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en-IN We would like to see the analyst team stabilise over the long term. L&T AMC has built an equity team almost from scratch following the acquisition from Fidelity. The fund house has since put a credible and experienced equity team in place. The team has been working well with individual managers focusing on their areas of strength. Portfolio manager Soumendra Nath Lahiri joined the AMC in September 2012 and has been managing this fund since November 2012. He joined the fund house as its head of equities and was elevated to the position of a CIO in 2015. Lahiri has 20-plus years of experience on the investments side, with more than eight years of portfolio management and advisory experience. His varied experience on the portfolio management and advisory side with DSP BlackRock, Canara Robecco, and Fortuna Capital makes it difficult to assess his long-term track record in managing portfolios. However, we find him very knowledgeable on stocks and sectors. Head of equities Venugopal Mangat and fund manager Vihang Naik are also part of the investment team at L&T AMC. Their research team has witnessed a significant churn recently, with most of its experienced analysts moving out. In our opinion, it is critical for the AMC to retain talent and build on it to make its offerings stronger. The fund has a large-cap bias, with a 20%-30% allocation to mid-caps. Soumendra Nath Lahiri prefers to invest in good businesses at reasonable valuations or companies with improving fundamentals. This is evidenced from his investment in companies such as India Cements, Savita Oil Technologies, and West Coast Paper Mills, amongst others. The portfolio reflects some contrarian ideas based on the manager's conviction. While there is a focus on bottom-up stock selection, a top-down overlay is exhibited by the fund's overweight position in industrials, based on expectations of reforms that may lead to an improvement in economic growth. The manager is also overweight in the cements sector based on his top-down view and expectations of growth in the retail real estate and infrastructure sector. The sector supports better capacity utilisation, has high entry barriers and a strong moat that drives Lahiri's conviction. Stocks like Ambuja, Ramco, and India Cements find a way into the portfolio. The recent change in its category has led to an increase in the fund's mid-cap exposure. We think this gives Lahiri an opportunity to play to his strengths. The fund has a large-cap bias, with an allocation of 20%-30% in mid-caps. Lahiri prefers to manage a portfolio of 50-60 stocks, with the top 10 holdings constituting around 40% of the portfolio. Exposure to a single stock is generally maintained below 7% to manage portfolio risk. The focus is on companies that are efficient allocators of capital. Soumendra Nath Lahiri follows a bottom-up, benchmark-agnostic investment approach focused on investing in companies that are efficient allocators of capital. Thus, ROCE is one of the critical parameters used for evaluation. The manager focuses on the profitability and attractiveness of a business, competitive position within its industry, and stage in the business cycle. Lahiri considers DCF valuations along with P/E, EV/EBDITA, and P/BV as key parameters while evaluating stocks and considers relative valuations within the industry to find companies that are trading at reasonable valuations. Analysts track a core list of about 300 companies that are evaluated on the basis of business, management, and valuations. The analysts derive price targets for the stocks and also run sector-neutral portfolios for the sectors, which serve as guides to the fund manager while investing. A benchmark-agnostic approach may result in large overweight or underweight positions relative to the benchmark. Furthermore, the fund house can hold a significant portion of a company as a whole. The risk management function plays a critical role in highlighting key portfolio risks and defines limits of the maximum holding they can have in a company. The process is sound and the execution has been good, producing pleasing results for investors so far. The fund's large-cap bias makes it a suitable long-term core holding in an investor's portfolio. Core We expect to see a better showing on the fund's performance. This fund is being placed under review following a manager change. The opinion below is based on its previous manager. The investment team running L&T Equity has remained fairly stable and seems to work well together. The core philosophy of the fund has remained consistent despite a recent change in the fund's Morningstar Category. We are wary of the recent changes in the analyst team and think it prudent to maintain a Morningstar Analyst Rating of Bronze on this fund for now. The fund is managed by CIO Soumendra Nath Lahiri, who has more than 20 years of experience on the investment side and has been managing or advising on portfolios for 10-plus years. The experience and knowledge that the core team of Lahiri (CIO), Venugopal Mangat (head of equities) and Vihang Naik (fund manager) bring to the table is crucial, especially as the research team supporting the investment team has witnessed a lot of churn recently. The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can give rise to a portfolio that is distinct relative to its peers. Lahiri prefers running portfolios of 50-60 stocks and mitigates concentration risk by maintaining a maximum individual stock exposure of about 6%-7%. Lahiri's focus lies in identifying companies with high-quality managements and growth rates that exceed the industry average over the long term. The idea is to identify and invest in companies that allocate capital rationally and generate a high ROCE at reasonable valuations. He looks at the competitive structure of the industry, entry barriers, regulatory environment and growth opportunities for the company within the sector while scouting for opportunities. His approach can lead to investing in contrarian ideas, such as his current investments in the cement and real estate sectors. We think the process and investment style stand out but are wary of the slightly higher portfolio risks it entails. 