Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Investor Presentation (October 2019)
14 slides from Hdfc Asset Management's investor presentation, Oct 15, 2019
Slide 1: HDFC Money Market Fund
HDFC Money Market Fund (An open ended debt scheme investing in money market instruments) A portfolio with run down maturity^ Riskometer This product is suitable for investors who are seeking*: • Income over short term. • to generate income/ capital appreciation by investing in money market instrumen
Slide 2: What are Money Market Instruments?
What are Money Market Instruments? Money Market Instrument Includes: • Commercial papers • Commercial bills • Treasury bills • Government securities (having an unexpired maturity upto one year) • Call or notice money • Certificate of deposit, • Usance bills and • Any other like instruments as specif
Slide 3: Positioning (Debt Funds)
Positioning (Debt Funds) Long Duration Medium Funds Duration Short Funds Duration Low Funds Duration RETURN Money Funds Market Ultra Short Funds Term Liquid Funds Funds RISK (Maturity) Upto 91 days$ 3 -6 months^ Upto 1 year$ 6 -12 months^ 1-3 years^ 3-4 years^ 4-7 years^ (1-4 years in adverse (1-7 y
Slide 4: Investment Strategy
Investment Strategy • Currently, the fund intends to follow one of the investment strategies - buy money market instruments with maturity upto 1 year and adopt a buy and hold (run down) strategy, thereby, allowing the maturity to reduce over time. • Consequently, scheme returns are expected to be cl
Slide 5: Run down Portfolio Strategy – Graphical representation
Run down Portfolio Strategy – Graphical representation Maturity Maturity is rebalanced when Portfolio Maturity is minimal; reset maturity will be done with the objective of optimizing returns over the target duration Month 0 Target Period The current investment strategy is subject to change dependin
Slide 6: How does Run down Portfolio work?
How does Run down Portfolio work? Scenario Analysis of Run Down Portfolio Strategy assuming the rebalancing is done on 1st March every year Scenario Investment Portfolio Redemption Portfolio Portfolio Return Remarks Date Yield at the Date Yield at the ^(Annualised) time of time of Investment redempt
Slide 7: Why HDFC Money Market Fund?
Why HDFC Money Market Fund? Term spreads are high (refer slide 8) Steep yield curve (refer slide 9) Low interest rate risk Yield to Maturity likely to be higher than liquid funds No lock-in, no entry / exit load Currently, the fund has highest rated credit quality^ ^Refer slide no. 11 HD
Slide 8: Reasonable term spreads
Reasonable term Attractive term spreads spreads - Spread between CDs and Repo are high 2.50 2.00 1.50 1.23 1.00 Spread (%) 0.57 0.50 0.18 0.00 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 -0.50 -1.00 3m CD - Repo 6m CD - Repo 1Y CD - Repo CD: Certificate of Deposit Source: Bloomber
Slide 9: Steep yield curve
Steep yield curve 1.25 1.05 1.00 0.75 Spread (%) 0.50 0.40 0.25 - (0.25) 6m CD - 3m CD 12m CD - 3m CD CD: Certificate of Deposit Source: Bloomberg (Derivium) The graph shows term spreads as of a date. Historical performance indicators and financial market scenarios are not the reliable indicators fo
Slide 10: Suitability
Suitability HDFC Money Market Fund is suitable for investors: Who want to lock-in the yields at current levels Have an investment horizon upto 1 year Who want to minimize the interest/reinvestment rate risk Investors with a need to park short term surpluses HDFC Mutual Fund/AMC is not guaran
Slide 11: Portfolio Characteristics
Portfolio Characteristics Portfolio Classification by Rating Class Portfolio Classification by Asset Class (%) ≈ (%) ≈ AAA & Equivalent, A1+ & 96.97 Commercial Papers 47.02 Equivalent Cash, Cash Equivalents and Certificate of Deposits 49.95 3.03 Net Current Assets Cash, Cash Equivalents and AUM as (
Slide 12: Fund Facts
Fund Facts Type of Scheme An open ended debt scheme investing in money market instruments Category of Scheme Money Market Fund Inception Date 18th November, 1999 To generate income / capital appreciation by investing in money market instruments. There is Investment Objective no assurance that the in
Slide 13: Disclaimer & Risk Factors
Disclaimer & Risk Factors This presentation dated 15th 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 o
Slide 14: Thank You
MUTUAL FUND BHAROSA APNO KA Thank You
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