Top down research inputs
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TOP DOWN RESEARCH PROCESS OVERVIEW. CSF Model. Global Economic Outlook Report. PETS Model. COUNTRY ANALYSIS Country Templates, Country Barons. QUANTIFYING REAL ESTATE Country Balance Sheet Analysis, Corporate Real Estate (CRE). GLOBAL METRO MODEL Place Atlas Map. COUNTRY MODEL

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Top Down Research Inputs

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Top down research inputs

TOP DOWN RESEARCH PROCESS OVERVIEW

CSF Model

Global Economic Outlook Report

PETS Model

COUNTRY ANALYSIS

Country Templates,

Country Barons

QUANTIFYING REAL ESTATE

Country Balance Sheet Analysis,

Corporate Real Estate (CRE)

GLOBAL METRO MODEL

Place Atlas Map

COUNTRY MODEL

Growth & Risk

THEMES RESEARCH

Capital Flows,

Globalization

SECTOR MODELS

Housing,

Infrastructure

Country/Metro wise Scores and Ranks (Monthly, Quarterly, Yearly)

Sector Growth Projections. GDP Growth Projections

Sector Outlook

Historical & Forecasted Trend & Recommendations for Investing

Country Analysis

Stock Summary

LOP Analysis

KD Allocations

Top Down Research Inputs


Implementation to provide investors unavailable investing opportunities and investment outcomes

Implementation to Provide Investors Unavailable Investing Opportunities and Investment Outcomes

Implementation to Provide Investors with Heretofore Unavailable Investing Opportunities and Investment Outcomes

  • World class organization and investment team

    • Not solo effort: currently 42 savvy, sophisticated investment professionals: PhDs, CFAs, MBAs, CPAs

    • Roulac Global Research Council: 10 leading property scholars and researchers

    • Roulac Global Funds Advisory Board: 5 savvy experienced investment professionals

  • Portfolio Management Team: 5 senior investment professionals possessing diverse expertise and experience, with 20+ years working relationship

  • Research Team: Composed of the best/brightest 71 investment analysts, economic analysts, place analysts, data analysts, systems analysts and programmers

  • Our investment implementation is cost effective – efficient – smart

    • Strategic, systemized, model-driven portfolio management

    • Emphasis on team, systems, collaboration

    • Decisions fundamentally and systematically implemented

    • Continual evolution to advance our work

  • Investors benefit from more and more intense research


Roulac global research strategy and research team represent significant competitive advantage

Roulac Global Research Strategy and Research Team Represent Significant Competitive Advantage

Dedicated Staff Located in Distinctive Places

Differentiated Research Strategy

  • Links academic and professional style

  • Collaborative relationships with leading scholars throughout the world

  • Place Strategy implementation

  • Global collaborations

  • Access to academic network

  • Hire best and brightest research professionals

  • English language facility

  • Implement application of place innovations we champion

  • Desirable cost/value relationship

Multiple Advantages of Global Place Strategy for Research

  • Attract superior talent/intellect

  • Apply global perspective

  • 24-hour staffing

  • Gain 1-day lead time on competition, based in same time zone: response at beginning of day to work initiated at end of prior day.


Geographic portfolio allocation

Geographic Portfolio Allocation


Portfolio allocation by sector

Portfolio Allocation by Sector


Comparative sharpe ratios

Comparative Sharpe Ratios


Alpha generated at all levels

ALPHA Generated At All Levels

Hong Kong Index (Hang Seng Index) Return:

187.27%

ALPHA Generated for

Selection of Best Sector

1157.95%

Inputs From Country Template

In 2003, with increasing incomes, rural urban migration, housing demand rose further. Rising economic development, incomes and living standards brought momentum to the Housing market.

Inputs From Country Template

Primary Theme for China & Hong Kong was China Growth and Globalization. China's GDP was growing at an average rate of 9% in 2003 and significant.

Hong Kong Index Home Builders Return:

1345.22%

Inputs From Lords of Property & Financial Measure Report

Hopson had a very low P/E ratio of 4.39 times in fiscal 2003 as compared to the industry average of 12.80.

