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ASK Indian Entrepreneur (IEP)

Scheme Rating

IME Scheme Rating

4 of 5 stars

Highly Recommended for more Conservative Investors: ASK IEP (Indian Entrepreneur Fund) focuses on investing in Indian businesses where the founder/promoter holding must be greater than 25%. This is driven by a philosophy that a high quality promoter, is instrumental in driving business growth. The strategy was launched in 2010, and has a very strong long-term track record. However, performance has dipped significantly since 2022 (can be partly linked to the strong outperformance of small-caps, while IEP has a much higher large & mid exposure), which we would expect to rebound given the strong pedigree of both the investment team and the longer-term track record of this strategy.

IME Strategy Rating

5 of 5 stars

Focused on Promoter Run Companies: Focuses on investing in promoter-run companies, driven by a belief that a high-quality promoter is key to driving strong business growth. Portfolio seeks high-quality businesses with strong earnings growth (without capital dilution) with a sizeable growth runway. It has about 10-year track record delivering consistent returns. Performing well since inception.

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 ASK Indian Entrepreneur (IEP)

Type: Large & Midcap | GARP | AUM (15406.7 cr) | Inc Date (25 Jan 2010)

Investment Philosophy

ASK’s Indian Entrepreneur Portfolio (IEP) focuses on companies run by Indian entrepreneurs with adequate skin in the game (a high level of promoter ownership). The aim is to identify promoters who have demonstrated high standards of governance, vision, execution, capital allocation, and capital distribution skills. Within this universe, the portfolio seeks out high-quality businesses that have strong earnings growth (without capital dilution) with a sizeable growth runway.

Key Investment Attributes

Investments in ASK India Select Portfolio are driven by the following key investment attributes:

  • Size of Opportunity: Size of Pond vs. Size of Fish, Dominance, Resilience, Liquidity
  • Quality of Business: High quality of business (superior ROCE), Strong moat, Impregnability, Sustainability, Key pivot of strong wealth creation 
  • Earnings Growth: Quantum, Consistency, Durability, Predating (early vs later), Compounding power
  • Value: Favourable price-value gap, Margin of Safety
  • Management Quality: Good management quality is a given constant

Investment Process

The investment process is driven by a gradual filtering down of companies in a wider universe, based on specific criteria that ASK focuses on:

  • 500: Start with top 500 as per mkt cap 
  • 306: Companies with >25% promoter/family holding
  • 210: Condition of minimum 100 Cr Trailing PBT
  • 123: Subjective evaluation of management quality, vision, capital allocation, past track record, corporate governance standards among others
  • 59: Rigorous filters of minimum of 25% of ROCE (capital efficiency)
  • 20: Finally an investment approach emerges of 20 businesses based on 1) earnings growth of 20-25% over the next 3-5 years without capital dilution and 2) margin of safety of 20% on intrinsic value

Trailing Performance

1yr 3yr 5yr Since Inception
ASK Indian Entrepreneur (IEP) 19.1 10.9 14.4 17.4
S&P BSE 500 TRI 34.7 18 18 13.4
Alpha over Broad Mkt BM -15.6 -7.1 -3.6 4
Nifty 500 33.8 16.9 16.6
Alpha over Category BM -14.7 -6 -2.2

Performance as of: 31-May-24 | Inception Date: 25-Jan-10

Fund Managers

Sumit Jain | 4-star rated FM

CIO | 19 yrs Experience | 19 yrs at current firm

Past Experience: First Global (Analyst)

Sumit has been with the ASK group for over 15 years, having started as an analyst to now being responsible for managing portfolios. Prior to joining ASK, Sumit worked as an analyst at First Global tracking the US macroeconomy and the FMCG sector.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% fixed + 20% above 8% hurdle
Exit Fees3yr(1%)

AMC

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

Highly recommended for more conservative investors: ASK has a number of positives, which has led to them becoming the market leader. Strict adherence to a clearly defined investment policy, along with a strong & stable in-house grown investment team, is what helps set them apart and deliver consistent and attractive long-term returns. The majority stake (75%) of ASK's asset management business was acquired by Blackstone in Feb-22. We have recently downgraded ASK's rating to 4-star, keeping in mind the sharp underperfomance since 2022 (which we believe should be transitory in nature). As performance comes back, ASK's rating could be upgraded to a 5-star.

AMC Rating

4 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

3 of 5 stars

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