Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (July 2019)
23 slides from Hdfc Asset Management's investor presentation, Jul 1, 2019
Slide 1: HDFC Equity Fund: Consistent performance across market cycles
Wealth has grown nearly 70 times in 24 19.0% CAGR for over years** 24years** vs. NIFTY 500 TRI CAGR of 11.6% HDFC Equity Fund (An Open Ended Multicap Scheme) Consistent performance across market cycles This product is suitable for investors who are seeking*: Riskometer Capital appreciation over lon
Slide 2: Proven track record across market cycles over 24 years
HDFC Equity Fund – Proven track record across market cycles over 24 years Period Jan 95 – Mar 01 Mar 01- Mar 08 Mar 08 – Mar 18 Since Mar 18 Capex / Banking / Auto /FMCG/ Next cycle -- Corporate Leading IT stocks Commodities NBFC Banks / Capex ? Sectors Rs 10,000 invested in HDFC Equity Fund at ince
Slide 3: Correct positioning in each cycle since inception
HDFC Equity Fund – Correct positioning in each cycle since inception Cycle 1 Since Inception Jan Cycle 2 Mar 00 - Mar 08 Cycle 3 Mar 08 - Mar 18 Total from 95 - Mar 00 Since Since Capex / Auto / Mar 18 Inception Leading sectors IT stocks Leading sectors Banking / Leading sectors NBFC / Jan 95 Commod
Slide 4: Consistent alpha generation for over 24 years
HDFC Equity Fund – Consistent alpha generation for over 24 years HDFC Equity Fund - Outperformance vs NIFTY 500 TRI (CAGR) Year ended 1 year 3 year 5 year 10 year Mar 96 Mar 97 -10.4 Mar 98 14.3 -4.0 Mar 99 60.6 16.6 Mar 00 20.0 32.5 10.0 Mar 01 8.5 26.7 15.2 Mar 02 30.0 18.4 25.0 Mar 03 6.3 13.5 22
Slide 5: A track record of consistent dividends
A track record of consistent dividends^ Good years, bad years, 23 Dividends in 20 years since 1999 CY (since 1999) 1999 1999 2000 2000 2002 2003 2003 2004 2004 2006 2007 2008 2009 Dividend per unit (Rs) (A) 1.6 2.0 3.0 1.7 1.2 2.0 2.5 1.5 3.0 5.0 5.0 5.5 3.0 NAV (Record Date) (B) 16.0 19.1 21.5 12.7
Slide 6: A Multicap Fund with dynamic yet controlled exposure to midcaps
HDFC Equity Fund – A Multicap Fund with dynamic yet controlled exposure to midcaps • Fund takes controlled exposure to midcaps / smallcaps both at stock and aggregate level • Asset allocation to midcaps / small caps is a function of outlook and valuations HDFC Equity Fund reduced allocation to Midca
Slide 7: Differentiated Marketcap positioning vs Peers
HDFC Equity Fund – Differentiated Marketcap positioning vs Peers Cash, Foreign Equity, Debt Large Mid Small Instruments & Net Current Assets HDFC Equity Fund 82.0 11.9 5.7 0.4 Average of Peer Multicap Funds 65.6 16.7 10.4 7.3 Median of Peer Multicap Funds 67.3 16.67 9.6 5.0 Large cap earnings as ref
Slide 8: Differentiated Portfolio positioning vs other Multicap schemes
HDFC Equity Fund – Differentiated Portfolio positioning vs other Multicap schemes Average of Other Sector HDFC Equity Fund Multi cap schemes Key overweight sectors Corporate Bank & Financials 32.2 13.2 Corporate Banks & Financials Utilities 10.1 2.0 • Recognition phase of NPAs is largely over Energy
Slide 9: Differentiated Portfolio positioning vs Benchmark
HDFC Equity Fund – Differentiated Portfolio positioning vs Benchmark HDFC Equity Benchmark – Sector Fund NIFTY 500 Corporate Banks & Financials 32.2 10.8 Industrials 15.5 7.6 Utilities 10.1 3 Information Technology 13.6 10.8 Energy 10.9 9.9 Real Estate NIL 0.6 HDFC Equity Fund is overweight in secto
Slide 10: Rationale for large overweight in Corporate banks
Rationale for HDFC Equity Fund’s large overweight in Corporate banks • Corporate banks asset quality stress peaked in FY18. Gross & Net NPA’s have declined between Mar-18 & Mar-19 • Asset resolution through NCLT is gaining traction – NPA’s worth INR 1.28tn have got resolved till Dec-18 (10.6% of sys
Slide 11: Rationale for large underweight in Consumer discretionary
Rationale for HDFC Equity Fund large underweight in Consumer discretionary • Slowdown in discretionary consumption • Significant increase in household leverage • Jobs generated primarily in lower income categories • Urban and Semi-urban markets maturing for certain discretionary categories • Overest
Slide 12: Investment Philosophy
HDFC Equity Fund - Investment Philosophy Steadfast adherence to few principles has worked well for HDFC Equity Fund over medium to long periods • A predominantly large cap portfolio with limited exposure to mid caps / small caps • Preference for strong & growing companies - Strong companies not only
Slide 13: Why HDFC Equity Fund? Whom is it suited for?
