Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund · NSE:MOMENTUM50
Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund — Motilal Oswal Asset Management Company — Investor Presentation (June 2022)
68 slides from Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund's investor presentation, Jun 30, 2022
Slide 1: Motilal Oswal MSCI EAFE Top 100 Select Index Fund
Motilal Oswal MSCI EAFE Top 100 Select Index Fund (EAFE = Europe, Australasia, and Far East) 30th June, 2022
Slide 2: Introduction to Developed Markets
Introduction to Developed Markets:
Slide 3: Nearly 97% of the world's opportunities are outside India
Nearly 97% of the world’s opportunities are outside India Global Market Capitalization1 Indian investors have traditionally taken exposure to only domestic markets. With such a narrow focus, investor tends to lose out on a large opportunity set Indian investment portfolios have been 99% invested in
Slide 4: Developed Markets (DMs)
Developed Markets (DMs) MSCI EAFE Index is designed to represent performance of 21 developed markets across Europe, Australasia (includes Australia, New Zealand) and Far East excluding US and Canada Developed Markets1 Europe & Middle east Pacific Austria, Belgium, Denmark, Finland, Australia, Hong K
Slide 5: Characteristics of Developed Markets
Characteristics of Developed Markets Emphasis on Most competitive Strong regulatory Innovation and economies* in the framework R&D world Relatively Relatively Politically and Matured Capital Financially Stable Market *According to IMD.org Source/Disclaimer: The above icons are used to explain the co
Slide 6: Developed Markets in Competitiveness Ranking
Developed Markets in Competitiveness Ranking Rank Country Rank Country 1 Switzerland 14 Canada Of the top 25 ranked economies, 2 Sweden 15 economies are part of the 15 Germany MSCI EAFE index 3 Denmark 16 China 4 Netherlands 17 Qatar 5 Singapore 18 United Kingdom 6 Norway The competitiveness ranking
Slide 7: Why domestic investors should look beyond U.S. markets?
Why domestic investors should look beyond U.S. markets? For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 8: Different return drivers
Different return drivers • Markets outside U.S provide diversification benefit due to different return driver • Key regions such as Europe and Japan have implemented stimulus packages larger than US, which could spur growth • Regions outside the US are poised to benefit from major stimulus measures
Slide 9: Needle in the haystack, Buy the haystack!
Needle in the haystack, Buy the haystack! Index returns in USD • A large proportion of world’s best performing stocks were found outside U.S Source/Disclaimer: Is It Time to Expand Allocations to International Stocks? - Context | AB (alliancebernstein.com) . Fifty best performing stocks are the comp
Slide 10: 3 Reasons to invest into EAFE
3 Reasons to invest into EAFE For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 11: Low correlation to Indian equities
Low correlation to Indian equities Diversifying your portfolio across different geographies can help reduce volatility as compared to Indian Equities 100.0% 80.0% Correlation of MSCI 60.0% EAFE Index: Nifty 500 = 43% Calendar Year Return 40.0% S&P 500 = 56% 20.0% Nifty 500 TR Index 0.0% ^S&P 500 TR
Slide 12: Largest Non-US ETF Theme Globally: By AUM
Largest Non-US ETF Theme Globally: By AUM Market AUM Rank Name (Asset class) (in Billion $) 1 SPDR S&P 500 ETF Trust U.S (equity) 412.3 2 iShares Core S&P 500 ETF U.S (equity) 333.7 3 Vanguard S&P 500 ETF U.S (equity) 291.6 4 Vanguard Total Stock Market ETF U.S (equity) 290.6 5 Invesco QQQ Trust U.S
Slide 13: EAFE remains broadly diversified
EAFE remains broadly diversified Weight of Tech stocks in the index • US and EM offer higher exposure to technology sector. • MSCI EAFE remains broadly diversified and provides opportunity for outperformance during broad based rally Source/Disclaimer: Why International Equities (lazardassetmanagemen
