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 (June 2021)
44 slides from Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund's investor presentation, June 2021
Slide 1: Motilal Oswal S&P 500 Index Fund
Motilal Oswal S&P 500 Index Fund (An open ended scheme replicating / tracking S&P 500 Index) Gateway to investing in one of the most popular indices in the world
Slide 2: Product Suitability
Product Suitability This product is suitable for investors who are seeking* Return that corresponds to the performance of S&P 500 Index subject to tracking error Investment in equity securities of S&P 500 Index *Investors should consult their financial advisers if in doubt about whether the prod
Slide 3: Unique Combination
Unique Combination 2020 GDP % of 10 Year GDP Growth Rate Country Rank by GDP ($ trillion) World GDP (2010-2020) USA 21.5 26.7% 1 3.7% India 2.9 3.7% 5 6.2% World 80.3 -- -- -- USA + India 24.4 30.4% World’s Largest GDP + World’s Fastest Growing GDP • Investing in USA and India offers an opportunity
Slide 4: Fun Facts
Fun Facts Leading 500 One of the companies in factors used in US the forecast of economic direction Bluest of Blue Chips Gauge of Economy Top 4 passive Investors like funds by AUM Warren Buffett, world wide Burton Malkiel tracks S&P 500 & John Bogle Index recommend S&P 500 index fund Largest Index A
Slide 5: About: S&P 500 Index
About: S&P 500 index One of the premier benchmarks for measuring U.S. stock market performance.
Slide 6: Introduction: S&P 500 Index
Introduction: S&P 500 Index The S&P 500® index is widely regarded as the best single gauge of large-cap U.S. equities. The index is designed to measure the performance of leading 500 companies listed in United States and covers approximately 80% of available market capitalization. Attributes – • Ver
Slide 7: S&P 500 Methodology Snapshot
S&P 500 Methodology Snapshot Universe • All constituents must be US companies Minimum Market • Total Market Capitalization USD 8.2 Billion Capitalization: Free Float Market Capitalization USD 4.1 Billion Profitability: • Positive reported earning in recent quarter • Turnover Ratio > 1 and Liquidity
Slide 8: Global Brands in S&P 500
Global Brands in S&P 500 Source:https://us.spindices.com/indices/equity/sp-500; Data as of 30-Jun-2021; The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment strategy. It should not be co
Slide 9: Global Exposure in terms of Sales
Global Exposure in terms of Sales Historically, a large portion of revenue of S&P 500 constituents’ was from foreign countries. Source: FactSet; As of 30-Jun-2021; The information / data herein alone is not sufficient and shouldn’t be used for implementation of an investment strategy. It should not
Slide 10: Motilal Oswal S&P 500 Index Fund Composition
Motilal Oswal S&P 500 Index Fund Composition Top 10 Constituents Weight (%) in Fund GICS Sector Coverage (%) Constituent Name Weight GICS Sector Information Technology 26.1 Health Care 12.3 Apple Inc 5.6% Information Technology Consumer Discretionary 11.6 Microsoft Corp 5.3% Information Technology C
Slide 11: Why S&P 500 Index
=— Why S&P 500 Index INDEX FUNDS
Slide 12: Low Correlation, offers diversification
Low Correlation, offers diversification • Lower correlation offers opportunity for diversification. • Combining assets that are less/not correlated helps reduce portfolio volatility, thereby improving risk adjusted returns Nifty 50 TR Index Nifty 500 TR Index ^S&P 500 TR ^NASDAQ 100 TR (INR) (INR) I
Slide 13: USD Appreciation increases performance in INR
USD Appreciation increases performance in INR 800 700 • S&P 500 in USD grew 4.6 times 600 • S&P 500 in INR grew 7.4 times 500 400 ^S&P 500 TR Index (INR) 300 S&P 500 TR Index (USD) 200 100 0 May-14 May-09 May-19 Aug-10 Aug-15 Aug-20 Nov-06 Apr-07 Feb-08 Dec-08 Nov-11 Apr-12 Feb-13 Dec-13 Nov-16 Apr-
Slide 14: Performance: S&P 500 Index
Performance : S&P 500 Index 14
Slide 15: International Indices: Historical Performance (USD)
International Indices: Historical Performance (USD) Nasdaq 100 TR Index USD S&P 500 TR Index USD ^ FTSE TR Index USD ^ Nikkei 225 TR USD ^Nifty 500 TR Index USD 900 • Globally S&P 500 Index has been one of the best performing index over since Sep 30, 2011 800 • In USD Terms, the Nifty 500 TR Index i
Slide 16: International Indices: Risk Returns Profile (USD)
International Indices: Risk Returns Profile (USD) Nasdaq 100 TR Index ^ Nikkei 225 TR USD ^ Nifty 500 TR Index Period S&P 500 TR Index USD ^ FTSE TR Index USD USD USD 1 year 44.4% 40.8% 31.9% 31.6% 63.4% Annualized Returns 3 year 28.6% 18.7% 2.6% 12.6% 11.9% 5 year 28.2% 17.6% 6.3% 16.8% 13.2% 7 yea
Slide 17: Historical Performance
Historical Performance Nifty 500 TR Index ^S&P 500 TR Index (INR) 800 S&P 500 TRI has shown better recovery than Nifty 500 post COVID-19 700 600 500 400 300 200 100 0 Jun-12 Jun-14 Jun-16 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-13 Jun-15 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Feb-07 Feb-08 Feb-09
Slide 18: Recent Performance: Absolute Returns
Recent Performance: Absolute Returns Recent period performance Performance during COVID pandemic ^ S&P 500 TRI (INR) Nifty 500 TRI ^ S&P 500 TRI (INR) Nifty 500 TRI 70% 140% 118.6% 60.8% 120% 60% 100% 93.6% 50% 80% 60% 40.4% 40% 40% 20% 30% 0% 20% 17.9%17.6% -20% 10.5% 9.8% -40% -30.4% -37.2% 10% 4.