1959 1959 Kavitha Krishnan Kavitha Krishnan L&T Asset Management Company is a fund house that has grown through acquisitions. It acquired the asset management license through the acquisition of DBS Cholamandalam AMC in Sept 2009. It acquired Fidelity in 2012, giving the AMC a sizeable magnitude in terms of assets. The parent entity (L&T) is one of the largest engineering and construction players in India with no history of managing or advising on assets till the takeover of DBS Cholamandalam. The team at L&T – both on the business and investment side is experienced in the asset management space which is a positive. While a lot of senior members on the debt and business side are from Fidelity, L&T had to set up a new equity team from scratch with some hand-holding from Fidelity. While processes within the AMC have been structured over time, the AMC has a long way to go before they emerge as a market leader in the Indian mutual fund space. The compensation structure for the investment team consists of a 30-50% variable component (50% for more senior members) with the focus currently on one year and three performance. We expect to see the compensation structure take into account longer term performance as the team continues to stabilise. Compensation is based on fund performance, team building and analyst mentoring, sales support and compliance. The fund house also offers stock options based on individual performance. L&T Asset Management Company is a fund house that has grown through acquisitions. 2018-04-03T01:47:00 2018-04-03T06:47:00Z The recent change in the fund's category has altered its performance profile. The performance of the fund compared with its India multi-cap peers has remained below average. From November 2012 through March 2019, the fund (13.52% annualised) underperformed its benchmark S&P BSE 200 Index (14.09%), placing in the 67th percentile amongst its peers. It has consistently remained in the third quartile within its category on a year-on-year basis over the past five years. That said, its performance relative to peers witnessed a significant shift owing to a category change from large-cap to multi-cap in 2017. The fund remained an above-average performer in its previous category, consistently landing in the top two quartiles. The fund's performance in 2015 placed it in the third quartile as its banking and industrial stocks failed to perform. It fared slightly better in 2016, falling in the second quartile, as markets remained supportive and holdings in the cement and autos sectors did well. It underperformed in 2017 despite the market runup; healthcare stocks were a drag on performance. Technology and banking stocks aided performance in 2018, as it outscored its peers by 1.21%. During the first quarter of 2019, the fund remained in the bottom quartile, beating 24% of its peers. We think it's important to see the execution of the strategy reflected in the fund's long-term performance across market cycles before we gain more confidence on the fund. F00000PCZO We expect to see a better showing on the fund's performance. This fund is being placed under review following a manager change. The opinion below is based on its previous manager. The investment team running L&T Equity has remained fairly stable and seems to work well together. The core philosophy of the fund has remained consistent despite a recent change in the fund's Morningstar Category. We are wary of the recent changes in the analyst team and think it prudent to maintain a Morningstar Analyst Rating of Bronze on this fund for now. The fund is managed by CIO Soumendra Nath Lahiri, who has more than 20 years of experience on the investment side and has been managing or advising on portfolios for 10-plus years. The experience and knowledge that the core team of Lahiri (CIO), Venugopal Mangat (head of equities) and Vihang Naik (fund manager) bring to the table is crucial, especially as the research team supporting the investment team has witnessed a lot of churn recently. The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can give rise to a portfolio that is distinct relative to its peers. Lahiri prefers running portfolios of 50-60 stocks and mitigates concentration risk by maintaining a maximum individual stock exposure of about 6%-7%. Lahiri's focus lies in identifying companies with high-quality managements and growth rates that exceed the industry average over the long term. The idea is to identify and invest in companies that allocate capital rationally and generate a high ROCE at reasonable valuations. He looks at the competitive structure of the industry, entry barriers, regulatory environment and growth opportunities for the company within the sector while scouting for opportunities. His approach can lead to investing in contrarian ideas, such as his current investments in the cement and real estate sectors. We think the process and investment style stand out but are wary of the slightly higher portfolio risks it entails. 