icici prudential pms contra strategy - portfolio management …€¦ · basis results of screeners,...

ICICI Prudential PMS

Contra Strategy

All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. ICICI Prudential Asset Management Company Limited (the Portfolio

Manager/ the AMC) takes no responsibility of updating any data/information in this material from time to time. The recipient of this material is solely responsible for any action taken based on this material. The

information contained herein are strictly confidential and are meant solely for the benefit of the addressee and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other

person or to the media or reproduced in any form, without prior written consent of the AMC. Further, the information contained herein should not be construed as forecast or promise. Past performance of the

Portfolio Manager may not be indicative of the performance in the future. Please refer to page 28 & 29 for risk factors and disclaimers.

Global Indices Performance

2

Germany - DAX Index; China - SSE Composite Index; France - CAC 40 Index; Japan - Nikkei; Eurozone - Euronext 100; Hong Kong - HangSeng; US - Dow Jones; Singapore - Strait Times; Russia - RTS Index; Indonesia - Jakarta Composite Index; U.K. - FTSE;

South Korea - Kospi; Brazil - Ibovespa Sao Paulo Index; Indonesia – Jakarta Composite Index; Switzerland – Swiss Market Index; Taiwan – Taiwan Stock Exchange Corporation; India – S&P BSE Sensex; Returns in % terms. GDP – Gross Domestic Product. Data

Source: MFI & ACEMF JP Morgan; Returns are absolute returns for the index calculated between March 31, 2020 – April 30, 2020. Past performance may or may not be sustained in future. For more tax related information, consult your tax advisors. MFI

Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. COVID-19 is Coronavirus disease 2019.

A rebound in oil prices,

encouraging early results

from COVID-19 treatment

trial and expectations of

further stimulus measures by

the governments contributed

to the global market gains

14 14

13 13

12 11 11

8 7

6 6 6

4 4 4

2

0

2

4

6

8

10

12

14

16

India

Brazil

Taiw

an

Russia

Germ

an

y

US

South K

orea

UK

Europe

France

Sw

itzerla

nd

Sin

gapore

Hong K

ong

Chin

a

In

donesia

Japan

Returns (

%)

Returns Performance - April 2020

http://www.icraonline.com/legal/standard-disclaimer.html



Sectoral Indices Performance

3

All indices are of S&P BSE and carry the prefix of S&P BSE; Abbreviated CD - S&P BSE Consumer Durables; CG - S&P BSE Capital Goods; FMCG - S&P BSE Fast Moving Consumer Goods; HC - S&P BSE Health Care; Infra. - S&P BSE India Infrastructure; IT -

S&P BSE Information Technology, NBFC – Non-banking Finance Companies. Data Source: MFI, ACEMF ; Returns are absolute returns for the TRI variant of the index calculated between March 31, 2020 – April 30, 2020; Past performance may or may not be

sustained in future. The sectors)/stock(s) mentioned in this slide do not constitute any recommendation and ICICI Prudential Mutual Fund may or may not have any future position in this sector(s)/stock(s). MFI Explorer is a tool provided by ICRA Online Ltd.

For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html.

All the S&P BSE sectoral indices

ended higher in April 2020. S&P

BSE Healthcare index gained by

26% as pharma companies rallied

after India lifted export restrictions.

Buying was seen in the auto and oil

and gas counters; S&P BSE Auto

index and S&P BSE Oil & Gas index

climbed up by 24% and 20%,

respectively.

27 26

24

20

18 17

17

14

12 12 11 11

8 7

6 5

0

4

8

12

16

20

24

28

Energy

HC

Auto

Oil &

Gas

Metal

Basic

Mat.

Tele

com

Fin

ance

Bankex

Infra

CG IT

Pow

er

Realt

y

CD

FM

CG

Returns (

%)

Returns Performance - April 2020












Update on Global and Domestic Economy

4

• Positive global cues in the form of easing of the lockdown restrictions in some countries and

hope that India will follow with similar steps also aided the local indices. Expectations that

major global central banks might roll out additional stimulus measures, reports of encouraging

covid-19 drug trials in the US and upbeat Chinese economic cues also boosted sentiments.

