SBI ESG Portfolio

Key Attributes

Inception Date: 11 July 2016

Number of Stocks: 23

Fund Manager Name: Ms Aparna Shankar

Fund Manager Experience: Total Exp – 29 Years, With SBI - 11 Years

Fund Manager Qualification: MBA Finance and PGDM focused in Treasury & Forex Mgmt from ICFAI University

Investment Objective

The investment objective of SBI ESG Portfolio is to generate long-term capital growth through investment in well-researched stocks.

Portfolio Attributes

SBI ESG Portfolio follows the below mentioned Investment Attributes:

• Investing in companies meeting positive standards of Environmental, Social, Governance responsibilities
• Focus on niche business having conducive universe for multi-fold growth with longevity
• Invest in companies which are dispropotionately high beneficiaries of Economic Growth

Investment Strategy

SBI ESG Portfolio follows the below mentioned Portfolio Strategy:

High Conviction

Invest in businesses which benefit disproportionately by underlying economic growth, present in universe conducive for multi-fold growth. Expected to grow at high double-digit in the next 3-5 years and be an outperformer to the underlying sector.

Good Corporate Governance

Respecting the interests of all stakeholders is of utmost importance.

Social Responsibility

Company’s dealings with employees, customers and communities are cordial.

Environment Friendly

Avoid environment destructing businesses

Investment Process

SBI ESG Portfolio follows the below mentioned Stock Selection Process:

Step 1: Qualitative Factors

• Analysis of business model
• Impact of Macro-economic variables on the business model
• Company analysis based on factors including Porter’s Five Factors
• Sell-side research interaction

Step 2: External Analysis

• Geo-Politics and its impact on business
• Channel checks
• Management Meetings
• Work place / Plant visits

Step 3: Quantitative Factors

• Derive Quality Score with input of ROE, ROIC, Earnings Risk and Debt repayment capabilities

Step 4: Investment Thesis

• Financial analysis of the last 5 years
• Building investment thesis
• Valuation model
• Target price
• Strategic fit with other stocks in the portfolio

Step 5: Investment Decision

• Market cap bucket fit
• Stock weight allocation based on degree of conviction
• Entry and exit points
• Dissemination of new information
• Ongoing monitoring

Investment Philosophy

Investing in companies as per ESG framework i.e. Meeting positive standards of Environmental, Social, Governance responsibility. Focuses on niche businesses having conducive universe for multi-fold growth with longevity. Invest in companies which are disproportionately high beneficiaries of Economic Growth.

• GOOD CORPORATE GOVERNANCE: Respecting the interests of all stakeholders

• SOCIAL RESPONSIBILITY: Company’s dealing with employees, customers and communities are cordial

ENVIRONMENT FRIENDLY:  Avoid Environment destructing businesses

Performance Table #

Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
SBI ESG Portfolio7.89%3.51%14.56%26.02%16.60%22.59%22.55%-16.16%
Nifty 50 TRI1.24%4.19%18.77%26.51%16.28%16.93%15.31%-14.96%

QRC Report Card *


Portfolio Holdings

Holding %
ICICI Bank Ltd. 6.48
Blue Star Limited 5.56
Kotak Mahindra Bank Ltd. 5.31

Sector Allocation

Holding %
Consumer Discretionary 38.76
Financials 22.89
Industrials 13.38
Materials 8.19
Real Estate 5.79

Market Cap Allocation

Allocations %
Large Cap 22
Mid Cap 27
Small Cap 48

Do Not Simply Invest, Make Informed Decisions


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From the Founders & Managers of SBI PMS

What to expect from SBI ESG PMS?

Sustainability is the key to long-term success in business and investing. Launched over 5 years ago, SBI ESG PMS is amongst the first ESG funds in the country. ESG Investing is also known as sustainable investing where the endeavour is to identify companies that score well on Environmental consciousness, Social responsibility and Corporate governance. Because these companies do well on the ESG framework, not only are they expected to be more sustainable businesses from a long-term perspective but also subject to less volatility from shocks from government, regulatory changes and irregularities on governance. While ESG is the starting point for the selection process, the business evaluation considers prospects on long term growth and profitability as central to investment success. Further while we also follow certain sector exclusions, the eventual portfolio is well diversified across sectors. The final portfolio is sector agnostic, market cap agnostic, concentrated portfolio of 20-25 bottom up ideas.

Who should invest in SBI ESG PMS?

Investors need to understand some vital aspects about this portfolio.

1) ESG PMS is a market cap agnostic fund and typically has a high representation of mid and small caps.

2) The portfolio is concentrated with less than 25 stocks allowing sizeable representation to each investee company.

3) Given the bottom-up nature of the fund, the overlap with benchmark indices is very low.

While these aspects are critical to generating outsized outperformance over long periods in our view, they can also lead to short term volatility on absolute as well as relative performance versus benchmarks. Therefore, investors with a long-term time frame of 3-5 years and the ability to withstand short term volatility should consider this portfolio.

Which is the best company through which an investor can invest in SBI ESG Portfolio?

We recommend PMS AIF WORLD, because, it is one unique platform that offers real knowledge driven investing with their highly meaningful data, reports, and content that is written very well. PMS AIF World is a team of highly articulate, educated, and experienced people.


#Returns as of 30 Apr 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 24.

Do Not Simply Invest, Make Informed Decisions

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