Why HDFC Equity Fund? Whom is it suited for? • HDFC Equity Fund is a good investment vehicle for those who believe in the growth prospects of India and understand the power of compounding • The Fund offers : • Consistent returns across several economic & market cycles • Long term oriented, disciplin
Slide 14: Indian Economy - Steady economic growth, stable macro parameters
Indian Economy - Steady economic growth, stable macro economic parameters Improving macros FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E Real GDP at market price (% YoY) 5.5 6.4 7.4 8.0 8.2 7.2 6.8 6.8 Centre's fiscal deficit (% GDP) 4.9 4.5 4.1 3.9 3.5 3.5 3.4 3.4 Current Account Deficit (CAD) (% GDP)
Slide 15: Equity Markets Review
Equity Markets Review India market cap to GDP ratio, PE multiples, calendar year-ends 2005-20E (%) • Improving profit growth outlook and a stable political environment • Post correction in 2018, midcaps valuations have converged with largecaps • NIFTY50 EPS growth is estimated at 17.3% CAGR over FY1
Slide 16: Improving profit growth outlook
Improving profit growth outlook NIFTY50 EPS growth: The worst is behind, strong improvement ahead NIFTY50 EPS NIFTY50 EPS FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E FY21E CAGR 13-18 CAGR 18-21E NIFTY EPS 377 410 398 384 439 449 481 613 724 3.5 17.3 Growth % 8.8 -2.9 -3.5 14.4 2.0 7.1 27.4 18.1 PAT gr
Slide 17: Summary
Summary • Macro economic indicators are stable and healthy; slowdown in discretionary spending, capex is improving • Strong earnings growth outlook with NIFTY EPS growth estimated at 17.3% CAGR over FY18-21E • FY21(E) P/E of ~16.4x and Marketcap to GDP ratio of 67% CY20E is reasonable • Post correct
Slide 18: Asset Allocation Pattern
HDFC Equity Fund – Asset Allocation Pattern Under normal circumstances, the asset allocation (% of total assets) of the Scheme’s portfolio will be as follows : Minimum Maximum Types of Instruments Allocation (% of Allocation (% of Risk Profile Total Assets) Total Assets) Equity and Equity related 65
Slide 19: Scheme Performance summary
HDFC Equity Fund – Scheme Performance summary Value of Rs 10,000 invested Additional Benchmark Additional Scheme Benchmark Scheme Benchmark Period Returns # Benchmark Returns (%) Returns ## (Rs.) (Rs)# (%) (Rs)## (%) Last 1 year 13.74 6.46 12.43 11,374 10,646 11,243 Last 3 years 15.89 14.35 14.99 15
Slide 20: SIP Performance summary
HDFC Equity Fund – SIP Performance summary Particulars 1 year 3 Years 5 Years 10 Years Since Inception Total Amount Invested (`’000) 120 360 600 1,200 2,930 Mkt Value As on May 31, 2019 (`000) 132.56 436.49 811.56 2,442.92 75,841.05 Returns (Annualised) (%) 20.06 12.95 12.04 13.63 21.85 Benchmark Re
Slide 21: Other schemes managed by Prashant Jain
Other schemes managed by Prashant Jain, fund manager of HDFC Equity Fund Returns (%) as on May 31, 2019 Managing Scheme Last 3 years Last 5 years Since Last1 year (%) Scheme CAGR (in %) CAGR (in %) HDFC Top 100 Fund June 20, 03 15.55 15.85 11.99 NIFTY 100 Total Returns Index 10.03 14.91 12.32 HDFC B
Slide 22: Disclaimer
Scheme Performance Summary The presentation dated 1st July, 2019 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,
Slide 23: Thank You
MUTUAL FUND BHAROSA APNO KA Thank You
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