• The market staged a recovery after Government and Central Banks in India and globally,

announced accommodative monetary policies and relief packages in an effort to stabilize

economy. In order to facilitate liquidity in the system, the RBI reduced the policy rate by 75 bps

to 4.4%, while the reverse repo has been reduced to 3.75%.

• Uncertainty continues to remain, as business may have to assess and deal with the impact of

the lockdown. Additionally, the Securities and Exchange Board of India has allowed listed

companies to defer disclosure of earnings by 45 days till June 30. The larger impact of the

lockdown may reflect in Q1FY21 earnings.

Source: NSE, BSE, RBI, pib.gov.in, SEBI

Valuation: Earning Yield converges with bond yields; EY/BY highest in a decade

5

Source: Motilall Oswal Securities. EY: Earning Yield, BY: Bond Yield, GFC: Global Financial Crisis

Earnings yield shows how much earnings per share a company generates from every rupee invested in the company‟s

stock. High EY/BY ratio indicates increasing relative attractiveness of equities vs bonds.

Valuation: Nifty trailing valuation multiples vs their long term average

6

Source: Motilall Oswal Securities.

12-Month Trailing Nifty P/B (x)

12-Month Trailing Nifty P/E (x)

• At 2.4x, the Nifty 12-month trailing P/B is well below its historical average of 3x.

• Nifty 12-month trailing P/E at 20.4x is trading just above its long term average.

Presenting

ICICI Prudential PMS

Contra Strategy

Contrarian Investing: How it works?

Out of the Flavour: Investing into companies where

prevailing sentiments are not positive.

Focus: Widespread pessimism about a company can drive prices

low. Prices tend to overstate the risk and understate the

prospects of recovery.

Avoids: Widespread optimism results in high valuation that may

lead to correction when valuations are not justified by

fundamentals.

The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity.

Contraria

n I

nvestin

g

8

Why Contrarian Investing works?

Herd

Behaviour

Prices of stocks are pushed by

investors to unsustainable levels in

both direction.

Over reaction by market participants

leads to underperformer become

under valued and outperformer

become over valued.

Market

Efficiency

Prices follow a random walk, though

when prices fluctuates to extremes,

they are generally brought back to

equilibrium in time.

Investor behaviour causes

market to deviate from

fundamental values creating

inefficient markets.

9

Performance of Sectors: Contrarian Opportunities

Source: MFI Explorer#, Edelweiss Research. Returns of Auto are of :S&P BSE AUTO, Bankex: S&P BSE Bankex, FMCG:S&P BSE FMCG, CG(Capital Goods): S&P BSE CG, IT: S&P BSE IT, Metal: S&P BSE METAL, HC: S&P BSE HC, CD(Consumer Discretionary): S&P

BSE CD, Oil & Gas: S&P BSE Oil & Gas, Power: S&P BSE Power, Telecom: S&P BSE Telecom. Returns are of calendar year and are in absolute terms. Past Performance may or may not sustain in future. The Stock(s)/Sector(s) mentioned in this material do not

constitute any recommendation of the same and the Strategy may or may not have any future positions in these stock(s)/Sector(s). Past Performance may or may not sustain in future. Prices Rebased at 100 10

