Sundaram Asset Management (MF)

About

Established in 1996, Sundaram Asset Management Company is a fully owned subsidiary by one of India’s oldest NBFCs – Sundaram Finance Limited (SFL). In 2021, the AMC acquired the Principal Asset Management business in India for INR 338.53 crores (~ $46.4 million @73 INR per USD). The AMC also has over 80 branches across India, with an office in Dubai and a wholly owned subsidiary in Singapore. 

According to The Hindu BusinessLine the total assets under management recorded a year-on-year growth of 17 per cent to ₹34,552 crore (~ USD 4.21 billion) as of March 2023, against ₹29,532 crore (~ USD 3.6 billion)  at the end of March 2022. 

Source – Sundaram Finance records highest disbursements in FY23 – The Hindu BusinessLine

Key numbers for the financial year 2021-22 

YearTotal Income (INR crores)Total Expense (INR crores)EBIT (INR crores)EBIT MarginNet Profit (INR crores)Total Income (USD millions)Total Expense (USD millions)Net Profit (USD millions)
2021-22211.42144.2867.1432%58.8129.00117.0095.00

Sundaram Finance Limited, is an Indian financial and investment service provider, based in Chennai. Sundaram Finance offers consumer loans, wealth management, commercial finance, investment banking, private equity, treasury advisory, credit cards and infrastructure finance, among others.

Key staff

Sunil Subramaniam, MD & CEO – Sunil Subramaniam joined Sundaram Mutual in September 2005. During his tenure he has handled various roles – Vice President (Retail Distribution), Executive Director (Sales and Marketing), Director (Sales and Global Operations), Deputy CEO, and CEO before being elevated to his current role as Managing Director. Sunil is also on the Board of Directors of Sundaram Asset Management Singapore Pte. Ltd.

Ravi Gopalakrishnan, Chief Investment Officer, Equity – Ravi Gopalakrishnan joined the AMC in January 2022. He has over 3 decades of experience in research and asset management. Prior to Sundaram Mutual, Ravi has worked with Principal AMC, Canara Robeco AMC, PGIM India Mutual Fund, Hudson Fairfax Group, USA, and Sun F&C Asset Management Ltd., UBS-Warburg Dillon Read Securities, and Unit Trust of India Advisory Services. Ravi adopts a strong bottom-up approach to investing and has a track record of successful performance across firms and business cycles. Nurturing and developing high performing teams at both Principal Mutual Fund and Canara Robeco Mutual Fund has been a key feature of his tenure as Head- Equities over the past 12 years.

Dwijendra Srivastava, Chief Investment Officer, Debt – Dwijendra Srivastava joined the AMC in July 2010. He has over two decades of experience in debt markets having had Research and Fund Management stints at Deutsche Asset Management, JM Financial Asset Management and Tata Asset Management prior to joining Sundaram Mutual. He was awarded Best Fund Manager – Debt by Outlook Money in March 2015. Dwijendra is a Chartered Financial Analyst and holds PGDM (Finance) & Bachelor of Technology (Textile Technology) degrees.

Investment philosophy (for firm)

The website of the AMC does not have any explicitly mentioned investment framework.

The following has been gleaned from other sources –

The firm follows a bottom-up approach, research driven stock selection with a focus on long term growth prospects. The firm invests in growth businesses backed by sound management to stay at the top of the game. Moreover, the firm invests predominantly in high-credit quality companies and manages funds strictly to mandate the investment process. 

Media

Investment mantra for young investors with Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund, YouTube, June 10, 2021, https://youtu.be/LjkMx06YB-8

Investonomics – ICICI Direct – Dated June 10, 2021

  • Two factors behind market rise – surplus liquidity in the market & long term investment horizon
  • Large cap rise due to FII inflows

Mid caps are trading at 30% discount to large and small caps, as they have FII inflows & liquidity in 3 to 5 years has a good potential for wealth creation.

Small cap – should be stretched to long term 5 years to expect good returns.

  • Prefer growth stock over value stock (i.e. GARP – stocks that have a growth at reasonable price)
  • Mid-cap and small cap portfolios are built with focus on industrial growth 

Flexi, multi and large cap portfolios are bullish on private sector banks, IT sectors. 

Midcap going to be the most exciting space: Sundaram AMC’s Sunil Subramaniam

ET markets global summit 2021 – Dated Jan 25, 2021 

  • Since information on mid cap is not easily available, share price behaves differently when compared to the economic performance 
  • Focus on staggered investment with 5 year time frame
  • Select fund manager having long term track record & invest in diversified portfolios within mid-caps with different fund managers.
  • Growth based investment philosophy

Prepared by – Aniket Singh and Praseena Padmakaran, Dec 2022

Updated by – Oraina Dsouza, June 2023

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