Analyst

Job Purpose

The purpose of this role is to assess sector trends, evaluate companies, identification of relevant stocks, and propose active sector exposure, stock buy/sell/hold actions on the basis of business prospects, risk factors and portfolio suitability so as to generate superior risk adjusted returns.

Job Context & Major Challenges

Job Context / Job Challenges

Organisation Context

Established In 1994, Birla Sunlife Asset Management Company, (BSLAMC) Is a Joint Venture Between Aditya Birla Group And Sunlife Financial Inc.,a Leading International Financial Services Company In Canada. BSLAMC Is a Fund Manager For Birla Sunlife Mutual Funds And Currently Ranks As The Fourth Largest Fund Management Houses In India With a Total Average AUM Base Of Over INR 1 Lakh 40 Thousand Crores (as On Dec 2015).And Some Of Key Strengths Of The Organization That Have Helped It To Sustain And Grow Are

• Focus on Technology-The organization has been in the forefront in implementing technological innovation to foster innovation and also to improve efficiency for its stakeholders, whether it is employees, clients or distributorsb)Product Innovation-BSLAMC has been known to be a pioneer in terms of products and has a history of launching innovative, category defining products like Birla Cash plus, etc.c)Research based approach-BSLAMC has one of the largest team of research analyst dedicated to tracking down the best companies to invest ind)Strong Distributor Delivery Mechanism-The Company has developed a 4 -pronged sales/delivery mechanism to ensure maximum reach and penetration to the end customers. This mechanism includes Companys direct Channels (branches/online), Independent Financial Advisors (IFAs), National Distributors (ND) and Banks.e)Regulator Interface-BSLAMC plays a key role in the Association of Mutual Funds in India (AMFI) with quite a few members of the top management being a part of the AMFI Board. It has hence ensured that it can discuss any new Industry development from a regulatory perspective at the initial stages with the Regulator as well as the Industry Associationf)People Management-BSLAMC believes in continuously measuring the perception of its people using a 4-S approach, namely Satisfaction, Say, Stay and Strive, which has enabled it to garner a workforce committed and aligned to the overall business success.Job Contexta)Equity Fund Manager is allowed to only buy or sell securities of a company from a pre-approved list called Investment Universe. b)The analyst is assigned specific sectors and companies to monitor and track. The analyst proposes to introduce a new company into investment universec)Once the company is introduced into the investment universe, the analyst will continuously track its financial performance by building a financial and valuation model for each company. Fund Managers takes independent calls on sector and stock allocation.d)The performance is periodically reviewed by Investment Committee comprising of CEO and Dy CEO of ABFG, Asia Investment Head of SunLife, Head of Risk and CEO of BSL AMC. The Investment Committee not only reviews the performance but also test the portfolio for liquidity, adherence to mandate etc.
  
  

Key Challenges For The Role Are As Follows

• To predict performance trends of various sectors and choosing winners and losers within the sectorb)To be on top of portfolio holdings and understanding global factors impacting domestic equity valuations c)In aligning views to fast changing economic environment and volatile markets d)Choosing from over 2000+ companies listed on stock market to invest. At times despite of our best efforts of due diligence, credibility/intention of management of companies that we have invested in changes, resulting in corporate fraud and leading to losses in portfolio. (Satyam, Money Matter Financials)e)Keep track of any sudden change in Government policy can adversely impact performance of the stocks in portfolio.(Change in sugar policy)Keep a track of any natural calamity which can impact the performance of the stocks in the portfolio (sinking of rig of Aban, of floods)
  
  

Key Result Areas

KRA (Accountabilities) (Max 1325 Characters)Supporting Actions (Max 1325 Characters)

KRA1 Equity Research-Existing Universe Study; analyze industry data, past trends, current developments.

Determine how new regulations, policies, and political and macroeconomic trends may impact the investments being watched (existing or potential).

Study companies revenue and cost drivers, capital productivity and other financial and operating metrics.

Evaluate business prospects, consider and make judgements about high probability scenarios, develop financial forecasts and arrive at target valuation to identify mis-priced stocks that can be invested in.

Regularly monitor industry and company specific developments, revalidate earlier assumptions, premises and review forecasts.

On the basis of industry study, propose active sector exposure, while judging suitability in portfolio context.

Determine financial risks associated with making a particular investment decision. On the basis of expected returns, valuation data and risks, recommend whether to buy, hold, or sell particular stocks.

Maintain updated valuation sheet for the companies in the sector under coverage.

KRA2 Equity Research-New Idea Generation Identify new ideas to be introduced in investment universe

Regular screening of companies should be done to identify the companies which can generate superior risk adjusted returns. This would include meeting company managements, building earning models and reviewing valuations. After thorough analysis and getting comfort on valuations, the analyst may introduce the company into investment universe.

KRA3 Compliance Ensure timely completion of research reports for New Coverage, quarterly updates, meeting notes etc.

Adhere to investment processes specified for equity research in the manual.