Invesco Asset Management

About

Invesco India Mutual Fund, was set up on 24 July 2006, by the sponsor – Invesco Hong Kong ltd. Invesco, a US-based fund house, entered India back in 2013 in partnership with Religare Securities Ltd. to form Religare Invesco Asset Management Co. Ltd. The former owned a 49% stake in the asset management company, with the rest being held by the latter. In 2016, Invesco bought the remaining 51% of shareholding owned by the co-sponsor Religare and renamed it as Invesco Mutual Fund. 

Invesco India has a total AUM of over INR 47.700 crores (~$5.81 billion @ INR 82 per USD) as of May 2023.

Total number of schemes managed by Invesco India MF  are 35 out of which 17 are Equity, 13 are Debt and 4 are hybrid, managed by 15 fund managers.Invesco has on ground presence in more than 20 countries, serving clients in more than 120 countries with more than  8,400 employees worldwide

Established in 1935, Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. It manages $1.35 trillion in assets on behalf of clients worldwide (as of January 31, 2021) with specialized investment teams managing investments across a comprehensive range of asset classes, investment styles and geographies. Operating in more than 25 countries, Invesco provides a wide range of investment products, strategies and vehicles to retail, institutional and high net-worth clients around the world. Invesco has more than 8000 employees worldwide, having ground in 25 countries such as in Australia, Canada, China, Europe, Hong Kong, India, Japan, Korea, Singapore, Taiwan and the United States etc.

Key financial figures for the year 2021-22

yearTotal income (in crore)Total expenses(in crore)EBIT(in crores)EBIT(%)Net profit(in crores)Total income(in million USD)Total expenses (in  million USD)Net profit (in million USD)
2021-22194.1147.546.425.5%4024.316.77.8

Key staff

Saurabh Nanavati is the CEO of the India Asset Management operations for Invesco and oversees all functions, including business strategy, investments, operations and sales for Invesco India. He has been in the asset-management industry since 2002. Prior to joining Invesco, Nanavati served as Chief Investment Officer of HDFC Standard Life Insurance between 2006 and 2007. He also served as Head of Institutional Sales for Deutsche Asset Management (India) between 2002 and 2004 and then served as Business Manager –Asia (ex-Japan) of Deutsche Asset Management (Asia), Singapore between 2004 and 2006. He is also a Director on the Board of Association Of Mutual Funds of India (AMFI) and served as the Vice Chairman of the Board, and as Chairman of MF Utilities India Pvt. Ltd. He was also the Chairman of the AMFI standing committees on ARM (2015-19) and Operation & Compliance (2011-14). Saurabh holds an Electronics Engineering degree and is an MBA in Finance from Jamnalal Bajaj Institute of Management Studies.

Taher Badshah is the Chief Investment Officer having over 29 years of experience in the Indian equity markets. Taher is responsible for the equity and fixed income investment function at the firm. He has been with Invesco Asset Management, India for over 6 years. In his previous role with Motilal Oswal Asset Management as Head of Equities, he was responsible for leading the equity investment team. In the past, he has also worked with companies like Kotak Mahindra Investment Advisors, ICICI Prudential Asset Management, Alliance Capital Asset Management, etc. Taher holds a Master’s in management studies (MMS), with specialization in finance from S.P. Jain Institute of Management and a B.E. degree in Electronics from the University of Mumbai.

Amit Ganatra – Head of Equities Amit has over 20 years’ experience in equity research and currently serves as Director & Head of Equities at Invesco, where he is responsible for providing leadership to the equity investment function. In his last assignment, Amit was working with HDFC Asset Management Company Ltd. ,as Senior Fund Manager. Prior to joining HDFC AMC, Amit has worked with Invesco for almost 11 years managing key investment strategies, DBS Cholamandalam Mutual Fund & Fidelity covering banking, property, and construction sectors. Amit holds a Commerce degree and is a Chartered Accountant. He is also a Chartered Financial Analyst from AIMR. 

