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ICICI Pru Largecap

Scheme Rating

IME Scheme Rating

3 of 5 stars

Can be considered for investment: ICICI Pru Large-cap focuses on investing in larger-companies. While ICICI Pru PMS suffers from common MF-founded PMS concerns (churn in the investment team, lack of a tightly defined investment strategy), we take into cognisanse it’s strong & consistent performance since inception & the presence of Anand Shah (a senior investment professional). While not our top-rated contra-investing scheme (contra investing in particular can be difficult in a larger AMC), ICICI Pru PMS Large-cap can be considered for investments by more conservative investors.

IME Strategy Rating

2 of 5 stars

Diverified Large Cap Strategy: The Largecap Strategy is a diversified equity portfolio that endeavours to achieve long term capital appreciation by investing predominantly in large-cap companies.

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 Largecap

Type: Large Cap | GARP | AUM (48 cr) | Inc Date (16 Mar 2009)

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

  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.

Trailing Performance

1yr 3yr 5yr Since Inception
ICICI Pru Largecap 52.3 24.3 24.7 17.7
S&P BSE 500 TRI 38.9 21.1 22.5 16.9
Alpha over Broad Mkt BM 13.4 3.2 2.2 0.8
Nifty 50 TRI 27.8 17.9 18.9
Alpha over Category BM 24.5 6.4 5.8

Performance as of: 31-Jul-24 | Inception Date: 16-Mar-09

Fund Managers

Anand Shah | 4-star rated FM

Fund Manager | 24 yrs Experience | 4 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 + 15% 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 MF-driven PMS: ICICI Pru PMS suffers from the common ailments of large MF-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 MF driven 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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