METAL

234%

CD

68%

FMCG

10%

Bankex

57%

IT

60%

CD

66%

CD

24%

METAL

37%

CD

102%

IT

26%

CD

21%

AUTO

204%

AUTO

38%

HC

-13%

FMCG

47%

HC

23%

Bankex

65%

HC

15%

Oil & Gas

27%

Telecom

49%

FMCG

11%

BANKEX

21%

IT

133%

HC

34%

IT

-16%

CD

46%

Telecom

18%

AUTO

52%

IT

5%

AUTO

9%

METAL

48%

BANKEX

6%

Telecom

13%

CG

104%

Bankex

33%

Telecom

-16%

AUTO

40%

FMCG

11%

CG

50%

Telecom

3%

BANKEX

7%

CG

40%

CG

-2%

IT

10%

CD

98%

IT

32%

CD

-17%

HC

39%

AUTO

7%

HC

47%

FMCG

1%

FMCG

3%

BANKEX

39%

HC

-6%

Oil & Gas

7%

Bankex

84%

FMCG

32%

AUTO

-20%

CG

35%

Oil & Gas

4%

Power

23%

AUTO

-1%

Power

2%

Oil & Gas

34%

CD

-9%

HC

-4%

Power

74%

CG

9%

Oil & Gas

-29%

METAL

19%

CG

-6%

FMCG

18%

Oil & Gas

-3%

CG

-3%

FMCG

32%

Power

-16%

FMCG

-4%

Oil & Gas

73%

Telecom

2%

Bankex

-32%

Oil & Gas

13%

Bankex

-9%

IT

17%

Power

-6%

CD

-6%

AUTO

32%

Oil & Gas

-15%

Power

-4%

Health Care

69%

Oil & Gas

1%

Power

-40%

Power

11%

METAL

-12%

Oil & Gas

12%

CG

-9%

IT

-8%

Power

20%

METAL

-21%

CG

-10%

FMCG

40%

METAL

1%

CG

-48%

IT

-1%

Power

-15%

Telecom

9%

Bankex

-10%

HC

-13%

IT

11%

AUTO

-22%

AUTO

-11%

Telecom

-7%

Power

-6%

METAL

-48%

Telecom

-3%

CD

-25%

METAL

8%

METAL

-31%

Telecom

-21%

HC

0%

Telecom

-41%

METAL

-12%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Broad Investment Process

The investment process mentioned above are indicative in nature. There may be other investment process for stock selection. ROE: Return on Equity, RoCE: Return on Capital Employed, P/E: Price to Earning.

Identification Identification of sectors or companies which are facing temporary

headwinds.

Selection

Criteria

Parameters such as RoE, RoCE, Market Cap by Cash Profit, P/E,

Corporate Governance & Capital Allocation Track Record are used

to determine investability.

Portfolio

Construction

Basis results of screeners, the portfolio is constructed by

choosing sectors/companies which are facing temporary stress

and are expected to survive in long run.

11

Contrarian Investment: Investing in ‘’Out of the flavour’’

FMCG Sector underperformed during 2006-07 Phase Valuation: Lower than their long term average

15

20

25

30

35

40

45

Jan-2006 Jul-2006 Jan-2007 Jul-2007

S&P BSE FMCG P/E Ratio

Dec-2007

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and strategy may or may not have any future positions in these stock(s)/Sector(s). Source: www.nseindia.com, www.bseindia.com. Past Performance may or may not

sustain in future. Prices Rebased at 100

90

110

130

150

170

190

210

Jan-2006 Jul-2006 Jan-2007 Jul-2007

Nifty 50 S&P BSE FMCG

Dec-2007

Pric

e M

ovem

ent.

Re

-B

ased a

t 1

00

12

http://www.nseindia.com/





http://www.bseindia.com/






Out of the flavour

investment aims to

provide margin of

safety.

Nifty 50 fell by 59%

while S&P BSE FMCG

fell by 28%.

In recovery phase S&P

BSE FMCG captured the

upside.

Since Jan 2008 till Dec 2011 Nifty 50 delivered -6.9% CAGR, while S&P BSE FMCG Index delivered 14.18% CAGR.

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the strategy may or may not have any future positions in these stock(s)/Sector(s). Source: www.nseindia.com, www.bseindia.com. Past Performance may or may

not sustain in future.

75.3

169.9

35

55

75

95

115

135

155

175

195Nifty 50 S&P BSE FMCG

Investing Out of the

flavour may help limiting

downside

Captured Upside

Pric

e M

ovem

ent.

