HDFC Nifty 50 ETF · NSE:HDFCNIFTY
HDFC Nifty 50 ETF — HDFC Capital Builder Value Fund — Investor Presentation (October 2019)
19 slides from HDFC Nifty 50 ETF's investor presentation, October 2019
Slide 1: Discover the true value, before the world does
Discover the true value, before the world does. Presenting HDFC Capital Builder Value Fund. HDFC Capital Builder Value Fund . (An open-ended equity scheme following Riskometer a value investment strategy) is suitable es woo for investors who are seeking*: ge “Sy * To generate long-term capital é 4 a
Slide 2: Table of Contents
Table of Contents • What is Value? • Multi-Cap Investment strategy • Diversification • Consistent performer • Resilient performance across cycles • PE Expansion • Earnings yield minus 10 year G-Sec • Portfolio Composition • Scheme Facts & Asset Allocation • Scheme Performance • Disclaimer & Risk Fac
Slide 3: What is Value?
What is Value ? • The Scheme’s approach is opportunity dependent, primarily buying value stocks. • Focus on undervalued stocks that are trading below intrinsic value, as measured by potential earnings or asset values, and/or future cash flow growth. • Does not consciously seek to be contrarian. Howe
Slide 4: A Multi-Cap Investment Strategy
A Multi-Cap Investment Strategy • No Market cap bias Being a multi-cap fund benchmarked to the Nifty 500 there is an attempt to have good representation across market capitalizations based on opportunity and risk-reward . • No Sector bias Well diversified across sectors-with a bias towards attractiv
Slide 5: Risk management through wide sectoral diversification
Risk management through wide sectoral diversification The Scheme has maintained exposure to at least 16 sectors in the benchmark (Nifty 500) over last 4 quarters. Outperformance generated over benchmark (Refer slide 9) without excessive risk owing to sectoral tilts. Effective diversification across
Slide 6: Alpha generation with diversification similar to benchmark
Alpha generation with diversification similar to benchmark Average Deviation from benchmark less than +/- 2% in 12 out 18 sectors over last 16 quarters . Sorted descending as per Sep-19 Overweight/ Underweight Sectoral presence similar to benchmark, coupled with bottom up stock picking has generated
Slide 7: Risk Management through portfolio diversification
Risk Management through portfolio diversification Average Top 10 Holding (%) since Jun 2015 = 42% Average Number of stocks since Jun 2015 = 56 60 70 Top 10 holding (%) Number of stocks 60 50 50 40 Top 10 Holding % Number of stocks 40 30 30 20 20 10 10 0 0 Consistent approach to diversification 7
Slide 8: A Consistent Performer
A Consistent Performer 30 HDFC Capital Builder Value Fund - Growth Median Internal study of peer set # 25 5 Year Returns (Daily Rolling) % CAGR • 3 & 5 year CAGR rolling returns on a daily basis 20 analysed for the past 5 years for each day falling during the period 30th September 2014 to 30th Septe
Slide 9: Outperformance in 18 out of 24 financial years
Risk Management through portfolio diversification Outperformance in 18 out of 24 financial years* Mar - Date Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 19 HDFC Capital Builder Fund (
Slide 10: Resilient performance across market volatility periods
Resilient performance across market volatility periods Outperformed Benchmark index (NIFTY 500) in 10 out of 12 periods. 120% Capital Builder Value NIFTY 500 TRI # NIFTY 50 TRI ## 100% 80% 60% 40% CAGR (%) 20% 0% -20% -40% -60% -80% P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 Capital Builder Value -17% 3
Slide 11: P/E Expansion (NIFTY 500)
P/E Expansion (NIFTY 500) 25.0 20.0 15.0 10.0 5.0 NIFTY 500 Blended Forward P/E Average - Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Mar-07 Jun-07 Mar-08 Jun-08 Mar-09 Jun-09 Mar-10 Jun-10 Mar-11 Jun-11 Mar-12 Jun-12 Mar-13 Jun-13 Mar-14 Jun-14 Mar-15
Slide 12: Earnings Yield Minus 10 Year G-Sec
Earnings Yield Minus 10 Year G-Sec 2.00 1.75 Earnings Yield minus 10 year G-Sec is below long term averages 1.50 1.25 1.00 0.75 0.50 0.25 0.00 -0.25 -0.50 -0.75 -1.00 -1.25 -1.50 -1.75 -2.00 -2.25 -2.50 -2.75 -3.00 -3.25 -3.50 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep
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 Miten Lathia
Slide 14: Portfolio Composition (As of September 30, 2019)
Portfolio Composition (As of September 30, 2019) Particulars % To Net Assets Top 10 Equity And Equity Related Holdings 48.47% Total Equity & Equity Related Holdings 97.72% Cash, Cash Equivalents And Net Current Assets 2.28% Assets Under Management (Rs. In Crore)* 4,455.26 Standard Deviation** 4.212%
Slide 15: 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 16: Scheme Performance Summary – HDFC Capital Builder Value Fund
Scheme Performance Summary – HDFC Capital Builder Value Fund Value of Rs 10,000 invested Additional Additional Scheme Benchmark Benchmark Benchmark Scheme Benchmark Returns (%) Returns (%) (Rs) Returns (%) (Rs) Last 1 Year -3.29 3.69 6.31 9,671 10,369 10,631 Last 3 Years 7.28 9.44 11.49 12,346 13,10
Slide 17: 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 %) Miten Lathia manages total 2 schemes HDFC DYNAMIC PE RATIO FUND OF 27-Jun-14 5.48 6.63 7.99 FUNDS NIFTY 50 Hybrid Composite Debt 65:35 9.03 10.15 9
Slide 18: Disclaimer and Risk Factors
Scheme Performance Summary The presentation dated 14th October 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 on
Slide 19: Thank You
BHAROSA APNO KA Thank You
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