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Scient PMS

PMS Rating

IME PMS Rating

AMC does not meet our selection criteria at this time

Not a recommended AMC: Scient Capital PMS has an interesting niche of investing in lower-rated debt instruments, that offer attractive double-digit yields on the debt. However, this is a high-risk segment, and we would prefer to see a longer-term track record to see how risk is managed and how credit events are taken care of in a PMS structure. The AMC is also still sub-scale and has not yet proven longer-term sustenance in terms of standalone business economics.

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 (10cr) | Promoter Category ()

PMS Background

Scient Capital PMS is a differentiated PMS provider that has a focus of investing in lower-rated debt instruments. Their focus is on generating absolute returns for investor portfolios, primarily through portfolios focused on debt securities, even as they have a multi-asset asset allocation strategy that they manage as well. 

Differentiated PMS provider with focus of investing in debt securities

Scient Capital currently manages 4 strategies:

  • Aquila PMS invests in primarily in debt, equity and alternates aiming to provide absolute returns. This is a Multi Asset Portfolio aimed at providing diversification by investing across asset classes with a tactical macro overlay. 
  • Aries PMS: Mid yield Portfolio investing in fixed income securities rated “AA” to “BB” with target IRR of 15% – 17%
  • Orion PMS focusing on listed debt of real estate backed debt, structured mezzanine debt, venture debt and securitised debt. This is a High Yield Portfolio investing in structured finance transaction targeting IRR of 18% – 20%
  • Special Situations Structured Products: Yield products in niche sectors like renewable energy, plantations which connect the sources of capital with its users

PMS Investment Philosophy

Given the focus on lower-rated debt instruments, Scient Capital’s investment philosophy has a strong focus on risk controls. Risk oversight and governance is driven by their board of directors, an independent board of advisors and the executive investment management team. 

Debt Securities are selected based on 3 parameters:

  • Credit Risk– Investing in fixed income instruments of companies mostly in NBFC with credit rating of AA to BB. Most papers being in credit range A to BBB.
  • Duration– Portfolio duration–2-3 years. Maturity of instrument– range from few months to long term (15 years)
  • Liquidity– Investment made in securities expected to be seasonably liquid. If securities are illiquid, only those that have maturity period of less than 3 years will be invested in

Portfolios are constructed for Individual Investors: 

Based on some of the core principles mentioned below 

  • Using the flexibility offered by PMS Vehicle, customized portfolio built depending on investor’s time of entry, preference or aversion to specific type of high yield debt etc.
  • Depending on prior transactions at time of investment, portfolio always to be structured, keeping in mind broad guidelines of overall allocation.
  • Enable good diversification, at times portfolio can be re-balanced internally at fair values.

Inv Team

Investment Team

Ramesh Rachuri | 3-star rated FM

CIO | 18 yrs Experience | 8 yrs at current firm

Past Experience: Head of Fixed Income (Peerless Funds Management Co), Senior Fund Manager – Fixed Income (BOI AXA Investment Managers), Head – Debt & Structured (Matrix AMC), Head PMS _ Debt & Structured Products (Reliance Capital)

Ramesh Rachuri comes with 14 years of experience across markets ranging from forex, equity derivatives, and quant, to the entire panoply of debt submarkets ranging from G-Sec to credit and structured products. He worked with Securities Trading Corporation of India, Reliance Mutual Fund and Reliance PMS, and BOI AXA Mutual Fund.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

No items found

Returns as of 31-Aug-24.

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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.

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