Slide 14: Motilal Oswal MSCI EAFE Top 100 Select Index Fund
Motilal Oswal MSCI EAFE Top 100 Select Index Fund For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 15: Motilal Oswal MSCI EAFE Top 100 Select Index Fund
Motilal Oswal MSCI EAFE Top 100 Select Index Fund Investment Objective Type of Scheme The investment objective is to generate long An open ended scheme replicating/tracking term capital appreciation by investing in MSCI EAFE Top 100 Select Index securities of MSCI EAFE Top 100 Select Index subject t
Slide 16: About underlying index
About underlying index MSCI EAFE Top 100 Select Index objective: Represents the top 100 companies that are selected from 10 large developed markets, out of MSCI EAFE Index. Index Methodology Snapshot: Eligible Universe MSCI EAFE Index Select top 10 countries (“EAFE10”) (Parent Index) (Based on weigh
Slide 17: Parent Index Coverage
Parent Index Coverage Data as of 30th Sep 2021 MSCI EAFE Index MSCI EAFE Top 100 Select (Parent Index) Index Number of countries 21 Max 10 Number of constituents 799 100 Parent index coverage 100% 48.7%* Top 10 constituent weight 14.7% 28.8% Weight of the largest constituent 2.4% 4.9% *Based on mont
Slide 18: Most Innovative economies
Most Innovative economies EAFE 10 Countries Rank Switzerland 3 Germany 4 Sweden 5 Netherlands 9 Japan 12 France 13 U.K 18 Australia 19 Spain 31 Hong Kong 38 Source/Disclaimer: https://www.bloomberg.com/news/articles/2021-02-03/south-korea-leads-world-in-innovation-u-s-drops-out-of-top-10.The countri
Slide 19: Winners keep changing
Winners keep changing 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* India US India India US India US India US US India US US EM US India - 64.6% -22.5% 91.0% 15.3% 21.2% 33.5% 49.6% 39.3% 6.2% 14.8% 37.7% 4.3% 34.1% 21.8% 32.1% 10.1% EM EAFE EM EM EAFE EM EAFE US E
Slide 20: No single country consistently outperform
No single country consistently outperform Period Germany Sweden Australia UK France Japan Netherlands Switzerland Hong Kong Spain 2000 6.6% 0.6% 3.2% 0.5% 14.8% -17.9% 13.3% 16.7% -0.3% -4.0% 2001 -19.6% -24.5% 5.8% -11.4% -19.7% -27.1% -19.2% -18.7% -16.1% -8.3% 2002 -33.1% -30.3% -0.6% -15.5% -21.
Slide 21: Winners keep changing
Winners keep changing Top performing market basis calendar year performance 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 United Sweden Sweden Japan Spain Hong Kong Switzerland Australia Sweden Germany Kingdom 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* Netherland Hong Kong Japan Australi
Slide 22: Brands from developed market
Brands from developed market Source: MSCI; Data as of 30-June-22; The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. It should not be construed as investment advice to any pa
Slide 23: Index: Top 10 stocks
Index: Top 10 stocks Sr. No. Stock Name Sector Country Weight 1 Nestle Consumer Staples Switzerland 4.9% 2 Roche Holding Genuss Health Care Switzerland 3.5% 3 Astrazeneca Health Care United Kingdom 3.0% 4 Shell Energy United Kingdom 2.9% 5 Asml Hldg Information Technology Netherlands 2.9% 6 Novartis
Slide 24: Diversification: Country and Sector Exposure
Diversification: Country and Sector Exposure Country Weight Communication Sector weight Hong Kong Services Spain 2.8% Sweden 4.2% Utilities 2.1% Netherlands 0.4% United 1.6% Energy Financials 4.7% Kingdom 6.5% 18.8% 22.8% Australia Information 8.6% Technology 7.4% Germany Materials 9.1% 7.8% Health
Slide 25: Risk return profile
Risk return profile ^MSCI EAFE Top 100 Select Data Label Nifty 500 TR Index ^S&P 500 TR Index (INR) Index (INR) 1 Year 0.6% -4.1% -6.9% Annualized 12.8% 16.0% 7.6% Returns 3 Year 5 Year 11.2% 16.1% 8.1% 10 Year 13.7% 16.8% 9.0% 1 Year 17.3% 19.7% 19.2% Annualized Volatility 3 Year 21.8% 24.3% 20.4%
Slide 26: Illustration: Currency Contribution