1959 1959 Kavitha Krishnan Kavitha Krishnan L&T Asset Management Company is a fund house that has grown through acquisitions. It acquired the asset management license through the acquisition of DBS Cholamandalam AMC in Sept 2009. It acquired Fidelity in 2012, giving the AMC a sizeable magnitude in terms of assets. The parent entity (L&T) is one of the largest engineering and construction players in India with no history of managing or advising on assets till the takeover of DBS Cholamandalam. The team at L&T – both on the business and investment side is experienced in the asset management space which is a positive. While a lot of senior members on the debt and business side are from Fidelity, L&T had to set up a new equity team from scratch with some hand-holding from Fidelity. While processes within the AMC have been structured over time, the AMC has a long way to go before they emerge as a market leader in the Indian mutual fund space. The compensation structure for the investment team consists of a 30-50% variable component (50% for more senior members) with the focus currently on one year and three performance. We expect to see the compensation structure take into account longer term performance as the team continues to stabilise. Compensation is based on fund performance, team building and analyst mentoring, sales support and compliance. The fund house also offers stock options based on individual performance. L&T Asset Management Company is a fund house that has grown through acquisitions. 2018-04-03T01:47:00 2018-04-03T06:47:00Z The recent change in the fund's category has altered its performance profile. The performance of the fund compared with its India multi-cap peers has remained below average. From November 2012 through March 2019, the fund (13.52% annualised) underperformed its benchmark S&P BSE 200 Index (14.09%), placing in the 67th percentile amongst its peers. It has consistently remained in the third quartile within its category on a year-on-year basis over the past five years. That said, its performance relative to peers witnessed a significant shift owing to a category change from large-cap to multi-cap in 2017. The fund remained an above-average performer in its previous category, consistently landing in the top two quartiles. The fund's performance in 2015 placed it in the third quartile as its banking and industrial stocks failed to perform. It fared slightly better in 2016, falling in the second quartile, as markets remained supportive and holdings in the cement and autos sectors did well. It underperformed in 2017 despite the market runup; healthcare stocks were a drag on performance. Technology and banking stocks aided performance in 2018, as it outscored its peers by 1.21%. During the first quarter of 2019, the fund remained in the bottom quartile, beating 24% of its peers. We think it's important to see the execution of the strategy reflected in the fund's long-term performance across market cycles before we gain more confidence on the fund. F00000Z8OJ We expect to see a better showing on the fund's performance. This fund is being placed under review following a manager change. The opinion below is based on its previous manager. The investment team running L&T Equity has remained fairly stable and seems to work well together. The core philosophy of the fund has remained consistent despite a recent change in the fund's Morningstar Category. We are wary of the recent changes in the analyst team and think it prudent to maintain a Morningstar Analyst Rating of Bronze on this fund for now. The fund is managed by CIO Soumendra Nath Lahiri, who has more than 20 years of experience on the investment side and has been managing or advising on portfolios for 10-plus years. The experience and knowledge that the core team of Lahiri (CIO), Venugopal Mangat (head of equities) and Vihang Naik (fund manager) bring to the table is crucial, especially as the research team supporting the investment team has witnessed a lot of churn recently. The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can give rise to a portfolio that is distinct relative to its peers. Lahiri prefers running portfolios of 50-60 stocks and mitigates concentration risk by maintaining a maximum individual stock exposure of about 6%-7%. Lahiri's focus lies in identifying companies with high-quality managements and growth rates that exceed the industry average over the long term. The idea is to identify and invest in companies that allocate capital rationally and generate a high ROCE at reasonable valuations. He looks at the competitive structure of the industry, entry barriers, regulatory environment and growth opportunities for the company within the sector while scouting for opportunities. His approach can lead to investing in contrarian ideas, such as his current investments in the cement and real estate sectors. We think the process and investment style stand out but are wary of the slightly higher portfolio risks it entails. 1959 1959 Kavitha Krishnan Kavitha Krishnan L&T Asset Management Company is a fund house that has grown through acquisitions. It acquired the asset management license through the acquisition of DBS Cholamandalam AMC in Sept 2009. It acquired Fidelity in 2012, giving the AMC a sizeable magnitude in terms of assets. The parent entity (L&T) is one of the largest engineering and construction players in India with no history of managing or advising on assets till the takeover of DBS Cholamandalam. The team at L&T – both on the business and investment side is experienced in the asset management space which is a positive. While a lot of senior members on the debt and business side are from Fidelity, L&T had to set up a new equity team from scratch with some hand-holding from Fidelity. While processes within the AMC have been structured over time, the AMC has a long way to go before they emerge as a market leader in the Indian mutual fund space. The compensation structure for the investment team consists of a 30-50% variable component (50% for more senior members) with the focus currently on one year and three performance. We expect to see the compensation structure take into account longer term performance as the team continues to stabilise. Compensation is based on fund performance, team building and analyst mentoring, sales support and compliance. The fund house also offers stock options based on individual performance. L&T Asset Management Company is a fund house that has grown through acquisitions. 