EIML announces a second round of distribution of proceeds to its AIF investors

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distribution of proceeds to its AIF investors

 To distribute 20% of its outstanding units in the second round
 The distribution comes much ahead of the actual maturity dates
 Investors of Emkay Emerging Stars Fund to receive pay-outs of INR 236 crore
cumulatively
Mumbai, July 20, 2022: Emkay Investment Managers Ltd, the asset management arm of Emkay
Global Financial Services Ltd has today announced the second round of distribution of proceeds from
Emkay Emerging Stars Fund – Series 1, 2, and 3 to the existing unit holders. The move comes within
6 months of its first round of distribution of proceeds, making it one of the few pioneering funds to
have achieved this feat.
The first three series of AIFs have garnered benchmark beating returns for their valued investors.
The performance, especially during the pandemic years has stood the test of tough times when the
return was below normal for most.
The distribution will be to the tune of 20% of the outstanding units at the current NAV; cumulatively
35% of the outstanding units, which translates to more than 50% of the invested capital. The fund is
in its last year and committed to providing liquidity to its investors by distributing funds. The second
phase of distribution has been announced much ahead of the actual maturity dates of the three
series (AIF-Series 1 closes on 08.01.2023; AIF-Series 2 closes on 26.03.2023; AIF-Series 3 closes on
14.10.2023)
According to EIML the Indian markets are once again entering clear blue skies after the healthy
correction witnessed in the past few months. Most challenges like market correction, higher
inflation, FII selling, and currency depreciation are behind us. Most of the high-frequency indicators
continue to gain even further momentum. The private sector Capex and government spending are
strong and expected to further accelerate over the next two to eight quarters.
Indices/Period Emkay Emerging
Stars Fund

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BSE Smallcap
Index

BSE 250 Small Cap
Index
6 month (H1CY22) -1% -15.9% -17.3%
1 yr (Jul 21-Jun
22)

3.1% -1.8% -4.8%
Since inception 65.8% 24.5% 8.3%
All returns are absolute
While small-cap indices have corrected sharply with the fall in the market in the past few months,
the fund’s portfolio has been rock solid. The portfolio return during the last six months was virtually
flat (-1%) vis-à-vis benchmark small-cap index returns of negative 16-17%.
Emkay Emerging Stars Fund has delivered a return of -2% for Q1FY23 while it was -12% and -13% for
BSE Smallcap Index and BSE 250 Small Cap Index respectively.
The outperformance since inception (January 2018, 4.5 years) has expanded even further, the NAV
(since inception) is up by a whopping 65%+, whereas the BSE 250 Small Cap Index is up a mere 8.3%
and BSE Small Cap Index is up 24.5%.

Commenting on the development, Mr. Vikaas M Sachdeva, CEO, Emkay Investment Managers Ltd
said “Our continuous focus on profitable businesses and high-quality management has helped us
deliver a higher alpha for our investors. This has enabled us to undertake the exercise of distribution
of proceeds to investors.”
Mr. Krishna Kumar Karwa, MD, Emkay Global Financial Services Limited and Mentor-EIML said, “As
a prudent practice we plan to distribute the funds generated from the portfolio holdings at periodic
intervals. The move is a part of a broader strategy to reward our investors, as wealth creation and
client success are at the core of our values. Emkay Emerging Stars Fund’s performance over the
years demonstrates our cutting edge research and superior stock picking skills.”