Slide 19: Risk Return Profile (INR)
Risk Return Profile (INR) Data Label 1 year 3 year 5 year 7 year 10 year 15 year Nifty 50 TR Index (INR) 54.6% 15.0% 15.1% 12.3% 12.2% 12.7% Nifty 500 TR Index (INR) CAGR 60.8% 15.0% 15.4% 13.1% 12.8% 13.0% ^S&P 500 TR Index (INR) 40.4% 21.7% 19.8% 17.6% 20.8% 14.3% Nifty 50 TR Index (INR) 16.8% 21.
Slide 20: SIP Return
SIP Return ^S&P 500 TRI (INR) 1 Year 3 Year 5 Year 7 year 10 Year Returns 40.6% 27.3% 22.8% 20.1% 19.9% Amount Invested 1,20,000 3,60,000 6,00,000 8,40,000 12,00,000 Market Value 1,44,729 5,33,062 10,54,270 17,17,497 34,27,982 Nifty 500 TRI 1 Year 3 Year 5 Year 7 year 10 Year Returns 54.4% 25.0% 17.
Slide 21: Indices: Drawdown Analysis
Indices: Drawdown Analysis Nifty 500 TR Index ^S&P 500 TR Index (INR) 0% -10% -20% -30% -40% -50% -60% -70% Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Nifty 500 TRI ~S&P 500 TRI (INR) Maximum Drawdown During Financial Crisis -64% -
Slide 22: 3 Year Rolling CAGR
3 Year Rolling CAGR 50% 40% 30% 20% Excess Return 10% Nifty 500 TR Index ^S&P 500 TR Index (INR) 0% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 -10% -20% -30% 3 Year Rolling Returns ~S&P 500 TRI (INR) Nifty 500 TRI After initial underperformance Average
Slide 23: Valuation Multiples
Valuation Multiples Price to Earnings Ratio Price to Book Ratio 4.6 40 30.9 5.0 35 4.5 4.0 30 3.5 25 3.0 20 2.5 2.0 15 1.5 10 1.0 5 0.5 0.0 0 Aug-15 Aug-20 Feb-13 Jul-13 Dec-13 Feb-18 Dec-18 Nov-11 Apr-12 Sep-12 May-14 Nov-16 Apr-17 Sep-17 Jul-18 May-19 Mar-20 Mar-15 Oct-14 Oct-19 Jun-11 Jan-16 Jun-
Slide 24: S&P 500 Index in your portfolio: Historical performance
S&P 500 Index in your portfolio: Historical performance 24
Slide 25: Hypothetical Portfolio Allocations
Hypothetical Portfolio Allocations Hypothetical Allocations to International Equity - ^S&P 500 TRI # Portfolio Name Nifty 500 TRI (INR) 1. Core Equity 100% 0 2. Core Equity+ (90:10) 90% 10% 3. Core Equity++ (80:20) 80% 20% Correlation (15 Year) ^S&P 500 TRI (INR) Nifty 500 TRI (INR) 24% Data Source:
Slide 26: S&P 500 Allocation – Performance
S&P 500 Allocation – Performance Nifty 500 TR Index Nifty500 : SP500 (90 : 10) Nifty500 : SP500 (80 : 20) 800.0 Small allocation to S&P 500 TR Index in INR has helped improve 700.0 portfolio performance during last 15 years 600.0 500.0 400.0 300.0 200.0 100.0 0.0 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 J
Slide 27: Asset Allocation - Risk-Return Profile (INR)
Asset Allocation - Risk-Return Profile (INR) Data Label Core Only (Nifty 500 TRI) Core + (90:10) Core ++ (80:20) 3 year 15.0% 15.7% 16.4% 5 year 15.4% 15.9% 16.4% Annualised Returns 7 year 13.1% 13.6% 14.1% 10 year 12.8% 13.9% 14.9% 15 year 13.0% 13.6% 14.1% 20 year 17.5% 17.4% 17.1% 3 year 20.5% 19
Slide 28: Comparison with NASDAQ 100 Index
Comparison with NASDAQ 100 Index CRITERIA S&P 500 INDEX NASDAQ 100 INDEX Theme Broad Market Technology Heavy Eligible Stock Exchange Various stock exchanges including NASDAQ Stocks listed only on NASDAQ US Mcap Coverage ~78.4% ~34.8% Number of Companies 500 100 # of Common Stocks 80 80 Weight of Com
Slide 29: Motilal Oswal S&P 500 Index Fund
Motilal Oswal S&P 500 Index Fund 29
Slide 30: About Motilal Oswal S&P 500 Index Fund
About Motilal Oswal S&P 500 Index Fund Investment Objective. The Scheme seeks investment total return that corresponds (before fees and expenses) generally to the performance of the S&P 500 Index, subject to tracking error*. However, there can be no assurance or guarantee that the investment objecti
Slide 31: Active vs Passive
= Active vs Passive INDEX FUNDS 31
Slide 32: US: Over Last 10 Year Passive Funds AUM gained market share
