July 20 Table of Contents Market Outlook What is definition of - - PowerPoint PPT Presentation
July 20 Table of Contents Market Outlook What is definition of Value for HDFC Capital Builder Value Fund? Why invest in HDFC Capital Builder Value Fund Investment Approach Stock Selection Sector Allocation
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is trading at FY22 P/E of 16.8 times (Source: Kotak Insti Equities)
Marketcap / GDP are comparable with market bottoms in earlier crises (refer chart above)
Source: Kotak Insti Equities, CY20 & CY21 ratio based on current Market cap and GDP estimates of CY20 & CY21 India market cap to GDP ratio, calendar year-ends, 2000-21E (%)
Refer Disclaimer on Slide 23
5 End of Calendar Year Marketcap to GDP % Next 1 year NIFTY returns Next 3 year NIFTY returns 2003 48 11% 111% 2004 55 36% 195% 2008 56 76% 113% 2011 61 28% 79% 2013 65 31% 30% June 2020 ~64 ? ?
were followed by good returns over next 3 years
saw highest ever monthly FPI outflow of US$ 8.4bn
medium to long term Past performance may or may not sustain in future. Returns are neither assured nor guaranteed.
Source: Kotak Insti Equities, Bloomberg
Refer Disclaimer on Slide 23
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Source – Edelweiss; Maximum outflow on a 90 days rolling period
FPI Flows Rs crs Year 90 days period ending Outflows * next 360 days FPI outflows as % of India total Market Cap % NIFTY Return next 360 days 2006 11-Aug-06
95,307
33% 2008 29-Oct-08
1,11,664
85% 2011 13-Dec-11
2,00,042
23% 2013 01-Oct-13
1,71,914
38% 2015 18-Dec-15
73,552
5% 2016 29-Feb-16
93,963
28% 2017 08-Feb-17
44,457
23% 2018 09-Nov-18
68,564
13% 2020 05-May-20
??
29.3 (0.5) 24.5 20.0 16.2 3.3 2.9 8.0 (4.6) 14.2 (4.3) (10.0) (5.0)
10.0 15.0 20.0 25.0 30.0 35.0 CY10CY11CY12CY13CY14CY15CY16CY17CY18CY19CY20 upto May
FPI flows USD bn
Refer Disclaimer on Slide 23
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minimal impact expected on intrinsic values of most businesses.
~64% and reflects good value. In the past , such levels were followed by good returns over next 3 years
Crisis.
long term.
CAGR for a 10 year period have been followed by good returns over next 3, 5 and 10 years
with China, etc. are key risks in near term
Past performance may or may not sustain in future. Returns are neither assured nor guaranteed. Refer Disclaimer on Slide 23
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Investment strategy of this fund would be to focus on :
values, and/or future cash flow growth
difficult period and de-rated but are poised for turnaround in profitability
Provided that the fund shall invest at least 50% of the portfolio in companies which are trading at multiples lower than Median P/E (Price/Earnings) or Median P/B (Price/Book Value)
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which are trading at multiples lower than Median P/E (Price/Earnings) or Median P/B (Price/Book Value) of NIFTY 500 Index.
rating of multiples
market cap bias.
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HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending on the market conditions.
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HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The current investment strategy is subject to change depending on the market conditions.
based on top down investment calls
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value, companies trading blow historical average multiples and companies in turnaround phase.
Particulars % of Net Assets (Jun’20) Average TTM P/E Average TTM P/B Average EPS Growth (Estimated) FY20-22E CAGR % Average ROE (FY20) % Description of some companies in
Companies trading below intrinsic value (Absolute Value) 31% 13.7 2.4 2% 18.3% Largest Utility Co. in India, Largest Tobacco Co. in India, Large Tech Co.in India Companies below historical average multiples (Relative Value) 29% 21.8 3.2 16% 14.9% Largest Private sector bank in India, Large Corporate Focused private sector bank, Largest Auto Co. in India Companies in Turnaround phase 19% 52.1 5.5 43% 12.2% Second Largest Telecom Co. in India, Large Corporate focused Private Bank, Largest Healthcare player in India. Source – Bloomberg, Ratios /Growth estimates as of 6th July 2020, TTM – Trailing 12 months, P/E-Price/Earnings, P/B –Price/Book Value, EPS – Earnings per share ROE – Return on Equity computed for Fiscal Year ended 31st March 20. The above is purely as per our internal analysis. The current investment strategy is subject to change depending on the market conditions. Refer disclaimers on Slide 23. Stocks/Sectors referred herein are illustrative and not recommended by HDFC Mutual Fund / AMC. The Fund may or may not have any present or future positions in these stocks/ sectors. The data/statistics are given on the basis of information which is already available in publicly accessible media. The same should not be construed as any research report/research recommendation to buy or sell any security covered under the respective sector/s. HDFC Mutual Fund/AMC is not guaranteeing returns on any investments.