Vikas Garg –Head of Fixed Income 

Vikas heads the Fixed Income investment function at Invesco India and also serves as a fund manager for various debt schemes at Invesco India. He has over 18 years of experience, of which 16 years are in the asset management industry spanning across credit research and portfolio management. In his last assignment, Vikas was working with L & T Mutual Fund as a Portfolio Manager where he was responsible for managing the Debt funds in various categories, including the high yield-oriented funds. In the past, he has worked in the credit research team with companies like FIL Fund Management Pvt. Ltd. and ICRA Ltd. Vikas holds B. Tech M. Tech in Chemical Engineering from IIT-Delhi, PGDBM from XLRI – Jamshedpur and a CFA charter holder-USA.

Investment philosophy 

C:\Users\admin\Documents\Invesco equity inv philo.png

Media

Are market valuations fair? Interaction with Saurabh Nanavati, CEO, Invesco MF, Part 1 of 2, May 2023.

Link to media-  https://www.youtube.com/watch?v=34X0EBRd23c&t=4s 

Two years ago, the stock market touched a historic low, with no clue about the central bank’s reaction. $6-7 trillion were pumped by major developed markets globally. Property markets have not performed well in metro cities for the past 7 years, so equity markets are the only option to earn double digit returns. A decade ago, FII flows contributed to the stock market growth, and mutual funds investment by domestic players in the past 6 years.and retail investors are emerging players now. For a 5 year view, market valuations are fair, not inflated or cheap. There was expectation of a 5% market correction owing to the pandemic, and markets have delivered. Go for a financial advisor for asset allocation for long term portfolio investment. Mid and small cap underperformed than large cap stocks, but recently he has been indifferent about it. Tactically, value (4-5 months) is to be preferred over growth (last 6 years). The infrastructure theme, as per 13 member equity team,comprising 3 fund  managers, 2 dealers and 8 analysts, can be picked up tactically and has been reflected in their portfolio. The behavioural nature of retail investors has shifted from consumption to savings. There is INR 7000 crore investment under the contra fund. Investors should not look at YoY or 5-10 year returns but to look at a 3-year rolling period, which has not disappointed investors in any way. India is a high-growth market and so are the emerging opportunities. Invesco is focused only on asset management, and not entered diverse segments like banking and insurance. Invesco entered india by owning a 49% stake in religare asset management in 2013 and later acquired a 100% stake in 2016, though the core team and investment philosophy hasn’t changed. It is a team-based approach, and not staff or management driven.there is consistent alpha return generation over past 4-5 years. Based on statistics, Invesco India has boarded 11 lac new retail clients, from 2 lac. SIP book from 5 cr to 200 cr per month having 6 lac accounts, reflecting the focus on retail investor onboarding. Retail and equity assets cover 55% of AUM, INR 40000 crore domestic assets and INR 22000 crore in equity assets in India. India dedicated fund issue globally standing at 10000 crore. Global consumer trends fund has 30000 investors close to 700 crore worth of investment, reflecting diversified portfolio. Focus will be on fund management in the years ahead. 

Are Market Valuations Fair?  Interaction with Saurabh Nanavati, CEO, Invesco MF, Part 2 of 2, May 2023