US: Over Last 10 Year Passive Funds AUM gained market share (year 2018) Data Source: Chart – Morningstar. Data basis latest available report published on Jan 2019; The above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementatio
Slide 33: Global: Active Passive Score Card
Global: Active Passive Score Card Source/Disclaimer: spdji.com/SPIVA; Dec 2020; Regional benchmarks included here are large-cap, with the exception of Brazil and Chile where SPIVA results displayed reflect regional broad market indices. Multiple benchmarks exist in all regions tracked by SPIVA. Visi
Slide 34: Growth of Passive Funds in India
Growth of Passive Funds in India Passive Equity AUM (₹ crore) Retirement Funds are mandated to 256,774 invest at least 15% of annual accretion in Equity ETFs/Index Funds for equity investments 138,073 137,973 74,938 45,629 Categorization and rationalization of 16,673 Mutual Fund Schemes by SEBI Mar-
Slide 35: Key Takeaway
Key Takeaway Key factors to be considered for ideal asset allocation: 1. S&P 500 Index includes the top 500 companies in the United States covering all 11 GICS sectors making it a broad based diversified index. 2. Motilal Oswal S&P 500 Index Fund offers investors an opportunity to invest in global c
Slide 36: Motilal Oswal Passive Fund Offerings
Motilal Oswal Passive Fund Offerings Asset Allocation Largecap Asset Allocation Passive FoF - Aggressive Asset Allocation Passive Nifty 50 Index Fund Nifty Next 50 Index Fund One of the largest AMCs FoF - Conservative M50 ETF in India in the International segment International Midcap NASDAQ 100 FoF
Slide 37: Thank You
Thank You “Don’t look for the needle in the haystack. Just buy the haystack!” - John C. Bogle Contact Us - Speak: +91-22 40548002 | 8108622222 Write: mfservice@motilaloswal.com Visit: www.motilaloswalmf.com
Slide 38: Annexures
= Annexures INDEX FUNDS 38
Slide 39: Profitability
Profitability All figures in % CY CY CY CY CY CY CY CY CY CY CY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Gross Margin 31.47 31.13 30.51 30.46 30.87 31.41 31.63 31.81 32.08 31.87 31.29 Operating Margin 13.45 13.94 13.83 13.60 14.54 14.04 13.58 14.04 14.54 14.08 12.11 Net Margin 8.88 9.3
Slide 40: Valuation Multiples
Valuation Multiples CY CY CY CY CY CY CY CY CY CY CY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Price/Earnings 15.32 12.94 13.99 17.36 17.50 18.82 21.04 22.69 17.57 21.62 31.46 Price/Book Value 2.19 2.01 2.16 2.69 2.79 2.75 2.89 3.30 3.02 3.61 4.16 EV/EBIT 12.38 10.86 11.78 14.81 14.95 1
Slide 41: Estimates
Estimates CY CY CY CY CY CY CY CY CY CY CY CY CY 2021 2022 2023 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 E E E Price/Earnings 13.8 14.4 16.9 17.9 16.6 20.1 20.8 17.6 18.4 27.6 22.7 20.3 18.6 (x) Price/Book 2.2 2.3 2.7 2.9 2.7 3.2 3.4 3.4 3.4 4.2 4.5 4.1 3.5 Value (x) Dividend Yield 2.0 2.1
Slide 42: 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 43: Disclaimers & Risk Factors
Disclaimers & Risk Factors NSE Indices Limited Disclaimer: MOFM50 and MOFM100: MOFM50 and MOFM100 offered by Motilal Oswal Asset Management Company Limited (MOAMC) or its affiliates is not sponsored, endorsed, sold or promoted by NSE Indices Limited and its affiliates. NSE Indices Limited and its af
Slide 44: Disclaimers & Risk Factors
Disclaimers & Risk Factors NASDAQ OMX Group, Inc. The Product i.e. MOFN100 is not sponsored, endorsed, sold or promoted by The NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the “Corporations”). The Corporations have not passed on the legality or suitab
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