Renaissance India Next Portfolio – Dynamic Thematic Portfolio

The investment objective of Renaissance India Next Portfolio – Dynamic Thematic Portfolio is to create long term capital appreciation by using growth and income theme.

Current theme is ‘Growth & Income’ which is blend of Investing into High Growth Business in India (Growth Portfolio) at the same time given high inflationary macro back drop have an Inflation Hedge (Income generating) Equity Portfolio of companies with strong pricing power.

Renaissance India Next Portfolio – Dynamic Thematic Portfolio’s previous theme was India Economic Recovery (19th April 2018 to 15th June 2022).

The current theme follows a focused multicap portfolio with an investment horizon of over 3 years. The Dynamic theme will ensure that the theme is Current & Relevant – Growth will lead to Capital Appreciation, and Income will act as Inflation Hedge.

Renaissance India Next Portfolio – Dynamic Thematic Portfolio’s Growth component has the following attributes:

• Indian GDP growth of 7% in next 3 years
• Focus on investing in growth sectors
  • Consumer Discretionary
  • Capital Goods
  • Financials
  • IT & Retail

Renaissance India Next Portfolio – Dynamic Thematic Portfolio’s Income component has the following attributes:

• Focus on Income Yields
• Business with strong pricing power
  • Utilities
  • Telecom
  • Pharmaceuticals
  • Real Estate

The 4 Pillars of Investment are:

• Philosophy
• Process
• People
  Performance

The investment philosophy of Renaissance India Next Portfolio – Dynamic Thematic Portfolio is to stay focused on investing into Quality business that can deliver sustainable high growth over medium term to long term and being selective in cyclical business while keeping Risk Management central to investment management.

Renaissance India Next Portfolio – Dynamic Thematic Portfolio follows Sustainable Quality Growth at Reasonable Prices (SQGARP):

• Sustainability: Companies with sustainable and durable business models
• Quality: Superior quality businesses as demonstrated by competitive edge, pricing power, ROE, FCF, good quality and competent management teams, and so on
• Growth: Businesses that can deliver superior growth over medium to long term
• Price: Ability to invest at reasonable valuations. Fair value approach to valuations, with a focus on the economic value of business.