Shriram Asset Management Co. Ltd. · BSE:SRAMSET
Shriram Asset Management — Investor Presentation (June 2019)
32 slides from Shriram Asset Management's investor presentation, Jun 14, 2019
Slide 1: Introducing Shriram Balanced Advantage Fund
i SHRIRAM Mutual Fund NURTURING TRUST, SHAPING DREAMS INTRODUCING balanced ADVANTAGE FUND (An Open Ended Dynamic Asset Allocation Fund) Riskometer This product is suitable for investors who are seeking*: ‘ — . nee NFO OPENS: D ede es alee with a i income over JUNE 14, 2019 Tog nee Saas NFO CLOSES: +
Slide 2: Volatility - Equity's Unavoidable Trait
12000 10000 8000 6000 4000 Volatility - Equity’s Unavoidable Trait NIFTY SO BJP Wins Elections US - China Trade War UPA Wins 2G Scam Elections Equity investments go through volatility sparked off by major events, both national and geopolitical. eS = € = FF € FF F $F$ F F SF FF FSF F F S$ FF SF FF SF
Slide 3: Volatility - Effect on Investors
Volatility - Effect on Investors Highest level of Financial Risk Euphoria L Anxiety Exhuberance Denial Enthusiasm Fear Optimism Despair Optimism Panic Relief Capitulation Hope Discouragement Dismay t Best time to Invest We SHRIRAM NURTURING TRUST, SHAPING DREAMS
Slide 4: Volatility - Macro-economic Influences on Equity
Volatility - Macro-economic Influences on Equity 38 36 34 32 30 28 26 24 22 20 18 16 4 12 10 On B&B DO © Equity Returns are influenced by: « Geopolitical risks « Monetary stimulus withdrawal « Growth concerns and current valuations ¢ Rising inflation, crude and potential rate hikes « RBI policy ¢ Qu
Slide 5: Volatility - Influence of FII/DII Flows
120000 100000 80000 60000 40000 20000 Volatility - Influence of FII/DII Flows FY08 Whenever there is high Net Buying, Nifty has been observed to gain significantly. During high Net Selling, it has suffered setbacks. FYO9 FY10 FY11 FY12 —_ 12000 Fi Movi — NIFTY 50 10000 8000 6000 4000 — 2000 Fy139 FY
Slide 6: Volatility - General Investor Behaviour
12000 10000 8000 6000 4000 Volatility - General Investor Behaviour NIFTY 50 PE NIFTY SO MeanPE+SD seat \ ll 25 60 55 50 45 40 35 30 avail Source: Nifty 50, Nifty P/E data taken from nseindia.com We SHRIRAM ING DREAMS
Slide 7: Common Problems Among Investors
Common Problems Among Investors Getting the Fundamentals Right Pr ickING = BALANCING = Pre EQUITY RIGHT —< 3, —— Brice & © me DEBT ee FACE LONG RIGHT TERM TIME 7 B, SHORT mee *) SHRIRAM
Slide 8: Common Problems Among Investors
Common Problems Among Investors Dynamic Asset Allocation a Q Ow A > HANDLE OFTEN SO MUCH TO PAPERWORK REBALANCE CHALLENGES ? INVESTORS HOW TO FACE HOW TO MANAGE AVOID ON GAINS LOSING ( es 2 ee SCHEME EXIT “6 *) SHRIRAM
Slide 9: Common Problems Among Investors
Common Problems Among Investors Handling Valuation & Exposure Equity Equity valuation Equity Equity exposure goes up exposure valuation should be increased should be comes reduced down
Slide 10: Introducing Shriram Balanced Advantage Fund
Introducing SHRIRAM BALANCED ADVANTAGE FUND (An Open Ended Dynamic Asset Allocation Fund)
Slide 11: What is BAF?
