101758  |  INF109K01654  |  5 star  |  Bronze

NAV

$ 35.64

1-Day Total Return

-0.00
%
INR | NAV as of 12/15/2017 10:30:00 AM | 1-Day Return as of 15 Dec 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

115.2 bil

Expenses

1.24%

Fee Level

--

Turnover

684%

Status

Open

Min. Inv.

5,000

30-Day SEC Yield

--

Category

Short-Term Bond

Credit Quality/Interest Rate Sensitivity

High/Limited
Author
Morningstar's Take | 25/10/2017
by Nehal Meshram

ICICI Prudential Short Term Growth's time-tested investment approach is plied consistently and merits a Morningstar Analyst Rating upgrade to Bronze from Neutral.

Although the strategy isn't distinctive, with the manager's contrarian view of the markets it is certainly workable. The execution of the strategy has been good by having a different positioning from its peers, and it has been plied consistently. This is borne out by the fund's showing on Manish Banthia's watch (November 2009 through September 2017), during which the fund outperformed 76% of its Short-Term Bond Morningstar Category peers.

The team behind this offering remains one of the largest fixed-income teams in the industry. Lead manager Banthia plies an active investment style. He is driven by the quest for value with a contrarian bent and is keenly attuned to market expectations and developments while constructing the portfolio. Banthia is backed by two fund managers, four research analysts, and five dealers, out of which two act as comanagers. Close communication between the fund managers and research analysts is encouraged for idea generation.

The investment approach is research-based and combines qualitative aspects with quantitative analysis. The manager focuses on the macroeconomic scenario, liquidity conditions, spreads and other short-term influencing factors define the asset allocation and maturity profile. Spread analysis is the mainstays of the investment strategy. Banthia manages the duration of the portfolio at 2.0 to 3.5 years. The moderate-duration strategy provides protection from volatility and also benefits from the roll-down perspective.

We believe that the manager has the technical skills and an understanding of the asset class gained over many years of experience and this fits well with the overall rigorous and proven investment approach. Despite maintaining a high expense ratio, the fund has been able to generate robust performance numbers. Hence, we have upgraded the rating to Bronze. 

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

The fund’s primary focus is to ensure quality and liquidity in the portfolio.

People

The investment team ranks well on duration and credit management.

Parent

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

Process

Duration plays and spread analysis are central to the investment strategy.

Performance

The track record under Banthia remains impressive with a moderate duration stance.

Price

The expense ratio is higher than the category median, making it an expensive proposition.

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.

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