PMS Performance : April 2019


Majority of alpha chasers on Dalal Street again depressed investors in April.

Benchmark equity indices hit fresh record highs during the month, and data suggests 206 of 230 portfolio managers registered with Sebi failed to beat Sensex’s 0.93% rise during the month.

PMSes cater to wealthy investors with portfolio sizes exceeding ₹25 lakh, and charge higher fees compared with mutual funds for their services.

PMS managers attributed the poor performance to a combination of global as well as domestic factors, which continued to weigh on domestic equities.

On the global front, escalating trade tensions between the US and China and a spike in crude oil prices (nearly 40% jump from December 2018 lows) impacted market sentiment, whereas uncertainty over election outcome acted as a key short-term risk back home.

Data showed only PMSes run by Angel Broking, LIC Mutual Fund Asset Management, UTI Asset Management, IDBI Capital Market Services, Indiabulls AMC, Escorts, Banyan Tree Advisors and Sanctum Wealth managed to move in line with the broader market or outpace the benchmark indices in April.

A PMS managed by Landmark Capital Advisors delivered 15.34% return during month. Indiareit Fund Advisors managed 11.92% and LIC Mutual Fund’s PMS logged 8.52%.

Among newly-launched PMSes, Saurabh Mukherjea’s Marcellus Investment Managers delivered a flat 0.20% return, while a PMS run by Equinomics Research and Advisory witnessed over 2% fall.

PMSes run by Kochi-based investor Porinju Veliyath-led Equity Intelligence and Kolkata-based Basant Maheshwari-led Basant Maheshwari Wealth Advisors witnessed 5.99% and 0.73% drop, respectively, during the month.

Other known PMSes such as the ones run by Anand Rathi Advisors, Tulsian PMS, SMC Investment and Advisors, Old Bridge Capital Management, IndiaNivesh Investment Managers, Geojit Financial Services, Prabhudas Lilladher and Reliance Capital Asset Management all dipped between 1% and 5%.

PMSes of other established money managers such as Motilal Oswal AMC and Enam AMC slipped up to 1.15% in April, while those of Quantum and ASK gained marginally by 0.19% and 0.072%.

Motilal Oswal PMS runs the Next Trillion Dollar Opportunity Strategy, which has over Rs 8,700 crore in assets. Its model portfolio lost 1.31% in April 2019.

ASK Group’s Indian Entrepreneur Portfolio (IEP), which has over Rs 8,000 crore in assets, lost 0.20%.

The model portfolio of Motilal Oswal India Opportunity Portfolio (IOP) strategy, managing Rs 3,500 crore, lost 1.54% in the first month of this financial year.

Kotak AMC’s Special Situation Series 1, managing Rs 2,828 crore, lost a whopping 3.6% in April. The newer, Special Situation Series 2 lost just 1% in comparison this month.

Alchemy’s PMS strategies are also quite large. Alchemy High Growth strategy, managing over Rs 2,600 crore, gains just 0.1% in April. The PMS provider’s Select Stock strategy, a multi cap portfolio, rose 1% this month.

Unifi Capital’s Spin Off strategy is ended April with a 4.54% gain. This thematic strategy is probably the only one among Unifi strategies that has delivered a positive return this month.

SBI Mutual Fund’s Growth With Values PMS strategy turned out to be one of the best this month. Its multicap oriented model portfolio gave 2.7% return.

Asit C Mehta Investment Intermediates’ ACE 50 PMS strategy, on an aggregate portfolio basis, gave 1.9% gain in April. For the last one-year period, the returns are in fact flat. Readers please note that aggregate portfolio is a portfolio that based on all the client portfolio under the regular portfolio existing. The returns are computed using a time-weighted rate of return for each client and then putting an arithmetic average return for the strategy.

Systematix Shares’ PMS strategy Dynamic Investment Portfolio, a midcap oriented strategy, reported 1.88% gains for its model portfolio. The scheme is down 6.8% for the last 1-year period.





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