Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (July 2021)
18 slides from Hdfc Asset Management's investor presentation, July 2021
Slide 1: Aim to benefit from value discovery with HDFC Capital Builder Value Fund
Aim to benefit from value discovery with HDFC Capital Builder Value Fund Ge RISKOMETER July 2021 Investors understand that their principal wile avery Ns | A HDFC | *Investors should consult their financial advisers, if in doubt about whether the product is suitable for them. |] MUTUAL FUND | For lat
Slide 2: Table of Contents
Table of Contents • 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 • Large/Mid/Small-Cap break-up • Portfolio Characteristics • Portfolio Statistics • Top 10 Holdings • Fund
Slide 3: What is definition of Value for this Fund?
What is definition of Value for this Fund ? Investment strategy of this fund would be to focus on : • Companies trading below intrinsic value, as measured by potential earnings or asset values, and/or future cash flow growth • Companies in turnaround phase – Good businesses that have gone through a
Slide 4: Why Invest in HDFC Capital Builder Value Fund?
Why Invest in HDFC Capital Builder Value Fund ? • Diversified multi-cap strategy with a value bias • Fund will be managed true-to-mandate and will invest at least 60% of the portfolio in companies which are trading at multiples lower than Median P/E (Price/Earnings) or Median P/B (Price/Book Value)
Slide 5: Investment Approach
Investment Approach •Emphasis on undervalued stocks Stock Selection •Preference for companies •(a) trading below intrinsic value •(b) In turnaround phase •(c) trading below historical average multiples •Active Overweight/Underweight vs benchmark Sector Allocation based on top down investment calls C
Slide 6: Stock selection
Stock selection • At the time of stock selection there is a preference for companies trading below intrinsic value, companies trading blow historical average multiples and companies in turnaround phase. • As of Jun’21, ~82% of the portfolio is in preferred category as follows : Average EPS % of Aver
Slide 7: Sector Allocation
Sector Allocation • The Scheme also uses sector allocation and takes top down investment calls. • The Scheme is positioned to benefit from domestic cyclical recovery and is overweight on sectors such as Financials, Industrials and Consumer Discretionary. The scheme is also overweight on Healthcare a
Slide 8: Large/Mid/Small Cap break-up
Large/Mid/Small Cap break-up • The Scheme invests across market capitalization • At present, the scheme has a large cap bias (~72% of Net Assets) • Market Cap Bias is an outcome of bottom up stock selection Market Cap Break-up 90% 80% 77% 72% 70% 60% 50% 40% 30% 20% 14% 11% 11% 12% 10% 0% Large Cap
Slide 9: Portfolio Characteristics
Portfolio Characteristics Characteristics Scheme NIFTY 500 Return on Equity (ROE) FY21 12.80 16.52 Trailing 12 Month - Price to Earnings Ratio (P/E) 35.15 39.44 Trailing 12 Month - Price to Book Value Ratio (P/B) 4.90 5.28 Source :Bloomberg ,MFI Explorer, As of June 30, 2021 9 9 9 Refer Disc laimer
Slide 10: Portfolio Statistics (As of June 30, 2021)
Portfolio Statistics (As of June 30, 2021) Particulars % To Net Assets Top 10 Equity And Equity Related Holdings 47.46% Total Equity & Equity Related Holdings 97.69% Cash, Cash Equivalents And Net Current Assets 1.87% Assets Under Management (Rs. In Crore) 4,870 Standard Deviation** 6.91% Beta** 1.0
Slide 11: Top 10 Holdings (As of June 30, 2021)
Top 10 Holdings (As of June 30, 2021) % To Net Benchmark Weight (%) Overweight/ Particulars Sector Assets NIFTY 500 (Underweight) (%) Infosys Limited Software 8.82 5.74 3.08 ICICI Bank Ltd. Banks 8.56 4.28 4.28 HDFC Bank Ltd. Banks 8.55 6.40 2.15 Axis Bank Ltd. Banks 5.73 1.89 3.84 Bharti Airtel Ltd
Slide 12: Fund Suitability
Fund Suitability The scheme is suitable for investors who • Intend to invest in undervalued companies. • Would like to invest in a diversified portfolio with a long term horizon. • Want twin benefit of earnings growth as well as re-rating of valuation multiples • Are looking for a sound and discipli
Slide 13: Scheme Facts
Scheme Facts Type of Scheme An open ended equity scheme following a value investment strategy Inception Date February 01, 1994 (Date of allotment) Investment Objective To achieve capital appreciation/ income in the long term by primarily investing in undervalued stocks Fund Manager $ Mr Amit Ganatra
Slide 14: Asset Allocation Pattern
Asset Allocation Pattern 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 65-100 High instruments Debt Securities (including 0-35 Low to Medium securitise
Slide 15: Scheme Performance Summary – HDFC Capital Builder Value Fund
Scheme Performance Summary – HDFC Capital Builder Value Fund Value of Rs 10,000 invest ed Addit ional Addit ional Scheme Benchmark Benchmark Benchmark Scheme Benchmark Ret urns (%) Ret urns (%) # (Rs) Ret urns (%) ## (Rs) Last 1 Year 61.91 60.77 54.58 16,191 16,077 15,458 Last 3 Years 10.09 15.00 15
Slide 16: Performance Summary of other Scheme(s) managed by the Fund Manager
Performance Summary of other Scheme(s) managed by the Fund Manager Returns (%) Managing scheme 3 year 5 year since 1 year Scheme CAGR (in %) CAGR (in %) Amit Ganatra manages total 6 schemes HDFC DYNAMIC PE RATIO FUND OF 21-May-20 37.81 12.99 11.93 FUNDS ^ NIFTY 50 Hybrid Composite Debt 65:35 35.83 1
Slide 17: Disclaimer
Disclaimer This presentation dated July 30, 2021 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
Slide 18: Thank You
Thank You 18 Refer Disc laimer on Slide 17
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