ASK India Vision Portfolio

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About ASK

Leading asset and wealth management firm ASK Investment Managers Ltd (ASKIM) primarily serves the HNI and UHNI markets in India. One of the first businesses in India to get a license for portfolio management services, our company is presently one of the biggest providers of discretionary equity portfolio management services. They’ve created India’s first AIF with digital client onboarding, a paperless and simple procedure, and were the first Portfolio Management Company to establish operations in GIFT city for foreign investors, among other recent industry first achievements.

Their current clients include HNIs, Institutions, Pension Funds, Endowments, SWFs, Family Offices and Multi-Managers.

Fund Snapshot

Benchmark S&P BSE 500
Portfolio Managers Mr. Kuldeep Gangwar (Primary Portfolio Manager) & Mr. Sujit Jain (Co-Portfolio Manager)
Minimum Initial Investment Amount Rs. 50 Lakhs
Minimum Add-on Investment Amount Rs. 5 Lakhs
Exit Charges Nil
Fees Fixed Management Fees: 2.50% p.a

Fund Overview

With the price growth of the stocks kept over time, the portfolio tries to provide profits for the investors.

  • Concentrated approach of well chosen companies throughout the market capitalization spectrum
  • Concentrated portfolio of high-quality, fast-growing companies that are positioned to continue compounding over time
  • Purchasing companies with a significant competitive edge in markets with a wide range of opportunities and that provide better growth over a long period of time

Investment Approach Update

In Sep 2022, the portfolio outperformed its benchmark BSE500 which delivered -3.3%. In consumer space, Patanjali Foods, Astral and Polycab increased by 12%/7%/4% respectively in last 1 month. Page Industries, Titan and Radico Khaitan stock prices movement was within +/-1% range. Berger Paints underperformed with 8% decline in last month. In Financial services space, Bajaj Finserv, Bajaj Finance and Aavas stock prices movement was within +/-1% range while ICICI Bank and AU Bank registered 2-3% decline in last 1 month. 

Among Chemical sector names, Navin Flourine increased by 5% while SRF and Aarti Industries declined by 2%/10% respectively in last 1 month. IT companies, Mphasis and Infosys declined by 2%/5% respectively in last 1 month. Among the other names, APL Apollo, Dixon and Divis Labs increased by 10%/7%/2% respectively in last 1 month. Reliance Industries and SONA BLW underperformed as stock prices declined by 10-11% in last 1 month. AAVAS Financiers was added on Sep ’22. Aavas operates in locations where banks typically do not operate (low ticket size, periphery of cities & smaller towns). 

Moreover, ~65% of AUM is towards self-employed borrowers which requires a more involved underwriting due to lack of income proofs and near absent banking habits. Owing to these factors, Aavas enjoys healthy pricing power compared with urban housing finance. Aavas follows an in-house model for loan sourcing, legal and valuation activities (unlike most peers who partly depend on external agencies). This, over time, has helped build strong relations as well as more profound understanding of the borrower behavior, thus translating into a strong grip on growth, profitability, and quality.

Investment Approach Objective

ASK Indian Entrepreneur Portfolio (ASK IEP) invests in entrepreneurial driven and family-owned businesses; listed on the Indian stock markets, for compounding gains over the medium to long term.

Key Investment Objectives and Attributes

Key investment objectives

  • Capital preservation over a period of time
  • Capital appreciation over a period of time

Achieved through

  • Long-term investments in high-quality companies with strong growth prospects

Size of the Opportunity

  • Size of pond v/s size of fish
  • Dominance
  • Resilience
  • Liquidity

Quality of Business

  • High quality of business (Superior RoCE)
  • Strong moat. Impregnability
  • Sustainability
  • Key pivot of strong wealth creation

Earnings Growth

  • Quantum
  • Consistency
  • Durability
  • Predating (Early v/s Later)
  • Compounding power

Value

  • Favorable Price-Value Gap
  • Margin of safety

Key Beneficiaries of Value Migration in India

  • Change in Ownership: Public Sector to Private Sector Banks
  • Higher incomes to increase discretionary spending: Luxury Cars, Premium Bikes
  • Unorganized to Organized: Jewelry, Housing, FMCG, Auto Ancillary
  • Commodity to Branded /Premium Business: FMCG, Consumer Durables
  • Lifestyle changes: Railways to Airlines

New Business Models Emerge on the Back of a Shift in Economic Landscape

Value Migration Drivers

  • Technology
  • Cost
  • Convenience
  • Easier Access to Funding
  • Lower switching cost

Value migration occurs when there is a disconnect between customer priorities & existing business designs

  • Inter country migration: From western geographies to Indian IT/Pharma
  • Inter industry migration in same country: Railways to Airlines
  • Inter company migration in same industry: Public Sector to Private Sector
  • One segment to another in same company: Voice to Data in Telecom

Why invest in ASK India Vision Portfolio?

