Birla AMC Select Sector
Birla AMC PMS | Equity | | PMSIME's View on Birla AMC Select Sector
Strategy
Concentrated Sector Approach
Investment Fund
Typically we are not in favour of PMSs offered by Mutual Fund AMC's. While they can scale, built on their experience in managing mutual fund assets & substantial distribution strengths, the stability of the core investment team & investment processes can suffer due to FM churn (which is where we prefer promoter-manager-driven PMS's).
Fund's Strategy View
Concentrated Approach (25-30 stocks) with 80% of the the portfolio invested in 4-6 sectors (that can grow faster than GDP). While we like the concept of a focused sector approach, we would have preferred a more concentrated approach than the defined 80% of the portfolio to be invested in 4-6 sectors (which is not truly concentrated, especially in some of the larger sector definitions).
Fund Performance
The fund has outperformed peers & is amongst the top performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
IME's View on Birla AMC PMS
View on AMC
Birla AMC PMS faces challenges common to large MF-driven PMS firms, such as PMS being treated as an add-on rather than a separate business, high turnover in the investment team, lack of commitment from the CIO, and vague investment strategies. Despite the distribution advantages of the AMC and research resources, MF-driven PMSs usually do not match the success of CIO-led PMS firms.
AMC's Pedigree
Birla AMC is a top-5 Asset Manager in India known for managing mutual fund assets. While being part of a larger asset management house offers synergy benefits, their pedigree in AMC-driven PMS falls short compared to investor-cum-promoter driven PMS's with stable investment teams and defined processes.
AMC Team
Birla PMS has a moderately experienced investment team with synergies from the senior Mutual Fund team. The team has been stable but changes may occur as it is not promoter-driven.
Investment Philosophy
The investment philosophy is vaguely defined, allowing fund managers flexibility to invest in various sectors and styles.
Aditya Birla Capital Select Sector Portfolio- Investment Strategy
Aims to invest in India growth story by focusing on sectors with strong operating dynamics and growth visibility
Birla PMS’s Select Sector Portfolio follows a focused approach (80% of the portfolio to be invested in 4-6 sectors) of investing in sectors with strong operating dynamics and growth visibility, that are core to the India growth story.Investment Philosophy
Top-Down Top-down approach focuses on identifying recurring winners that have consistently created value. The philosophy identifies sectors that grow faster than the GDP. Companies that are identified through top-down approach operate in favourable industries and have the potential for consistent profitability (reflecting in return ratios such as ROEs and ROCEs) Bottom-Up Bottom-up approach is used to identify misprice companies and buy them at a discount to the fundamental value. This approach uses pitroski score and focusses on extensive fundamental research (company strategy, management and execution) Top-down and Bottom-up Approach The strategy uses both top-down and bottom-up approaches to identify 'recurring winners' and 'mispriced' companies respectively to build a portfolio of 25-30 companies.Investment Process
- Track the Investment Universe on a monthly basis (by applying Quantitative Screeners & IP) tracking [Recurring Winner, Piotronski Score, ROE & D/E Filters]
- Reject 80% of the companies which do not filter through the screeners. (using an Extensive Fundamental Research) by checking [Management meetings, Dealer/channel checks, Plant/ Factory visits]
- Around half of remaining companies pass this filter (Value investing & Portfolio optimisation) looking at [Valuation Screener, Potential upside of 100% in 3-4 years]
- Select 25-30 quality companies with high growth and potential upside.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Birla AMC Select Sector | 2.7 | 24.4 | 30.1 | 17.1 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 12.8 |
| Alpha over Broad Mkt BM | 9.3 | 9.7 | 10.9 | 4.3 |
Performance as of: 30-Sep-25 | Inception Date: 06-Oct-09 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Sameer Narayan | 2-star rated FM
Head | 24 yrs Experience | 5 yrs at current firm
Past Experience: SVP-Adani Advisory
Sameer has more than 20 years of experience in Indian equity markets. In his role as Principal Officer, Sameer will be responsible for the PMS division within the firm. His last assignment was with Adani Advisory LLP as Sr. Vice President where he established the Family Office and was responsible for advising investments in Indian equities. In the past, he has also worked with BNP Paribas Investments managing onshore and offshore funds under Portfolio Management Services. Sameer has also worked with SSKI, Enam Securities and Motilal Oswal in the Research Function. He holds Masters in Management Studies (MMS) from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai and B.E degree with specialization in Production Engineering.
Salvin Shah | 2-star rated FM
FM | 15 yrs Experience | 4 yrs at current firm
Past Experience: Sanctum, Edelweiss Securities & Athena Investment Management
Salvin Shah has 10+ years in Portfolio Management and Equity Research, He has extensive experience in managing Indian Equities. He has been successful at identifying themes and stocks at a very early stage which has resulted in multi-bagger returns for the investors. Prior to joining Aditya Birla AMC, he worked with Sanctum Wealth Management as Co-fund Manager in their PMS business. Before Sanctum, Salvin was a part of equity research team at Edelweiss Securities and Athena Investment Management.
