103149  |  INF109K01AV5  |  3 star  |  Bronze

NAV

$ 54.76

1-Day Total Return

0.40
%
INR | NAV as of 15/12/2017 10:30:00 | 1-Day Return as of 15 Dec 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

17.5 bil

Expenses

2.49%

Fee Level

--

Turnover

1,368%

Status

Open

Min. Inv.

5,000

30-Day SEC Yield

--

Category

Sector - Infrastructure

Investment Style

Large Blend
Author
Morningstar's Take | 29/11/2017
by Nehal Meshram

ICICI Prudential Infrastructure has an experienced team and a disciplined investment approach, but its inconsistent track record and portfolio manager rotation limits our conviction.

We are cognizant of the transition of the portfolio managers, but the strategy is still backed by an experienced team and a robust and well-structured investment process. The fund launched in 2005 and was managed by Sankaran Naren from inception until February 2011. After two manager changes since then, the fund made it back into Naren's able hands in December 2015. Naren joined the fund house in October 2004 as a portfolio manager and is known for being a contrarian investor. His understanding of value stocks and his high-conviction ideas stand out. Through the years, he has displayed skill in reading the macroeconomic environment and taking sector bets based on the same; he has built an impressive track record on his funds. Ihab Dalwai has been comanaging this fund along with Naren since June 2017 and covers the infrastructure sector.

Naren follows a combination of top-down and bottom-up processes with a focus on picking quality stocks. He runs the fund with meaningful investment across sectors that they have a positive outlook on, over a two to three-year time frame. The fund has an inherent bias towards large-cap stocks, which we see as a positive, given the cyclical nature of the infrastructure sector. Large caps cushion the fund from a liquidity perspective, given that Naren can take sizable positions in illiquid stocks based on his conviction levels and views on companies' long-term growth prospects. The fund has recently increased the exposure in the small- and mid-cap space, but the managers focus on companies that are good on quality parameters with a low debt/equity ratio, well-managed working capital, high corporate governance standards, and strong management.

Our conviction in Naren's abilities to turn around the fund's performance drives our positive opinion, but there is key-person risk associated with Naren. We think it's important to monitor the fund over the long term, especially given the brevity of Naren's second run as manager. We assign this fund a Morningstar Analyst Rating of Bronze.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

A quality portfolio tilted towards a value-based approach.

People

Despite being wary of changes on the investment team, our conviction in Sankaran Naren remains positive.

Parent

ICICI Prudential AMC’s stewardship is in line with the industry norm.

Process

A robust top-down and bottom-up approach to selecting quality infrastructure investments.

Performance

Performance has been volatile in the past.

Price

An inexpensive proposition.

Important Disclosures

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