Five year Revenue CAGR of 34% (1998-2002) and with strong growth outlook in the years to come.

Better Profit Margin of 21% as compared to Global Benchmark of 14% .

ALPHA Generated for

Selection of Best Stock

629.36%

Inputs From Global Metro Model

Hopson’s Revenue comes from following Chinese metros which feature at the few TOP Metros with high Growth Potential Guangzhou - 48.87%, Beijing - 31.40%, Shanghai - 9.62%, Tianjin - 10.10%

Hopson Development Holdings Ltd.:

1974.58%

Note: The Returns are cumulative and calculated for the period of July 2003 – September 2007


Style analysis

Style Analysis

RGPF is a value based fund with bias towards large cap.


Roulac team effort

  • Daily Reports

  • Examples

  • Daily Portfolio Monitoring Report

  • Daily Market Monitoring Report

  • Daily Reports

  • Examples

  • Daily Portfolio Monitoring Report

  • Daily Market Monitoring Report

  • Daily Reports

  • Examples

  • Daily Portfolio Monitoring Report

  • Daily Market Monitoring Report

  • Daily Reports

  • Examples

  • Daily Portfolio Monitoring Report

  • Daily Market Monitoring Report

Economics Team

Economics Team

Economics Team

  • Weekly Reports

  • Examples

  • Portfolio Performance Report

  • Market Performance Report

  • Weekly Reports

  • Examples

  • Portfolio Performance Report

  • Market Performance Report

  • Weekly Reports

  • Examples

  • Portfolio Performance Report

  • Market Performance Report

  • Weekly Reports

  • Examples

  • Portfolio Performance Report

  • Market Performance Report

Investment Team

Investment Team

Investment Team

  • Monthly Reports

  • Examples

  • Roulac India Economic Report

  • Roulac Global Report

Portfolio Team

Portfolio Team

  • Quarterly Reports

  • Examples

  • Quarterly Investor presentation Updates

  • Quarterly Performance Report

  • Quarterly Reports

  • Examples

  • Quarterly Investor presentation Updates

  • Quarterly Performance Report

  • Portfolio review Report

ROULAC Team Effort !!!


Portfolio monitoring process

Daily Monitoring Report

  • INPUTS

  • Daily and Weekly Stock Returns Movement analysis

  • Daily and weekly News analysis for country and stock levels.

  • Sector and country level analysis.

  • Comparative analysis with different benchmarks.

OUTPUTS

  • Stock/Sector Reviews

  • Sell and Buy Recommendation

  • Fund Composition Analysis.

  • Stock Level Attribution.

  • Dynamic Target Allocation

Weekly Monitoring Report

Weekly Monitoring Report

Monthly Monitoring Report

Monthly Monitoring Report

Portfolio Monitoring Process


Top down research inputs

Stock Analysis Process

DCF valuation model

The underlying idea of DCF-Valuation is to compute the fair value of a company and juxtapose it against the current share price thereby make investment decision based on results of this comparison

Scenario Analysis

We determine the ROI projections for 1, 2, 3, 4 and 5 years.

ROIs for 3 scenarios

  • Best case scenario

  • Base case scenario

  • Worst case scenario

    ROI Projection

    Estimated PE of the stock in the 1st, 2nd, 3rd, 4th and the 5th year.

    Gordon model is used which takes into account Local risk free rate, risk premium, horizon growth rate and payout ratio.

For all 5 years

  • Qualitative analysis

  • We analyze every company from the point of view of :

  • Business strategy

  • Distinctive competence

  • Geographical scope

  • Growth strategy

  • Country and market attributes

  • Critical success factors

  • Risk Premium Calculation

  • We calculated various Risks involved with a company namely:

  • Political Risk

  • Financial Risk

  • Economic Risk

  • Operational risk

  • We derive Standardized total risk rating which in turn is used in calculation of Adjusted cost of equity which would be used as discount rate.

