Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund · NSE:MOMENTUM50
Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund — Motilal Oswal Asset Management Company — Investor Presentation (December 2022)
52 slides from Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund's investor presentation, December 2022
Slide 1: Motilal Oswal S&P BSE Quality ETF & Index Fund
(An open ended fund replicating / tracking the S&P BSE Quality Total Return Index)
Slide 2: Introduction to Factors
Introduction to Factors For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 2 the written approval of Motilal Oswal Asset Management Company.
Slide 3: What are Factors?
What are Factors? A factor is any characteristic that helps explain the long-term risk and return performance of an asset. Factors are the foundation of investing - Building blocks in every investing process. Commonly known Factors are Low Volatility, Momentum, Quality and Value For Financial Profes
Slide 4: What is Factor Investing?
What is Factor Investing? Defining descriptors for each Factor For e.g., ROE, Accrual ratio and Financial Leverage for Quality Establishing rules to select a portfolio of companies using these descriptors Applying these rules to create portfolios periodically – for e.g., semi-annually What factor in
Slide 5: Why Factors Matter?
Why Factors Matter? Alpha Alpha Factor Return Portfolio Return Market Market Return Return Pre 1960s 1960s – 1990s Now For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 5 the written approval of Motilal Oswal Asset Manag
Slide 6: Factor Industry growth
Factor Industry growth 2017 Source: BlackRock, Simfund for mutual fund data, BlackRock for ETF data, eVestment and Preqin for institutional and alternative data. Mutual fund and ETF data as of 12/31/17, eVestment and Preqin as of 9/30/17. Excludes fund of funds. Projections exclude the impact of bet
Slide 7: Winners keep changing
Winners keep changing 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022* Mom. Low Vol Value Quality Quality Value Mom. Mom. Low Vol Value Mom. Low Vol Mom. Low Vol Value Value 100.8% -41.7% 125.5% 30.0% -9.6% 42.3% 12.9% 49.6% 13.5% 16.6% 57.5% 8.7% 10.6% 26.8% 56.9% 26
Slide 8: Performance across Market Cycles
Performance across Market Cycles Market Value Quality Low Vol Momentum Nifty 200 TRI Cycle Bull 29.2% 25.9% 25.9% 37.7% 29.2% Bear -48.9% -27.1% -27.1% -38.5% -41.9% Recovery 45.1% 41.0% 41.0% 38.6% 36.5% • Momentum tends to significantly outperform in Bull market cycles • Quality and Low Vol offer
Slide 9: Rolling return outperformance
Rolling return outperformance Odds of Outperformance vs Nifty 200 TRI Rolling Period Value Quality Low Vol Momentum 1 year 49.4% 67.6% 67.9% 75.3% 3 year 42.6% 79.7% 88.8% 87.9% 5 year 27.7% 87.6% 96.0% 98.5% 7 year 26.2% 100.0% 99.1% 100.0% 10 year 24.2% 100.0% 100.0% 100.0% Low Vol = S&P BSE Low V
Slide 10: The Quality Factor
The Quality Factor For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 10 the written approval of Motilal Oswal Asset Management Company.
Slide 11: We always prefer Quality
We always prefer Best School/College Quality education Best Car Quality ride Best Hospital Quality healthcare So why not choose the best Quality when it comes to Investing? For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requir
Slide 12: Quality
Quality The Quality factor is described as capturing companies with durable business models and sustainable competitive advantages. When you’re purchasing a new car, you might consider characteristics like longevity, safety, and fuel economy. Commonly Used Descriptor: Return on Equity, Accrual ratio
Slide 13: Why does Quality premium exist?
Why does Quality premium exist? While it is difficult to ascertain why the premium exists, some of the drivers may include: Quality-based strategies try to capture Low-Quality the premium associated with high- discount quality stocks versus low-quality stocks Historically, investing in financially E
Slide 14: What will you prefer?
What will you prefer? While comparing the below two companies, what will you prefer? Company A Company B Earnings growth High Low Debt/Equity Low High Quality of Earnings High cash flow Low cash flow RoE, Low Debt & Quality of earnings filter in the Quality factor ensures only companies with the hig
Slide 15: Motilal Oswal S&P BSE Quality ETF & Index Fund
Motilal Oswal S&P BSE Quality ETF & Index Fund For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 15 the written approval of Motilal Oswal Asset Management Company.
