HDFC Nifty Next 50 Units Exchange Traded Fund · NSE:HDFCNEXT50
HDFC Nifty Next 50 Units Exchange Traded Fund — HDFC Defence Fund — Investor Presentation (May 2023)
16 slides from HDFC Nifty Next 50 Units Exchange Traded Fund's investor presentation, May 19, 2023
Slide 1: Prosperity Comes from Investing in Peace
PROSPERITY COMES FROM INVESTING IN PEACE NFO Period: 19th May to 30th May 2023 Presenting HDFC Defence Fund (An open-ended equity scheme investing in Defence & allied sector companies) For product labelling & riskometer refer page 14
Slide 2: Changing landscape in multipolar world: Global defence spending to increase
Changing landscape in multipolar world: Global defence spending to increase World shifting from Unipolar to Multipolar—rise of economies in Asia Pacific Changing world order - Unipolar to Multipolar challenging military dominance of Western countries In a Unipolar world, one country dominates the Fo
Slide 3: Defence expenditure—a necessity for peace
Defence expenditure—a necessity for peace Defence spending of large countries in range of 2-4% of GDP and increases in sync with nominal GDP (US$ bn) 1995 2000 2005 2010 2017 2018 2019 2020 2021 Defence expenditure by countries* USA 296 320 533 738 647 682 734 778 801 China 12 22 43 106 210 233 240
Slide 4: Self reliance: To boost import substitution and exports
आ��नभर्रता (Self reliance): To boost import substitution and exports Why is self reliance important? India was the largest arms importer over Self reliance will reduce current account deficit 2018-2022 accounting for 11% of global imports Reduced dependence on other countries for Critical for defenc
Slide 5: India defence sector - multiple growth drivers with long runway
India defence sector - multiple growth drivers with long runway #1 #2 #3 #4 Increasing capex in Import substitution Export growth Growth of defence Defence ecosystem India was the largest arms India’s defence exports India's capex in Defence has importer globally over increased 8X over 8 years but D
Slide 6: Case study in Indigenizing #1: Helicopters
Case study in Indigenizing #1: Helicopters India’s Light Combat Helicopter compares well with Indigenously developed Light Combat Helicopter (LCH) US’s Apache and has lower price tag HAL's LCH versus Apache comparison LCH Apache Service ceiling (mtr) 6500 6100 Range (kms) 550 476 Main rotor diameter
Slide 7: Portfolio Strategy
Portfolio Strategy Bottom-up approach of portfolio construction with deep understanding of the defence ecosystem Core of portfolio (>80%) will be listed companies that obtain at least 10% of revenues from defence segment within: Stocks in AMFI Industry classification of Aerospace & Defence, Explosiv
Slide 8: Investible universe by market cap
Investible universe by market cap Particulars By count By market cap (₹ crores) Total 21 299,476 100% Investible Of which: universe should Largecap 2 177,253 59% expand as more Midcap 1 companies get 34,775 13% listed/obtain Smallcap 18 87,447 28% >10% revenue Of which: share from Public Sector Comp
Slide 9: Benchmark highlights
Benchmark highlights Particulars Nifty India Defence Index Nifty50 Index Beta 0.94 1.00 Price to Earnings (trailing 12m) 26.8 20.9 Price to Book (trailing 12m) 6.2 4.2 EPS growth (FY18-22) CAGR% 17.5 12.9 Dividend yield 1.08 1.38 Returns: 1Y 48.9 6.9 3Y (CAGR%) 63.4 23.7 5Y (CAGR%) 19.9 12.3 Source:
Slide 10: Risks and Mitigants
Risks and Mitigants Key Risks Mitigants Defence is of strategic relevance to a country with well Sector has large ramifications from policies of Indian defined and predictable policy framework government and Foreign government Indian government policies for defence sector including Make in India are
Slide 11: Why invest in HDFC Defence Fund?
Why invest in HDFC Defence Fund? Multipolarity to aid increase in global defence expenditure over long term India’s strong economic growth and geopolitical considerations support long runway for growth in defence expenditure Defence expenditures have been stable as a % of GDP India is focused on sel
Slide 12: Fund Facts
Fund Facts To provide long-term capital appreciation by investing predominantly in equity & equity related instruments of defence Investment Objective and allied sector companies Fund Manager$ Mr. Abhishek Poddar Benchmark Index Nifty India Defence Index TRI (Total Returns Index) • In respect of eac
Slide 13: Risks and Asset allocation
Risks and Asset allocation Mitigants The scheme will invest predominantly in equity and equity related securities of Defence & allied sector companies Under normal circumstances, the asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows: Minimum Allocation Maximum Allocatio
Slide 14: Risks and Product Labelling and Riskometer
Risks and Product Labelling Mitigants and Riskometer HDFC Defence Fund (An open ended equity scheme investing in Defence & allied Riskometer# sector companies) is suitable for investors who are seeking*: • To generate long-term capital appreciation / income • Investment predominantly in equity & equ
Slide 15: Disclaimer
Disclaimer The presentation dated 16th May 2023 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, which you must c
Slide 16: Thank You!
Thank You!