HDFC Asset Management Co. Ltd. · NSE:HDFCAMC
HDFC Asset Management — Investor Presentation (August 2022)
30 slides from HDFC Asset Management's investor presentation, Aug 18, 2022
Slide 1: Give Your Portfolio the Silver Edge - HDFC Silver ETF
rusted GIVE YOUR PORTFOLIO THE SILVER EDGE The metal powering new-age industries NFO Period 18 - 26th August, 2022 th HDFC SILVER ETF (An open ended Exchange Traded Fund (ETF) replicating /tracking performance of Silver) HDFC Asset Management Company Limited has been managing Index Solutions for 20
Slide 2: Silver is a key precious metal used in jewellery, silverware
Is a key precious metal used in jewellery, silverware Although is a precious metal, silver has actual industrial use too – currently used in many industries – from electrical switches to solar to chemical producing catalysts. (Refer to the slide 5) Considered as an auspicious metal in most parts of
Slide 3: Why consider investing in Silver?
Why consider investing in Silver? As an Industrial Commodity As a Precious Metal Play on industrial recovery – with heavy usage in portable devices, + industrial equipment Hedge against currency depreciation Improving demand outlook on account of higher adoption in new age and Diversification green t
Slide 4: As an Industrial Commodity
As an Industrial Commodity 04
Slide 5: Key properties of silver makes it a unique metal
Key properties of silver makes it a unique metal Easy to give shape (malleable and ductile) + has a brilliant shine – making it great for jewellery and silverware One of the best conductors of electricity – making it useful in electronic components (wires, switches and printed circuit boards), espec
Slide 6: Silver – A Key Component in Solar Energy Generation
Silver – A Key Component in Solar Energy Generation Did you know? Increasing Solar Power Demand = Increasing Silver Demand Each solar cell uses 5,000 4,548 4,500 approximately 100mg of silver Energy Generation (in tons) Demand for Silver for Solar 4,000 3,500 3,267 3,000 2,809 Aggressive goals set b
Slide 7: Silver being actively adopted in EVs
Silver being actively adopted in EVs Increasing share of EVs in the automobile market expected to increase demand of Silver as EVs use almost twice the silver used in the traditional Internal Combustion Engine (ICE) cars. Charging stations also expected to increase the demand for silver Demand of Si
Slide 8: Focus on Green Tech expected to boost Silver demand
Focus on Green Tech expected to boost Silver demand Silver demand outlook (2030 Est vs 2020, million ounces) Mobility, energy production & telecom Focus areas expected to boost silver demand Solar Note: ICE - Internal Combustion engine; BEV – battery electric vehicle; PHEV – plug-in hybrid electri
Slide 9: As a Precious Metal
HDFC MF As a Precious Metal X SOLUTIONS
Slide 10: Hedge against currency depreciation risk
Hedge against currency depreciation risk Rupee Depreciation against the US Dollar 90 Indian Rupee Depreciation (in INR) 80 70 Being a globally priced 60 metal, it acts as a hedge against currency 50 depreciation 40 30 Jul-00 Oct-97 Apr-03 Feb-05 Jul-11 Dec-95 Oct-08 Nov-96 Sep-98 Aug-99 Jun-01 Apr-1
Slide 11: Silver is a voluminous metal
Investing in Silver Silver is a voluminous metal Investing INR 10 lakh involves buying ~15kg of silver Density of silver is 10g/cm3; roughly half of gold Maintaining silver physically in a safe manner could be difficult for an individual Refer disclaimers on slide 29 11
Slide 12: Other Notable Attributes of Silver
Other Notable Attributes of Silver 12
Slide 13: Key demand trends
Key demand trends Silver Demand Breakup: 2021 Silver demand is roughly split 50% between Industrial 6% Industrial applications applications and Jewellery + Investment demand Jewellery 25% 49% Silverware ETFs have had a meaningful 4% Physical investment - share (>10%) in total demand Coins & Bars for
Slide 14: Silver Demand Growth expected to exceed Supply Growth
Silver Demand Growth expected to exceed Supply Growth 2022-25 (Expected, Silver (in Tons) 2012-20 (Average) 2021 Forecast v/s Present 4 year Average) Mine Production 26,442 25,587 25,787 Total Supply 31,647 31,017 31,369 1% Industrial Applications 14,589 15,807 17,382 10% Of which: Automotive 1,988
Slide 15: Silver Mining well spread geographically
Silver Mining well spread geographically Top 14 Countries (in Million Ounces) 2020 2021 Y/Y (%) Mexico 180.2 196.7 9% China 109.5 112.9 3% Peru 101.6 107.9 6% Australia 43 42.9 0% Poland 39.4 42 7% Bolivia 29.9 41.5 39% Chile 47.4 41.2 -13% Russia 42.5 39 -8% United States 31.7 32.5 3% Argentina 22.
