ICICI Pru Largecap PMS
ICICI Pru PMS | Equity | | PMSIME's View on ICICI Pru Largecap PMS
Strategy
Investment Fund
The strategy has delivered strong and consistent performance since inception, supported by Anand Shah, a seasoned investment professional. Given its robust track record and disciplined execution, ICICI Pru Large-Cap PMS is highly recommended.
Fund's Strategy View
The Largecap Strategy is a diversified equity portfolio that endeavours to achieve long term capital appreciation by investing predominantly in large-cap companies.
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 ICICI Pru PMS
View on AMC
ICICI Pru PMS has shown a marked improvement under the leadership of Anand Shah as CIO, with stronger alignment between investment philosophy and execution. The AMC has delivered robust performance across strategies, supported by disciplined processes and access to the AMC’s extensive research ecosystem. Backed by ICICI Pru’s strong institutional framework and distribution reach, the PMS business is now demonstrating greater focus and stability, warranting a more constructive outlook.
AMC's Pedigree
ICICI Pru AMC is a top-3 Asset Manager in India, known for managing mutual fund assets. While being part of a larger asset management house has benefits like a central research team and distribution strengths, the AMC-driven PMS lacks the stability and defined processes of investor-cum-promoter driven PMS's.
AMC Team
ICICI Pru PMS previously had high FM churn, but current CIO Anand Shah, a seasoned investment professional and ex-Co-Head Equities at ICICI Pru, has improved the team's credibility. However, there remains a risk of churn as Shah is still employed.
Investment Philosophy
ICICI Pru PMS uses a loosely defined BMV framework (Business, Management, Valuation) in its investment strategy.
ICICI Large Cap- Investment Strategy
ICICI Pru PMS Largecap Strategy aims to invest in a diversified portfolio of large-cap companies, that can grow earnings at a fast pace and are reasonably priced. The strategy aims to generate alpha by active sector rotation through a top-down approach.Strategy seeks to buy
- One of the leaders in the industry in which they operate
- Having a proven business model and effective management
- Have a rapid growth potential over next 3-5 years
- Strong competitive edge and sustainable market share
- Strong financial strength (balance sheet, cash flow & revenue growth)
Investment Framework
They utilise a 3 filter framework in order to search for companies with meaningful and sustainable earnings growth- Business
- Management
- 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.
PMS Background
As part of one of the top-three mutual fund houses in India, ICICI Prudential PMS benefits from the substantial research depth, broker access, corporate access, and distribution strength of the parent mutual fund platform. This institutional backing has enabled ICICI Pru PMS to scale into one of the top-10 PMS houses in the country.
However, being a large AMC-driven PMS, ICICI Pru differs structurally from CIO-cum-founder–led PMS houses. While the platform offers strong process, infrastructure, and access advantages, it lacks the single-point ownership and “skin-in-the-game” alignment typically seen in founder-led PMS setups.
PMS Investment Philosophy
ICICI Pru PMS does not follow a single, house-wide investment philosophy across all strategies. Instead, investment thinking is articulated at the individual strategy level, with a common analytical framework guiding stock selection.
Investment Framework
The investment process is built around a three-filter framework aimed at identifying companies with meaningful and sustainable earnings growth:
- Business
- Management
- Valuation
Business Economics
- Growth: Companies growing faster than their industry, with the industry itself growing faster than the broader market. Emphasis is on structural, long-term growth in businesses that are simple to understand and operate in focused segments.
- Moats: Competitive advantages driven by brand franchise, industry structure, technology or patents, cost advantages, licenses, or distribution strength.
Management and Governance
- Competence: Assessed through sales growth (relative to sector), margin improvement, and efficient capital deployment.
- Governance: Evaluated based on alignment of interests with shareholders and a credible long-term track record.
Valuation
- Cash Focus: Cash flows form the core of the valuation process, including intrinsic value estimates, DCF analysis, dividend yield, and operating cash flow yield.
- Margin of Safety: A higher margin of safety is demanded for businesses with weaker moats to ensure favourable risk–reward outcomes.
Fair Value Discipline
Final investment decisions are driven by an assessment of both cash-flow-based valuation and margin of safety, leading to an internally defined fair value for each stock.
Suitable For
Investors seeking the comfort of a large, established brand with strong institutional processes and access, while being willing to accept higher risk–return profiles than traditional mutual fund strategies.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| ICICI Pru Largecap PMS | 8 | 20.6 | 22.8 | 16.5 |
| S&P BSE 500 | 4.9 | 14.6 | 17.2 | 15.9 |
| Alpha over Broad Mkt BM | 3.1 | 6 | 5.6 | 0.6 |
| Nifty 50 | 9.6 | 12.2 | 15.1 | |
| Alpha over Category BM | -1.6 | 8.4 | 7.7 |
Performance as of: 30-Nov-25 | Inception Date: 16-Mar-09 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Anand Shah | 4-star rated FM
Fund Manager | 26 yrs Experience | 5 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)
Anand Shah is currently serving as the CIO at ICICI Prudential AMC. He brings over two decades of fund management experience, having earlier worked with ICICI Prudential AMC as Co-Head Equities. Before rejoining ICICI, he was CEO at NJ AMC, Deputy CEO and Head of Investments at BNP Paribas AMC for nearly nine years, and Head of Equities at Canara Robeco AMC. His career also includes key roles at Kotak AMC.
Chockalingam Narayanan | 4-star rated FM
Fund Manager
Past Experience: Fund Manager (BNP Paribas), Deutche Equities, Batlivala & Karani Securities
Narayanan has 15+ years of experience in fund management, and investment research. Prior to joining ICICI Pru AMC, he was at BNP Paribas, Deutche Equities and Batlivala & Karani Securities. He has a PGDM from TA Pai Management Institute, Manipal. He also passed the FRM certification by Global Association of Risk Professionals, USA.
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