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 (January 2023)
31 slides from Motilal Oswal Nifty 500 Momentum 50 ETF Units Exchange Traded Fund's investor presentation, January 2023
Slide 1: Next Trillion Dollar Opportunities Portfolio
Next Trillion Dollar Opportunities Portfolio Linear GDP Growth = Exponential Opportunities January 2023
Slide 2: Next Trillion dollar opportunity is on, QGLP works
Next Trillion dollar opportunity is on, QGLP works 𝛼 Documented India growth story on Investment Alpha across products Philosophy
Slide 3: India Growth Story – The Big Leap
Size of Opportunity India Growth Story – The Big Leap 6th USD tn India’s GDP* trend in USD Tn 2 years 5 USD tn th 9.1% 3 years 6.1 4th USD tn 8.7% 3 years 5.2 9.1% 3rd USD tn 7 years 4.0 2nd USD tn 6.1% 1st USD tn 7 years 3.1 7.7% 2.9 58 years^ 7.4%^^ 2.0 1.2 ~0.006 0.1 ^Period ^^GDP growth (cagr) E
Slide 4: India will zoom from poverty to prosperity
India will zoom from poverty to prosperity Poverty Ratio (% of population) 45 Per Capita India as a % India World 37 GDP $ of World Current 2,283 12,263 19% 22 19 18 25 – year 9% 3% 13 CAGR 11 10 India @ 100 19,288 25,676 75% 1993-94 2004-05 2011-12 2015-16 2016-17 2017-18 2018-19 2019-20 Source: MO
Slide 5: Major shift coming in India's income pyramid
Major shift coming in India’s income pyramid: A large middle-income population 2021 Households by Income Distribution 2031 Households by Income Distribution Households: 294.8 mn GDP Per capita: $2278 No. of No. of HH’s HH’s Above 35000 2% 5.6 Above 35000 7% 25.2 Household Income, US$ Household Incom
Slide 6: NTD Framework: Linear growth, Exponential opportunities
NTD Framework : Linear growth, Exponential opportunities Doubling of per capita GDP Basic Spend leads to 10x opportunity in Discretionary Spend discretionary categories Saving Housing 1200 Consumer 4x Autos Durables Entertainment 10 x 1050 Premium 300 Travel Wear 100 600 750 Higher savings also mean
Slide 7: A discretionary spending boom is on the horizon
A discretionary spending boom is on the horizon FY12 FY22 FY32e 5.7% CAGR 9.6% CAGR Nominal GDP $1,862 bn $3,174 bn $7,903 bn Nominal GDP per capita $1,460 $2,278 $5,242 4.5% CAGR 8.7% CAGR 56% of GDP 59% of GDP 58% of GDP 6.3% CAGR 9.2% CAGR Consumption share of GDP $1,026 bn $1,883 bn $4,544 bn To
Slide 8: India expected to join the exclusive club by 2030
India expected to join the exclusive club by 2030 Decade wise Top 10 Economies (USD terms) Rank 1980 1990 2000 2010 2020 2030E USD tn 1 United States United States United States United States United States China 30.4 2 Japan Japan Japan China China United States 28.3 3 Germany Germany Germany Japan
Slide 9: Wealth Effect of GDP Expansion ($2.5tn to $6tn+)
Wealth Effect of GDP Expansion ($2.5tn to $6tn+) USD 6 trillion US Market Cap ($ tn) GDP after 12 Years 330 ~11 years India 2019 2030E 96 12 years USA 1978 1990 1978 1990 China Market Cap ($ tn) after 5 Years 5 years 2,808 China 2005 2010 1,267 USD 2.7 trillion 2005 2010 GDP Source: Bloomberg resear
Slide 10: QGLP in a nutshell
QGLP in a nutshell Our well documented Investment Philosophy Quality of business x Quality of Growth in earnings management • Volume growth • Stable business, preferably consumer facing • Price growth • Huge business opportunity • Mix change • • Sustainable competitive advantage Competent management
Slide 11: 27 years of Wealth Creation Studies
27 years of Wealth Creation Studies • Management Integrity – Understanding Sharp practices • Valuation Insights – What Works, What Dosen’t • Cap & Gap – Power of Longevity in wealth creation • Porter’s 5 Forces • Value Migration • Great, Good, Gruesome • Emergence & Endurance • Next Trillion Dollar
Slide 12: Relative outperformance in phases of high GDP growth: ~50% midcap allocation
Relative outperformance in phases of high GDP growth: ~50% midcap allocation 2.10 20 15 1.90 10 1.70 5 0 (%, YoY) 1.50 (x) -5 1.30 -10 -15 1.10 -20 0.90 -25 Jun-03 Jun-05 Jun-07 Jun-09 Jun-11 Jun-13 Jun-15 Jun-17 Jun-19 Jun-21 Midcap Index to Nifty Ratio Real GDP growth (RHS) Source: MOAMC Internal
Slide 13: Risk vs Returns – Midcap in a sweet spot
Risk vs Returns – Midcap in a sweet spot Risk Adjusted Mid (Jan 2004 - July 2022) Returns Risk Returns Cap Nifty 50 12.6% 22.3% 56.6% Small Return Factor Nifty Midcap 100 16.0% 22.3% 71.6% Cap Nifty Smallcap 100 8.9% 23.7% 37.5% Large Cap Sweet Spot: Financial Stability (less risk) and Growth Potent
Slide 14: Why Now? – Expect Midcaps to bounce back with economic recovery
Why Now? – Expect Midcaps to bounce back with economic recovery Large caps have been outperforming small and midcaps for 4 years now … Nifty 50 Nifty Midcap 100 Nifty Smallcap 100 200.0 169.2 180.0 160.0 145.3 140.0 120.0 100.0 103.5 80.0 60.0 40.0 20.0 0.0 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 Jun-18
Slide 15: Why Now? – Entering the sweet spot of the market
Why Now? – Entering the sweet spot of the market We believe that INR 3,500 Cr – INR 30,000 Cr market cap is the sweet spot for Indian equities They can provide excellent balance between strong growth and a demonstrated history of management success Market Capitalization (INR Cr) • Extensively resear
Slide 16: Why Now? – History of outperformance after every downturn
Why Now? – History of outperformance after every downturn Portfolio construct allows for a big bounce back during periods of growth rebound: Post GFC Post Taper Tantrum 130% 160% 117% 140% 110% 140% 90% 27% 120% 90% outperformance 79% 100% outperformance 70% 80% 61% 50% 60% 30% 40% 20% 10% 0% -10% F
Slide 17: Why should NTDOP be a part of every Portfolio?