Re

-B

ased a

t 1

00

13












Since Jan 2014 till Dec 2015 Nifty 50 delivered 12.31% CAGR, while Nifty Midcap 100 index delivered 28.54% CAGR.

-25%

-20%

-15%

-10%

-5%

0%

5%

10

11

12

13

14

15

16

17

18

Spread Midcap PE NIFTY 50 PE

Midcap valuation at discount compared to Large caps Midcap Index performance against Large caps

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and strategy may or may not have any future positions in these stock(s)/Sector(s). Source: www.nseindia.com,

www.bseindia.com. Past Performance may or may not sustain in future.

Pric

e M

ovem

ent.

Re

-B

ased a

t 1

00

123.17

164.47

80.00

100.00

120.00

140.00

160.00

180.00

NIFTY 50 NSE Midcap 100

14












From Jan 2018 to 31st July 2018, a leading IT company delivered 32% absolute return in 2018 YTD against 26% of

Nifty IT index and 8.8% of Nifty 50 Index.

Valuation in IT sector went from premium to

discount compared to broad market

Stock Price movement of Leading IT company

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and strategy may or may not have any future positions in these stock(s)/Sector(s). Source: www.nseindia.com, www.bseindia.com. Past Performance may or

may not sustain in future

873.4

1365.1

800

900

1000

1100

1200

1300

1400

1500

56.3%

Unfavourable business

cycle, strong rupee and

management issues

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

0

5

10

15

20

25

30

Spread NSE IT Index PE NIFTY 50 P/E

15











Contrarian Investment: Opportunities

High Entry Barriers:

Unfavourable business cycle

Consolidation in

Industry

Special

Situations

• Industry challenges

leading to reduction in

players.

• Company with strong

balance sheet and

successful execution in

the last cycle can emerge

stronger and bigger.

• Distress exits can create

opportunity for existing

players to consolidate.

• Companies enjoying

Moats.

• Strong competitive

advantage.

• Competitive advantage

due to product, pricing,

service, distribution

network , favourable

infrastructure and

logistics network.

• Mergers

• Acquisitions

• Holding – Subsidiary

company, reduction in

discount.

• Product or department

spin offs.

The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity. 16

Contrarian Investment: Selection Criteria

The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity. Further, it may be noted that the outcome/earnings of the underlying company may or may not be replicated in

the Portfolio.

• Market leadership position in categories they operate.

• Dominant position in bottom-line and not only in top-line.

• Better Corporate Governance

• Companies with prudent debt and reasonable shareholder’s return.

• History of stable earnings, relative high return ratios (i.e Return on Equity, Return on Capital

Employed). High free cash flow(i.e Operating Cash Flow) generation.

Economic Moat

• Companies likely to benefit from macro economic tailwinds i.e Government’s reforms.

• Depressed RoCE but have potential to see sharp improvement led by higher returns on

incremental capital employed.

• Great execution capabilities of the companies.

Thematic

17

Unorganized

Organised

Contrarian Investment: Selection Criteria

The aforesaid points are only indicative. There may be other factors that may be relevant for identification of a contrarian investing opportunity. Further, it may be noted that the outcome/earnings of the underlying company may or may not be replicated in the

Portfolio.

Shift due to policy change

• Companies having large distribution network vs. regional distribution.

• Superior Quality of Product.

• Better Tax Compliance

• Economies of Scale.

• Companies going through rough patch. Depressed earnings, Negative near term outlook.

• RoEs are in trough cycle but not a major balance sheet risk. (i.e. Low Net Debt/EBITDA)

• Significant gap between intrinsic value and market price of stock.

• Under invested sector/company.

Mean Reversion

18

Key Features of the Strategy

ICICI Prudential PMS Contra Strategy aims to provide long term capital appreciation and

generate returns by investing in underperforming stocks or sectors, which are available at

intrinsic valuations and are expected to perform well in the long run.