Selecting consistent performers in disruptive times is the success formula for long-term wealth creation

  • Managed by one of the pioneers in the investment management industry
  • Investing in industries/companies benefitting from value migration ahead of the curve
  • Journey from $2.5 Trillion to $5 Trillion GDP
  • A pure bottom up, buy & hold multi cap investment approach of around 25 high quality companies 
  • A fitting confluence of quality, valuation, and time:3 main drivers for compounding wealth
  • Positioned to capitalize on the impending value migration opportunities in India
  • A fitting confluence of quality, valuation, and time: 3 main drivers for compounding wealth

Investment Approach Research Methodology and Filtration

  • Top 500 as per market capitalization
  • Subjective evaluation on management quality, their integrity, vision, past track record, execution, capital allocations and distribution skills, corporate governance standards etc.
  • Businesses benefiting from value migration (e.g., ownership migration: PSU banks loosing market share to private sector banks, shift from unorganized to organized, etc.)
  • Businesses with RoCE over 25% and Earnings Growth above 20%
  • Selection based on psychographics optimization and valuations

Top 10 Holdings

Top 10 Holdings Allocation (%)
Patanjali Foods Limited 7.4
Bajaj Finserv LTD 7.4
Bajaj Finance LTD 7.1
APL Apollo Tubes LTD 6.8
Navin Fluorine International LTD 5.5
Au Small Finance Bank LTD 5.1
Polycab India LTD 4.8
Dixon Technologies India LTD 4.8
SRF LTD 4.8
Page Industries LTD 4.7

Sector Allocation

Sector Name Allocated Percentage
NBFC 14.2
Chemical 12.7
Banks 10.3
Retail 8.4
Insurance 6.3
Pipes 6.1
Consumer durables 6.0
FMCG 5.4
Oil & Gas 5.0
Alcohol 4.2
Building Products 4.0
IT 3.9
Pharma 3.5
Auto ANC 3.3
Telecom 2.9
Home Decor 2.8

About Fund Manager

Mr. Kuldeep Gangwar, Primary Portfolio Manager


Kuldeep has had the industry for almost 16 years. The sell side equities research portion of this experience spans more than ten years. His primary area of expertise is the consumer goods industry (FMCG & Retail). He worked as a sell side research analyst for HSBC Securities and Capital Markets (India) Private Limited before to joining ASK. He also spent three years working for Tata Motors. Kuldeep holds a B. Tech in electronics and communication from IIT Roorkee and an MBA in finance from IIT Bombay. He holds a CFA charter. In January 2018, he joined ASK.

Market Cap Classification

Market Type Percentage
Large Cap 56.6
Mid Cap 37.8
Small Cap 4.5

Top Contributors - Last 3 Months

Stock Avg. Weight Contribution to Portfolio Return (%)
NAVIN FLUORINE INTERNATIONAL 5.8 1.3
CHOLAMANDALAM INVESTMENT 4.4 0.9
POLYCAB INDIA LTD 5.9 0.9
SRF LTD 4.9 0.8
TITAN CO LTD 4.3 0.6

Top Contributors - Last 1 Year

Stock Avg. Weight Contribution to Portfolio Return (%)
APL APOLLO TUBES LTD 7.3 1.9
RADICO KHAITAN LTD 2.8 1.0
POLYCAB INDIA LTD 5.1 0.9
ICICI BANK LTD 3.9 0.5
CHOLAMANDALAM INVESTMENT 1.2 0.2

Sector Contribution to Portfolio Return

Stock Avg. Weight Contribution to Portfolio Return (%)
Financials 29.4 2.7
Chemicals 12.1 2.2
Consumption 31.0 0.9
Infrastructure and Engineering 8.2 0.5

Top Contributors - Last 1 Year

Stock Avg. Weight Contribution to Portfolio Return (%)
Consumption 29.9 0.3
Chemicals 12.9 0.1
Financials 25.9 -0.1
Infrastructure and Engineering 11.0 -0.4

Risk Management

  • Integrated risk management and review mechanism throughout the investment process
  • Disciplined Buy and Sell mechanism
  • Discipline of buying businesses with a reasonable margin of safety
  • Individual stock cap at 10%*
  • Role of compliance & risk management teams – ongoing monitoring and reporting
Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

ASK India Select Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 4-Jan-10
Multi Cap
(PMS)
2,808 Strategy 5.80 10.60 15.30 22.70 6.50 12.90 13.50 17.30 15.70
S&P BSE 500 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 12.80

ASK Indian Entrepreneur Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 25-Jan-10
Multi Cap
(PMS)
18,959 Strategy 3.70 7.20 10.00 20.50 5.00 13.80 14.80 18.40 17.60
BSE 500-TRI 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 13.10

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.