2018-04-03T01:47:00 2018-04-03T06:47:00Z The recent change in the fund's category has altered its performance profile. The performance of the fund compared with its India multi-cap peers has remained below average. From November 2012 through March 2019, the fund (13.52% annualised) underperformed its benchmark S&P BSE 200 Index (14.09%), placing in the 67th percentile amongst its peers. It has consistently remained in the third quartile within its category on a year-on-year basis over the past five years. That said, its performance relative to peers witnessed a significant shift owing to a category change from large-cap to multi-cap in 2017. The fund remained an above-average performer in its previous category, consistently landing in the top two quartiles. The fund's performance in 2015 placed it in the third quartile as its banking and industrial stocks failed to perform. It fared slightly better in 2016, falling in the second quartile, as markets remained supportive and holdings in the cement and autos sectors did well. It underperformed in 2017 despite the market runup; healthcare stocks were a drag on performance. Technology and banking stocks aided performance in 2018, as it outscored its peers by 1.21%. During the first quarter of 2019, the fund remained in the bottom quartile, beating 24% of its peers. We think it's important to see the execution of the strategy reflected in the fund's long-term performance across market cycles before we gain more confidence on the fund. F00000PCZP We expect to see a better showing on the fund's performance. This fund is being placed under review following a manager change. The opinion below is based on its previous manager. The investment team running L&T Equity has remained fairly stable and seems to work well together. The core philosophy of the fund has remained consistent despite a recent change in the fund's Morningstar Category. We are wary of the recent changes in the analyst team and think it prudent to maintain a Morningstar Analyst Rating of Bronze on this fund for now. The fund is managed by CIO Soumendra Nath Lahiri, who has more than 20 years of experience on the investment side and has been managing or advising on portfolios for 10-plus years. The experience and knowledge that the core team of Lahiri (CIO), Venugopal Mangat (head of equities) and Vihang Naik (fund manager) bring to the table is crucial, especially as the research team supporting the investment team has witnessed a lot of churn recently. The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can give rise to a portfolio that is distinct relative to its peers. Lahiri prefers running portfolios of 50-60 stocks and mitigates concentration risk by maintaining a maximum individual stock exposure of about 6%-7%. Lahiri's focus lies in identifying companies with high-quality managements and growth rates that exceed the industry average over the long term. The idea is to identify and invest in companies that allocate capital rationally and generate a high ROCE at reasonable valuations. He looks at the competitive structure of the industry, entry barriers, regulatory environment and growth opportunities for the company within the sector while scouting for opportunities. His approach can lead to investing in contrarian ideas, such as his current investments in the cement and real estate sectors. We think the process and investment style stand out but are wary of the slightly higher portfolio risks it entails. 1959 1959 Kavitha Krishnan Kavitha Krishnan L&T Asset Management Company is a fund house that has grown through acquisitions. It acquired the asset management license through the acquisition of DBS Cholamandalam AMC in Sept 2009. It acquired Fidelity in 2012, giving the AMC a sizeable magnitude in terms of assets. The parent entity (L&T) is one of the largest engineering and construction players in India with no history of managing or advising on assets till the takeover of DBS Cholamandalam. The team at L&T – both on the business and investment side is experienced in the asset management space which is a positive. While a lot of senior members on the debt and business side are from Fidelity, L&T had to set up a new equity team from scratch with some hand-holding from Fidelity. While processes within the AMC have been structured over time, the AMC has a long way to go before they emerge as a market leader in the Indian mutual fund space. The compensation structure for the investment team consists of a 30-50% variable component (50% for more senior members) with the focus currently on one year and three performance. We expect to see the compensation structure take into account longer term performance as the team continues to stabilise. Compensation is based on fund performance, team building and analyst mentoring, sales support and compliance. The fund house also offers stock options based on individual performance. L&T Asset Management Company is a fund house that has grown through acquisitions. 