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technology (IT and Telecom) ; higher healthcare spends (Healthcare), government capex on infra and Defence (Industrials) and lower interest rate cycle (Utilities)
expensive valuations
Sectors Scheme Weight % Benchmark Weight % OW/ (UW) % Jun’20 P/E Jun’20 P/B
Industrials 9.6 5.9 3.7 21.5 2.4 Communication Services 6.5 3.5 3.0 NA 3.3 Health Care 7.7 6.3 1.4 37.4 3.3 Information Technology 12.1 10.9 1.2 18 4.3 Utilities 3.6 3.2 0.4 10.6 1.2 Energy 11.6 11.2 0.4 18.7 1.9 Real Estate
(0.6) 36.8 1.6 Materials 7.8 8.6 0.8) 17 1.7 Financials 27.7 30.5 (2.7) 20.6 1.9 Consumer Discretionary 4.5 8.2 (3.7) 46.5 2.6 Consumer Staples 6.8 11.2 (4.4) 36.7 7.6
As of 30th June 20. Source: Bloomberg, Stocks/sectors referred above are illustrative and are not recommended by HDFC Mutual Fund/AMC. The Fund may or may not have any present or future positions in these stocks/sectors. The above statements / analysis should not be construed as an investment advice or a research report or a recommendation to buy or sell any security covered under the respective sector/s .The same has been prepared on the basis of information which is already available in publicly accessible media.
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As of 30th June 2020, Source :MFI Explorer
75 9 14 10 20 30 40 50 60 70 80 Large Cap Mid Cap Small Cap
% of Net Assets
Large Cap Mid Cap Small Cap
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Source :Bloomberg $ As of 7th July 2020
Characteristics Scheme NIFTY 500 Return on Equity (ROE) FY20 12.7% 9.4% Trailing 12 Month - Price to Earnings Ratio (P/E) $ 27.6 27.2 Trailing 12 Month - Price to Book Value Ratio (P/B) $ 2.1 2.4
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** Risk Free Rate 3.89% (Source FIMMDA, MIBOR) For complete portfolio details please visit www.hdfcfund.com
Particulars % To Net Assets Top 10 Equity And Equity Related Holdings 51.58% Total Equity & Equity Related Holdings 97.95% Cash, Cash Equivalents And Net Current Assets 2.05% Assets Under Management (Rs. In Crore) 3,595 Standard Deviation** 6.573% Beta** 1.036
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Particulars GICS Sector % To Net Assets HDFC Bank Ltd. Financials 9.27 Reliance Industries Ltd. Energy 8.36 ICICI Bank Ltd. Financials 7.12 Infosys Limited Information Technology 6.18 ITC Ltd. Consumer Staples 5.32 Bharti Airtel Ltd. Communication Services 4.25 Kotak Mahindra Bank Limited Financials 3.11 Axis Bank Ltd. Financials 2.83 Aurobindo Pharma Ltd. Health Care 2.82 NTPC Limited Utilities 2.32
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The scheme is suitable for investors who
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Type of Scheme An open ended equity scheme following a value investment strategy Inception Date (Date of allotment) February 01, 1994 Investment Objective To achieve capital appreciation/ income in the long term by primarily investing in undervalued stocks Fund Manager $ Mr Amit Ganatra Plans Direct Plan Regular Plan Sub-Options Under Each Plan: Growth & Dividend. The Dividend Option offers Dividend Payout and Reinvestment facility. Minimum Application Amount (Under Each Plan/Option) Purchase: Rs. 5,000 and any amount thereafter Additional Purchase: Rs. 1,000 and any amount thereafter Load Structure Entry Load:
registered Distributor) based on the investors’ assessment of various factors including the service rendered by the ARN Holder. Exit Load:
redeemed / switched-out within 1 year from the date of allotment.
