Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (May 2021)
25 slides from Hdfc Asset Management's investor presentation, May 2021
Slide 1: HDFC Balanced Advantage Fund
17.79% CAGR for 27 Wealth has grown over Years (Since inception 86 times in 27 years** ^ Feb,1, 1994) ** ^ HDFC Balanced Advantage Fund^ (An open-ended Balanced Advantage Fund) Balance is not something you find, it’s something you create – Jana Kingsford This product is suitable for investors who ar
Slide 2: HDFC Balanced Advantage Fund – Ideal for long term Investments
HDFC Balanced Advantage Fund – Ideal for long term Investments • HDFC Balanced Advantage Fund has delivered more than 10% CAGR over 10 year periods in 96% instances, since inception in 1994 CAGR (%) 1 Year 3 Years 5 Years 10 Years 15 Year more than 15 50% 57% 71% 77% 92% more than 10 59% 77% 92% 96%
Slide 3: A fund that has performed across market cycles, crises, market bubbles
HDFC Balanced Advantage Fund – A fund that has performed across market cycles, crises, market bubbles etc. ! COVID-19 led correction 10,000 Sensex down 35% within a month 9,000 HDFC Balanced Advantage Fund - Reg - Growth(Adjusted-NAV) 8,000 NIFTY 50 Hybrid Composite Debt 65:35 Index* Value of Rs 100
Slide 4: Covid-19 correction played right!
Covid-19 correction played right! • Covid-19 caused untold pain to individuals, families and economy. However, it also provided an opportunity to improve long term returns to discerning investors by staying invested / increasing equity exposure • However only few made the best out of this opportunit
Slide 5: Equity Market Outlook
Equity Market Outlook Markets bounce back has to be seen in the context of : • Indian market capitalization despite the recent rally, is currently ~90% of GDP (based on CY 2022 GDP), At its bottom in March 20, it had fallen close to 46% (based on CY 2021 GDP) • Despite the sharp rise, NIFTY 50 retur
Slide 6: Profit growth: Signs of revival in 2QFY21 & 3QFY21 results
Profit growth : Signs of revival in 2QFY21 & 3QFY21 results 40.0 31.2 20.0 NIFTY50 FY19 FY20 FY21E FY22E FY23E 0.0 EPS 480 453 525 712 813 -20.0 P/E 20.8 18.2 -40.0 Sales growth YoY (%) PAT Growth YoY (%) Source : Kotak Institutional Equities, 11th May, 2021. -60.0 Sep 14 Dec 14 Jun 15 Sep 15 Dec 15
Slide 7: NIFTY50 Profit growth: Finally back on track?
NIFTY50 Profit growth : Finally back on track ? PAT Growth CAGR % Sector 2014-20 2020-23E Consumer Discretionary (13) 50 Consumer Staples 12 17 Corporate Banks & Financials (2) 53 Energy (1) 17 Health Care (2) 25 Industrials 15 15 Information Technology 8 13 Materials 8 35 Retail Banks & Financials
Slide 8: Sector Valuations
Sector Valuations Sector Consumer Consumer Private Metals and PSU Banks Electric Valuations Auto Discretiona Oil and gas Cement IT services Pharma Tobacco staples* Banks P/B mining P/B utilities P/E# ry Valuation 21.1 53.1 61.5 14.6 31.0 24.7 27.0 2.6 9.7 15.3 0.9 7.6 multiple 10Y Average 16.4 40.9
Slide 9: C for Covid-19, C for Cost of Capital!
C for Covid-19, C for Cost of Capital ! Many are confused with the bounce back in the Equities, despite weak economic conditions. The answer to this partly lies in Covid-19 induced lower cost of capital. • Lower cost of capital reduces the discounting rate & thus increases the present value of futur
Slide 10: Portfolio strategy / Asset Allocation
HDFC Balanced Advantage Fund – Portfolio strategy / Asset Allocation 12 55,000 90.0 6.9 SENSEX Equity % of NAV (RHS) India 10 Year YTM % (RHS) 88.0 10 50,000 6.7 86.0 i ii iii 6.5 8 84.0 45,000 82.0 6.3 6 40,000 80.0 6.1 78.0 4 35,000 5.9 76.0 2 5.7 74.0 30,000 72.0 5.5 0 25,000 70.0 • HDFC Balanced
Slide 11: Equity Positioning
HDFC Balanced Advantage Fund – Equity Positioning NIFTY 50 Valuations Positioning Earnings CAGR Remarks HDFC Balanced Sector FY19-23E P/E – FY23E P/B – FY23E Advantage Fund With falling slippages and increasing resolution of NPAs provisioning costs are Corporate Banks & Financials 76% 12.7 1.5 Overw
Slide 12: Equity Positioning
HDFC Balanced Advantage Fund – Equity Positioning NIFTY 50 Valuations Positioning Earnings CAGR Remarks HDFC Balanced Sector FY19-23E P/E – FY23E P/B – FY23E Advantage Fund The Fund was an investor earlier in the cycle and has reduced exposure as Materials 16% 16.0 2.4 Underweight valuations have in
Slide 13: Equity Markets Outlook summary
Equity Markets Outlook summary • Post opening up, economic recovery has been strong and high frequency activity indicators are normalizing at a fast pace supported by unlocking, fiscal & monetary measures, pent up demand etc. • Corporate earnings in Q2FY21 & Q3FY21 have been better than expected and
Slide 14: Covid 2nd Wave – Higher spread, economic impact likely to be temporary
Covid 2nd Wave – Higher spread, economic impact likely to be temporary 50 120 Google Mobility Index Oxford Lockdown Stringency • The exponential rise in covid -19 cases has caught India off guard. Localised partial lockdowns 25 100 Index (India) 0 and stringent restrictions have been imposed to curb
Slide 15: Indian Economy: Covid 2nd wave a minor hiccup?
