ICICI Securities forays into financial products manufacturing space with PMS launch

ICICI Securities Limited said on May 8th that it has launched its proprietary Portfolio Management Services (PMS) for its HNI and U-HNI clients. With this, the company has entered into financial products manufacturing space — a new revenue stream for the company — from pure play distribution earlier. PMS is an investment service managed by a professional money manager through which one can play various investment themes.

Speaking on the development Anupam Guha, Head – Private Wealth and Equity Advisory Group at ICICI Securities said, “We are excited to launch our PMS service as it not only deepens our engagement with our HNI clients but also diversifies our revenue stream to advisory and manufacturing of financial products. Currently we have launched a passive two-factor model and going forward we plan to curate active investment strategies under our PMS banner."

Index-based investing is gaining prominence worldwide and India is no exception. Products like passive index fund & ETFs are extremely relevant in the current landscape where clients are seeking efficient least cost avenues for investments. The quest for superior risk-adjusted returns over indices has in the meanwhile given rise to smart beta index strategies. Our current offering - Active Index Portfolio Strategy – plays this theme.

Asset Under Management (AUM) of listed equities PMS in India exceeds Rs 110,000 crore and has been growing at a CAGR of around 24 per cent since 2010. ICICI Securities, which has an active wealth management practice, has formed a core PMS team, comprising of market experts with deep domain knowledge who are aided with latest technological tools, to assist clients with their investment goals.