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ICICI Pru Flexi-cap Shariah

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Can Consider as Investment Option: Looking at the mature strategy but our problem is not at the strategy level, but at the PMS level where multiple FM changes over some time make it difficult to judge the long-term track record (and sustainability) of the strategy.

IME Strategy Rating

Concentrated Flexi-Cap Approach: The Strategy employs a flexi-cap approach with a focused portfolio of 25-30 stocks, identifying prominent businesses with competent management at reasonable valuations. It is a fairly flexible strategy that allows the fund manager to move across market capitalisations, styles and sectors based on where the most interesting investment opportunities are presented

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 ICICI Pru Flexi-cap Shariah

Type: Large & Midcap | GARP | AUM (23.1 cr) | Inc Date (21 October 2022)

ICICI Flexi Cap- Investment Strategy

ICICI Pru Flexicap Strategy comprises a 'Core' and 'Satellite' Portfolio strategy

  • Core portfolio could be 60% – 70% is predominantly targeted towards sectors that are valued on an absolute and relative basis.
  • Satellite portfolio will be a blend of investment strategies that are aimed to be in line with the GARP (Growth at Reasonable Price) Philosophy. This bucket will be used opportunistically to book profit and increase the weight of Core Portfolio.

Investment Strategy

ICICI Flexi Cap follows a benchmark agnostic having a broad-based market cap range. Their main investment style is of Core and Satellite approach with a  blend of value & Growth. Flexicap is a diversification across market cap and sectors. ICICI Pru Flexicap’s investment style is to follows a top-down and bottom-up approach with prominence varying with microeconomic, sectoral and company specific fundamentals. 

Investment Framework 

They utilise a 3 filter framework in order to search for companies with meaningful and sustainable earnings growth

  1. Business
  2. Management 
  3. 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.

INVESTMENT PROCESS

  • Screening: Initial in-house screening to filter 2500 companies.
  • Coverage: 450 companies are evaluated based on active coverage of the company.
  • BMV Filtration: 100-150 are selected based on BMV filtration.
  • Opportunities: Identifying 40-45 potential opportunities
  • Sizing: The portfolio is constructed with 25-30 companies.

Trailing Performance

1yr 3yr 5yr Since Inception
ICICI Pru Flexi-cap Shariah 51.6 38.4
S&P BSE 500 TRI 34.7 23.8
Alpha over Broad Mkt BM 16.9 14.6
Nifty 500 33.8
Alpha over Category BM 17.8

Performance as of: 31-May-24 | Inception Date: 21-Oct-22

Fund Managers

Anand Shah | 4-star rated FM

Fund Manager | 24 yrs Experience | 3 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)

Chockalingam Narayanan

Fund Manager

Chockalingam Narayanan has over 17 years of extensive experience in Fund Management, Investment Research and Market Analysis. He has been instrumental in analysing business fundamentals to derive relevant and actionable analysis that has portfolio growth. He is consistently relied upon for providing detailed analysis of the macro-economy, financial markets and ESG that serve as some of the key foundation pillars for the various investment strategies that he has worked with in his career. In his career, he has earlier worked with leading organisations like Baroda BNP Paribas Asset Management India Pvt Ltd, Deutsche Equities India Private Limited and Batlivala & Karani Securities.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% fixed + 20% above 10% hurdle
Exit Fees1yr (1%)

AMC

AMC: ICICI Pru PMS (click link for detailed AMC review)

Not a top recommendation due to being an AMC-driven PMS: ICICI Pru PMS suffers from the common ailments of large AMC-driven PMS houses (PMS as an add-on instead of a 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 drove PMSs cannot compare to strong CIO-cum-founder driven PMS houses.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

2 of 5 stars

Performance

3 of 5 stars

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