Illustration: Currency Contribution Currency Weights Countries Currency Change vs INR (Oct 2021) (10 year) GERMANY, NETHERLANDS, 33.1% EUR/INR 2.2% SPAIN, FRANCE UNITED KINGDOM 21.3% GBP/INR 2.1% JAPAN 17.5% JPY/INR 0.1% SWITZERLAND 16.2% CHF/INR 3.9% AUSTRALIA 9.2% AUD/INR 0.8% HONG KONG 2.3% HKD/I
Slide 27: SIP performance- MSCI EAFE Top 100 Select Index (INR)
SIP performance- MSCI EAFE Top 100 Select Index (INR) Description 1 Year 3 Year 5 Year 7 Year 10 Year Returns -13.3% 5.2% 6.8% 7.6% 7.3% Amount Invested 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 Market Value 1,11,238 3,89,380 7,12,036 11,00,204 17,50,251 Data as of close of June 30, 2022. For SI
Slide 28: Improved Valuation Multiples
Improved Valuation Multiples Price to Earning Ratio Price to Book Value ratio EAFE10 P/E 10yr Avg EAFE10 P/BV 10yr Avg 30 2.5 25 2.0 2.1 20 15 15.8 1.5 10 5 1.0 Dividend Yield EAFE10 Yield 10yr Avg 5.0 The PE ratio and Dividend yield are below 10 year 4.5 average and exhibits a decreasing trend. 4.0
Slide 29: Thoughts from Market Gurus / Experts
Thoughts from Market Gurus / Experts “The essence of portfolio management is the management of risks, not the management of returns.” - Benjamin Graham For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approva
Slide 30: Blending Developed Markets in your portfolio
Blending Developed Markets in your portfolio Allocations Parameters 1 year 3 year 5 year 10 year Data in INR Returns* 0.56% 12.8% 11.2% 13.6% India 100% Volatility* 17.3% 21.7% 18.5% 16.7% Risk Adj. Returns 0.032 0.588 0.605 0.819 The low correlation EAFE10 Returns* -1.5% 13.4% 12.5% 14.5% helps red
Slide 31: 3 year rolling return
3 year rolling return ^MSCI EAFE Top ^S&P 500 TR Index India : EAFE10 : India : EAFE10 : 3 Year Nifty 500 TR Index 100 Select TR (INR) USA USA Rolling Returns (India) Index (INR) (USA) (60:10:30) (60:20:20) (EAFE 10) Average 17.0% 7.2% 11.2% 15.2% 14.7% Median 13.8% 8.1% 13.1% 14.2% 13.4% Min -21.7%
Slide 32: 5 year rolling return
5 year rolling return ^MSCI EAFE Top ^S&P 500 TR India : EAFE10 : India : EAFE10 : 5 Year Nifty 500 TR Index 100 Select TR Index (INR) USA USA Rolling Returns (India) Index (INR) (USA) (60:10:30) (60:20:20) (EAFE 10) Average 16.9% 7.4% 11.5% 15.3% 14.9% Median 15.0% 7.9% 12.8% 15.4% 14.9% Min -1.9%
Slide 33: Insights into top performing companies
Insights into top performing companies For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 34: Nestle
Nestle Total Mkt Cap = $367.7 Bn Weight in Index = 4.6% World's largest food and beverage company1 Stock return (3y)* = 11.0% • Nestle has over 2,000 F&B brands, including household names like Nescafé, Maggi, KitKat, Milo, and Ceralac1 • Sells products in 186 countries around the world with a well d
Slide 35: ASML Holding
ASML Holding Total Mkt Cap = $280.5 Bn Weight in Index = 3.5% Leading supplier to the semiconductor industry Stock return (3y)* = 43.0% • ASML makes complex lithography equipment used in the manufacture of microchips1 • ASML has a 62% market share in lithography machines, and a monopoly in EUV (extr
Slide 36: Roche Holding
Roche Holding Total Mkt Cap = $279.8 Bn Weight in Index = 3.5% World’s largest pharmaceuticals company1 Stock return (3y)* = 17.4% • #1 industry leader in biotechnology, oncology, and in-vitro diagnostics2 • ~660 tests conducted every minute in 2019 with Roche instruments worldwide2 • ~2.9 crore pat
Slide 37: LVMH Group
LVMH Group Total Mkt Cap = $354.7 Bn Weight in Index = 2.5% World’s most valuable luxury brand1 Stock return (3y)* = 20.2% • LVMH manages 75 luxury brands including Louis Vuitton, Christian Dior, Kenzo, Bulgari, Loro Piana, and Celine2 • The group operates over 5,000 stores worldwide1 • The group is
Slide 38: AstraZeneca
AstraZeneca Total Mkt Cap = $206.7 Bn Weight in Index = 2.6% Leading global pharmaceuticals company Stock return (3y)* = 23.6% • AstraZeneca co-developed the world’s cheapest vaccine against Covid-19, priced at just ~US$2 per dose1 • It is the most ordered Covid-19 vaccine with over 300 cr orders, m
