How India’s largest PMS strategies are performing
Data from SEBI portfolio manager monthly report gives a dekho into PMS performance of firms like Enam, IIFL, Motilal Oswal and Alchemy
Portfolio management services (PMS) is becoming a popular investment route for wealthy Indians. Offering customization, concentration and unique strategies, PMSes have become a big hit with the rich. In this article, we take a look at some of the biggest PMS houses in terms of assets and how their key strategies performed. Thanks to SEBI norms, all PMS houses have to submit strategy return disclosures each month and comparative benchmark returns for 1 month and 1 year time-frames.
Tracing its legacy to 1984, Enam Holdings is a privately owned and managed firm that makes long-term investments in listed companies, as well as backs entrepreneurs building valuable private companies. While it employs fundamental, bottoms-up research to identify companies with sustainable competitive advantages and execution capabilities, Enam is extremely focussed on the quality of management teams and governance frameworks of the companies it invests in. As an ethical investment firm, it does not invest in businesses that involve intoxication, gambling or anything that harms living creatures. Enam’s management team comprises Vallabh Bhanshali, Nemish Shah, Akash Bhanshali, Manish Chokhani, Gautam Jain, Sridhar Sivaram and Ajay Bhatia.
As on April 30, 2021, Enam managed assets worth Rs 24,782 crore across 701 clients.
For the 1 month ended April 2021, ENAM India Equity strategy, with Rs 16,480 crore assets, clocked 1.2 per cent return compared to 0.41 per cent for Nifty 500. For the one-year ended April 2021, the strategy did 62.24 per cent return versus benchmark’s 54.31 per cent.
Enam India Core Equity, with Rs 4,938 crore assets, in the 1-month period clocked 1.01 per cent versus Nifty 500’s 0.41 per cent and in the 1 year period clocked 74.32 per cent versus the index’s 54.31 per cent.
Enam India Diversified Equity Advantage strategy, with Rs 2,107 crore assets, reported 1-month performance of 1.35 per cent and 1 year gain of 61.57 per cent.
ASK Investment Managers
ASK Investment Managers was one of the first companies to obtain a portfolio management services license in India. It is a big player in both discretionary listed equity portfolio management services and discretionary equity overall portfolio management services. It invests only in listed Indian equities for clientele who are India domiciled, as well as offshore, through segregated accounts and commingled funds. Bharat Shah is the ED of ASK Group and Prateek Agrawal is Business Head & CIO.
As on April 30, 2021, ASK managed assets worth Rs 24,425 crore across 19,969 clients.
For the 1-month ended April 2021, ASK Indian Entrepreneur Portfolio, with Rs 13,941 crore assets, clocked 1.29 per cent return compared to 0.45 per cent of BSE 500. For the 1-year ended April 2021, the IEP strategy showed 53.77 per cent return, under-performing the benchmark’s 54.78 per cent.
ASK India Select Portfolio, with Rs 3,562 crore assets, in the 1-month period clocked 1.93 per cent versus BSE 500’s 0.45 per cent and in the 1 year period clocked a rise of 39.58 per cent, lagging the index’s 54.78 per cent gain.
ASK Growth Portfolio strategy, with Rs 1,979 crore assets, reported a gain of 1-month of 2.58 per cent and 1-year gain of 47.84 per cent. Its benchmark NIFTY 50 clocked 1-month loss of 0.41 per cent and 1-year return of 48.39 per cent, which is higher than the ASK Growth Portfolio gain.
Motilal Oswal Financial Services (MOFSL), is a well-diversified financial services company focused on wealth creation through knowledge. The company was founded in 1987 as a small sub-broking unit with two promoters and a peon. It runs one of the biggest PMS set-ups in the country. The management is led by Motilal Oswal, Raamdeo Agrawal, and Navin Agarwal.
As on April 30, 2021, Motilal Oswal AMC’s PMS managed assets worth Rs 14,433 crore across 21,164 clients.
For the 1 month ended April 2021, Next Trillion Dollar Opportunity Strategy, with Rs 7,741 crore assets, clocked -0.88 per cent return compared to 0.45 per cent of Nifty 500 TR. For the 1-year ended April 2021, the NTDOP strategy showed 51 per cent return, under-performing the benchmark’s 55.74 per cent rise.
Value Strategy, with Rs 2,016 crore assets, in the 1-month period clocked 0.5 per cent versus Nifty 50 TRI’s -0.36 per cent return and in the 1 year period clocked a rise of 40.94 per cent, lagging the index’s 49.89 per cent gain.
India Opportunities Portfolio Strategy, with Rs 1,935 crore assets, reported -0.6 per cent return for 1 month period and 1 year gain of 54.61 per cent. This was a sharp under-performance compared to its benchmark NIFTY Smallcap 100 TRI that clocked 5.6 per cent 1 month gain and 1 year gain of a whopping 111.71 per cent.
IIFL Asset Management
IIFL Asset Management is one the biggest portfolio managers and broadly offers Discretionary, Non-Discretionary and Advisory services. Its research & investments employ a top-down approach to identify select sectors with the best prospects while simultaneously picking stocks within these sectors based on a bottom-up, fundamentals-based approach. The portfolios are concentrated, risk-adjusted etc.
As on April 30, 2021, IIFL Asset Management under PMS managed assets worth Rs 11,443 crore across 7,455 clients.
For the 1 month ended April 2021, IIFL Multicap PMS Strategy, with Rs 2,491 crore assets, clocked a 1.86 per cent return compared to 0.17 per cent of BSE 200 TRI. For the 1-year ended April 2021, the Multicap PMS strategy showed 51.91 per cent return, under-performing the benchmark’s 53.92 per cent rise.
Customised Discretionary Portfolio, with Rs 3,909 crore assets, in the 1 month period clocked 1.17 per cent versus Nifty 50’s -0.41 per cent return and in the 1-year period clocked a rise of 23.78 per cent, lagging the index’s 48.39 per cent gain.
IIFL Multicap Advantage PMS Strategy, with Rs 895 crore assets, reported 2.28 per cent return for 1 month period and 1 year gain of 42.02 per cent. The 1 year strategy return was a sharp under-performance compared to its benchmark BSE 200 TR that clocked 1 year gain of 53.92 per cent.
Lashit Sanghvi, Ashwin Kedia, Rakesh Jhunjhunwala and Hiren Ved founded Alchemy Capital Management in 1999. It is currently one of the largest Portfolio Management Services (PMS) providers in the country. Year 2002 was when Alchemy’s portfolio management services begun. In the last 2 decades, Alchemy has come up with just 4 equity strategies compared to many peers who have 10-12 strategies.
As on April 30, 2021, Alchemy under PMS managed assets worth Rs 6,168 crore across 4,150 clients.
For the 1 month ended April 2021, Alchemy High Growth Select Stock Strategy, with Rs 3,020 crore assets, clocked a 4.65 per cent return in April 2021 compared to 0.45 per cent of BSE 500. For the 1 year ended April 2021, this PMS strategy showed 54.81 per cent return, marginally out-performing the benchmark’s 54.78 per cent rise.
Alchemy High Growth, with Rs 1630 crore assets, in the 1 month period clocked 0.32 per cent versus BSE 500’s 0.45 per cent return and in the 1 year period the strategy clocked a rise of 35.29 per cent, lagging the index’s 54.78 per cent gain.
Alchemy Ascent PMS Strategy, with Rs 213 crore assets, reported a whopping 10.47 per cent return for 1 month period and 1 year gain of 88.79 per cent. Both returns are out-performance compared to its benchmark BSE 200 that clocked 1 month gain of 0.14 per cent and 1 year gain of 52.13 per cent.