Other Business

Portfolio Management Services
Portfolio Management Services

We launched our PMS business in May 2004 and, since then, it has become an increasingly important part of our business and has had a positive track record in terms of performance and diversification opportunities. Our PMS business has a four-member investment team, with one member for equity investment management, with over 13 years of experience with us, and three members for debt investment management, with over 20 years of average experience with us. As of September 30, 2019, our PMS business had AUM of ₹4,999.2 billion (which includes assets under advisory services) and managed the funds of and advised institutional clients and HNIs. Our PMS business aims to provide individual clients with investment solutions commensurate with their risk profile and their return expectations using research-based valuation and security selection techniques.

Our PMS business works closely with the rest of our personnel and infrastructure in areas such as distribution, marketing and investor services, which lowers our cost of operation and allows us to provide more competitive prices, while also ensuring that our clients benefit from the more than 55 years of our expertise in the asset management industry. In particular, our PMS business interacts and works closely with our research divisions for both debt and equity products, which ensures that comprehensive and detailed information underlie every investment decision. Investment decisions are taken individually and independently by each portfolio manager on behalf of each client, in accordance with the client’s needs and risk profile, as well as with the specific requirements of the mandate.

Our PMS business offers Discretionary and Non-Discretionary PMS, as well as research-based Advisory PMS, for both domestic and overseas clients. As of September 30, 2019, the total AUM of our PMS business was ₹4,999.2 billion, representing 79.9% of our Other AUM, as compared to ₹1,242.9 billion for the six-month period ended September 30, 2018, and ₹1,332.7 billion, ₹1,158.5 billion and ₹992.2 billion for the fiscal years ended March 31, 2019, 2018 and 2017, respectively, which represented 57.3%, 55.6%, 56.6% and 57.1%, respectively, of our Other AUM for such periods. This significant growth in the AUM of our PMS business during the first half of the fiscal year ending March 31, 2020 is largely due to the enlarged mandate obtained from EPFO.

Our first PMS mandate with EPFO began on July 1, 2015. On April 1, 2019, the CBT, EPF entrusted us with the management of an additional portfolio, and assets of approximately ₹3,280.0 billion were transferred to us, which equalled 45.0% of EPFO’s corpus. We were selected on September 9, 2019 as one of the two portfolio managers for managing EPFO’s corpus for a period of three years and, on October 31, 2019, we were approved to manage 55.0% of the corpus of CBT, EPF, for a period starting on November 1, 2019 and ending on September 30, 2022. As of September 30, 2019, the total AUM we managed for EPFO amounted to ₹4,582.3 billion. We were selected as the best portfolio manager for EPFO for both 2017 and 2018.

We were also one of the two portfolio managers appointed by the PLI Directorate, Department of Posts, on October 6, 2009 to manage Postal Life Insurance Fund and Rural Postal Life Insurance Fund. PLI’s portfolio amounts to ₹415.2 billion, or 8.3%, of our PMS AUM.

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