PMS Portfolio Construction & Reporting

Stock selection. The PM identifies opportunities consistent with the strategy mandate. Large-cap quality PMS focuses on franchise quality, ROE, capital efficiency, governance. Small-mid growth PMS focuses on revenue growth, margin expansion, operating leverage. Each strategy has its own selection lens. Position sizing. Concentration discipline is the structural feature of PMS — typical maximum single-position weight 8-10% (sometimes 5-7% for cautious managers, sometimes 12-15% for high-conviction concentrated strategies). Sector exposure also limited (typically max 30-35% in any single sector). Liquidity constraint applies — positions limited to a percentage of average daily volume to ensure exit feasibility. Risk monitoring. Continuous tracking of: factor exposures (value, growth, quality, momentum, beta), historical-stress simulations (2008 GFC, 2020 COVID, 2022 inflation drawdown), single-name concentration. Reporting. Monthly factsheet shows top 10 holdings, sector allocation, performance vs benchmark, key portfolio metrics. Quarterly portfolio statement shows full holdings (with regulatory lag), transactions during the quarter, performance attribution by stock and sector, and reconciliation to the demat account. Annual capital gains statement details every transaction during the year for tax purposes. Annual review meeting walks through full-year performance, strategy outlook, and any planned changes. Trustner's framework requires the Relationship Manager to attend the annual review meeting alongside the PMS manager and the client — three-way conversation that ensures the client's questions are answered and any concerns raised.