The second largest foreign investor-focused fund in the country is the Motilal Owsal Nasdaq 100 ETF, according to the industry.
PGIM India MF is the fully-owned subsidiary of the US-based Prudential Group’s PGIM (Prudential Global Investment Managers) managing over USD 1.4 trillion AUM (assets under management), making it the 10th largest fund house globally.
“We launched PGIM Global Equity Opportunities Fund in October 2018, but we did not focus on its sales in the first year. However, since October last we began to focus on this fund and the result is that since then it has grown over Rs 300 crore in AUM as of mid-September. Last October it was not even a Rs 10-crore fund,” Ajit Menon, the chief executive of PGIM India MF, told in an interaction over the weekend.
This is commendable as by nature, a vast majority of investors are home-asset focused, which here is high with 99.9 per cent domestic investors investing only in domestic equities, he said, adding of the Rs 27.5 lakh crore of mutual fund AUM, the share of global funds is only under Rs 10,000 crore.
Menon said almost Rs 100 crore of the Rs 300 crore AUM of this fund was added in the past one month alone.
The fund since last October has given over 50 per cent return to investors, and Menon expects the pace of growth to slow down to some degree given the larger base. Of the total investors of 1.1 lakh, about 34,000 are in this fund, he said.
This fund invests in marquee stocks like Apple, Tesla, and Microsoft among others, Menon said, adding this funds invests 60 per cent of the AUM in American stocks, 30 per cent in European stocks and 10 per cent in China/Hong Kong equities.
Managed by Alok Agarwal, the underlying fund of this flagship is the PGIM Jennison Global Equity Opportunities Fund with the MSCI All Country World Index as it benchmark.
As of end July, the top 10 holdings of PGIM Jennison Global Equity Opportunities Fund is Amazon (7.1 per cent of the total AUM), Adyen (5.8 per cent), Apple (5.5 per cent), Tesla Motors (5.3 per cent), Shopify (4.4 per cent), MercadoLibre (4.4 per cent), Netflix (4.2 per cent) Microsoft (3.6 per cent), Tencent (3.1 per cent) and Mastercard (3 per cent) among others.
Its geographic distribution had 58.1 per cent in the US, France (11 per cent), China (10.2 per cent), the Netherlands (6.1 per cent), Switzerland (4.7 per cent), Canada (4.4 per cent), Italy (2.6 per cent) and Britain at 1.8 per cent.
On the domestic market, he said having rallied almost 40 per cent since the pandemic-driven washout in March, the domestic equities are too expensive now and there has to be a correction now.
“Both Sensex and Nifty are too expensive now. A correction to the tune of 10-15 per cent is necessary to ensure wider participation. But I am confident the market correction will not last for long. If it falls it will be a great entry point for the market. Having said so, as a fund house we are optimistic in general,” Menon said.
PGIM India has around 1.1 lakh active and live folios with a total AUM of Rs 6,300 crore, of which domestic AUM is Rs 4,500 crore, Menon said, adding he hopes to add Rs 1,500 crore to the domestic AUM to take to Rs 6,000 crore by March.
The equity AUM is Rs 1,600 crore now which he expects to rise to Rs 2,000-crore by March helping take the overall AUM to Rs 7,500-8,000 crore by the end of next March.