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Emkay Investment Managers Ltd launches Emkay Emerging Stars Fund- Series IV, a Category-III Alternative Investment Fund

Mumbai, July 1, 2021: Emkay Investment Managers Ltd (EIML), the asset management arm of Emkay Global Financial Services Ltd today announced the launch of the Fourth Series of its maiden and award winning Category III Alternative Investment Fund (AIF) ‘Emkay Emerging Stars Fund’. EIML is aiming to raise Rs 500 crores from the latest fund. The fund will be managed by an accomplished team led by Sachin Shah, Fund Manager, Emkay Investment Managers.

The latest series of the fund is an excellent investment opportunity for long-term wealth creation. It is an award-winning fund, known for its benchmark beating returns and is fortified with a unique investment framework.

The launch of the fourth series is in response to popular demand post the stellar performance of the first three series of the fund. While series I and II of the AIF have delivered over 14% CAGR returns since inception, AIF III has delivered over 20% CAGR returns, as on 30th June, 2021. The returns for all previous series have been over 110% for the past one year (CAGR).

Emkay Emerging Stars Fund I, II & III – Performance (as of 30 th June, 2021)

The NAV as on 29th June 2021 is post expense NAV

Emkay Emerging Stars Fund is an award-winning fund, having bagged the award from PMS AIF World for best post-COVID AIF performance across all categories, basis 6 month absolute returns.

The fourth series of the fund, like its predecessors, will be fortified by E-Qual, the proprietary governance framework developed by EIML that evaluates each company on parameters like management quality, management integrity and liquidity, among others. Under the framework, a score is assigned to each company based on the evaluation.

The key reason for the success of Emkay Emerging Stars Fund has been its ability to identify early on the investment trends and sectors that are most likely to generate alpha. The investor segment earmarked for this offering is long-term investors. The current valuations for most of the blue-chip stocks are stretched with markets at an all-time high but there are enough pockets of good investment opportunities in the mid and small-cap space.

The investment objective of the fund is to generate long term capital appreciation for investors from a portfolio of equity and equity related securities. Emkay Emerging Stars Fund Series-IV will be investing in 20-25 emerging companies, mainly in small-cap space with a decent outlook or trackrecord of cash flows, a strong balance sheet, business scalability, inherent profitability, and purchase price discipline.

One of the unique features of the fund is a Flexible Subscription Model that enables investors to choose from three types of payment options – 100% on application, three tranches of 30-30-40 percent across 6 months and 10% every month for 10 months. The fund which is open for both domestic and NRI investors also offers the option for quarterly redemption post an initial lock-in period of one year.

Speaking on the launch of the latest series of AIF, Mr. Krishna Kumar Karwa, MD, Emkay Global Financial Services Ltd., said ‘The launch of Emkay Emerging Stars Fund - series IV is a testimony of our commitment towards our valued investors. We believe AIFs have the potential to deliver desirable returns for the new age investors, having a broader investment horizon.’

Mr Vikaas M Sachdeva, CEO, Emkay Investment Managers Ltd, said ‘The fund has been introduced at a time when the uncertainty around the pandemic is largely under control. Economic growth is likely to see an upward trajectory going forward. Our aim will be to provide superior, benchmark beating returns for our investors.’

Mr Sachin Shah, Fund Manager, Emkay Investment Managers Ltd, said ‘We see tremendous opportunities for growth in the mid and small-cap companies. Our experienced investment team, backed by a robust research division and a time-tested investment strategy will help us to create meaningful alpha for our clients.’

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