Slide 16: Motilal Oswal S&P BSE Quality ETF
Motilal Oswal S&P BSE Quality ETF Type of Scheme Investment Objective An open ended fund replicating/tracking The investment objective of the scheme is S&P BSE Quality Total Return Index to provide returns that, before expenses, correspond to the total returns of the securities as represented by S&P
Slide 17: Motilal Oswal S&P BSE Quality Index Fund
Motilal Oswal S&P BSE Quality Index Fund Type of Scheme Investment Objective An open ended fund replicating/tracking The investment objective of the scheme is S&P BSE Quality Total Return Index to provide returns that, before expenses, correspond to the total returns of the securities as represented
Slide 18: Index methodology
Index methodology Constituents of S&P BSE LargeMidCap Index Stock: Lower of 5% or 20 Top 30 companies Rebalanced in x FF Mcap, basis Quality Score* March and September Sector: 30% S&P BSE Quality Index Source/Disclaimer: S&P BSE. Data as on 30-Dec-22 *Standard deviation of daily price returns over l
Slide 19: Quality score
Quality score Quality score is calculated basis below three filters 01 02 03 Return on Accruals Financial Equity Ratio Leverage Ratio Calculated as a company’s Computed using the change of a Calculated as a company’s earnings per share divided by company’s net operating latest total debt divided by
Slide 20: Long-term historical outperformance
Long-term historical outperformance S&P BSE Quality TRI has significantly outperformed the S&P BSE LargeMidCap TRI over the last 15 years S&P BSE Quality TRI S&P BSE LargeMidCap Index 900 800 700 600 500 400 300 200 100 - Source/Disclaimer: niftyindices, S&P BSE. Performance as of close of 31-Dec-07
Slide 21: Calendar year returns
Calendar year returns S&P BSE Quality TRI has outperformed the S&P BSE LargeMidCap TRI in 11 out of last 16 years* Calendar Year Returns S&P BSE Quality TRI S&P BSE LargeMidCap Index 104.0% 88.3% 62.4% 42.4% 44.9% 39.7% 32.8% 32.8% 35.7% 34.2% 28.3% 30.0% 26.0% 19.4% 18.1% 11.6% 13.2% 10.3% 16.9% 13
Slide 22: Large outperformance during Global crises
Large outperformance during Global crises S&P BSE Quality TRI has seen significantly smaller declines during tail events, providing good downside protection S&P BSE Quality TRI S&P BSE LargeMidCap TRI 0.1% 8.9% -8.8% -12.5% -17.5% 5.0% -30.3% -37.0% 6.7% -50.3% 10.9% -61.2% Global Financial Crisis T
Slide 23: Lower drawdowns over last 15 years
Lower drawdowns over last 15 years S&P BSE Quality TRI has historically seen smaller drawdowns than S&P BSE LargeMidCap TRI Drawdown (Last 15 years) S&P BSE Quality TRI S&P BSE LargeMidCap Index 0% -10% -20% -30% -40% -50% -60% -70% Source/Disclaimer: S&P BSE: Performance as of close of 31-Dec-07 to
Slide 24: Risk-return profile
Risk-return profile Data Label 1 year 3 year 5 year 10 year 15 year S&P BSE Quality TRI 13.0% 19.4% 11.2% 16.6% 15.1% CAGR S&P BSE LargeMidCap TRI 5.7% 16.6% 12.1% 13.7% 9.0% S&P BSE Quality TRI 16.5% 18.8% 16.5% 14.8% 17.4% Annualised Volatility S&P BSE LargeMidCap TRI 17.4% 22.0% 19.0% 16.8% 21.2%
Slide 25: Performance vs Nifty 50
Performance vs Nifty 50 Data Label 1 year 3 year 5 year 10 year 15 year S&P BSE Quality TRI 13.0% 19.4% 11.2% 16.6% 15.1% CAGR Nifty 50 TRI 5.7% 15.5% 12.9% 13.2% 8.8% S&P BSE Quality TRI 16.5% 18.8% 16.5% 14.8% 17.4% Annualised Volatility Nifty 50 TRI 17.2% 22.5% 19.3% 17.1% 21.6% S&P BSE Quality T
Slide 26: Index SIP returns
Index SIP returns S&P BSE Quality TRI 1 Year 3 Year 5 Year 7 year 10 Year Returns 16.4% 20.7% 16.5% 15.1% 15.7% Amount Invested 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 Market Value 1,30,301 4,87,191 9,05,808 14,37,123 27,34,566 Data as of close of Dec 30, 2022 For SIP returns, monthly investme
Slide 27: Rolling returns
Rolling returns 3 Year Rolling Returns 5 Year Rolling Returns S&P BSE S&P BSE S&P BSE S&P BSE Quality TRI LargeMidCap TRI Quality TRI LargeMidCap TRI Average 17.1% 11.6% 17.8% 12.0% Median 17.0% 12.3% 17.7% 12.9% Min -4.1% -7.6% 1.7% -1.7% Max 43.2% 32.9% 31.2% 23.7% Returns Range % of Total Observa
Slide 28: Why should you invest?
Why should you invest? High quality stocks tend to High quality stocks have give superior return over lower risk long term Has historically performed well during market Low cost downturns* Source/Disclaimer: *Based on historical data, S&P BSE Quality TRI showcases lower drawdowns than broad-based in
Slide 29: Limitations of Quality Factor
Limitations of Quality Factor Market Cycles Quality factor performs differently in different market cycles, making it important to understand its cyclical nature Quality Definition Although high quality companies essentially means one with healthy profits and have low debt, but the definition of qua
Slide 30: Annexure
Annexure For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 30 the written approval of Motilal Oswal Asset Management Company.
