101758  |  INF109K01654  |  5 star  |  Neutral

NAV

$ 35.55

1-Day Total Return

0.02
%
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

117.2 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 | 11/08/2016
by Ishwar Chidambaram, CFA

This investment strategy’s execution lacks differentiation from its peers.

Manager Manish Banthia’s investment approach is reasonably straightforward. He studies fundamental factors such as the credit and interest rate cycles, economic growth rate, and inflation to formulate his view on rates, and manoeuvers the portfolio’s average maturity within the broader range of three to five years. Central to his approach is the quest for maturity buckets that offer attractive yields. He also plies an overlay of market expectations and developments. Banthia freely invests in corporate bonds, gilts, and cash based on relative valuations.

Although the strategy isn’t distinctive, it certainly seems workable. However, the execution of the strategy lacks differentiation from its peers and has not lived up to expectations. This is borne out by the fund’s showing on Banthia’s watch (November 2009 through May 2016), during which time the fund has underperformed 46% of its Short-Term Bond Morningstar Category peers. Duration management and spread analysis, which are integral to the strategy, are also areas of strength for the investment team, in our opinion.

Banthia joined the fund company in October 2005 in the products function. After working in several roles, he assumed portfolio management responsibilities in November 2009, taking charge of ICICI Prudential Short Term Plan. While we don’t think Banthia is a bad manager, he needs to perform more consistently to win our confidence. His cause is certainly not aided by a seemingly substantial workload. We would like to see more of what he can do to build confidence in his investment style.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

Freely investing across the corporate bonds, gilts and cash segments.

People

In our opinion, Manish Banthia has yet to come into his own as a manager.

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

Over Manish Banthia’s stint so far, the fund has been a mediocre performer.

Price

As of March 2015, the fund’s total expense ratio was a tad higher than the category median.

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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