Slide 39: Sony Group
Sony Group Total Mkt Cap = $132.3 Bn Weight in Index = 1.7% Leading electronics and media conglomerate Stock return (3y)* = 25.0% • Sony’s PlayStation is the best-selling videogame console ever. The latest PlayStation 5 has sold over 1 cr units in just 9 months1 • Sony Music is the world’s largest m
Slide 40: Insights into top countries
Insights into top 4 countries For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 41: United Kingdom
United Kingdom GDP per capita* = $40,285 Weight in Index = 21.3% • It is the 2nd largest economy in Europe and also home to the 2nd largest financial center (London) in the world1 • Services sector contributes ~79% of the GDP, while the Industrial sector contributes ~20% of the GDP2 • The economy is
Slide 42: Japan
Japan GDP per capita* = $40,113 Weight in Index = 17.5% • Japan is the world’s 3rd largest economy with a nominal GDP of US$ 5.1 trillion1 • Services sector contributes ~69% of the GDP, while the Industrial sector contributes ~30% of the GDP2 • The economy has been sluggish since the Covid-19 pandem
Slide 43: France
France GDP per capita* = $38,625 Weight in Index = 15.7% • France is the world’s 7th largest economy with a nominal GDP of US$ 2.6 trillion1 • Services sector contributes ~79% of the GDP, while the Industrial sector contributes ~20% of the GDP2 • Like most of the world, France was also hit hard by t
Slide 44: Switzerland
Switzerland GDP per capita* = $86,601 Weight in Index = 16.2% • Switzerland is the world’s 18th largest economy with a nominal GDP of US$ 750 billion1 • Services sector contributes ~74% of the GDP, while the Industrial sector contributes ~26% of the GDP2 • Switzerland has weathered the Covid-19 pand
Slide 45: Why you should invest in Motilal Oswal MSCI EAFE Top 100 Select Index Fund?
Why you should invest in Motilal Oswal MSCI EAFE Top 100 Select Index Fund? Exposure to Exposure to 10 Well Diversified renowned Global largest Developed across Stock, Brands Markets Sector, Geography Low Correlation to One of the World’s Indian Equity largest ETF* *iShares Core MSCI EAFE ETF tracks
Slide 46: Annexure
=— Annexure INDEX FUNDS
Slide 47: EAFE stocks maybe positively positioned to lead
EAFE stocks maybe positively positioned to lead • Last decade belonged to US • In the last 30 years, MSCI EAFE has outperformed US equities 12 times • Investor may stand to benefit from trend reversal Excess return of EAFE over US 30% 20% 10% 0% -10% -20% -30% -40% 1999 2018 1991 1992 1993 1994 1995
Slide 48: Periods of relative outperformance
Periods of relative outperformance Source/Disclaimer: JP Morgan- Guide to Market. October 2021. The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. Past performance may or may not be sust
Slide 49: EAFE stocks have rallied in global recoveries
EAFE stocks have rallied in global recoveries EPS growth during economic recoveries • Historically EAFE companies have tended to deliver better earnings during global recoveries • EPS growth estimates seem favorable Source/Disclaimer: Why International Equities (lazardassetmanagement.com). The above
Slide 50: Peer Valuations (PE)
Peer Valuations (PE) EAFE10 P/E 10yr Avg S&P 500 PE 10yr avg 30 40 25 35 30 20 25 22.3 15 15.8 20 10 15 5 10 EM7 P/E 10yr avg 30 25 20 The PE ratio for EAFE10 and EM7 regions is below their 15 12.4 10 year average. 10 While the PE ratio for S&P 500 is still above its 10 year 5 average. 0 Source/Disc
Slide 51: Peer Valuations (P/BV)
Peer Valuations (P/BV) EAFE10 P/BV 10yr Avg S&P 500 P/BV 10yr avg 2.4 6.0 2.2 2.1 5.0 2.0 4.5 1.8 4.0 1.6 3.0 1.4 2.0 1.2 1.0 1.0 EM7 P/BV 10yr avg 2.6 2.4 2.2 2.0 The PB ratio for all the region is above the 10 year 1.8 1.8 average but exhibiting a downward trend for EAFE10 and 1.6 EM7 1.4 1.2 1.0
Slide 52: Peer Valuations (Dividend Yield)