Management Communication process

Management of every company that we analyzed is contacted to gather exclusive information and same is documented.

Weights are assigned to various factors involved in each of the Risks in calculating a Total Risk which is used to calculated a Total Score

Long-short Pair

The underlying idea is to optimally hedge our stocks to give positive returns in all market conditions. If markets are experiencing an upward trend then long stock will generate better returns than the short stock and if there is a downward trend then short stock will generate better returns than the long stock thus maintaining positive returns in all market scenarios .


Top down research inputs

REIT Analysis

  • REIT stock

  • Valuation of a REIT stock depends on FFO , future prospects and properties appreciation.

  • Valuation of non-REIT stock is done through following models:

  • NAV-based Pricing Model

  • Estimation of marked-to-market asset value

  • Value of the operating Real Estate

    • Calculate 12-month look-forward estimate of NOI

    • Appropriate cap rate is determined

    • Value of the operating Real Estate = NOI/Cap rate

  • Estimation of marked-to-market liabilities.

  • NAV is calculated by subtracting liabilities from assets.

  • If the NAV per share is higher than the current stock price, there lies a opportunity.  

  • Financial Ratios

  • Fund from operation (FFO) is taken into consideration while analyzing various Profitability ratios and price ratios.

Non-REIT stock

Valuation of non-REIT stock depends on Net earnings and future prospects

Valuation of non-REIT stock is done through following models:

DCF valuation model

The underlying idea of DCF-Valuation is to compute the fair value of a company and juxtapose it against the current share price thereby make investment decision based on results of this comparison

DDM valuation model

The model calculates the present value of the future dividends that a company is expected to pay to its shareholders.

The DDM is also useful because the measurement of future dividends (as opposed to earnings for example) facilitates close comparison of companies across different industries by focusing on the actual cash investors can expect to receive.

Financial Ratios

Net income is taken into consideration while analyzing various Profitability ratios and price ratios.


Inputs from country model for identifying top countries sectors stocks

Country Growth Models

Genius Rating

Country Selection

Creativity Rating

By using Growth models we select countries that have good growth potential

Risk models suggests us to select the countries that have low risk

Country Risk Models

Infrastructure Rating

Creativity Rating

Environmental Sustainability

Sovereign Rating

Economic Investment Index

Sector Selection

Environmental Sustainability

By using Risk models we can analyze the level of risk associated with sectors

Compelling Place Rating

In selected countries sub models of Growth suggests the sectors that have promising prospect

Economic Investment index

External Orientation Rating

External Orientation Rating

Knowledge Resource Rating

Corporate presence rating

Corporate Presence Rating

Stock Selection

Financial Center Rating

At stock level we select the stocks with low levels of risk

Development Rating

Finally we select the stocks with high return from the prospected sectors

Technological Center Rating

Regulatory Environment Index

Development Rating

Inputs From Country Model For Identifying Top Countries/Sectors/Stocks


Interdependent roulac global values inform investing process contribute to alpha returns

Responsibility

Integrity,trust, reliability characterize our every action and interaction

Work Life Balance

Work seamlessly across time and place to balance life/work/competing expectations

Teamwork

Be a positive, helpful and energetic leader and team player

STAKEHOLDER SATISFACTION

Deliver ALPHA RETURN to our stakeholders in financial, cultural and personal currencies

Quality = Excellence

Be the best through commitment, excellence and intentionality, as we manifest flow in every aspect of our work

Learning & Discovery

Aim for continuous learning and innovation on this great voyage of discovery

Interdependent Roulac Global Values Inform Investing Process & Contribute To Alpha Returns

MAKE A DIFFERENCE

Leave the world a better place


Prudent investing international real estate in portfolio

Real estate enhances risk-adjusted portfolio performance plus provide significant diversification benefits

Prosperity creates need for property goods and services

Real estate is best way to participate in growth and prosperity of leading/emerging countries

Technology advances and political reform transform global economy

Traditional leading economies’ threatens leadership position

Growth of emerging global players leads to market share gains

Prudent Investing = International Real Estate in Portfolio


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