Portfolio Management Service – PMS
Portfolio Management services are best for the current market conditions and are a real litmus test for Value Investors as they never found it so difficult to out-perform the market as they have in the recent months.
We would like to give you a dope on the latest Portfolio, Stock & Sectors Allocations and some recent changes done in the Portfolio which is in line with our Market View.
IIFL Multicap PMS Update:
PORTFOLIO STRATEGY AND CHANGES DONE
- Portfolio Strategy: With regard to our portfolio construct strategy of being overweight on Banking & Financials (Mostly Pvt banks and NBFC), IT Companies and Pharma is paying off well. Between these three sectors we have around 70% exposure. Barring SBI which is the only PSU bank which we have and Federal Bank, all our BFSI portfolio companies have reported strong set of numbers in the recent quarter. Technology companies which again we were one of the few to have been overweight on in the street, have beat most analyst estimates and have given strong guidance for growth. Rupee depreciation is also adding to the gains for the Tech companies. Within Pharma we have a mix of Generic players like Sun
- pharma which are still not out of the woods, and other Non-generic niche players like Merck Ltd and Biocon which continue to do well on both earnings and stock performance.
- Some recent portfolio changes: In the last 2 months we have done only one change of selling South Indian Bank and adding GSK Consumer. That too we did in this week itself. We are focussing on increasing the large cap exposure further in the portfolio from the current 76% as we see good value in many large
cap quality names. We have exited from South Indian Bank in the portfolio as we believe the company might continue to underperform for a few more quarters owing to its growth issues. We have increased exposure to Consumer Discretionary space by adding GSK Consumer which we see as a strong takeover candidate by other large FMCG players like HUL, ITC or Nestle.
CURRENT STOCK AND SECTOR ALLOCATION
- Below is the current sector allocation. Between Top 3 sectors we have nearly 70% allocation and shows our focus on sector concentration. We are looking to increase allocation to consumer discretionary gradually as we see consistency of earnings in that sector.
|Banking & Financial||44.8%|
|IT & IT Services||12.7%|
|Oil & Gas||3.0%|
|Auto & Auto ancillaries||2.0%|
- Below is the full portfolio as of yesterday. Currently we have 26 stocks in the portfolio and the top 10 stocks account for 60% of the portfolio.
|BAJAJ FINANCE LTD||12.90%|
|HDFC BANK LTD||7.64%|
|STATE BANK OF INDIA||4.59%|
|SUN PHARMACEUTICAL INDUSTRIES||4.05%|
|MUTHOOT FINANCE LIMITED||3.90%|
|RBL BANK LIMITED||3.82%|
|PETRONET LNG LTD||2.99%|
|UJJIVAN FINANCIAL SERVICES||2.58%|
|IDEA CELLULAR LTD||2.41%|
|TATA GLOBAL BEVERAGES||2.28%|
|TATA MOTOR DVR||1.97%|
|TECH MAHINDRA LIMITED||1.91%|
- Below is the Mcap allocation currently.