To strike an appropriate balance of concentration and diversification Portfolio Manager retains

the flexibility to invest across market capitalization and sectors.

The investment strategy, approach and the structure of the portfolio herein involves risk and there can be no assurance that specific objectives will be met under differing market conditions or cycles. The investment strategy and the

composition of the portfolio as stated herein is only indicative in nature and is subject to change within the provisions of the disclosure document and client agreement without any prior notice to investors. Please refer to the disclosure

document & client agreement for details and risk factors.

The investment process mentioned above are indicative in nature. There may be other investment process for stock selection.

Investment Horizon :

4 Years & Above

Benchmark Index:

S & P BSE 200

Minimum Investment Amount:

Rs. 50,00,000

Key

Features

19

Investment across

Market capitalisations

50.0

60.0

70.0

80.0

90.0

100.0

110.0

120.0

InterGlobe Aviation Limited Spicejet Ltd S&P BSE 200

Some of the Alpha Stories: Exposure in Aviation Sector

Concern: Rising Crude and Depreciating Currency Price Movement

High Crude and depreciating currency hit the airline industry.

Silver lining was Average monthly passenger volume which was

21% yoy since Jan-2015

Portfolio took an exposure in Interglobe Aviation Ltd and

Spicejet Ltd in month of Sept 2018.

~35%

~36%

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these stock(s)/Sector(s). Source: www.nseindia.com, Internal. Past Performance may or may not sustain

in future. Further, the above transactions are the transactions in the portfolio of the oldest client.. The actual portfolio composition or the transactions shall vary from client to client. Please refer to the information available on the PMS portal to review the composition

and transaction details in the portfolio.

60

62

64

66

68

70

72

74

76

45

50

55

60

65

70

75

80

85

90Brent Crude USD INR

20






Some of the Alpha Stories: Exposure in Asian Paints

High Crude and depreciating currency hit the paint stocks.

Concern: Rising Crude and Depreciating Currency

Portfolio took an exposure in Asian Paints in month of Sept 2018.

1100

1150

1200

1250

1300

1350

1400

1450

1500

Jun-2

018

Jun-2

018

Jul-2018

Jul-201

8

Aug-201

8

Sep-2018

Sep-2018

Oct-201

8

Nov-2

018

Nov-2

018

Dec-201

8

Jan-2019

Jan-2019

Feb-201

9

Mar-2019

Mar-2

019


in future. Further, the above transactions are the transactions in the portfolio of the oldest client.. The actual portfolio composition or the transactions in the portfolio shall vary from client to client. Please refer to the information available on the PMS portal to review

the composition and transaction details in the portfolio.

Asian Paints Ltd

60

62

64

66

68

70

72

74

76

45

50

55

60

65

70

75

80

85

90Brent Crude USD INR

21






75.0

80.0

85.0

90.0

95.0

100.0

105.0

110.0

115.0

120.0

Jun-2

018

Jun-2

018

Jul-201

8

Jul-201

8

Aug-201

8

Sep-2018

Sep-2018

Oct-201

8

Nov-2

018

Nov-2

018

Dec-201

8

Jan-2019

Jan-2019

Feb-201

9

Mar-2

019

Mar-2

019

Kotak Mahindra Bank Ltd S&P BSE 200 S&P BSE Bankex

Some of the Alpha Stories: Kotak Mahindra Bank Ltd

Rising benchmark yields, Tightening liquidity, concerns around

NBFCs and regulatory issues related to promoter‟s holding.

6.6

6.8

7

7.2

7.4

7.6

7.8

8

8.2

8.4

Portfolio took an exposure in Kotak Mahindra Bank Ltd in

month of Sept 2018.

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and portfolio may or may not have any future positions in these stock(s)/Sector(s). Source: www.nseindia.com, Internal. Past Performance may or may not

sustain in future. Further, the above transactions are the transactions in the portfolio of the oldest client.. The actual portfolio composition or the transactions shall vary from client to client. Please refer to the information available on the PMS portal to review the

composition and transaction details in the portfolio.

