New Fund Offering from ICICI Prudential

 Highlights

• The fund is an open-ended equity scheme following a special situation theme
• Special situations are unique that companies may face from time to time
• Follows bottom-up, market cap and sector agnostic stock picking style
• Likely to have a concentrated portfolio with high-active share 

Mumbai, December 27: ICICI Prudential AMC has announced the launch of ICICI Prudential India Opportunities Fund. The new fund offering will be open for subscription from December 26, 2018 to January 9, 2019. ICICI Prudential India Opportunities Fund aims to add alpha to the portfolio over the long term through bottom up stock picking, based on special situations. The benchmark for the fund is Nifty 500 Index and will be managed by S Naren and Roshan Chutkey. The Fund is likely to have a concentrated portfolio with high-active share and will be market cap and sector agnostic in its investment approach.

Nimesh Shah, MD and CEO, ICICI Prudential AMC, said, “Special situations as a theme currently is a road less travelled among the Indian investors. The aim here is to turn crisis points into opportunities for a long-term investor. The core investment strategy is identifying companies in special situations which require rigorous 360 degree stock research.”

He further added, “Special situation refers to temporary crisis that a company, sector or an economy may face. Government action, regulatory changes, global events or uncertainties are some of the other situations that can be turned into an investment opportunity. In terms of a company, a special situation can be regulatory issues, consolidation in industry or increased competition, management change, unfavourable business cycle or macros.”

When it comes to sectors, there could be internal or external factor which could present a special situation. Internal factors could be stress due to new entrant, intense competition amongst existing players or domino effect. On the other hand, external factors could be macro changes, government reforms and regulatory changes or global pressure. A change in economic scenario would account movements in macroeconomic variables which are the key proponents of the trends existing in the economy and can create special situation opportunities in companies and sectors”, AMC said in a release.