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Centrum PMS

PMS Rating

IME PMS Rating

3 of 5 stars

Can be considered for investment: Centrum PMS has developed strong credentials in the small & mid-cap space. A key concern is churn at the CIO level (both Kunj Bansal & Anil Sarin, past senior CIO's having left the firm), keeping a high level of dependence on Abhishek Anand (a relatively more junior fund manager but who has been with the firm for a long-time).

The PMS/AIF AMC Rating is derived on the basis of our analysis on 5 key qualitative parameters that we use to analyse the quality of a PMS/AIF Provider. These include an assessment of the size of the AMC, the pedigree of the AMC, the pedigree of the team, the value of the investment philosophy & the level of differentiation. These insights of our central research team are documented in the IME RMS, and can be accessed during a consultation call with an IME PMS specialist.

PMS Background

Discretionary AUM (528cr) | Promoter Category ()

PMS Background

Centrum PMS is the PMS house of the Centrum group (a well-respected financial services group founded in 1997, with lending, broking and investment management arms).

PMS Investment Philosophy

Centrum PMS is driven by their proprietary framework developed over time — ‘EDGE’ Framework. The AMC uses the EDGE framework to identify leaders.

EDGE Framework

  • Earnings Growth (E): driven by criteria such as minimum ~15% EBITDA growth and ~15% ROCE | High cash to EBITDA ratio (65% and above) | Low leverage (<2x) | used as a filter 
  • Deep Dive Research (D): driven by factors like size of the opportunity, competitive advantage, scalability and channel checks
  • Governance (G): evaluated based on accounting quality, past capital allocation, past related party transactions and dividend policy
  • Execution (E): past track record and promise vs delivery historically

The above-mentioned EDGE framework is used to identify leaders.

Leadership traits are defined as

  • Market Share
  • Promoter/Management Pedigree
  • Operating Margins and Return Ratios
  • Brand/Distribution Strength
  • Business Growth and Pricing Power
  • R&D and Technology Differentiators

Portfolio Construction Strategy

Centrum strategies classify and take positions in companies labelled as ‘Quality’, ‘Value’, and ‘Growth’. The aim is to have approximately equal weightages across the 3 styles

  • Quality (for stability): Companies with a strong leadership positions, known for their proven track record
  • Value (back-ended performance, but strong upsides): counter cyclical, contrarian, special situation opportunities
  • Growth (for alpha): emerging but lesser-known companies with high growth potential and leadership traits

The AMC believes that this reduces risk and ensure participation during various phases of market cycles.

Inv Team

Investment Team

Manish Jain | 3-star rated FM

CIO | 17 yrs Experience | 1 yrs at current firm

Past Experience: Analyst (Nomura, Lehman Bros, Enam, ICICI Sec, Motilal), FM (Ambit)

Manish Jain is the CIO of Centrum PMS. He has a strong research foundation, having worked as a research analyst at Nomura, Lehman Bros, Enam, ICICI Sec and Motilal. His core areas of research focus have been on the consumer & auto sectors.

Abul Fateh | 3-star rated FM

FM | 18 yrs Experience | 0 yrs at current firm

Past Experience: True Beacon (Head of Equities), Baroda BNP MF (FM), Parag Parikh (Analyst), DBS MF (Analyst), Baroda AMC (Analyst)

Abul Fateh has an experience of 18+ years in the Equity Market. He has stints with True Beacon (Head of Equities), Baroda BNP MF (FM), Parag Parikh (Analyst), DBS MF (Analyst), and Baroda AMC (Analyst).

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

Scheme Category Style 1 yr 3 yr 5 yr Since Inc
Centrum Good To Great T NRI Mid & Smallcap Value 49 21.2 22.9
Centrum Microcap Small Cap GARP 45.9 28.6 31.2 20.2
Centrum Built to Last Large Cap GARP 22.7 12.3 12.7

Returns as of 30-June-24.

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