Slide 16: Silver tends to outperform during High Macroeconomic Uncertainty
Silver tends to outperform during periods of High Macroeconomic Uncertainty 1-year Performance of Silver versus Other Asset Classes 200% 1-year Performance of Various Asset Classes 150% 100% 50% (%) 0% -50% -100% Silver Rate (INR/gram) NIFTY 50 (TRI) Debt Gold Source: Bloomberg, Data as on June 30,
Slide 17: Performance Journey over the last 20+ years
Performance Journey over the last 20+ years Silver Price Movement 80 CAGR* Returns (%)^ 70 Period Silver Silver (INR/gm) (USD/kg) 60 Silver Price (in INR/gram) 50 20Y 10% 7% 40 15Y 8% 3% 30 10Y 1% -3% 20 5Y 9% 4% 10 3Y 15% 10% 0 1Y -16% -21% Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Ju
Slide 18: Risk-Return Matrix
Risk-Return Matrix Rolling Returns (average) Standard Deviation Rolling Period Count Silver NIFTY 50 Debt Gold Silver NIFTY 50 Debt Gold 5 year 4548 11% 15% 7% 12% 11% 9% 3% 8% 3 year 5056 12% 15% 8% 13% 15% 13% 5% 9% 1 year 5559 13% 17% 8% 13% 29% 27% 8% 16% Although Silver has tended to be more vo
Slide 19: Presenting HDFC Silver ETF
Presenting HDFC Silver ETF * An open ended Exchange Traded Fund (ETF) replicating /tracking performance of Silver Give your portfolio the Silver Edge *Exchange Traded Fund. Refer disclaimers on slide 29 19
Slide 20: About HDFC Silver ETF
About HDFC Silver ETF To generate returns that are in line with the performance of physical Silver in domestic Investment objective prices, subject to tracking error. There is no assurance that the investment objective of the Scheme will be realized. Investment Universe Physical Silver bullion of 99
Slide 21: Why ETFs?
HDFC MF Why ETFs?
Slide 22: Reasons to invest in ETFs
Reasons to invest in ETFs Liquidity Diversification Simplicity Ability to purchase Tool for A simple or sell during diversification of objective to track market trading portfolio at a low a benchmark hours cost Refer disclaimers on slide 29 22
Slide 23: HDFC Mutual Fund – Index Solutions
rusted HDFC Mutual Fund – Index Solutions Index Solutions comprise of Index Funds, ETFs and Passively Managed Fund of Funds (including commodities based funds) HDFC Asset Management Company Limited has been managing Index Solutions for 20 years. Index Solutions also include passively managed fund of
Slide 24: Multiple reasons for investing in HDFC Index Solutions
Multiple reasons for investing in HDFC Index Solutions Values Investor first approach of HDFC Mutual Fund Processes Client Focus and Experience comes with a highly disciplined and robust Investment and Risk Management policies and processes Experience 20 years of continuous experience managing passiv
Slide 25: Why invest in HDFC Silver ETF?
Why invest in HDFC Silver ETF? Hedge against An opportunity to Digital way to invest HDFC AMC has been a currency leverage on the in silver, eliminating trusted commodity depreciation risk greater adoption of the need to store fund manager for 11+ Silver for new age Silver physically years (HDFC Gol
Slide 26: Fund Facts – HDFC Silver ETF
Fund Facts – HDFC Silver ETF Type of scheme An open ended Exchange Traded Fund (ETF) replicating /tracking performance of Silver Investment objective To generate returns that are in line with the performance of physical Silver in domestic prices, subject to tracking error. There is no assurance that
Slide 27: Asset Allocation
Asset Allocation Under normal circumstance, the asset allocation (% of Net Assets) of the scheme’s portfolio will be as follows: Minimum Allocation Maximum Allocation Types of Instruments Risk Profile (% of Total Assets)^ (% of Total Assets)^ Silver# 95 100 High to Very High Debt & Money Market Inst
Slide 28: Scheme Riskometer
Scheme Riskometer Name of Scheme This product is suitable for investors who are seeking*: Riskometer# M rate oderately HDFC SILVER ETF Returns that are commensurate with the performance of o Mode High (An open ended Exchange silver, subject to tracking errors, over long term w t erate Hi Mo Lo gh
Slide 29: Disclaimer & Risk Factors
Disclaimer & Risk Factors The views expressed herein are as of August 11, 2022 and are 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 confirm before relying on them. T
Slide 30: Thank You
Thank You
HDFC Asset Management Company — Investor Presentation (August 2022) on 6ix