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Birla AMC Top 200 Core Equity

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Investment Option: It is important that a large-cap PMS strategy has something that differentiates it from a mutual fund, but we do not see any traits in Birla PMS Top 200 CEP portfolio that would be a better option than MF.

IME Strategy Rating

Loosely Defined Large-cap Strategy: Top 200 Core Equity Portfolio is a large-cap strategy, most large-cap strategies are more tightly defined as investing in the top-50 or the top-100 companies, as compared to the top-200 companies (which leads to confusion on whether this is a large-cap or multi-cap strategy).

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Birla AMC Top 200 Core Equity

Type: Large & Midcap | GARP | AUM (39 cr) | Inc Date (27 May 2015)

Aditya Birla Capital Top 200 Core Equity Portfolio- Investment Strategy

Focus on top 200 companies by market capitalisation

Birla PMS’s Top 200 Core Equity Portfolio is a large-cap oriented strategy, that invests in the top-200 companies by market capitalisation. The focus is on businesses that consistently create value in industries with favourable operating dynamics. The portfolio will invest in between 25-30 stocks.

Investment Strategy

The main aim of top 200 core equity is to seek for companies that have the potential for wealth creation and are value drivers. 

Top 200 Core Equity look for industry that are recurring winner and have a strong operating dynamics. These companies should have consistently thrown up winning stocks over past 10 years. 

The way they define wealth creation is by owing high quality businesses with cosistent growth/returns profile. The companies need to be resilient and should follow benchmark-agnostic. Also have a cap of 10% on individual stocks at cost. The stock selection ad industry allocation independent of benchmark weights. 

Value drivers are driven by companies having sustainable ROEs/ROCEs and earnings growth. Investing in high quality franchise, product, service having superior management team ad attractive valuations. 

Investment Philosophy 

Focuses on identifying recurring winners that have consistently created value. The philosophy identifies sectors that are key to wealth creation by looking at company having consistent growth/returns profile, high ROEs. ROCEs

Top 200 Core Equity portfolio uses a unique strategy based on superior IP/screeners. Following an extensive research to identify future winners. Also uses a comprehensive alert system to track industry wise valuations which include Recurring winners study, Piotrosky Scores.

Follows a value investing approach to generate alpha returns. Identifying medium and long term misprice companies and buy them at a discount to the fundamental value. 

Seeking for those industry that have sustainable growth over long terms. 

Investment Process

  1. Track the Investment Universe on a monthly basis (by applying Quantitative Screeners & IP) tracking [Recurring Winner, Piotronski Score, ROE & D/E  Filters]
  2. 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]
  3. Around half of remaining companies pass this filter (Value investing & Portfolio optimisation) looking at [Valuation Screener, Potential upside of 100% in 3-4 years]
  4. Select 25-30 quality companies with high growth and potential upside.

Trailing Performance

1yr 3yr 5yr Since Inception
Birla AMC Top 200 Core Equity 36.2 19.4 19.2 13.7
S&P BSE 500 TRI 39.5 19.5 19 13.1
Alpha over Broad Mkt BM -3.3 -0.1 0.2 0.6
Nifty 500 38.4 18.1 17.5
Alpha over Category BM -2.2 1.3 1.7

Performance as of: 28-Feb-23 | Inception Date: 27-May-15

Fund Managers

Natasha Lulla | 3-star rated FM

Fund Manager | 17 yrs Experience | 12 yrs at current firm

Past Experience: Goldman Sachs (Analyst)

Natasha has been with Birla AMC PMS for over 8 years, having joined Birla AMC as a analyst in Apr-2012. Prior to joining Birla, Natasha worked as an Analyst at Goldman Sachs.

Vishal Gajwani | 2-star rated FM

Fund Manager | 18 yrs Experience | 7 yrs at current firm

Past Experience: Birla MF (FM), Reliance Capital (Asst FM)

Vishal has over a decade of buy-side equity experience, having worked as analyst at Reliance AMC, prior to joining BIrla MF where he worked as a Fund Manager prior to joining the PMS division.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1% fixed + 20% above 12% hurdle
Exit Fees1yr(2%), 2yr(1%)

AMC

AMC: Birla AMC PMS (click link for detailed AMC review)

Not a top recommendation due to being an AMC-driven PMS: Birla AMC PMS suffers from the common ailments of large AMC-driven PMS houses (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies). While the distribution strengths of the AMC can help the PMS scale and there are benefits of research access, most AMC driven PMS's cannot compare to strong CIO-cum-founder driven PMS houses.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

1 of 5 stars

Performance

2 of 5 stars

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