ICICI Pru PMS
PMSIME's View on ICICI Pru PMS
AMC View
ICICI Pru PMS has shown a marked improvement under the leadership of Anand Shah as CIO, with stronger alignment between investment philosophy and execution. The AMC has delivered robust performance across strategies, supported by disciplined processes and access to the AMC’s extensive research ecosystem. Backed by ICICI Pru’s strong institutional framework and distribution reach, the PMS business is now demonstrating greater focus and stability, warranting a more constructive outlook.
AMC Pedigree
ICICI Pru AMC is a top-3 Asset Manager in India, known for managing mutual fund assets. While being part of a larger asset management house has benefits like a central research team and distribution strengths, the AMC-driven PMS lacks the stability and defined processes of investor-cum-promoter driven PMS's.
Team Pedigree
ICICI Pru PMS previously had high FM churn, but current CIO Anand Shah, a seasoned investment professional and ex-Co-Head Equities at ICICI Pru, has improved the team's credibility. However, there remains a risk of churn as Shah is still employed.
Investment Philosophy
ICICI Pru PMS uses a loosely defined BMV framework (Business, Management, Valuation) in its investment strategy.
PMS Background
As part of one of the top-3 Mutual Fund Houses, ICICI Pru PMS benefits from the substantial research, broker & corporate access and distribution strengths of the Mutual Fund. This helps explain its position in the top-10 PMS houses in the country. One of the Top-10 PMS houses but large AMC driven ICICI Pru PMS benefits from substantial research access, broker & corporate access and distribution strength. However, since this PMS house is driven by larger AMC it cannot compare to a PMS House driven by CIO-cum-founderPMS Investment Philosophy
ICICI Pru PMS does not have a clearly defined investment philosophy, that drives investment style across all their funds. Instead, the investment philosophy is more driven at a strategy level.Investment Framework
They utilise a 3 filter framework in order to search for companies with meaningful and sustainable earnings growth- Business
- Management
- Valuation
Business Economics:
- Growth defined by Company growing faster than industry, industry faster than market, that are also looking for Structural and long-term sustenance and are simple to understand and in a focused segment.
- Moats defined by Brand Franchise, Industry Structure, Technology/Patents, Cost Advantage, License area, Distribution, etc
Management and Governance
- Competence driven by Sales(Faster than sector); Margin(Improving); Capital(Smarter)
- Governance based on Interests(Aligned with shareholders); and having credible Track Record
Valuation
- Cash- Cash flow being the centre of investment Process (Intrinsic value, DCF, Dividend Yield, Op. Cash Yield, etc)
- Evaluate Margin of Safety- Identifying a greater margin of safety based on weaker moat for a better risk-reward profile.
Taking both Cash and Margin of safety into consideration leads to a Fair Value
Suitable For Investor's seeking the comfort of investing with an established and large brand, but desiring higher risk-returns than MF strategies.Investment team
Anand Shah | 4-star rated FM
Fund Manager | 25 yrs Experience | 5 yrs at current firm
Past Experience: VP investments (Kotak MF), Co-Head Equities (ICICI Pru AMC), Head Equities (Canara Robeco AMC), Dy CEO & Head of Investments (BNP Paribas Asset Management), CEO (NJ Asset Management)
Anand Shah is currently serving as the CIO at ICICI Prudential AMC. He brings over two decades of fund management experience, having earlier worked with ICICI Prudential AMC as Co-Head Equities. Before rejoining ICICI, he was CEO at NJ AMC, Deputy CEO and Head of Investments at BNP Paribas AMC for nearly nine years, and Head of Equities at Canara Robeco AMC. His career also includes key roles at Kotak AMC.
Chockalingam Narayanan | 4-star rated FM
Fund Manager
Past Experience: Fund Manager (BNP Paribas), Deutche Equities, Batlivala & Karani Securities
Narayanan has 15+ years of experience in fund management, and investment research. Prior to joining ICICI Pru AMC, he was at BNP Paribas, Deutche Equities and Batlivala & Karani Securities. He has a PGDM from TA Pai Management Institute, Manipal. He also passed the FRM certification by Global Association of Risk Professionals, USA.
