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Prudent Corporate Advisory Services — DSP BlackRock Investment Managers — Investor Presentation (January 2010)
33 slides from Prudent Corporate Advisory Services's investor presentation, January 2010
Slide 1: DSP BlackRock Investment Managers Indian Equity Market - Review
FOR PROFESSIONAL INTERMEDIARIES DSP BlackRock Investment Managers Indian Equity Market - Review January 2010
Slide 2: Equity market overview
Equity market overview DSP BLACKROCK INVESTMENT MANAGERS
Slide 3: Equities end the year with another month of strong performance
Equities end the year with another month of strong performance India underperformed other Emerging Markets… …but ended the year among key top 3 markets after Russia and Brazil 1 m th Pe rform ance of Global Indice s 1 yr Perform ance of Global Indices NIKKEI 225 13% MICEX (RUSSIA) 121% KOSPI (KOREA)
Slide 4: India's valuations at premium to the peers
India’s valuations at premium to the peers India remains one of the expensive countries … … but offers the one of the highest growth potential as well Fw d PE CY10/FY11 CY10 GDP Grow th (%) JA PA N China 9.0 India Asia (ex Japan) 7.7 Mexico India 7.5 A SIA Brazil 5.8 Taiw an Brazil World 4.0 US Lat
Slide 5: Index heavyweights Banks and Oil stocks keep Sensex in check
Index heavyweights Banks and Oil stocks keep Sensex in check… IT was top performer in December while Telecom stocks recovered… While Metals ended the year as highest alpha generating sector 1 m th Perform ance of Sectoral Indices 1 yr Perform ance of Sectoral Indices BSE- SMALL-CAP 11% BSE- METAL 23
Slide 6: Tariff war weigh heavy on Telco stocks – biggest underperformers in 2009
Tariff war weigh heavy on Telco stocks – biggest underperformers in 2009 The classic defensive, HUL underperformed the most followed by HDFC group Tata Motors turns up as the biggest performer amongst Sensex stocks in 2009 1 m t h R e la t iv e P e rf o rm a nc e v s . S e ns e x 1 yr R e la t iv e
Slide 7: Inflows into Indian equities was strong despite a holiday-truncated month
Inflows into Indian equities was strong despite a holiday-truncated month FIIs maintained faith in Indian equities …even as domestics kept low exposure 6 ,0 0 0 2 ,5 0 0 2 0 Da y s M o v in g a g g r e g a t e f lo w s - D IIs 2 0 Da y s M o v in g a g g r e g a t e f lo w s - FIIs 2 ,0 0 0 5 ,0 0 0
Slide 8: Currency: US$ staged strong recovery
Currency: US$ staged strong recovery INR was flattish vs. US$ but appreciated strongly vs. the Euro US$ regained lost ground rising 5% vs the Euro in the month 75.0 INR/USD INR/EUR 1.7 USD/EUR Dollar Index 100 70.0 1.6 90 65.0 1.5 60.0 80 1.4 55.0 70 1.3 50.0 60 45.0 1.2 40.0 1.1 50 35.0 1.0 40 Jun-
Slide 9: Commodities: Strong US$ sobers down the surge in commodity prices
Commodities: Strong US$ sobers down the surge in commodity prices 1,200 GOLD (US$/oz) SILVER (US$/oz) 25 1,000 20 800 15 600 10 400 200 5 0 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 • Precious metals
Slide 10: Commodities: Crude prices avoid the US$ driven correction
Commodities: Crude prices avoid the US$ driven correction Crude prices still in tight range 160 BRENT CRUDE (US$/bbl) WTI CRUDE (US$/bbl) 160 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Mar-05 Dec-05 Mar-06 Dec-06 Mar-07 D
Slide 11: Commodities: Rising trend – CRB Index
Commodities: Rising trend – CRB Index CRB composite reflect moves in Metals, Agri and Oil 500 CRB Index 400 300 200 100 0 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Mar-05 Dec-05 Mar-06 Dec-06 Mar-07 Dec-07 Mar-08 Dec-08 Mar-09 Dec-09 • CRB index rose by 2.0% m-o-m, markin
Slide 12: Commodities: Baltic Dry Index – up 288% in 2009!!
