Invesco DAWN- Investment Strategy
Following a flexible approach of investing in stocks & sectors to benefit from cyclical recovery
Invesco PMS’s DAWN strategy is a portfolio focused on investing in stocks & sectors that are expected to benefit from a cyclical recovery. This would include companies benefiting from an uptick in their business/economic cycle, companies with strong operating & financial leverage, and stocks that are currently out of market favor. The portfolio will be built on a bottom-up basis, without bias towards market capitalizations or sectors, with a focus on the following characteristics:
- D: seeking for business to find Demand recovery across cyclical & consumer discretionary sectors
- A: Businesses with Attractive valuation to provide margin of safety
- W: Winning companies on the cusp of a new demand cycle leading to operating & financial leverage efficiencies
- N: New credit & investment cycle to provide a boost to earnings recovery
Investment Strategy
Invesco DAWN follows the strategy focusing on these elements:
- Cyclical Recovery: Companies in the period of transition from recession to expansion as part of business cycle that are affected by ups and downs in the overall economy
- Operating & Financial Leverage: Seeking for companies that have the potential to make more operating profit & net operating profit for each additional sales as demand recovers.
- Value: Seeking for companies that are trading below their intrinsic value.
Investment Process:
The investment process is driven by filtering companies on a 5 Benchmark Indices and selecting a bottom-up ideas of a 313 stocks.
- Stock Categorization Framework:Categorizing stock of 153 stocks
- Portfolio Universe: Building a portfolio universe of 65 stocks.
- Portfolio: Final portfolio consists of 15-25 stocks.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Invesco Dawn | -0.3 | 14 | 25.5 | 10.1 |
| S&P BSE 500 | 4.8 | 12.3 | 24.8 | 14 |
| Alpha over Broad Mkt BM | -5.1 | 1.7 | 0.7 | -3.9 |
| Nifty 50 TRI | 6.7 | 11.8 | 23.7 | |
| Alpha over Category BM | -7 | 2.2 | 1.8 |
Performance as of: 31-Mar-25 | Inception Date: 28-Aug-17
Fund Managers
Amit Nigam | 4-star rated FM
Fund Manager | 24 yrs Experience | 7 yrs at current firm
Past Experience: Essel AMC (Head-Equities), BNP Paribas (FM), SBI MF (Analyst)
Amit has close to 2 decades of investment experience, with fund management and research experience in Essel AMC, BNP Paribas and SBI Mutual Fund. He joined Invesco PMS in Apr-2018.
Taher Badshah | 4-star rated FM
CIO | 31 yrs Experience | 8 yrs at current firm
Past Experience: Motilal AMC (Head Equities), Kotak International (FM), ICICI Pru PMS (FM)
With over 25 years of investment management experience, Taher is the CIO of Invesco AMC (overseeing both the MF & PMS divisions). Taher was responsible for the stellar growth of Motilal AMC, where he was head of equities over Jun-2010 to Dec-2016. His prior fund management experience includes managing funds at Kotak International and ICICI Pru PMS.
Neelesh Dhamnaskar
Principal Officer & Fund Manager | 20 yrs Experience | 15 yrs at current firm
Past Experience: Research Analyst( Enam Securities)
Neelesh has over 17 years’ experience in equity markets and financial services domain. Before joining the PMS division of Invesco, Neelesh was managing few equity funds, overseas fund of fund schemes of Invesco Mutual Fund as well as tracking few sectors as an analyst. He was previously working with Enam(now a part of Axis Bank) where he was tracking companies across sectors and assisting the PMS Fund Manager in his investment decisions. Prior to this, he was working with KRC, a domestic broking house in equity research and has also worked with Anand Rathi Securities Limited as a Commodities Research Analyst. Neelesh holds a Commerce degree and an MMS degree with specialization in Finance from Mumbai University
Fee Structure
| Fee Structure | Fee |
|---|---|
| Fixed Fee Structure | 2.5 |
| Variable Fee Structures | 1.25% fixed + 15% above 10% hurdle |
| Exit Fees | 1yr(3%), 2yr(2%) |
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