2018-04-03T01:47:00 2018-04-03T06:47:00Z The recent change in the fund's category has altered its performance profile. The performance of the fund compared with its India multi-cap peers has remained below average. From November 2012 through March 2019, the fund (13.52% annualised) underperformed its benchmark S&P BSE 200 Index (14.09%), placing in the 67th percentile amongst its peers. It has consistently remained in the third quartile within its category on a year-on-year basis over the past five years. That said, its performance relative to peers witnessed a significant shift owing to a category change from large-cap to multi-cap in 2017. The fund remained an above-average performer in its previous category, consistently landing in the top two quartiles. The fund's performance in 2015 placed it in the third quartile as its banking and industrial stocks failed to perform. It fared slightly better in 2016, falling in the second quartile, as markets remained supportive and holdings in the cement and autos sectors did well. It underperformed in 2017 despite the market runup; healthcare stocks were a drag on performance. Technology and banking stocks aided performance in 2018, as it outscored its peers by 1.21%. During the first quarter of 2019, the fund remained in the bottom quartile, beating 24% of its peers. We think it's important to see the execution of the strategy reflected in the fund's long-term performance across market cycles before we gain more confidence on the fund. F0GBR06SHA We expect to see a better showing on the fund's performance. This fund is being placed under review following a manager change. The opinion below is based on its previous manager. The investment team running L&T Equity has remained fairly stable and seems to work well together. The core philosophy of the fund has remained consistent despite a recent change in the fund's Morningstar Category. We are wary of the recent changes in the analyst team and think it prudent to maintain a Morningstar Analyst Rating of Bronze on this fund for now. The fund is managed by CIO Soumendra Nath Lahiri, who has more than 20 years of experience on the investment side and has been managing or advising on portfolios for 10-plus years. The experience and knowledge that the core team of Lahiri (CIO), Venugopal Mangat (head of equities) and Vihang Naik (fund manager) bring to the table is crucial, especially as the research team supporting the investment team has witnessed a lot of churn recently. The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can give rise to a portfolio that is distinct relative to its peers. Lahiri prefers running portfolios of 50-60 stocks and mitigates concentration risk by maintaining a maximum individual stock exposure of about 6%-7%. Lahiri's focus lies in identifying companies with high-quality managements and growth rates that exceed the industry average over the long term. The idea is to identify and invest in companies that allocate capital rationally and generate a high ROCE at reasonable valuations. He looks at the competitive structure of the industry, entry barriers, regulatory environment and growth opportunities for the company within the sector while scouting for opportunities. His approach can lead to investing in contrarian ideas, such as his current investments in the cement and real estate sectors. We think the process and investment style stand out but are wary of the slightly higher portfolio risks it entails. 1959 1959 Kavitha Krishnan Kavitha Krishnan L&T Asset Management Company is a fund house that has grown through acquisitions. It acquired the asset management license through the acquisition of DBS Cholamandalam AMC in Sept 2009. It acquired Fidelity in 2012, giving the AMC a sizeable magnitude in terms of assets. The parent entity (L&T) is one of the largest engineering and construction players in India with no history of managing or advising on assets till the takeover of DBS Cholamandalam. The team at L&T – both on the business and investment side is experienced in the asset management space which is a positive. While a lot of senior members on the debt and business side are from Fidelity, L&T had to set up a new equity team from scratch with some hand-holding from Fidelity. While processes within the AMC have been structured over time, the AMC has a long way to go before they emerge as a market leader in the Indian mutual fund space. The compensation structure for the investment team consists of a 30-50% variable component (50% for more senior members) with the focus currently on one year and three performance. We expect to see the compensation structure take into account longer term performance as the team continues to stabilise. Compensation is based on fund performance, team building and analyst mentoring, sales support and compliance. The fund house also offers stock options based on individual performance. L&T Asset Management Company is a fund house that has grown through acquisitions. 2018-04-03T01:47:00 2018-04-03T06:47:00Z The recent change in the fund's category has altered its performance profile. The performance of the fund compared with its India multi-cap peers has remained below average. From November 2012 through March 2019, the fund (13.52% annualised) underperformed its benchmark S&P BSE 200 Index (14.09%), placing in the 67th percentile amongst its peers. It has consistently remained in the third quartile within its category on a year-on-year basis over the past five years. That said, its performance relative to peers witnessed a significant shift owing to a category change from large-cap to multi-cap in 2017. The fund remained an above-average performer in its previous category, consistently landing in the top two quartiles. The fund's performance in 2015 placed it in the third quartile as its banking and industrial stocks failed to perform. It fared slightly better in 2016, falling in the second quartile, as markets remained supportive and holdings in the