Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (January 2024)
23 slides from Hdfc Asset Management's investor presentation, January 2024
Slide 1: Choose a better route.
1 Choose a better route. Aim to stay ahead with HDFC Business Cycle Fund HDFC Business Cycle Fund aims to invest in businesses likely on the cusp / midst of a favourable business cycle. Refer disclaimers on page 23 01
Slide 2: Nature of Business Cycles
Nature of Business Cycles 1 Peak (Stable growth at high levels) Business Activity Co nt (D ow sl ec in ra lin g g n c in ro io th) tio g w / th w s gro n n pa ) g isin Ex (R Slump (Phase of weak / no growth) Time Refer disclaimers on page 23 02
Slide 3: Various cycles at play
Various cycles at play 1 Expensive / reasonable / Expansion / contraction of attractive market valuations the economic growth Valuations and market Economic cycle cycle Greed / fear reflecting in Increase / Decrease in interest Investor retail and institutional flows sentiment rates by the central ban
Slide 4: One Sector, Multiple Business Cycles
One Sector, Multiple Business Cycles 1 One sector could harbor multiple businesses in different stages of business cycle Formulations 2 wheelers Medical CDMO /CRO* devices Electric Vehicles 4 wheelers / (across other cycles) cars Pharma / Auto & healthcare Auto Ancillaries Diagnostics API* Tractors
Slide 5: Nature of Business Cycles
Nature of Business Cycles 1 Key parameters Expansion Peak Contraction Slump Volume growth Rising Stable growth Declining / slow growth Phase of weak / no growth Pricing power Improving High Reducing Weak Competitive Low, businesses look Focus shifts on Low High intensity to increase market share pro
Slide 6: Why does business cycle investing make sense?
Why does business cycle investing make sense? 1 Higher confidence on forecasts Estimating positioning of various business cycles and their trajectory can be done with higher confidence vs the general economic cycle Correlation with valuations When businesses are in upcycle, investors get dual benefit o
Slide 7: Presenting HDFC Business Cycle Fund
1 Presenting HDFC Business Cycle Fund An open ended equity scheme following business cycle based investing theme Aim to stay ahead 07
Slide 8: Portfolio Strategy
Portfolio Strategy 1 Presenting Blend of top down and bottom up approach (page 9-10) Core of portfolio (>80%) would be companies likely on the cusp / midst of favorable business cycle, while avoiding companies about to enter/in a business downcycle Investment across large, mid and small caps Benchma
Slide 9: Top down approach – Factors considered
Top down approach – Factors considered 1 Presenting Macro indicators Business specific indicators Domestic GDP growth Outlook on growth An open Inflation ended&equity scheme Interest rates following business cycle based investing theme Competition in marketplace & Pricing power Policy environment Barg
Slide 10: Bottom up approach for stock selection
Bottom up approach for stock selection 1 Presenting Process-driven fundamental analysis and research Deep understanding of stocks within diverse business cycles Collaborate with independent domain experts An open ended equity scheme following business cycle based investing theme Aim to benefit from i
Slide 11: Risk Management Metrics
Risk Management Metrics 1 Adequate diversification Aim to be reasonably diversified across sectors / sub sectors and across market capitalization Active approach likely to result in relatively lower portfolio overlap with the benchmark Could also result in exclusion of select sectors present in the be
Slide 12: Portfolio quants
Portfolio quants 1 Particulars Details Market cap mix AUM INR 2,971 crores 2% Portfolio mix Number of stocks 53 11% Largecap Equity (%) 98% 12% Midcap % held in business cycle themes >80% Smallcap Active weight 67% REITs, Cash and Cash Benchmark NIFTY 500 (TRI) Equivalents 74% Fund Manager Rahul Bai
Slide 13: Key current business upcycles
Key current business upcycles 1 7 BUSINESS CYCLES 1 Capex ACCOUNT FOR >75% Both central and state government capex programs laying a strong foundation Infrastructure spending directed towards OF THE PORTFOLIO multiple sectors Private capex recovery showing signs of turnaround Real Estate Lower resid
Slide 14: Sector deviations & Top Holdings
Sector deviations & Top Holdings 1 Portfolio Benchmark Active Sector weight weight weight Industrials 19.1 10.1 9.0 Financials 37.0 29.9 7.0 Communication Services 6.9 2.8 4.1 Health Care 9.2 5.5 3.8 Real Estate* 3.5 1.1 2.4 Consumer Discretionary 9.8 10.3 -0.6 Information Technology 6.8 10.3 -3.5 U
Slide 15: Risk reward positioning
Risk reward positioning 1 Presenting Attribute Aims at returns higher than traditional fixed income instruments Aims to protect purchasing power, suitable Aims at wealth creation with dynamic asset Aims at wealth creation using diversified Aims at wealth creation by investing in business cycles Aims a
Slide 16: Who should consider investing?
Who should consider investing? 1 Presenting Investors who are looking for: Exposure to a set of businesses likely on the cusp / midst of a favourable business cycle A fund that is agile in rotation of investments based on assessment of stages of business cycles An opensuitable A product endedfor equ
Slide 17: Large and experienced team with a rigorous investment process
Large and experienced team with a rigorous investment process 1 Rahul Baijal, Senior Fund Manager - Equities Experienced team: 28 Investment professionals with average experience of 18 years Experienced risk management team Wide and deep stock coverage ~ 400 stocks in the core list covering ~85% of
Slide 18: Know your Fund Manager
Know your Fund Manager 1 Mr. Rahul Baijal Senior Fund Manager - Equities Rahul has an experience spanning over 20 years in Equity Research and Fund Management. He joined HDFC Asset Management Company Limited in July’22. Prior to joining HDFC Asset Management Company Limited, Rahul spent 6 years with
Slide 19: Fund Facts
Fund Facts 1 Investment Objective To provide long-term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles. Fund Manager$ Mr
Slide 20: Asset Allocation
Asset Allocation 1 The scheme will invest predominantly in equity and equity related securities with focus on riding business cycles through dynamic allocation between sectors and stocks at different stages of business cycles Under normal circumstances, the asset allocation (% of Net Assets) of the
Slide 21: Scheme Performance
Scheme Performance 1 HDFC Business Cycle Fund - Performance - Regular Plan - Growth Option NAV as on December 29, 2023 ` 12.669 (per unit) Value of `. 10,000 invested Benchmark Additional Scheme Benchmark Additional Scheme Period Benchmark Returns (%) Returns (%) # (`) (`)# Benchmark (`)## Returns (
Slide 22: Product Labelling, Benchmark and Scheme Riskometers
Nature of Product cycles…Benchmark and Scheme Riskometers Labelling, 1 THIS PRODUCT IS SUITABLE FOR NAME OF THE BENCHMARK NAME OF THE SCHEME RISKOMETER OF THE SCHEME(S)# INVESTORS WHO ARE SEEKING* AND RISKOMETER# NIFTY 500 (Total Returns Index) rate Moderate Mode H igh ly HDFC Business To generate l
Slide 23: Disclaimer
Disclaimer Nature of cycles… 1 This presentation dated February 5, 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 guideline
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