What is BAF? SHRIRAM Euily » "ster « ew - balanced FUND a Ride the wave, whichever way it may be going: e Equity and Debt allocation will be adjusted according to changing market environment e Rules out the need to time the market e Eliminates investor emotional biases [*\SHRIRAM
Slide 12: Shriram BAF - Factors Driving Equity Exposure
Shriram BAF - Factors Driving Equity Exposure + Nifty 50 Trailing P/E, Earnings Yield - Reflects the future growth expectations of the Eq u ity market - High PE = High Growth Expectations = High Risk of Valuations Disappointment - Most accurate over long term, however, also slow to react to term cha
Slide 13: Simulation Results - Net Equity Exposure
Simulation Results - Net Equity Exposure 80% 12000 70% | _| 10000 60% Fy " f t\! so00 L 50% | | i 6000 40% | h _| 4000 30% } NIFTY 50 Average Exposure 20% __| 2000 fo 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Nifty 50 data taken from nseindia.com Nifty P/E 4 1. Eq
Slide 14: Case Study: 2006 to 2007 (Pre-Financial Crisis)
Case Study 1 : 2006 to 2007 (Pre-Financial Crisis) — — 6000 5000 4000 3000 NIFTY 50 Average Exposure 30 L_ —! 2000 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Source: Nifty 50 data taken from nseindia.com Valuations: High Shriram BAF = 5 Growth: High . Inatioce fea Interest Rates: Upward
Slide 15: Case Study: 2006 to 2007 (Pre-Financial Crisis)
Case Study 1 : 2006 to 2007 (Pre-Financial Crisis) Jan-06 Apr-06 Economic Scenario Jul-06 Growth: High Inflation: High Oct-06 Jan-07 Market Scenario 10 Year G-Sec P/E Apr-07 Jul-07 Source: Nifty P/E data taken from nseindia.com, G-Sec Yields from bloomberg.com Valuations: High Interest Rates: Upward
Slide 16: Case Study: 2008 (Great Financial Crisis)
Case Study 2 : 2008 (Great Financial Crisis) —, 8000 7000 6000 5000 4000 3000 NIFTY 50 Average Exposure 20 L_ —! 2000 Jan-08 Apr-08 Jul-08 Oct-08 Source: Nifty 50 data taken from nseindia.com Growth: Low Valuations: Low Shriram BAF [Economic Scenario SSD inflation: Low VERSES > interest Rates: Downw
Slide 17: Case Study: 2008 (Great Financial Crisis)
Case Study 2 : 2008 (Great Financial Crisis) 8 10 Year Gsec —— PIE 10 L_— —16 Jan-08 Apr-08 Jul-08 Oct-08 Source: Nifty P/E data taken from nseindia.com, G-Sec Yields from bloomberg.com Valuations: Low Shriram BAF Fi 5 Growth: Low 5 Inflation: Low Market Scenario Interest Rates: Downward Trend — Avg
Slide 18: Case Study: 2009 to 2010 (Post Financial Crisis)
Case Study 3 : 2009 to 2010 (Post Financial Crisis) Oo, — 8000 7000 6000 70 5000 4000 60 3000 NIFTY 50 Average Exposure 2000 50 L_ — Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Source: Nifty 50 data taken from nseindia.com Valuations: Median Shriram BAF Browth: Medium Interest Rates: Upw
Slide 19: Case Study: 2009 to 2010 (Post Financial Crisis)
Case Study 3 : 2009 to 2010 (Post Financi al Crisis) 10 Year G-Sec P/E 10 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Source: Nifty P/E data taken from nseindia.com, G-Sec Yields from bloomberg.com Valuations: Median Ieflation sigh Interest Rates: Upward Trend Inflation: High Market Trend: Posi
Slide 20: Case Study 4: 2011 to 2013 (High Inflation)
Case Study 4: 2011 to 2013 (High Inflation) — 8000 —, 7000 6000 5000 NIFTY 50 Average Exposure 4000 40 t_ a Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12. Jan-13 Apr-13 — Jul-13 Oct-13 Source: Nifty 50 data taken from nseindia.com Valuations: Median Shriram BAF Ionotiewe igh Interest Rates
Slide 21: Case Study 4: 2011 to 2013 (High Inflation)
Case Study 4: 2011 to 2013 (High Inflation) 10 Year G-Sec —_ PIE 15 L_ 6 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12. Jan-13 Apr-13 — Jul-13 Oct-13 Source: Nifty P/E data taken from nseindia.com, G-Sec Yields from bloomberg.com Valuations: Median : i Shriram BAF Ionotiewe igh Interest Ra
