The Investment philosophy of PNB MetLife India is based on generating superior risk-adjusted returns consistently, over the medium to long term. We follow a disciplined and process driven approach towards Investment. Every investment is analyzed rigorously from a security, sector as well as portfolio perspective before making the investment. There is a strong focus on ethics, compliance and risk management at every stage of the Investment process.
We follow a disciplined process for managing investments. The Board of Directors and Investment Committee provide overall direction to Investment function. The company’s Investment Policy is a comprehensive document which lays down the standard operating procedures for Investment function. This Policy provides the complete set of guidelines for managing the investment portfolios.
PNB MetLife India follows a strong risk management process. Risk management and monitoring mechanisms are an integral part of Investment Policy. We derive significant understanding from our parent company, MetLife International. This helps in adopting and implementing global best practices, with appropriate customization for the Indian market.
Equity investments are made in high quality stocks. We follow a rigorous stock selection process comprising of evaluation of company fundamentals, comprehensive financial analysis, management discussions and interaction with leading market analysts. The portfolio comprises of a blend of growth and value stocks. There is a bias towards large market capitalization stocks; as such stocks are likely to provide superior risk-adjusted returns. Investment in stocks is targeted at capital appreciation and made with a medium to long term view. Post investments, we regularly monitor the company’s performance and take appropriate actions based on future outlook.
Debt investments are made in securities with a very high credit quality, primarily sovereign and AAA rated bonds. The key emphasis is on ensuring the safety and stability of investments. We lay significant emphasis on liquidity and maintain a judicious mix of short-term and long-term investments. Investment decisions are based on various macro-economic factors such as interest rates, inflation, GDP growth, RBI’s policy, Government’s fiscal position and currency movement. In addition to this, the global economic scenario is also an important input in decision making. Fund management involves a careful analysis of yield curve and duration management. We conduct thorough credit research before making investment in Corporate bonds.
We believe that Benchmarks are important for assessing the performance of funds. They provide broad guidance and discipline to the investment team. We have carefully selected the benchmarks for our funds based on composition of various asset classes. We use Nifty 50 and BSE 200 as the benchmark for equity funds. For Debt funds, we use Crisil Composite Bond Fund Index (CCBFI) as the benchmark.
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