103149  |  INF109K01AV5  |  3 star  |  Bronze

NAV

$ 50.91

1-Day Total Return

-0.39
%
INR | NAV as of 18/10/2017 09:30:00 | 1-Day Return as of 18 Oct 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

15.9 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 | 26/12/2016
by Kavitha Krishnan

This fund was launched by ICICI in 2005 and was managed by Sankaran Naren from inception to February 2011. After two manager changes since then, the fund has made it back into Naren's able hands in December 2015. Naren joined ICICI Prudential AMC in October 2004 as a portfolio manager and is known for being a contrarian investor. His understanding of “value” stocks and ability to stand by 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 funds helmed by him. We think his presence is a big positive and gives the team an edge. Atul Patel has been comanaging this fund along with Naren since August 2016 and covers the infrastructure sector.

Naren follows a combination top-down and bottom-up process with a focus on picking quality stocks. He plans to run 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.

Naren has been taking steps in the right direction. Our conviction on Naren’s abilities to turn around the fund’s performance drives our positive opinion on this fund, but there is key-person risk associated with Naren. We think it 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

The portfolio reflects the manager’s contrarian value-based approach.

People

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

Parent

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

Process

The process hinges on the manager’s ability to invest in the right sectors and stocks.

Performance

The fund’s performance has remained volatile in the past.

Price

The fund’s price is lower than that of the median offering in the category.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

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For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

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