allotment. In respect of Systematic Transactions such as SIP, Flex SIP, GSIP, STP, Flex STP, Swing STP, Flex index, etc
load structure, please refer to the Scheme Information Document/Key information memorandum of the Scheme. Benchmark Index NIFTY 500
For further details, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and at Investor Service Centres of HDFC Mutual Fund. $ Dedicated fund manager for overseas investments Mr. Chirag Dagli
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For further details, refer Scheme Information Document and Key Information Memorandum and addenda thereto available on www.hdfcfund.com and at Investor Service Centres of HDFC Mutual Fund. $ Dedicated fund manager for overseas investments Mr. Chirag Dagli
Under normal circumstances, the asset allocation (% of net assets) of the Scheme’s portfolio will be as follows. Types of Instruments Normal Allocation (%) Risk Profile Equity and Equity related instruments 65-100 High Debt Securities (including securitised debt) and money market instruments 0-35 Low to Medium Units issued by REITs and InvITs 0-10 Medium to High Non-convertible preference shares 0-10 Low to Medium The Scheme may invest in the schemes of Mutual Funds in accordance with the applicable extant SEBI (Mutual Funds) Regulations as amended from time to time. The Scheme may invest up to 35% of its net assets in foreign securities. The Scheme may invest up to 100% of its net assets in Derivatives.
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Value of Rs 10,000 invested Scheme Returns (%) Benchmark Returns (%) Additional Benchmark Returns (%) Scheme Benchmark (Rs) Additional Benchmark (Rs) Last 1 Year
8,151 8,887 8,849 Last 3 Years
1.76 3.95 9,371 10,536 11,233 Last 5 Years 3.57 5.45 5.55 11,920 13,041 13,104 Since Inception 12.73 NA 9.56 237,092 NA 111,657 The above scheme has been managed by Amit Ganatra, the fund manager since May 21, 2020 The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices. Past performance may or may not be sustained in the future. The above returns are of Regular Plan – Growth Option. Returns greater than 1 year period are compounded annualized (CAGR). Load is not taken into consideration for computation of performance. Different Plans
extent of the distribution expenses / commission charged in the Regular Plan. Returns as on 30th June 2020. 21
Scheme Managing scheme since Returns (%) 1 year 3 year 5 year CAGR (in %) CAGR (in %) Amit Ganatra manages total 3 schemes HDFC DYNAMIC PE RATIO FUND OF FUNDS # 20-May-20
2.00 5.79 NIFTY 50 Hybrid Composite Debt 65:35 Index
6.23 7.30 HDFC Multi Asset Fund ## 12-Jun-20
2.87 5.32 90% NIFTY 50 Hybrid Composite Debt 65:35 Index + 10% Domestic Price of Gold 1.85 7.64 7.99
Past performance may or may not be sustained in the future. The performance of the Scheme is benchmarked to the Total Return Index (TRI) Variant of the Indices. The above returns are of Regular Plan - Growth Option. Load is not taken into consideration for computation of performance. # The scheme is co managed by Amit Ganatra (Equities) and Anil Bamboli (Debt). ## The Scheme is co managed by Amit Ganatra (Equities), Anil Bamboli (Debt) and Krishan Daga (Gold related assets). Returns as on 30th June 2020. Different Plans viz. Regular Plan and Direct Plan have a different expense structure. The expenses of the Direct Plan under the Scheme will be lower to the extent of the distribution expenses/ commission charged in the Regular Plan. On account of difference in the type of the Scheme, asset allocation, investment strategy, inception dates, the performance of these schemes is strictly not comparable. 22
The presentation dated 22nd July 2020 has been prepared by HDFC Asset Management Company Limited (HDFC AMC) based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying
in future. The statements are given in summary form and do not purport to be complete. The views / information provided do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. The information/ data herein are not investment advice and alone are not sufficient and should not be used for the development or implementation of an investment strategy. The statements contained herein are based on our current views and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Stocks/Sectors referred herein are illustrative and not recommended by HDFC Mutual Fund / AMC. The Fund may or may not have any present or future positions in these sectors. HDFC Mutual Fund/AMC is not guaranteeing returns on any
accessible media to explain general market trends in the securities market. The same should not be construed as any research report/research recommendation to buy or sell any security covered under the respective sector/s. Neither the AMC and HDFC Mutual Fund nor any person connected with them, accepts any liability arising from the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.
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