About PGIM India Portfolio Management Services

Our investment credo

  • Clearly articulated investment strategy
  • Remain faithful to the product/investment mandate
  • Long Term Orientation
  • Focus on "WHY" a stock should move: not "WHEN" it will move

Key benefits of PGIM India PMS

  • Experienced fund management team
  • Differentiated strategies
  • Diversification vs. buying an individual stock
  • Portfolio re-balancing and analysis on monthly basis
  • Client focused interactions and long-term relationship focus
  • Complete transparency in managing portfolios
  • Ease to switch between investment strategies
About PGIM

PGIM is the global investment management business of the US based PFI, one of top 10 investment manager with over $1.2 trillion1 in assets under management. PGIM is built on the strength and stability of a 140-year legacy. Developing deep expertise in managing liabilities, we bring a long-term perspective, having weathered multiple market cycles, and see opportunity in periods of disruption. PGIM offers a wide range of actively managed asset classes and investment styles including Equities, Fixed Income and Real Estate. It has its presence across 15 countries in 37 offices with over 1,200+ investment professionals.

*PFI is not affiliated in any manner with Prudential plc a company incorporated in the United Kingdom.

Why PGIM India PMS

At PGIM India PMS, we seek to build on the strength and stability of a 140-year legacy. India is one of the fastest emerging economies in the world today. The Indian economy has many world class businesses listed on the stock exchanges and many more scaling up. PGIM India PMS through the two strategies - PGIM India Core Equity Portfolio Strategy and PGIM India Phoenix Strategy - offer investors an opportunity to benefit from our investment management expertise.

At PGIM India PMS, we seek to deliver superior risk-adjusted returns for our clients in the long-term, by identifying and investing in mispriced opportunities without compromising on the quality of the portfolio holdings. Our differentiated approach to portfolio construction ensures low overlap with traditional mutual fund offerings. We have a proven track record, backed by a highly experienced investment team, strong research and operational capabilities. We have in-house, best in class, IT systems and back-office support for our clients. We believe in consistent client interactions to build a sustainable long-term relationship and offer monthly performance reporting and fund manager outlook to keep clients updated on their investments.

Our Investment Philosophy

Our investment philosophy is based on two fundamental principles

Buying when the future is uncertain

A stock is available cheap only when the general market does not expect it to do well in the short-term. Therefore, if an investor wishes to beat the market he/she should purchase the stock before the market does. If one is confident about the quality of the company and its long-term earnings power, then its short-term price movement should be of less importance.

Seeking to avoid permanent loss

For an investor the real risk in the stock market is the risk of permanent loss. All shares are subject to price fluctuations; therefore temporary losses are unavoidable. Permanent loss occurs when an investment is made in a substandard business, in a company where the management is questionable or at a price that is exorbitantly high. As the legendary Seth Klarman says: The avoidance of loss is the surest way to ensure a profitable outcome

Our Investment Process

Our meticulous and robust investment process distils our investment choices. We start with the investing universe of 6,000 listed companies in India and work our way down step-by-step to arrive at our investment universe of 160-180 companies. The stringent filters applied during the investment process gives us the portfolio of 20-25 companies. These filters include price, growth prospects and management quality. The investment process also includes a clearly articulated Sell Discipline to realise the value of the investment when it fulfils its potential.

The investment process consists of

Screening the investment Universe
Screening all possible choices to create an investment universe of acceptable quality
  • A track record of at least 15 years
  • Consistency in generating a high level of return on capital employed
  • Consistency in generating positive free cash flows
  • A minimum acceptable level of revenues
Filter the Investment Universe
Further filter the universe on the basis of growth prospects and management quality
  • The ability of the company to grow its sales and profits over the next 3-5 years
  • The ability of the company to do this without consistently resorting to additional external funding
  • The track record of management in capital allocation decisions, and in treating minority shareholders fairly
Portfolio Construction
Construct the portfolio using filters of valuation levels
  • The valuation at the time of entry into the portfolio is lower than its average valuation for the previous decade and / or
  • The valuation is lower than the expected growth rate in earnings over the foreseeable future

1 Includes all assets managed by PGIM, the principal management business of Prudential Financial Inc. (PFI). Asset include public and private fixed income, public equity (both fundamental and quantitative), and real estate. Effective December 31, 2012, International Investments became part of PGIM (today known as PGIM Global Partners), historical financial results have been restated to reflect the combined businesses. AUM are based on company estimates and are subjected to change. Totals may not sum due to rounding.