Why should NTDOP be a part of every Portfolio? Proven track record – PMS Flagship portfolio Alpha of ~3.5% CAGR Key themes and Attractive Valuations Since Inception stocks
Slide 18: Robust Long Term Compounder – 21% CAGR for 14 Years
Robust Long Term Compounder – 21% CAGR for 14 Years NTDOP 7.7x 87.2 Nifty 500 TRI 4.8x 76.7 Post Fees Excess 2.8x 67.7 61.3 57.9 54.9 46.2 35.9 35.5 SI Returns (CAGR) NTDOP 14.0% 16.8 18.8 10.9 12.1 12.5 Nifty 500 10.7% 5.1 Alpha 3.3% Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Ja
Slide 19: NTDOP – A Portfolio which links Investments with your Lifestyles
NTDOP – A Portfolio which links Investments with your Lifestyles Eicher : Leading the premiumisation in motorbikes Gland Pharma: A focused injectable player in a large end through a strong brand (Royal Enfield) market with a strong track record Emami: A niche FMCG with focus on Voltas: Market leader
Slide 20: Strategy has a stellar track record of identifying Multi-baggers
Strategy has a stellar track record of identifying Multi-baggers Past Multibaggers Initial Buy Portfolio Status Multiple Page Industries Dec-07 Part of Portfolio 98x Bajaj Finance Aug-10 7-Apr-20 28x New additions like SBI Eicher Motors Ltd. Aug-10 Part of Portfolio 27x already 1.4x : showing GSK Co
Slide 21: Portfolio Mix at Glance
Portfolio Mix at Glance Others Lenders CONCOR ICICI Bank Kotak Mahindra Bank Chemicals HDFC Clean Science and Technology Others, 2.7 SBI Lenders, 25.0 Bayer Cropscience Consumption Chemicals, 3.4 Voltas Insurance Page Industries Insurance, 6.3 ITC Max Financial Services Religare Emami Consumption, Z
Slide 22: Portfolio Positioning
Portfolio Positioning 1 High Quality Lenders Consolidation in lending space and value migration is evident Kotak Bank ICICI Bank SBI HDFC 2 Allocation to the Sweet Spot Expect Mid caps to recover with the impending Economic Recovery Large Cap Mid Cap Small Cap 50% 42% 5% V-Shaped recovery across sec
Slide 23: Portfolio Positioning
Portfolio Positioning Economic Recovery led Investment Recent government initiatives on PLI’s have begun reflecting in new projects 4 and expect this trend to only gather pace as PLI’s are finalized for Auto theme and Positive impact of PLI Sector (including ancillaries) over the next few months. Bh
Slide 24: 2QFY23: 15% YoY increase in earnings growth
2QFY23 Earnings Update : 15% YoY increase in earnings growth S.No Script Names 2Q FY23 TTM EPS YoY EPS YoY 1 ICICI Bank Limited 32% 39% 2 Kotak Mahindra Bank Limited 21% 37% 3 Page Industries Limited 1% 67% 4 L&T Technology Services Limited 22% 29% 5 Eicher Motors Limited 76% 40% 6 Voltas Limited P
Slide 25: A fund manager is appraised with hindsight, but money has to be managed with foresight
A fund manager is appraised with hindsight, but money has to be managed with foresight - Thomas Phelps
Slide 26: Portfolio composition and performance at a glance
Portfolio composition and performance at a glance Top 10 Holdings Scrip Name % Holding 100.0 NTDOP Nifty 500TRI 80.0 7.7x ICICI Bank Ltd. 8.6 60.0 40.0 4.8x Kotak Mahindra Bank Ltd. 8.2 20.0 Page Industries Ltd. 6.2 - L&T Technology Services Ltd 6.1 State Bank Of India 5.9 NTDOP Nifty 500 TRI MAX Fi
Slide 27: Pioneers of quality investing
Continued legacy of identifying multi-baggers within the QGLP framework Pioneers of quality investing
Slide 28: Chairman – Investment Committee
Chairman – Investment Committee Raamdeo Agrawal Chairman, MOFSL Raamdeo Agrawal is the Co-Founder of Motilal Oswal Financial Services Limited (MOFSL). As Chairman of Motilal Oswal Asset Management Company, he has been instrumental in evolving the investment management philosophy and framework.
Slide 29: Portfolio Manager
Portfolio Manager Manish Sonthalia • Manish has been managing the Strategy since inception and also serves as the Director of the Motilal Oswal India Fund, Mauritius. • He has over 25 years of experience in equity research and fund management, with over 14 years with Motilal Oswal PMS. • He has been
Slide 30: Disclaimer
Disclaimer Disclaimer: 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 fact
Slide 31: Thank you
Thank you EQUITY. THINK MOTILAL OSWAL. i escall
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