Asset Management

TresVista provides range of services to asset management clients, including providing support to the Portfolio Manager. This enables the firm to focus on making investments, with the responsibility of human resource and retaining the institutional knowledge responsibility taken on by TresVista. Below are the services clarified in detail for public equity and fixed income.

Public Equity

Deal Evaluation and Investment

TresVista supports deal execution and investment in equities, providing complete support to the Portfolio Manager and reducing the need for in-house execution personnel. It enables the Portfolio Manager to focus on the macro aspects of decision making and deal execution pertinent to the fund strategy.

Research
– Industry/Sector Overview
– Regional Overview
– Economic Research
Equity Reports with Modeling and Valuation
– Initiating Equity Report
– Financial Modeling
– Public Market Valuation
– Discounted Cash Flow
Target Stock Financial Analysis
– Sensitivity Analysis
– Fund Requirement
– Liquidity Analysis
– Covenant Monitoring

Investment Evaluation and Support
– Analyzing Deal Viability
– Business Due Diligence
– Returns Analysis

Request & Guidelines Provided
  • Asked to work closely with a Portfolio Manager to arrive at intrinsic value for a steel company
  • Provided name of the steel company, available secondary research, broad outline of the equity report, and preferred valuation methodology
Methodology
  • Constructed a financial model by understanding the intricacies of the company’s business and sector dynamics
  • Each of the company’s revenue streams were modeled and driven separately. The costs were reclassified keeping in mind their nature and relation to revenues
  • Used the DCF valuation technique to arrive at the company’s intrinsic value
  • Used guidance from ratios and multiples obtained from public market comparables to determine the value of the target company
  • Prepared a detailed equity memo using the top-down analysis of the company
Final Deliverable & Client Takeaway
  • Provided a flexible company financial model and equity memo to evaluate the investment opportunity

Managing and Growing the Portfolio

TresVista integrates as part of the team, adding to the capacity of the asset management firm to support their internal monitoring of portfolio companies’ performance.

Stock Monitoring
– Market Performance
– Monitoring of Portfolio
– Companies and Comparables
– Broker Research Summaries

Modeling and Valuation
– Update Models
– Public Market Valuation
– Precedent Transaction
– Portfolio Valuation

Reporting and Presentation
– Portfolio Reporting
– Presentation to
– Portfolio Company Management
– Investment Committee Notes

Assessing Opportunities
– Macroeconomic Research &
Update
– Database Creation &
Maintenance

Request & Guidelines Provided
  • Asked to work closely with a Portfolio Manager in actively monitoring and managing his public equity portfolio spread across three countries
  • Provided the list of holding companies and geographies. News feeds from the field to keep the team in the loop and updated
Methodology
  • Prepared customized templates for tracking the market and holding companies’ stock price performance on a periodic (weekly/monthly) basis
  • Analyzed the reasons behind the index and holding’s stock price movements by tracking market news
  • Prepared a detailed memo on the monthly performance required for the investor committee meetings focused on the macroeconomic and sector news flows
  • Updated the equity models with the recent news and earnings releases
Final Deliverable & Client Takeaway
  • Provided the client a comprehensive analysis of the weekly and monthly market movements along with performance of their portfolio
  • Provided an updated equity model based on recent news and market information

Fixed Income

Deal Evaluation and Investment

TresVista supports the Portfolio Managers by identifying securities that fit the investment criteria of the fund while monitoring yield performance that enable timing the investment.

Research
– Sovereign Credit Analysis
– Credit Analysis Memo
– Security Analysis Memo

Modeling
– Financial Modeling Focusing on
Operating Ratios and Liquidity
Over the Investment Horizon

Target Stock Financial Analysis
– Liquidity Analysis
– Covenant Monitoring
– Off-Balance Sheet Exposure

Investment Evaluation and Support
– Ascertain Credit Rating Based on
Fund Specific Investment
Standards
– Business Due Diligence

Request & Guidelines Provided
  • Asked to work with a Portfolio Manager to evaluate a new debt issue for an independent power producer, using credit fundamentals and comparable yield trends
  • Provided with road-show material of new debt issue, available credit research, and rating criteria
Methodology
  • Constructed a detailed financial model for the company and conducted due-diligence on key assumptions through secondary research on the company, industry, and macroeconomic environment
  • Used the client’s proprietary credit rating criteria to compute credit rating of the company for each forecasted year
  • Prepared a memo covering analysis of credit statistics, ratings, company’s financial profile, and debt maturity schedule
  • Analyzed yield spreads of the new bond using bonds of a similar structure, business and risk profile, and computed its yield spread over treasuries and interest swaps
Final Deliverable & Client Takeaway
  • Analyzed the credit fundamentals of the company issuing the bond and recommended a fair value range for the bond price based on which the client made the investment

Managing and Growing the Portfolio

TresVista serves as an internal team, adding to the capacity of the asset management firm to support their internal monitoring of portfolio companies’ performance.

Market and Security Monitoring
– Market Performance Monitoring
of Coverage Companies and
Related Securities –
Fundamental and Yield
Movements
– Newsletter
– New Issue Monitor

Modeling and Valuation
– Update Models
– Portfolio Valuation

Reporting and Presentation
– Portfolio Reporting
– Investment Committee Notes

Assessing Opportunities
– Macroeconomic Research &
Update
– Database Creation &
Maintenance

Request & Guidelines Provided
  • Asked to monitor the macroeconomic scenario and new debt issuances across the MENA region
  • Provided debt portfolio information and criteria for bond tracker template
Methodology
  • Developed a proprietary bond tracker template and made regular additions/modifications to monitor historic prices and yields
  • Tracked the new debt issues with a special focus on Islamic bonds
  • Initiated and maintained coverage of over 50 companies and 10 countries to monitor any market event that may lead to rating changes
  • Presented output in the form of a weekly newsletter
Final Deliverable & Client Takeaway
  • Prepared the new issue monitor and newsletter every week to monitor the client’s debt portfolio