Slide 31: Index methodology
Index methodology Index Objective: The S&P BSE Quality Index is designed to track the performance of high quality stocks in the S&P BSE LargeMidCap as determined by their quality score. Universe Constituents of S&P BSE LargeMidCap Index Eligibility Size & Liquidity- Float-adjusted MCap of ₹20 billio
Slide 32: Index composition
S&P BSE Quality Index composition Top 10 Constituents Macro-Economic Sector Coverage S. No. Constituent Name Weight Fast Moving Consumer Goods 28.3 1 Vedanta Ltd 5.8% Commodities 19.3 2 Britannia Industries Ltd. 5.8% Information Technology 16.9 3 Hcl Technologies Ltd 5.5% 4 Tata Steel Ltd 5.1% Consu
Slide 33: FMCG consistently maintaining the top spot
FMCG consistently maintaining the top spot The Index has seen high sector churn in terms of services & telecom moving out and healthcare moving in Fast Moving Consumer Goods Commodities Information Technology Energy Industrials Financial Services Healthcare Consumer Discretionary Telecommunication S
Slide 34: Growing share of Midcaps
Growing share of Midcaps Post covid-19, S&P BSE Quality Index has seen increasing share among the midcap stocks Large cap Mid cap Small cap Dec-22 Sep-22 Mar-22 Sep-21 Mar-21 Sep-20 Mar-20 Sep-19 Mar-19 Sep-18 Mar-18 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source/Disclaimer: S&P BSE. Data from 3
Slide 35: Index methodology
Index methodology Nifty200 Momentum 30 S&P BSE Low Volatility S&P BSE Enhanced Value S&P BSE Quality Index Index Index Index Constituents 30 30 30 30 Universe S&P BSE LargeMidCap Nifty 200 S&P BSE LargeMidCap S&P BSE LargeMidCap 1. Listing history of 1 year Float-adjusted MCap of ₹20 1. Listing hist
Slide 36: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 36 the written approval of Motilal Oswal Asset Management Company.
Slide 37: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 37 the written approval of Motilal Oswal Asset Management Company.
Slide 38: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 38 the written approval of Motilal Oswal Asset Management Company.
Slide 39: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings For Financial Professionals. Proprietary Content. Permission to reprint or distribute any content from this presentation requires 39 the written approval of Motilal Oswal Asset Management Company.
Slide 40: Product Suitability
Product Suitability Name of the This product is suitable for investors Scheme Riskometer Benchmark Riskometer Scheme who are seeking* Fund Nifty 50 TRI Motilal Oswal Nifty 50 • Return that corresponds to the performance Index Fund of Nifty 50 Index subject to tracking error (An open ended scheme • E
Slide 41: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund Nifty 500 TRI Motilal Oswal Nifty 500 • Return that corresponds to the Index Fund performance of Nifty 500 Index subject to tracking error (An open ended scheme
Slide 42: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund S&P 500 TRI (INR) Motilal Oswal S&P 500 • Return that corresponds to the Index Fund performance of S&P 500 Index subject to (An open ended scheme tracking error
Slide 43: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund 50% Nifty 500 TRI + 20% S&P 500 TRI (INR) + 10% Domestic Price of Gold + 20% Motilal Oswal Asset Nifty 5 Yr Benchmark G-Sec Index • To generate long term growth/
Slide 44: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal 5 Year G-sec Fund Nifty 5 yr Benchmark G-Sec Index FoF • Long term capital appreciation • Return that corresponds generally to the (An open ended fund o
Slide 45: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund Nifty 200 Momentum 30 TRI Motilal Oswal Nifty 200 Momentum 30 ETF • Return that corresponds to the total (An open ended fund returns of the Nifty 200 Momentum 30
Slide 46: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal S&P BSE Fund S&P BSE Financials ex Bank 30 Total Return Index Financials ex Bank 30 Index • Return that corresponds to the total Fund returns of the S&P
Slide 47: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Fund S&P BSE Quality Total Return Index Motilal Oswal S&P BSE Quality Index Fund • Return that corresponds to the total returns of the S&P BSE Quality Total (An open
Slide 48: Product Suitability
Product Suitability This product is suitable for Name of the Scheme Scheme Riskometer Benchmark Riskometer investors who are seeking* Motilal Oswal Gold and Fund LBMA Price of Gold and Silver Silver ETFs Fund • Return that corresponds generally to the of Funds performance of the underlying Schemes o
Slide 49: Disclaimers & Risk Factors
Disclaimers & Risk Factors This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material f
Slide 50: Thank You
Thank You “You should have a strategic asset allocation mix that assumes that you don’t know what the future is going to hold” - By Ray Dalio Contact Us - Speak: +91-22 40548002 | 8108622222 Write: mfservice@motilaloswal.com Visit: www.motilaloswalmf.com For Financial Professionals. Proprietary Cont
Slide 51: Disclaimers & Risk Factors
Disclaimers & Risk Factors This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material f
Slide 52: Disclaimers & Risk Factors
Disclaimers & Risk Factors NSE Indices Limited Disclaimer: Motilal Oswal Nifty 200 Momentum 30 ETF & Motilal Oswal Nifty 200 Momentum 30 Index Fund offered by Motilal Oswal Asset Management Company Limited (MOAMC) or its affiliates is not sponsored, endorsed, sold or promoted by NSE Indices Limited
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