth Management launches India’s first Advisory Index and Dynamic Synthetic Index

Motilal Oswal Private Wealth Management launchesIndia’s firstAdvisoryIndexand Dynamic SyntheticIndex

Thursday 17th Jan 2013: Motilal Oswal Private Wealth Management, an arm of Motilal Oswal Financial Services Ltd todaylaunched India’s firstAdvisoryIndexand Dynamic SyntheticIndex, which will be customized to individual clients based on theiradvisorymandate. Clients now for the first time, have the ability to identify the true and effective value contributed by theadvisor, in a manner that is transparent and acceptable to him while ensuring that their advisors align their approach and actions without any conflict of interest.

“This we believe is a first of its kind in the Wealth Management Industry that makes the advisor not only responsible for his advice, but also for the end performance of clients`multi asset class portfolios.” said Mr AV Srikanth, CEO, Motilal Oswal Private Wealth Management.

Advisory Index is a measure of the moving value of a client’s portfolio, across asset classes that captures the impact of all the critical components of advisory that fulfils clients’ goals and objectives.The components of active advisory are as follows: -

1.Tactical Asset Allocation views

2.Manager Selection

3.Risk Management Framework

4.Tactical Product Ideas / Strategies

This approach helps in bringing much needed clarity & confidence to clients, in that, clients can now for the first time identify the value created by the intervention of the advisorvis-à-vis passive asset allocation. This additional value over passive asset allocation is the “Advisory Alpha” that can be measured and rewarded.

Dynamic Synthetic Index is a dynamic benchmark to be created based on changes made in model portfolios at asset allocation level or based on changes in instrument level. Whenever there will be any change in model portfolios with respect to change in asset allocation or with respect to change in any underlying instrument,changes should take place in respective benchmarks of all instruments in the portfolio, thus tracking this index is critical to showcase the effectiveness of firm level advisory.

These terms are protected under registrar of Trademarks and the underlying processes have been filed for copyrights with the Registrar of Trademarks and Registrar of copyrights.

Mr. Motilal Oswal, Chairman & MD, Motilal Oswal Financial Services Ltd concluded “We are pleased to introduce such a unique, first of its Index to our customers that aims to bring science to the emotion of wealth creation. This is a bold step towards bringing transparency and ethical business practices to the entire Wealth Management Industry, building on our strength of Solid Research & Solid Advice.”

About Motilal Oswal Private Wealth Management

Motilal Oswal Private Wealth Management aims to provide comprehensive solutions to High Net worth families & corporate treasuries to address three primary needs –Growth, Preservation & Transmission of wealth. To be able to address these three primary needs we believe we need to have a deep understanding of a client’s individuality,the products available in the financial environment & the financial markets. We have put together a multi- asset class multi products platform to be able to consider these three factors and develop a personalized financial strategy for customers. This platform is supported by a state of the art technology architecture which will enable seamless execution and client experience. Private Wealth Management business at Motilal Oswal will draw upon the expertise and 25 years of heritage of the Motilal Oswal Group in capital markets, investment banking, private equity and asset management.

For more information please contact:
Alpesh Nakrani / Anirudh Rajan
Paradigm Shift Public Relations
Mob: +91 9869121167 / +91 9892343828
Tel: +91 22 22813797 / 98

Mr. Hari Krishnan
Motilal Oswal Financial Services Ltd.
Mob: +91 9820520392
Ph: +91 22 39825500