How PMSes performed in FY20: The best delivered 7.6% and the worst fell by 41.2%

A look at how different strategies performed in April 2019 to March 2020 period; the returns were impacted by the March 2020 crash in stock markets

Kumar Shankar Roy May 18, 2020

Portfolio VolatilityFY20 was a tough one for the PMS industry, especially because of the key regulation changes. And, weak markets simply compounded the problems, slashing the returns clocked by individual strategies. You can gauge the performance by looking at Nifty which was itself down by 26%. The best PMS delivered 7.6% positive gain while the worst fell by 41.2%. Let us have a detailed look.

Winners

Marcellus Consistent Compounders was the best performing PMS strategy with 7.6% in FY20, followed by Ambit Capital Coffee Can’s 2.2%, Anand Rathi Advisors MNC PMS’ 0%. These numbers are great considering that the benchmarks were down 26-36% for the the 12-month period ended March 31, 2020.

Other notable PMS strategies in FY20 were IIFL Multicap Advantage (-3.35%), Stallion Asset Core Fund (-3.73%), Pelican PE Fund (-5.46%), Kotak Pharma (-8.50%), Sanctum Wealth Indian Titans (-9.20%), AccuraCap Alpha10 (-10.50%), Phillip Capital Emerging India Portfolio (-10.59%), IDFC Asset Management NEO Equity Portfolio (-10.98%), according to PMSBazaar data.

In terms of different PMS strategies, the Multicap space in FY20 was led by Marcellus Consistent Compounders. Ambit Capital Coffee Can led the largecap strategies. Anand Rathi Advisors MNC PMS was the leader in thematic PMSes. Kotak Pharma was the clear winner among sector focussed PMSes. Phillip Capital Emerging India Portfolio was the topper in the midcap strategies. Emkay Lead PMS (-11.80%) was the shining star in the large & midcap segment. In the smallcap PMS space, Ambit Capital Emerging Giants (-18.30%) was the best.

FY20 Best performing PMSes

Strategy type FY20 return Best
Largecap -16.93% Ambit capital Coffee Can
Midcap -22.78% Phillip Capital Emerging India Portfolio
Smallcap -29.08% Ambit Capital Emerging Giants
Multicap -21.34% Marcellus Consistent Compounders
Sector -28.50% Kotak Pharma
Thematic -16.06% Anand Rathi MNC PMS

FY20 Worst performing PMSes

FY20 return Worst FY20 return
2.20% ICICI Pru Largecap -28.33%
-10.59% Invesco Caterpillar -34.27%
-18.30% Sundaram AMC Microcap Portfolio -38.20%
7.60% Kotak SSV Series – 1 -41.20%
-8.50% Trivantage Cap Resurgent Financials -37.70%
0% Choice Portfolio New India Strategy -32.12%

Source: PMSBazaar Data as on March 31, 2020

Additional Read: PMS firms can’t charge any upfront fee to clients; Direct option introduced in PMS too

Laggards

The Nifty fell by over 20% in March 2020, shaving off huge returns for the year. And it was just not the Nifty that fell. Nifty Midcap 100 and BSE Small Cap were individually down 30%. There was nowhere to hide from the March mania. Naturally, the PMSes that suffered the most figure in FY20 losers list.

The average largecap PMS was down nearly 17% in FY20. The worst one is ICICI Pru Largecap Portfolio (down 28.33%), followed by Right Horizons India Business Leader (down 24.35%) and Concept Investwell Legend (also down 24.35%).

The average midcap PMS in FY20 slipped about 23%. The laggards are led by Invesco Caterpillar (-34.27%), Concept Investwell marvel (-31.95%) and Right Horizons Super Value (-30.48%).

The multicap PMSes are extremely popular, with the highest number of strategies being devoted to this niche. The average multicap PMS lost -21.34% in FY20. The worst performers include Kotak SSV Series – 1 (down 41.2%), Buoyant Capital Opportunities (down 40.80%), Capgrow Capital Special Situations (down 36.1%), Asit C Mehta ACE Multicap (35.8% down) and Kotak SSV Series -2 (down 33.90%).

Lastly, the smallcap PMS strategy has been the pariah for sometime now due to poor performances. The average smallcap PMS was down 29% in FY20. Sundaram AMC Microcap Portfolio (down 38.2%), Right Horizons India Under-Served (down 38.14%) and Prabhudas Lilladher Fortune Strategy (down 33.19%) are the notable laggards.

Additional Read: SEBI raises PMS investment limit to Rs 50 lakh; doesn’t it make expert-managed portfolio inaccessible while direct stock exposure free for all?


Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at kumarsroy@rupeeiq.com.

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