Motilal AMC Value Migration
Motilal Oswal AMC PMS | Equity | | PMSIME's View on Motilal AMC Value Migration
Strategy
Investment Fund
Motilal has the credentials for a strong PMS strategy, and with recent performance recovery, Motilal Value Migration has demonstrated improved execution and outcomes. Given the turnaround and renewed consistency, we are now upgrading the strategy to highly recommended.
Fund's Strategy View
Oldest PMS strategies in the market with a strong long-term track record. Aims to benefit from long-term compounding effect on investment. Categorized as a large-cap strategy but has reasonable exposure to mid-cap stocks in the portfolio. Investing in good business run by great business managers also provide fund managers flexibility to invest across sectors & 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 consistency is weak, with the fund having underperformed it's benchmark in more years than having outperformed.
IME's View on Motilal Oswal AMC PMS
View on AMC
Motilal PMS, co-founded by a respected investor, offers strong pedigree, robust processes, and stability backed by its broking and mutual fund arms. However, strategy performance has been weak in recent years amid significant churn in the core investment team. While recent results show signs of improvement, a sustained turnaround under the new team remains to be seen.
AMC's Pedigree
Motilal PMS has a strong investment pedigree in India, thanks to co-founder Ramdeo Agarwal's philosophy and processes.
AMC Team
Motilal has experienced significant turnover in its investment team in recent years. CIO Manish Sonthalia and several other team members have left. Prateek Agarwal has replaced Manish and is working to improve underperforming PMS strategies. It is too soon to assess the impact of Prateek's changes on Motilal's investment approach and performance.
Investment Philosophy
Motilal Oswal's QGLP investment philosophy focuses on identifying Quality businesses with strong fundamentals and management, possessing robust Growth potential in earnings and ROE. They prioritize the Longevity of these companies' competitive advantages, ensuring sustained performance. Finally, the "P" emphasizes buying these exceptional businesses at a Reasonable Price to ensure a margin of safety, aiming for long-term wealth creation through a disciplined approach. Motilal follows a long-term investment philosophy focused on high-quality companies meeting their QGLP criteria for over 20 years, resulting in consistent and attractive returns with minimal style drift.
Motilal Oswal Value- Investment Strategy
Focusing on good businesses that are run by great business managers for superior wealth creation
Motilal’s Value Strategy aims to benefit from the long term compounding effect on investments done in good businesses, run by great business managers for superior wealth creation.Investment Philosophy
Motilal has a very clearly defined investment philosophy of long-term investing in high quality companies that meet their QGLP investment criteria. They have followed this strategy consistently for over 2 decades, with limited style drift. The QGLP Framework:- Quality of the Business and Quality of the Management: Stable businesses preferable consumer facing, with huge business opportunity and sustainable competitive advantages. Businesses run by competent management.
- Growth in Earnings: Driven by volume growth, price growth, mix change, operating and financial leverage.
- Longevity (of Quality and Growth): Dictated by long-term relevance of the business, extending competitive advantage period and sustenance of growth momentum.
- Price: Reasonable valuation, relative to quality and growth prospects with high margin of safety.
Value Migration Overview
- Inter-country Migration: The Indian IT and Pharma
- Inter-industry migration in same country: From Railways to Airlines
- Inter-company migration in same industry: From Public sector to private sector in Indian Banks and Telecom spaces
- One segment to another in the same company: Telecom has seen value migrating from Voice to Data
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Motilal AMC Value Migration | -4.9 | 23.3 | 22.7 | 19.7 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 17.7 |
| Alpha over Broad Mkt BM | 1.7 | 8.6 | 3.5 | 2 |
| Nifty 50 TRI | -3.5 | 14.2 | 18.4 | |
| Alpha over Category BM | -1.4 | 9.1 | 4.3 |
Performance as of: 30-Sep-25 | Inception Date: 18-Feb-03 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Prateek Agrawal | 5-star rated FM
Executive Director | 31 yrs Experience | 3 yrs at current firm
Past Experience: BoI AXA MF (Head of Equity), BNP Paribas MF (Head of Equity), SBI Capital Markets (Head of Research)
Prateek is the CEO of Motilal Oswal AMC. He has over 3 decades of experience in fund management and research, having worked in senior positions in BoI AXA MF, BNP Paribas MF, SBI Capital Markets and ASK. In his last stint at ASK, he was spearheaded the growth of ASK PMS over this period.
Abhishek Anand | 3-star rated FM
Fund Manager | 22 yrs Experience | 2 yrs at current firm
Past Experience: Centrum Wealth Management, Centrum Broking, SBI Capital Markets, Dun & Bradstreet, CMIE
Abhishek Anand has 20+ years of experience with 8 years in institutional equity research covering sectors such as Telecom, Media, IT & Consumer. He has won the Starmine Top Analyst Award for 2011-12 and 2012-13 by Thomson Reuters. His previous assignments were with the institutional research division of SBI Capital Markets, Dun & Bradstreet, and CMIE.
Rakesh Tarway | 3-star rated FM
Fund Manager | 20 yrs Experience | 7 yrs at current firm
Past Experience: Reliance Securities (Head of Research), Motilal Securities (Head of Research), HSBC InvestDirect (Analyst)
Rakesh is a seasoned equity research professional, with a focus on identifying emerging businesses in the small & mid-cap sectors.
Vaibhav Agarwal | 1-star rated FM
Fund Manager | 14 yrs Experience | 4 yrs at current firm
Past Experience: Analyst bank loan Ratings(Crisil)
Vaibhav Agrwal is the founder of Teji Mandi, which is a platform aimed at helping retail investors in india navigate the volatility of the markets through affordable and quality advisory. He has managed a proprietary pms and has over a decade experience in stock picking and generating index-beating returns.
