| Funds Managed | Asset Class | License |
| Axis brand equity | muticap | PMS |
| Axis core & satellite | muticap | PMS |
About
Axis Asset Management Company Limited, a company incorporated under the Companies act, 1956, which has obtained a certificate of registration from SEBI to act as a Portfolio Manager under Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, vide registration no. INPO00003534 and may also act as a “Co-Investment Portfolio Manager” in accordance with the Regulations. In January 2017, they launched their flagship product, Axis Brand Equity PMS. This was a significant milestone for the company and marked the beginning of a new chapter in its journey.
By November of the same year, your PMS AUM had crossed INR 100 crores. In November of 2021, the company launched the Axis Core & Satellite portfolio, which is another exciting development for the company.
Key Staff
Hitesh Zaveri
SVP & Head – Listed Equity Alternatives
Hitesh joined Axis AMC in 2022 as SVP & Head – Listed Equity Alternatives. He is responsible for managing the Axis PMS portfolios along with relevant CAT-3 AIF strategies. Hitesh has over 25 years of experience in portfolio management, investment banking, and equity research. Prior to joining Axis AMC, he served as Head of Investments in the PMS business at Aditya Birla Mutual Fund. Hitesh has also worked with Enam Asset Management as Executive Director & Portfolio Manager and with Edelweiss Capital as Senior VP & Co-Head of Institutional Research.
Investment philosophy (for the firm)
Axis Brand Equity Portfolio
Investment Proposition
Axis Brand Equity Portfolio invests in a portfolio of brands that have a preference for a companies’ products/services in the minds of customers, leading to superior pricing power with customers
The portfolio is an eclectic mix of brands which are either Emerging, Established or Turn-around brands which help maintain the overall portfolio balance
The primary objective is to achieve superior risk-adjusted returns and deliver long-term wealth creation through investment in companies with strong brands
Number Of Stocks
33
Investment Horizon
3-5 years
Scrip Allocation
Not more than 10% in a single stock
Sector Allocation Limit
Not more than benchmark +10% for a sector
Allocation
Market Capitalization: Predominantly Large cap (intend to keep it at ~65%). Remaining 35% in a mix of Mid and Small caps
Strategy Details
Strategy TypeOpen ended
BenchMarks S&P BSE 200
Inception Date27th January 2017
Minimum InvestmentRs 50 Lakhs
Subscription
Minimum InvestmentRs 50 Lakhs
Suggested Time HorizonMinimum 3 years
Axis core and satellite portfolio
The Portfolio comprises two parts viz. “Core” and “Satellite”.
Core (50-70%) – Fundamentally Strong businesses with Strong Brand Presence
Satellite (30-50%) – Cyclical Businesses with Efficient Capital Management Practices
Number Of Stocks
31
Investment Horizon
3-5 years
Scrip Allocation
Not more than 10% in a single stock
Sector Allocation Limit
Not more than benchmark +10% for a sector
Allocation
Market Capitalization: Predominantly Large cap (intend to keep it at ~65%). Remaining 35% in a mix of Mid and Small caps
Strategy Details
Strategy TypeOpen ended
BenchMarksS&P BSE 200
Inception Date25th November 2019
Subscription
Minimum InvestmentRs 50 Lakhs
Suggested Time HorizonMinimum 3 years
Media
Axis brand equity PMS AIF WORLD Engagement
The investment philosophy of Axis Asset Management revolves around investing in businesses with strong brand equity and pricing power, which can create sustainable competitive advantages, consistent financial performance, and wealth creation for investors over time. The company believes that brand equity creates bargaining power in front of customers, resulting in pricing power, which can lead to superior growth, returns, and margins in underpenetrated and unorganized markets like India. Companies with strong brand equity and pricing power are likely to perform better and generate higher returns in the long run.
The 40% allocation to emerging brands in the portfolio reflects the fund’s willingness to take on higher risk for the potential of higher returns. These companies are still in the early stages of their brand lifecycle and may not have a proven track record of financial performance or a widespread customer base.
The 45% allocation to well-established companies such as Asian Paints provides a stable foundation of returns for the portfolio. These companies have a long history of delivering sustainable financial performance and have established themselves as leaders within their respective industries.
The final 10-15% allocation to turnaround brands such as ICICI Bank provides a market-agnostic return, meaning that the returns are highly company-specific and dependent on the company’s ability to turn around its performance. These companies may have had a strong brand presence in the past but have fallen by the wayside for some reason, and the fund sees potential in their ability to revive their brand and improve their financial performance.
the investment process for this portfolio involves a three-step process: two quantitative filters to identify companies that are actively creating a brand and are effective in their spending, followed by qualitative analysis through meetings with company executives, competitors, and suppliers to arrive at an estimate of intrinsic value. The portfolio typically consists of 20-22 names, with a minimum of 15 and a maximum of 25.
In terms of risks, the portfolio focuses on companies in the emerging, established, and turn-around categories. The main risk is if any of the companies in these categories begin to fade and become complacent, which could result in capital loss. The research process includes monitoring market share data and regularly speaking to company stakeholders to identify any potential risks and take action accordingly.
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