IME PMS AMC Selection Criteria
At IME Capital, we have undertaken the most rigorous analysis of PMS AMCs, undertaken by any wealth management firm in the industry.
Our PMS AMC selection methodology is driven by the AMC-selection best-practices followed by top international institutional investor’s and wealth managers. This is based on the extensive experience our founder, Ashi Anand, has in dealing with these entities in his 18+ years of fund management experience managing alternative strategies including PMS & Quasi-PE Funds.
Our analysis has been driven by someone with extensive insider knowledge, of the factors that go into building a top-quality asset management company.
As part of our analysis, we have analysed 95 PMS houses, across a wide range of parameters that are critical aspects of any high-quality AMC.
PMS AMC Rating Criteria
As part of our AMC-rating methodology, we have analysed these 95 PMS AMCs, on the following criteria:
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AMC Pedigree: including a detailed analysis of the founders of the PMS, their historic track-record, systems & processes and more.
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PMS Size: there are distinct advantages of investing with an AMC that has scaled, primarily relating to the AMC's ability to invest in top-quality investment teams & processes and gain access to better-quality brokers & more senior company management
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Team Pedigree: The quality & experience of the fund managers and their supporting research teams
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Investment Philosophy: Any top-quality AMC follows a tightly defined investment philosophy which is followed rigorously. Many lower quality PMS's either have a loosely defined investment philosophy, or fail to actually follow their stated philosophy in practice.
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Performance: We look at the quantum and the consistency of outperformance the AMC has been able to generate on annual calendar year returns.
Driven by the principle of being absolutely transparent with our investor's, our ratings across each of these factors along with an explanation is made Publicly Available on our website.
IME 5-Star Rating System
The IME 5-star rating system for AMC's, is much more stringent than typical rating systems. The aim is to ensure that we only recommend the absolute best-in-class PMS providers to our investors.
Unlike standard ratings, where ratings are typically evenly distributed across tiers, our rating criteria is extremely strict. This results in 75%+ of PMS providers being rated 2-star and below.
This is driven by our belief that only the absolute best-in-class PMS houses, should be recommended to our investors.
The IME PMS AMC ratings should be interpreted as follows:
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5-star (top 10%): Best-of-breed
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4-star (11-20%): Top-tier PMS providers
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3-Star (21-50%): High-qualty PMS Providers
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2-Star (50-70%): Average-quality PMS Providers
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1-Star (70-100%): Below-average PMS Providers
Extremely Selective in our Ratings
At IME Capital, we are extremely selective in the AMC's & fund's that we recommend for investments. The vast majority of PMS AMC's do not meet our rigorous selection criteria, which is why we have so few top-rated PMS AMC's in our list.
The rigour & exclusivity of our selection & rating criteria can be seen from the following data
With a few exceptions (primarily linked to strong value that we see in a specific scheme), we only recommend investments in 20 out of 95 PMS AMC's that we reviewed.