Indian Economy : Covid 2nd wave a minor hiccup ? • GDP has witnessed a V-shape recovery and sequentially growth is likely to improve going forward ― Private consumption is likely to see recovery as the confidence returns with vaccine rollout ― Investment should also see pick up with capacity utilisa
Slide 16: Economic Recovery – An Uneven one?
Economic Recovery – An Uneven one? • Economic impact of Covid-19 has been different across different categories of Households HH Income Distribution (FY20E) (HHs) • India HH Income pyramid points that over 75% of Indian HH earn less than INR 4 lakhs per annum ‒ Large number of these are employed in
Slide 17: Indian Economic Outlook – Brighter than Pre-Covid-19?
Indian Economic Outlook – Brighter than Pre-Covid-19 ? 150.0 21 Capital flows (USD bn) • Low Interest rates and capital flows Comfortable Import cover 100.0 16 Import cover - TTM Average 16.7 ‒ Low global yields improve access to long term and cheaper capital ‒ Cost of servicing existing stock of ex
Slide 18: Interest Rate Outlook
Interest Rate Outlook Factors supporting lower yields Factors opposing lower yields • RBI and major Central banks likely to continue with • Large supply of dated securities by Central and State accommodative stance and low rates Governments • Continued intervention by RBI through unconventional • Ex
Slide 19: Portfolio Statistics
Portfolio Statistics Top 10 Holdings (Apr’ 21) Portfolio Statistics Company Name % to NAV Top 5 Holding (% of Net Assets) 29.8% Top 10 Holding (% of Net Assets) 45.0% State Bank of India 9.9 AUM (Rs Cr) ~ 39,146 ICICI Bank Ltd. 6.2 Portfolio Turnover Ratio (Last 1 Year) 35.59% NTPC Limited 4.9 Segme
Slide 20: Fund Facts
Fund Facts Type of the Scheme An open ended balanced advantage fund Inception Date (For February 01, 1994 Performance) Investment Objective The investment objective of the Scheme is to provide long term capital appreciation/income from a dynamic mix of equity and debt investments. There is no assura
Slide 21: Asset Allocation
Asset Allocation Under normal circumstances, the asset allocation of the scheme’s portfolio will be as follows: Type of Instruments Minimum Maximum Risk Profile of the Allocation Allocation Instrument (% of Total (% of Total Assets) Assets) Equity and equity related instruments # 65 100 High Debt Se
Slide 22: Scheme Performance Summary
Scheme Performance Summary Value of Rs 10,000 invested Additional Additional Scheme Benchmark Benchmark Benchmark Scheme Benchmark Returns (%) Returns (%) # Returns (%) (Rs)# (Rs)## ## Last 1 year 42.23 34.44 49.89 14,223 13,444 14,989 Last 3 years 7.92 12.16 12.22 12,573 14,115 14,135 Last 5 years
Slide 23: Performance of other schemes managed by the Fund Manager
Performance of other schemes managed by the Fund Manager Performance Managing scheme 3 year 5 year since 1 year (in %) Scheme CAGR (in %) CAGR (in %) Mr Prashant Jain manages 3 other schemes HDFC Top 100 Fund Jun 20, 03 46.05 8.19 12.43 NIFTY 100 (TRI) $ 49.23 11.20 14.62 HDFC Flexi Cap Fund (erstwh
Slide 24: Disclaimer and other risk factors
Disclaimer and other risk factors The views expressed herein are as of 28th May 2021 and are based on internal data, publicly available information and other sources believed to be reliable. The information herein is based on the assumption that COVID19 would be behind us by March 2022 and the econo
Slide 25: Thank You
Thank You 25 Refer disclaimers on slide 24
HDFC Asset Management Company — Investor Presentation (May 2021) on 6ix