Spark Asia India@75 Core & Satellite
Spark Asia PMS | Equity | | PMSIME's View on Spark Asia India@75 Core & Satellite
Strategy
Core & Satellite Approach
Investment Fund
Spark Asia, backed by well-known Spark Capital in the capital markets, is a reasonable option driven by the CIO experience. However, we point out that the strategy/firm is still relatively young. We also note that the AMC is backed by larger financial house, which could lead to churn in senior management of the AMC due to lack of stake for CIO/FM in the firm.
Fund's Strategy View
Spark seeks to invest in a portfolio composed of 12-18 stocks built using a Flexicap approach. The strategy aims to capture on rotational sector momentum - with the core portfolio focused on high-conviction long-term postitions (>12 months), while the satellite portfolio focuses on names with high current momentum on account of near-term business drivers & event-related triggers (shorter-holding periods).
Fund Performance
The fund has outperformed peers in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been highly consistent, with the fund having outperformed it's benchmark in over 80% of annual calendar years.
IME's View on Spark Asia PMS
View on AMC
Spark Capital AMC has potential to become a credible player in the future due to its strong niche institutional equities business and highly seasoned CIO. However, investors should wait for a more established track record and clearer investment philosophy. Spark Asia PMS, a part of Spark Capital, faces the risk of senior leadership turnover due to a lack of controlling ownership for CIO/FM.
AMC's Pedigree
Spark Capital is a respected financial services group known for its niche presence in investment banking and institutional equities. Their PMS business is still in its early stages and has yet to establish credibility.
AMC Team
P Krishnan, CIO of Spark PMS, has over 30 years of investment experience with a long-term track record at DNB Asset Management for 19 years. His equity ownership at Spark Capital is unknown, raising questions about his long-term commitment to the business.
Investment Philosophy
Spark PMS follows a GARP investment philosophy with 6 core pillars: fair asset pricing, shorter business cycles, prioritizing alpha over beta, risk management, management hygiene factors, and maintaining flexibility.
Spark India at 75 Core and Satellite- Investment Strategy
Spark India at 75 Core and Satellite is a multi-cap strategy. Portfolio composition of between 12-18 stocks built using a flexicap approach. Core of the portfolio is strategic while the satellite component of the portfolio focuses on tactical capital deployment.Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Spark Asia India@75 Core & Satellite | -9.6 | 17.6 | 23 | 19.4 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 14 |
| Alpha over Broad Mkt BM | -3 | 2.9 | 3.8 | 5.4 |
Performance as of: 30-Sep-25 | Inception Date: 20-Jun-19 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
P. Krishnan | 4-star rated FM
CIO
Past Experience: Manager (Carlson Funds and DNB Asset Management, Norway) ,Fund Manager (Kothari Pioneer Bluechip Fund aka Franklin Indian Bluechip Fund), Manager (SBI Mutual Fund)
Krishnan has about 3 decades of experience in asset management and equities. He has experience in regional emerging markets such as China, Taiwan, Korea and the ASEAN region. He was the manager of India's first bank-sponsored mutual fund scheme (SBI Mutual Fund) between 1990 and 1992. He was also the fund manager of India's first private sector mutual fund Kothari Pioneer Bluechip Fund which is now Franklin India Bluechip. During his stint with DNB Asset Management, Norway, Krishnan had gained great experience in the Asian EMs.