Commodities: Baltic Dry Index – up 288% in 2009!! 14,000 BALTIC DRY INDEX 12,000 10,000 8,000 6,000 4,000 2,000 0 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 • Baltic Dry Index remained volatile and poste
Slide 13: Risk Measures: Risk aversion abated further
Risk Measures: Risk aversion abated further CBOE VIX index dipped by 12% While Nifty VIX also followed suit 70 CBOE VIX (%) 80 NIFTY VIX (%) 60 70 60 50 50 40 40 30 30 20 20 10 10 0 0 Aug-08 Aug-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Feb-08 Feb-09 Mar-05 Dec-05 Mar-
Slide 14: India's credit and debt market
India’s credit and debt market Banks deposit at reverse repo window saw sharp decline Key policy rates still low, but CRR hike in Jan ’10 seems a consensus Net Reverse Repo outstanding (INR bn) 10.0 Repo Rate (%) Reverse Repo rate (%) CRR (%) 1,500 1,000 8.0 500 6.0 0 4.0 -500 2.0 -1,000 0.0 Jun-05
Slide 15: Inflation inching up
Inflation inching up WPI inflation shoots up strongly in November to ~5% Consumer prices stay stubbornly in double digit… 14.0 WPI Inflation (%) CPI - Industrial Workers CPI - Non Manual Workers 14.0 12.0 12.0 10.0 8.0 10.0 6.0 8.0 4.0 6.0 2.0 4.0 0.0 2.0 -2.0 0.0 Jun-05 Sep-05 Jun-06 Sep-06 Jun-07
Slide 16: Industrial Recovery strong, Credit growth subdued
Industrial Recovery strong, Credit growth subdued Oct-09 IIP comes in at 10.3% - should help compensate loss from agri Credit growth inched up to 10%; has it bottomed? 18.0 IIP growth (%) 40.0 Credit Growth (%) 16.0 35.0 14.0 12.0 30.0 10.0 25.0 8.0 20.0 6.0 15.0 4.0 2.0 10.0 0.0 5.0 -2.0 0.0 Aug-05
Slide 17: Products & Performance
16 | Products & Performance DSP BLACKROCK INVESTMENT MANAGERS
Slide 18: Universe of Domestic Equity/Hybrid Schemes
Universe of Domestic Equity/Hybrid Schemes Top 100 Equity Balanced Rs.2,508 cr World Energy Rs.680 cr Small and Mid Rs.394 cr Cap Rs.740 cr Rs.104 World Gold Rs.353 cr India TIGER Rs.1,456 cr cr Technology.com Rs.3,474 cr Rs.96 cr Rs.22 Rs.1,415 cr cr World Mining Rs.47 Equity cr Tax Saver Micro Cap
Slide 19: Profile of Schemes
Profile of Schemes Domestic Schemes Large Cap Mid Cap Small Cap Micro Cap Hybrid DSPBR Savings Manager Funds 10%/20%/30% - - - Low Risk (Conservative/Moderate/Aggressive) DSPBR Balanced Fund 40% 13% 11% 10% Diversified DSPBR Top 100 Equity Fund 98% - - - DSPBR Opportunities Fund 67% 18% 6% 8% DSPBR
Slide 20: Track Record of Domestic Mutual Funds
Track Record of Domestic Mutual Funds CAGR in INR term as on December 31, 2009 Fund Name 1-Year 3-Year 5-Year Since Inception % Bm % Bm % Bm % Bm DSP BlackRock Equity Fund 90.8 75.8 17.7 9.4 29.7 20.1 26.1 13.4 DSP BlackRock Opportunities Fund 86.4 75.8 10.2 9.4 23.6 20.1 23.3 15.4 DSP BlackRock Top
Slide 21: Thank You
20 + Thank You DSP BLACKROCK INVESTMENT MANAGERS
Slide 22: Annexure
21 | Annexure DSP BLACKROCK INVESTMENT MANAGERS
Slide 23: DSP BlackRock Investment Managers
DSP BlackRock Investment Managers 22
Slide 24: DSP BlackRock Investment Managers Pvt. Ltd.
DSP BlackRock Investment Managers Pvt. Ltd. • One of India's leading asset management companies • Joint venture between the DSP Group and BlackRock, Inc., which is the largest listed asset management company in the world • Commenced operations in 1997 • Proven Performance track record • Dominance in
Slide 25: DSP Group Overview
DSP Group Overview DSP Group holds a 60% stake in DSP BlackRock Investment Managers The Kothari family of D. S. Purbhoodas and Co. is the promoter and owner of DSP Group • Track record of over 140 years, one of the oldest financial services firms in India • One of the founding members and first dire
Slide 26: BlackRock Overview
BlackRock Overview BlackRock holds 40% stake in DSP BlackRock Investment Managers Total Assets of $3.19 Trillion Fixed Income Global provider of investment and risk management services $969 Billion • Headquartered in NYC; offices in 24 countries Independent firm in ownership and governance • Establi
Slide 27: BlackRock and BGI: Combination of Two Leading Asset Managers
BlackRock and BGI: Combination of Two Leading Asset Managers On 1 December 2009, BlackRock and Barclays Global Investors (BGI) combined to create a new independent company with $3.19 trillion in assets under management • New firm operates under BlackRock Brings together two market leaders to create
Slide 28: Our Value Proposition
Our Value Proposition Strength and prominence of DSP BlackRock Investment Managers Investment management expertise Disciplined process of money management Seek excellence in performance Rigorous risk management process Commitment to client service 27
Slide 29: Awards Received
Awards Received Fund House Awards Lipper India Fund Awards 2009: Best Overall Fund Group over 3 years Lipper India Fund Awards 2009: Best Equity Fund Group over 3 years CNBC TV 18 CRISIL Mutual Fund of the Year Awards 2009: Equity Mutual Fund House of the Year Outlook Money NDTV Profit Awards 2009:
Slide 30: Disclaimers
Disclaimers MORNINGSTAR FUND AWARDS 2009: DSP BlackRock Top-100 Equity Fund has been awarded the Morningstar Fund Award (India) in the “India Open Ended Large Cap” category and DSP BlackRock Balanced Fund has been awarded the Morningstar Fund Award (India) in the “India Open Ended Moderate Allocatio
Slide 31: Disclaimers
Disclaimers Equity Schemes: Investment objective: DSP BlackRock Balanced Fund (DSPBRBalF) is an open ended balanced Scheme, seeking to generate long term capital appreciation and current income from a portfolio constituted of equity and equity related securities as well as fixed income securities (d
Slide 32: Disclaimers
Disclaimers Equity Schemes: Asset Allocation: DSPBRBalF - Equity & equity related securities: 65%-75%; Debt, Securitised Debt and Money market securities : 25% - 35%. DSPBRWEF - 1. Units of BGF – WEF# or other similar overseas mutual fund scheme(s): 50% to 100% 2. Units of BGF – NEF# or other simila
Slide 33: Disclaimers
Disclaimers Fixed Income Schemes: Investment objective: DSP BlackRock Bond Fund (DSPBRBF) is an open ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of high quality debt securities, predominantly of issu
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