cement and autos sectors did well. It underperformed in 2017 despite the market runup; healthcare stocks were a drag on performance. Technology and banking stocks aided performance in 2018, as it outscored its peers by 1.21%. During the first quarter of 2019, the fund remained in the bottom quartile, beating 24% of its peers. We think it's important to see the execution of the strategy reflected in the fund's long-term performance across market cycles before we gain more confidence on the fund. F00000Z8OK We expect to see a better showing on the fund's performance. This fund is being placed under review following a manager change. The opinion below is based on its previous manager. The investment team running L&T Equity has remained fairly stable and seems to work well together. The core philosophy of the fund has remained consistent despite a recent change in the fund's Morningstar Category. We are wary of the recent changes in the analyst team and think it prudent to maintain a Morningstar Analyst Rating of Bronze on this fund for now. The fund is managed by CIO Soumendra Nath Lahiri, who has more than 20 years of experience on the investment side and has been managing or advising on portfolios for 10-plus years. The experience and knowledge that the core team of Lahiri (CIO), Venugopal Mangat (head of equities) and Vihang Naik (fund manager) bring to the table is crucial, especially as the research team supporting the investment team has witnessed a lot of churn recently. The investment process aims to find companies through bottom-up stock-picking. However, the fund is prone to large underweight or overweight positions at a sector level given the benchmark-agnostic style of investing. The manager tends to invest in a lot of fresh ideas as a part of the portfolio. This can give rise to a portfolio that is distinct relative to its peers. Lahiri prefers running portfolios of 50-60 stocks and mitigates concentration risk by maintaining a maximum individual stock exposure of about 6%-7%. Lahiri's focus lies in identifying companies with high-quality managements and growth rates that exceed the industry average over the long term. The idea is to identify and invest in companies that allocate capital rationally and generate a high ROCE at reasonable valuations. He looks at the competitive structure of the industry, entry barriers, regulatory environment and growth opportunities for the company within the sector while scouting for opportunities. His approach can lead to investing in contrarian ideas, such as his current investments in the cement and real estate sectors. We think the process and investment style stand out but are wary of the slightly higher portfolio risks it entails. 1959 1959 Kavitha Krishnan Kavitha Krishnan L&T Asset Management Company is a fund house that has grown through acquisitions. It acquired the asset management license through the acquisition of DBS Cholamandalam AMC in Sept 2009. It acquired Fidelity in 2012, giving the AMC a sizeable magnitude in terms of assets. The parent entity (L&T) is one of the largest engineering and construction players in India with no history of managing or advising on assets till the takeover of DBS Cholamandalam. The team at L&T – both on the business and investment side is experienced in the asset management space which is a positive. While a lot of senior members on the debt and business side are from Fidelity, L&T had to set up a new equity team from scratch with some hand-holding from Fidelity. While processes within the AMC have been structured over time, the AMC has a long way to go before they emerge as a market leader in the Indian mutual fund space. The compensation structure for the investment team consists of a 30-50% variable component (50% for more senior members) with the focus currently on one year and three performance. We expect to see the compensation structure take into account longer term performance as the team continues to stabilise. Compensation is based on fund performance, team building and analyst mentoring, sales support and compliance. The fund house also offers stock options based on individual performance. L&T Asset Management Company is a fund house that has grown through acquisitions. 2018-04-03T01:47:00 2018-04-03T06:47:00Z The recent change in the fund's category has altered its performance profile. The performance of the fund compared with its India multi-cap peers has remained below average. From November 2012 through March 2019, the fund (13.52% annualised) underperformed its benchmark S&P BSE 200 Index (14.09%), placing in the 67th percentile amongst its peers. It has consistently remained in the third quartile within its category on a year-on-year basis over the past five years. That said, its performance relative to peers witnessed a significant shift owing to a category change from large-cap to multi-cap in 2017. The fund remained an above-average performer in its previous category, consistently landing in the top two quartiles. The fund's performance in 2015 placed it in the third quartile as its banking and industrial stocks failed to perform. It fared slightly better in 2016, falling in the second quartile, as markets remained supportive and holdings in the cement and autos sectors did well. It underperformed in 2017 despite the market runup; healthcare stocks were a drag on performance. Technology and banking stocks aided performance in 2018, as it outscored its peers by 1.21%. During the first quarter of 2019, the fund remained in the bottom quartile, beating 24% of its peers. We think it's important to see the execution of the strategy reflected in the fund's long-term performance across market cycles before we gain more confidence on the fund. F0GBR06SH5 Live