Link to media-  https://www.youtube.com/watch?v=CpoAjpdXG08 

Market appreciation and new listings are two reasons for boosting the GDP of a country. For the next decade, every year around 20 million youth will be joining the workforce. So the challenge for the government is  to provide value-added manufacturing jobs that are long-term in nature. 2.3 crore are the no. of unique investors in india which is severely underpenetrated. Invesco manages $80 billion AUM in China, but the rate of conversion is very high in India compared to China. The goal of AMFI is to touch 10 crore unique PAN investor clientele base in India, that will provide a wider base of clientele and provide volume. Most transparent of all debt portfolios among all Indian AMC. IL&FS crisis i.e. a AAA paper defaulting in 1 month had taken the industry aback. Downgrading of debt securities is another major issue. Even debt securities need to to be marked to market, ie NAV will reduce due to downgrading issues. This issue has been outplayed / delayed for next 2-3 years due to  the moratorium provided by the central bank. No debt paper of invesco has even been downgraded, reflecting the safety that invesco provides. There is substance in investing overseas, as India is a very small market (no options), there is no listing of any Global tech MNC where tech stocks are booming – Amazon, flipkart, online gaming platforms- not listed in India. no Indian restaurant , which will do a booming business after the pandemic is listed in India. The global overseas fund has generated a 25% CAGR return over the last  10 years, but nifty only 10% in the last 10 years. The portfolio PE multiple is lower in India. The risk (standard deviation) of investing in India is 18% but 50-50 in Indian and global funds reduces to 14%. For thematic funds like country or sector risk prevail, but higher returns with lower risk in case of global funds. 50% into equities, 25 % into debt and world rank 4 in global AMC w.r.t. investment in ETFs, which stand at $300 billion.In India- all active funds have been able to beat 3-5-10 year benchmark and generate significant alpha. ETF products will soon be offered to Indian clients soon. Interest rate rising and central bank pulling out liquidity stimulus money in circulation are two biggest macroeconomic risks. The mutual fund m-cap can reach 3 digit numbers with a rise in client base i.e. 10 cr.+. India has lost aspects of the manufacturing boom that China,Taiwan and South Korea have enjoyed . There has been a lowering of corporate tax in the past 2-3 years, giving incentive to manufacture in India. He is optimistic about the next decade , which will be better than the last decade, as it is hard to manage, as India is far from the peak, as achieved by Japan in 1990, where the management of the resource is difficult. The first quarter of 2022 has been a washout, so earnings forecasts  have to be brought down from 23% to 18%. Focus should be on needed sectors and extremely vulnerable sectors.

Invesco India Mutual Fund in the news: What should you do? Fri Oct 21 2022

Link to media-  https://www.indmoney.com/articles/mutual-funds/invesco-india-sees-mass-resignation-after-whistle-blower-allegations-key-things-to-know 

As per the latest investigation by one of the leading business news-daily, the prominent mutual fund is facing issues with regard to the attrition of its fund management team. The ongoing whistleblower allegations of misappropriation in debt schemes, and the many fund management team members moving out are the two major issues that the Invesco mutual fund is facing right now.

Invesco MF launches two new target maturity index funds, Team Café mutual,  Mar 18, 2023

Link to media- https://cafemutual.com/news/nfo/28792-invesco-mf-launches-two-new-target-maturity-index-funds 

Invesco Mutual Fund has launched two target maturity debt index funds – Invesco India Nifty G-sec (July 2027) Index Fund and Invesco India Nifty G-sec (Sep 2032) Index Fund. Target maturity funds are open ended schemes that track performance of government bonds and come with a fixed maturity period. The NFO of Invesco India Nifty G-Sec July 2027 Index Fund will close on March 17 whereas the NFO of Invesco India Nifty G-Sec Sep 2032 Index Fund will close on March 24. In a press release, Taher Badshah, Chief Investment Officer, Invesco Mutual Fund said, “The sharp increase in interest rates over the past one year now warrants increased allocation towards fixed income as an asset class that has the potential of generating meaningful income. These funds have been carefully designed to capitalize on the prevailing high interest rates in the market and are particularly suited to investors with a specific financial goal that aligns with the fund’s maturity timeline and superior asset quality.” Vikas Garg, Head of Fixed Income, Invesco Mutual Fund said “The market is offering    attractive carry opportunities, as interest rates are approaching their peak and future rate actions expected to be more calibrated and data dependent.”.

Prepared by – Akash Damani , June 2023.

Updated by – Nikunj Agarwal, 2022

You must be logged in to post a comment.