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Philosophy & Strategy
Investment Philosophy
Our philosophy is to focus on Safety, Liquidity and Sustainable Returns.
In line with this philosophy, we have a Board approved Investment Policy complying with IRDA guidelines. It has been our constant endeavour to invest in a disciplined and structured manner. We at Future Generali strive to employ industry best practices, processes and standards and generate a stable investment performance over medium to long term without compromising the portfolio quality.
Investment Management at Future Generali Life Insurance consists of a three tier structure:
- Investment Committee (Headed by Chairman, Shri G. N. Bajpai, Ex-Chairman LIC & SEBI)
- Investment Sub - Committee (Headed by MD & CEO, Mr. Munish Sharda)
- Investment Team (Front, Middle, and Back Office)
Keen focus and clear goals help our investment team generate optimum returns. We utilize extensive research based data and sound risk control measures to optimize your returns.
Equity Strategy
Investing in equity requires an in-depth knowledge about the company, its nature of business, and the future potential of the sector. As part of our core investment strategy for equity, we follow a top-down approach for asset allocation and sectoral exposure, and a bottom-up approach for selection of stocks within the identified sectors. In the top-down approach we look at a few factors like growth of economy, inflation & interest rate scenario, stability in foreign exchange, government/private borrowing and fiscal & current account deficit among others. In the bottom up approach, focus is on factors like company's expected rate of growth & profitability, debt/equity ratio, market share and corporate governance.
Investment RationaleFollowing are the broad parameters for investment in equity.
- The shares should be actively traded.
- The company should have a good management track record and growth prospects.
- The company should demonstrate a strong and sustainable business model.
- The company should have a strong net worth.
- Investment in equity will be done after detailed analysis of the promoter's business, profitability and market outlook.
We have been primarily investing in Nifty stocks with good management. The allocation to non-Nifty stocks are done selectively in companies with a sound fundamental growth story or corporate actions e.g. buybacks, bonus, dividend etc. Also, investments in primary market issues (IPO/FPO) are made after analysing prospects of gain over long term.
Fixed Income Strategy
Investment in fixed income instruments is done after analysing the global and domestic macro-economic variables like growth, inflation, global commodity prices, interest rate outlook, borrowing calendar/fiscal deficit, tax collection and liquidity scenario. Other specific parameters like credit profile of the borrower, interest coverage ratio and duration of the investment is also taken into consideration before investing. We actively participate in both primary and secondary markets for Government Securities and Corporate Bonds.
We maintain a high quality portfolio for fixed income or debt instruments. As at 31st March 2015;
- 75-100% of our debt portfolio comprises Government securities and highest credit rated (AAA rated) Corporate Bonds.
- No exposure in securities rated below AA-.
- No exposure to loans and advances.
- Nil NPA in our portfolio
For further details on our Equity and Fixed Income portfolios, kindly refer to the Investment Snapshot section on our website.