Peer Valuations (Dividend Yield) EAFE10 Yield 10yr Avg S&P 500 Yield 10yr avg 5.0 3.0 4.5 2.5 4.0 2.0 3.5 1.5 1.3 3.0 3.0 1.0 2.5 0.5 2.0 0.0 EM7 Yield 10yr avg 5.0 4.5 4.0 3.5 The dividend yield ratio for each of the region is currently trading below the 10yr average 3.0 2.7 2.5 2.0 Source/Disclaim
Slide 53: Global Patent Activity - 2020
Global Patent Activity - 2020 Global patent activity remains concentrated in 5 economies For Finance Professionals. Proprietary Content - Permission to reprint or distribute any content from this presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 54: 1 year rolling return
1 year rolling return ^MSCI EAFE Top ^S&P 500 TR India : EAFE10 : India : EAFE10 : Nifty 500 TR Index 100 Select TR Index (INR) USA USA (India) Index (INR) (USA) (60:10:30) (60:20:20) (EAFE 10) Average 18.9% 7.2% 11.4% 15.8% 15.3% Median 14.3% 7.3% 12.8% 15.7% 15.3% Min -60.6% -40.3% -34.7% -47.7% -
Slide 55: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content from this 55 presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 56: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content from this 56 presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 57: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Not for Public Distribution. PROPRIETARY. Permission to reprint or distribute any content from this 57 presentation requires the written approval of Motilal Oswal Asset Management Company.
Slide 58: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund Nifty 50 TRI Motilal Oswal Nifty 50 Index • Return that corresponds to the Fund performance of Nifty 50 Index subject to tracking error (An open ended scheme • E
Slide 59: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund Nifty 500 TRI Motilal Oswal Nifty 500 Index • Return that corresponds to the Fund performance of Nifty 500 Index subject to tracking error (An open ended scheme
Slide 60: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund S&P 500 TRI (INR) Motilal Oswal S&P 500 Index • Return that corresponds to the Fund performance of S&P 500 Index subject (An open ended scheme to tracking error
Slide 61: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund 50% Nifty 500 TRI + 20% S&P 500 TRI (INR) + 10% Domestic Price of Gold + 20% Motilal Oswal Asset Nifty 5 Yr Benchmark G-Sec Index • To generate long term growth/
Slide 62: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal 5 Year G-sec Fund Nifty 5 yr Benchmark G-Sec Index FoF • Long term capital appreciation • Return that corresponds generally to (An open ended fund of fu
Slide 63: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal Nifty 200 Fund Nifty 200 Momentum 30 TRI Momentum 30 ETF (An open ended fund • Return that corresponds to the total returns of the Nifty 200 Momentum 30
Slide 64: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal S&P BSE Low Fund S&P BSE Low Volatility Total Return Index Volatility Index Fund • Return that corresponds to the total returns of the S&P BSE Low Volat
Slide 65: Thank You
Thank You “Don’t look for the needle in the haystack. Just buy the haystack!” - John C. Bogle Contact Us - Speak: +91-22 40548002 | 8108622222 Write: mfservice@motilaloswal.com Visit: www.motilaloswalmf.com
Slide 66: Disclaimers & risk factors
Disclaimers & risk factors This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material f
Slide 67: Disclaimers & risk factors
Disclaimers & risk factors NSE Indices Limited Disclaimer: MOFM50 and MOFM100: MOFM50 and MOFM100 offered by Motilal Oswal Asset Management Company Limited (MOAMC) or its affiliates is not sponsored, endorsed, sold or promoted by NSE Indices Limited and its affiliates. NSE Indices Limited and its af
Slide 68: Disclaimers & risk factors
Disclaimers & risk factors The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by [licensee]. None of the MSCI parties makes any representation or warranty, express or imp
Motilal Oswal Asset Management Company — Investor Presentation (June 2022) on 6ix