G-Sec Yield

22

Kotak Mahindra Bank Ltd






Some of the Alpha Stories: Active Weight Management

1.98

3.02

0.00

68

73

82

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

60

65

70

75

80

85

Sep-18 Oct-18 Nov-18

Holding (in %) Price

Hold

ing (

%)

Pric

e

2.36

2.99

826

889

1038

1.00

1.50

2.00

2.50

3.00

3.50

800

850

900

950

1000

1050

1100

Sep-18 Oct-18 Nov-18


Hold

ing (

%)

Pric

e

InterGlobe Aviation Ltd Spicejet Ltd

Asian Paints Ltd

Pric

e

Hold

ing (

%)

Kotak Mahindra Bank Ltd

Pric

e

Hold

ing (

%)

6.80 7.72 8.08 8.10

4.91

1.88

1142 1119

1234

1257 1256

1213

1334.5

1.00

3.00

5.00

7.00

9.00

1000

1100

1200

1300

1400Holding (in %) Price

2.43

4.84 5.03

3.12

5.95 5.88 4.96

1293

1230

1346

1373

1413

1405

1493

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1200

1250

1300

1350

1400

1450

1500

Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19



in future. Further, the above transactions are the transactions in the portfolio of the oldest client.. The actual portfolio composition or the transactions shall vary from client to client. Please refer to the information available on the PMS portal to review the composition

and transaction details in the portfolio.

23






Market Capitalization Break-up Top 10 Holdings

Stocks % to Net Assets

Current Positioning

The portfolio data mentioned above is of a oldest client and data of an individual client may vary significantly from the above. The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the

portfolios may or may not have any future positions in these Stock(s)/Sector(s). Data as on April 30th

, 2020.

Well diversified across market cap

24

Top 10 Holdings

Stocks % of Net Assets

Tata Consumer Products Ltd 7.90

Ambuja Cements Ltd 5.23

Wipro Ltd 4.80

HDFC Bank Ltd 4.73

ICICI Bank Ltd 4.57

Bharti Airtel Ltd 4.35

CCL Products India Ltd 4.05

Chambal Fertilizers & Chemicals Ltd 3.55

Godrej Consumer Products Ltd 3.33

Motherson Sumi Systems Ltd 3.16

Large

Cap,

70.3

Mid

Cap,

17.1

Small

Cap,

12.5

Portfolio Statistics

PE Ratio:

13.92

PB Ratio :

1.72

Valuation Parameters (TTM)

P/S Ratio:

0.94

Top 5 Sector Exposure

The portfolio data and the statistical analysis mentioned above is of the oldest client of the Strategy and data of an individual client may vary significantly from the above. Valuation Parameters Source: ICICI Prudential PMS Contra Strategy Factsheet

PE: Price to Earning. PB: Price to book, P/S: Price to Sales. The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the portfolios may or may not have any future positions in these Stock(s)/Sector(s). Data

as on 30th

Apr 2020. Past performance may or may not be sustained in future.

No of Stocks: 32

Top 5 Sectors: 51.5%

Top 10 holdings: 45.67%

Trend: Exposure in Market Cap

25

0

20

40

60

80

100

Jan

-20

19

Feb

-20

19

Mar-201

9

Ap

r-201

9

May-2

01

9

Ju

n-20

19

Ju

l-2

01

9

Au

g-20

19

Se

p-2019

Oct-201

9

No

v-201

9

Dec-2019

Jan

-20

20

Feb

-20

20

Mar-202

0

Ap

r-202

0

Small Cap

Mid Cap

Large Cap

5.5

6.2

7.5

11.6

20.7

Non - Ferrous Metals

Software

Cement

Banks

Consumer Non Durables

Strategy Performance

26

Data as on 30th

April 2020. Past performance may or may not be sustained in future. *Performance of Investment approach/Strategy is calculated using Time Weighted Rate of Return (TWRR) for the aggregate portfolio. All the returns calculated

above are after deduction of the applicable expenses. Inception date: September 14, 2018. Inception Date of the Strategy is the date of onboarding of first client of the Strategy

