PNB MetLife - Investment Philosophy & Investment Process
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Investment Philosophy

Investment Philosophy

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. 

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.  

Investment Decisions

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.

Benchmarks

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.

Disclaimer

"The products on Nifty 50 Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the products linked to Nifty 50 or particularly in the ability of the Nifty 50 Index to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty 50 Index in the Offer Document / Prospectus / Information Statement".

Indices provided by CRISIL

CRISIL Indices are the sole property of CRISIL Limited (CRISIL). CRISIL Indices shall not be copied, retransmitted or redistributed in any manner for any commercial use. CRISIL has taken due care and caution in computation of the Indices, based on the data obtained from sources, which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Indices and is not responsible for any errors or for the results obtained from the use of the Indices. CRISIL especially states that it has no financial liability whatsoever to the users of CRISIL Indices.