Nippon Economic Transformation Rebalancing
Nippon India PMS | Equity | | PMSIME's View on Nippon Economic Transformation Rebalancing
Strategy
Growth through Japanese investments
Investment Fund
This scheme is currently not under our coverage universe.
Fund's Strategy View
The Nippon Economic Transformation Rebalancing fund aims to achieve long-term capital growth by investing primarily in Japanese equities and fixed income securities, with a focus on companies that are positioned to benefit from economic reforms and structural changes in Japan. The fund may also allocate a portion of its assets to international securities to enhance diversification and capitalize on global trends impacting the Japanese economy.
Fund Performance
The fund has underperformed peers in the last 5yr trailing returns.
IME's View on Nippon India PMS
View on AMC
Nippon India AMC PMS faces challenges common to large MF-driven PMS houses, such as PMS being an add-on instead of a distinct business unit, turnover in the investment team, lack of commitment from the CIO, and vague investment philosophies. Despite potential advantages like distribution support and research access, MF-driven PMS's generally do not match the performance of founder-driven PMS houses with strong CIO leadership. In addition, with Nippon PMS having recently experienced senior team churn, we would wait for the new team to stabalise prior to recommending Nippon PMS funds.
AMC's Pedigree
Nippon India AMC is a top-5 asset manager in India, known for managing mutual fund assets. While being part of a larger asset management house has its benefits, their pedigree in PMS cannot compare to investor-driven PMS companies with stable investment teams and defined processes.
AMC Team
High FM/team churn risk for AMC-driven PMS firms due to lack of stake in the firm. Varun Goel, with Nippon PMS since 2017, left in Mar-24 to join Mirae MF.
Investment Philosophy
The investment philosophy focuses on being benchmark agnostic, concentration, and following the Must 5 framework, providing flexibility for interpretation by the fund manager.
Nippon India Indian Economic Transformation- Investment Strategy
Focus on high growth business that benefit economic transformation in India
Nippon India’s Economic Transformation Portfolio is a multi-cap portfolio that seeks to build a focused portfolio of high-growth businesses that stand to benefit from the economic transformation in India (including the shift from unorganized to organized).Investment Strategy
There are certain themes followed that lead to 'Economic transformation' which are:- Informal Economy to Formal Economy- these sectors being Jewellery, Building materials, chemicals, digital, auto components
- Unbranded to Branded (premiumization)- Sectors being consumer durable, FMCG, Apparels, Retail
- Financialisation of Savings- SME/MSME lending, Rural lending, Wealth Management, Insurance & Asset Management
- Increasing Discretionary Spending- Consumer Staples, Healthcare & Wellness, Footwear, Hotels
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Nippon Economic Transformation Rebalancing | -3.2 | 16.2 | 18.4 | 13.4 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 15.8 |
| Alpha over Broad Mkt BM | 3.4 | 1.5 | -0.8 | -2.4 |
Performance as of: 30-Sep-25 | Inception Date: 08-Jul-19 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Rahul Veera | 3-star rated FM
FM | 15 yrs Experience | 2 yrs at current firm
Past Experience: Abakkus (FM), Elara Capital (AVP), Edelweiss (Sr Research Associate)
Rahul Veera currently serves as the Fund Manager (Equity) at Nippon India AIF, boasting over 14 years of extensive experience encompassing Equity Research and Fund Management. He has previously worked with renowned organizations including Abakkus Asset Managers, Morgan Stanley, Edelweiss, and Elara Capital. He holds a Bachelor of Commerce degree from H.R College (Mumbai University), an MBA from Swansea University (UK), and an Executive Finance certification from the Indian Institute of Management (Calcutta).