Returns for one year or less are on absolute basis, while returns more than one year are on annualized basis

1 Month 3 Months 6 Months 1 Year Since Inception

ICICI Prudential PMS Contra Strategy 16.36 -17.88 -15.27 -14.46 -6.50

S&P BSE 200 14.70 -17.87 -16.92 -15.77 -9.60

Aggregate Performance*

Rs.44,81,600

Rs.42,41,764

3000000

3500000

4000000

4500000

5000000

5500000

6000000

Sep

-18

Oct-18

No

v-18

Dec-18

Jan

-19

Feb

-1

9

Mar-19

Ap

r-19

May-1

9

Ju

n-19

Ju

l-19

Au

g-19

Sep

-19

Oct-19

No

v-19

Dec-19

Jan

-20

Feb

-2

0

Mar-20

Ap

r-20

ICICI Prudential PMS Contra Portfolio S&P BSE 200

Key Highlights of The Strategy

The information provided above is only indicative. Please refer to the Client Agreement and the fee schedule for further details. #Redemption amount is arrived at after calculation / charging of all Fees and Expenses (including Performance Linked Fee) Goods &

Services tax on Exit load will be charged separately.

* The Portfolio Manager reserves the right to change the Benchmark of the portfolio at its discretion. The composition of the Portfolio may or may not be the same as that with the composition of the Benchmark.

**Please refer client agreement and fee schedule for further details. In addition, custody fee, fund accounting charges, account opening charges, goods & service tax and cess or any other such statutory levies or transaction expenses, as applicable will be payable

by the client on actual basis.

Strategy Name

Investment Objective

Portfolio Manager

Benchmark*

Minimum Investment

Management Fee**

Exit Load on redemption/

partial redemption

ICICI Prudential PMS Contra Strategy

The Strategy aims to provide long term capital appreciation and generate returns by investing in underperforming stocks or

sectors, which are available at intrinsic valuations and are expected to perform well in the long run.

Mr. Parag Thakkar

S&P BSE 200 Index

Rs. 50 Lacs

2.50% p.a. calculated on the average daily portfolio value payable on a quarterly basis

at the end of each calendar quarter.

Amount Sought to be redeemed upto 12 months from the date of each investment- 3%

After 12 months to 24 months from the date of each investment- 2%

After 24 months to 36 months from the date of each investment- 1%

After 36 months from the date of each investment – Nil

27

An Irrational

Market

Sentiment

Risk Factors & Disclaimers

Investing in securities involves certain risks and considerations associated generally with making investments in securities. The value of the portfolio investments may be affected generally by factors affecting financial

markets, such as price and volume, volatility in interest rates, currency exchange rates, changes in regulatory and administrative policies of the Government or any other appropriate authority (including tax laws) or other

political and economic developments. Consequently, there can be no assurance that the objective of the Portfolio would be achieved. The value of the portfolios may fluctuate and can go up or down. Prospective investors

are advised to carefully review the Disclosure Document, Client Agreement, and other related documents carefully and in its entirety and consult their legal, tax and financial advisors to determine possible legal, tax and

financial or any other consequences of investing under this Portfolio, before making an investment decision.

The Stock(s)/Sector(s) mentioned in this material do not constitute any recommendation of the same and the portfolios may or may not have any future positions in these Stock(s)/Sector(s).

