ICICI Prudential PMS PIPE Strategy

KEY PORTFOLIO ATTRIBUTES #

Year of Inception
Number of Stocks
Alpha (1Y)
Beta (1Y)

About ICICI Prudential PMS

ICICI Prudential Asset Management Company Ltd. (IPAMC) stands as a prominent asset management firm in India with a steadfast commitment to bridging the gap between savings and investments, ultimately fostering long-term wealth creation for investors through a range of straightforward and pertinent investment solutions.

ICICI Prudential Asset Management Company Limited represents a strategic collaboration between ICICI Bank Ltd, a renowned name in India’s financial services sector, and Prudential Plc, a leading player in the UK’s financial services industry. Over the course of this enduring partnership, IPAMC has established itself as a frontrunner in India’s Mutual Fund landscape.

IPAMC remains resolute in its dedication to investors and partners. It continues to stay at the forefront of innovation, cultivating trust, nurturing enduring relationships, and ensuring a delightful experience throughout the entirety of the investment journey.

Key People

Anand Shah CIO, Alternates

Geetika Gupta Fund Manager

Chockalingam Narayanan Senior Fund Manager

Investment Objective

ICICI Prudential PMS PIPE Strategy aims to provide long-term capital appreciation and generate returns by investing predominantly, in Mid and Small Cap segment of the market by having exposure in companies enjoying some economic moat; and/or undergoing special situations or in the midst of unfavourable business cycle.

ICICI Prudential PMS PIPE Strategy aims to identify tomorrow’s leaders by picking businesses that are benefitting from both earnings growth and P/E rating.

Investment Strategy

The ICICI Prudential PMS PIPE PMS Strategy is designed with specific investment objectives & strategies:

To invest in growth-oriented narratives characterized by sustainability, potentially leading to price appreciation driven by Earnings Per Share growth.
To target companies with prospects of increased demand and improved margins, enhancing visibility and valuations that can result in PE re-rating.
To acquire businesses undergoing special situations, influenced by cyclicality or mispricing by the market, offering opportunities at a substantial discount and ensuring a margin of safety.

The overarching goal of the strategy of ICICI Prudential PIPE PMS Strategy to achieve long-term capital appreciation and generate returns by predominantly investing in companies within the Mid and Small Cap segments of the market. As a defensive measure, the strategy may temporarily allocate funds to debt and money market instruments or units of debt and money market mutual fund schemes while awaiting suitable investment opportunities or to meet liquidity requirements.

The strategy seeks to identify companies that are fundamentally robust and potentially market leaders in their respective industries. It also aims to invest in companies with relatively small market capitalization at the time of investment, yet possessing significant growth potential due to factors such as strong or emerging business lines, effective management, and improving margins.

The Portfolio Manager employs a multi-faceted approach to stock selection, considering:

Long-term outlook on stocks with the potential for substantial returns.
Stocks offering growth opportunities driven by business cyclicality, special situations, or market mispricing.
Qualitative assessment based on the concept of a ‘Moat,’ denoting a firm’s ability to sustain above-average returns on capital over an extended period. The ‘Moat’ concept serves as a framework for selecting companies that typically outperform competitors as long as the moat remains intact.

Investment Framework

The core belief of ICICI Prudential PMS PIPE Strategy is that Companies create wealth, not markets.

The investment framework of ICICI Prudential PMS PIPE Strategy is to identify prominent businesses at reasonable valuations, which have competent management.

Prominent Businesses

• Company growing faster than industry &industry faster than market

• Qualitative assessment based on the concept of “economic moats*”

• Foreseeable changes in business leading to a positive outcome

Reasonable Valuations

• Cash flow is central in our Investment Process about a company’s value

• Evaluation of margin of safety required according to the ‘moat’ and competence of management

• Better risk reward profile

Competent Management

• Focused on growth, improving margins &prudent capital allocation

• Competent managers with a credible track record

• Fair corporate governance standards, with aligned shareholder interests

Investment Philosophy

ICICI Prudential PMS PIPE Strategy may look to invest in companies which are fundamentally strong, and which may be considered to be one of the market leaders in their industries. Additionally, the PIPE Strategy will aim to invest in companies where the market capitalization at the time of investment is very small but has the potential to become large because of various dynamics like strong / upcoming business line, effective management, improving margins etc.

The Portfolio Manager of ICICI Prudential PMS PIPE Strategy shall consider one or more of the following aspects for identifying the stocks to invest in – Stocks which have potential growth opportunities provided by business cyclicality, special situations, and/or mispricing by the market. Qualitative assessment based on the concept of ‘Moat’ which allows a firm to earn above-average returns on capital over a long period of time. Concept of Moat provides an analytical framework for selecting companies that usually perform better as compared to their competitors for a number of years the moat exists. (The details pertaining to the investment approach mentioned herein is a subset of details specified in the Disclosure Document. Kindly refer the Disclosure Document for the detailed investment approach and risk factors)

Awards & Achievements

• In 2024, ICICI Prudential PMS Contra Strategy was awarded 2nd as the Best PMS across all categories, on a 5Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2023, ICICI Prudential PMS Contra Strategy was awarded as the Best PMS across all categories, on a 1Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, ICICI Prudential Long Short Fund, a Cat III Long Short AIF, was awarded as the Best AIF in the Cat III Long Short category, on a 2Y Absolute Returns basis. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

Advisory Portfolio

AIF

AIFs

AIFs combine the operational ease of Mutual Funds with Flexibility of PMS making it a perfect blend geared for optimum performance for a stipulated investment objective

CAT II Debt

CAT III - Long Only

CAT III - Long Short

CAT III AIF - Gift City

CAT III Long Short Debt

Category I AIF

Category II AIF

Category III AIF

Large Cap PMS

Large Cap PMS primarily invests in Top 100 listed companies. They have moderate Risk and moderate return potential. This is meant for investors seeking less volatile return and looking for invest for 3-5 years as a time horizon

Mid & Small Cap PMS

Mid and Small Cap PMS invests in smaller companies which have higher risks but also very high return potential as well. This is ideal for investors seeking highest possible returns with a time horizon of 7+ years

Multi Cap PMS

Multi Cap PMS are market cap agnostic. They have higher risk and higher return potential as well. This is ideal for investors seeking for higher returns with a time horizon of 5-7 years.