Slide 22: Case Study 5: 2017 (Post-Demonetization)
Case Study 5: 2017 (Post - Demonetization) — — 12000 —, 10000 7O |— 8000 NIFTY 50 Average Exposure 6000 60 |_ —t Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Source: Nifty 50 data taken from nseindia.com Valuations: High Shriram BAF Fi - Growth: Low - Inflation: Low VERESaiele) > Interest Rates: Low Avg. Mode
Slide 23: Case Study 5: 2017 (Post-Demonetization)
Case Study 5: 2017 (Post - Demonetization) _— — 8 25 | 17 10 Year G-Sec —— PIE 20 L_ —l16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Source: Nifty P/E data taken from nseindia.com, G-Sec Yields from bloomberg.com Valuations: High Shriram BAF Fi S Growth: Low 5 Inflation: Low VERESaiele) > Interest Rates: Lo
Slide 24: Simulation Results - Scenario Analysis
Simulation Results - Scenario Analysis Benchmark Returns Calendar Nifty 65% Nifty Shriram BAF - Alpha over Year Returns Equity Model Benchmark 2006 39.9% 25.3% 22.7% -2.6% 2007 54.8% 33.8% 24.3% -9.5% 2008 -51.8% -36.4% -22.9% 13.4% 2009 75.8% 46.1% 47.8% 1.6% 2010 17.9% 11.7% 9.7% -2.0% 2011 -24.6%
Slide 25: Why Invest in BAF Now?
Why Invest in BAF Now? How is 2014 different from 2019? 2019 Lok Sabha elections has led to very strong mandate for the Government, similar to 2014. 2014 results led to a very strong rally in Equity Markets, can it be repeated in 2019? Domestic Economic Data 2014 2019 Market Indicators 2014 2019 Rea
Slide 26: Why Invest in BAF Now?
Why Invest in BAF Now? How is 2014 different from 2019? + Domestic economy since 2014 has significantly become stronger which is reflected in GDP Growth, Fiscal Deficit, Current Account Deficit and Inflation Numbers + Concerns have since arisen on the Global economy - China GDP growth, World PMIs -
Slide 27: Fund Facts
Scheme Name NFO Dates Investment Objective Type of Scheme Fund Manager Benchmark Min. Investment Amount Load Structure Plans & Options Fund Facts Shriram Balanced Advantage Fund 14th June to 28th June, 2019 The primary objective of the Scheme is to generate capital appreciation with relatively lower
Slide 28: Performance Data of Other Schemes
Performance Data of Other Schemes SHRIRAM HYBRID EQUITY FUND Managed by Mr. Kartik Soral & Ms. Gargi Bhattacharyya Banerjee Returns of Regular Plan - Growth Option as on April 30, 2019 Date of inception: 29-Nov-2013 NAV as on 30-April-2019 Rs. 16.7287 pate Period NAV (Rs.) Scheme Return % Benchmark
Slide 29: Disclaimer
Disclaimer As per SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2018/04 dated Jan 04, 2018. In benchmark Nifty value taken as Total Return Index value The returns are Compounded Annual Growth Returns (CAGR) for the past 1 year, 3 years, 5 years & since inception and simple annualized for less than 1 year.
Slide 30: Shriram AMC - Investment Team
Shriram AMC - Investment Team ¢ Mr. Kartik Soral , CFA - Senior Fund Manager Mr. Kartik Soral serves as the Senior Fund Manager of Shriram Mutual Fund having an experience of more than 9 years in his professional career. Mr. Soral is a PGDM from IIM Ahmedabad and B.Tech in Chemical Engineering from
Slide 31: Shriram AMC - Investment Team
Shriram AMC - Investment Team ¢ Mr. Rohit Kumar Chawda - Chief Operating Officer Mr. Chawda has an experience of 24 years in various domains like Risk, Compliance, Accounts, Operations and Client servicing. He has served under capacities such as Director, Chief Operating Officer and Sr. Vice Preside
Slide 32: Mutual Fund Investments are subject to market risks
\eSHRIRAM NURTURING TRUST, SHAPING DREAMS Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Website: www.shriramamc.com | Ph: +919875630897 f /shriramamc (YY @ShriramMF
Shriram Asset Management — Investor Presentation (June 2019) on 6ix