The composition of the portfolio is subject to changes within the provisions of the disclosure document. The benchmark of the portfolios can be changed from time to time in the future. The inability of the Portfolio

Manager to make intended securities purchases due to settlement problems could cause the portfolio to miss certain investment opportunities. By the same rationale, the inability to sell securities held in the portfolio due

to the absence of a well-developed and liquid secondary market for securities would result, at times, in potential losses to the portfolio. Please note that past performance of the financial products, instruments and the

portfolio does not necessarily indicate the future prospects and performance thereof. Such past performance may or may not be sustained in future. Portfolio Manager‟s investment decisions may not be always profitable,

as actual market movements may be at variance with anticipated trends. The investors are not being offered any guaranteed or assured returns. The AMC may be engaged in buying/selling of such securities. Please refer

to the Disclosure Document and Client Agreement for portfolio specific risk factors.

Individual returns of Clients for a particular portfolio type may vary significantly from the data on performance of the portfolios as may be depicted by the Portfolio Manager from time to time. This is due to factors such as

timing of entry and exit, timing of additional flows and redemptions, individual client mandates, specific portfolio construction characteristics or structural parameters, which may have a bearing on individual portfolio

performance. No claims may be made or entertained for any variances between the performance depictions and individual portfolio performance. Neither ICICI Prudential Asset Management Company Ltd. (the AMC) nor

its Directors, Employees or Sponsors shall be in any way liable for any variations noticed in the returns of individual portfolios.

The Client shall not make any claim against the Portfolio Manager against any losses (notional or real) or against any loss of opportunity for gain under various PMS Products, on account of or arising out of such

circumstance/ change in market condition or for any other reason which may specifically affect a particular sector or security.]

28

An Irrational

Market

Sentiment

Risk Factors & Disclaimers

The Portfolio Manager shall have the sole and absolute discretion to invest in respect of the Client‟s investment in any type of security subject to the Agreement and as stated in the Disclosure Document and make such

changes in the investments and invest some or all of the Client‟s investment amount in such manner and in such markets as it deems fit would benefit the Client. The Portfolio Manager‟s decision (taken in good faith) in

deployment of the Clients‟ account is absolute and final and can never be called in question or be open to review at any time during the currency of the agreement or any time thereafter except on the ground of malafide,

fraud, conflict of interest or gross negligence. This right of the Portfolio Manager shall be exercised strictly in accordance with the relevant Acts, rules and regulations, guidelines and notifications in force from time to

time.

By their nature, certain market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual future gains or losses could materially differ from those that

have been estimated. The recipient(s) alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the

products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this may not be suitable for all investors. Financial products and instruments are

subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. There is no assurance or guarantee that the objectives of the portfolio will be achieved. Please note that past

performance of the financial products, instruments and the portfolio does not necessarily indicate the future prospects and performance thereof. Such past performance may or may not be sustained in future. Portfolio

Manager‟s investment decisions may not be always profitable, as actual market movements may be at variance with anticipated trends. The investors are not being offered any guaranteed or assured returns.

In the preparation of this material the AMC has used information that is publicly available, including information developed in-house. Some of the material used herein may have been obtained from members/persons other

than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used herein is believed to be from reliable sources. The AMC however does

not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. We have included

statements/opinions/recommendations in this material, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and also PE ratios, EPS and Earnings Growth for forthcoming years and similar

expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated

with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, the monitory and interest policies of India, inflation,

unanticipated turbulence in interest rates, foreign exchange rates, equity prices, the performance of the financial markets in India and globally, changes in domestic and foreign laws, regulations and taxes and changes in

competition in the industry.

All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. The Portfolio Manager/ the AMC takes no responsibility of updating any

data/information in this material from time to time. The Portfolio Manager/ the AMC (including its affiliates), and any of its officers directors, personnel and employees, shall not liable for any loss, damage of any nature,

including but not limited to direct, indirect, punitive, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. #Icra disclaimer: Although reasonable care has been

taken to ensure that the information herein is true, such information is provided on „as is‟ basis without any warranty of any kind, express or implied, or otherwise including the warranties of merchantability, its fitness for

any particular purpose or satisfactory quality regardless of whether imposed by contract, statute, course of dealing, custom or usage or otherwise.

29

Thank You

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