SBI Emerging Business Fund: An Equity Mutual Fund - Apr 2016
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Transcript of SBI Emerging Business Fund: An Equity Mutual Fund - Apr 2016
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product LabelingThis product is suitable for investors
who are seeking*: Riskometer Long term capital appreciation. Investments in in companies that are
considered emergent and have export orientation/ outsourcing opportunities or globally competitive to participate in growth potential of Indian businesses potential to provide investors maximum growth opportunity.
Capital Agnostic: Flexible
• Large, mid & small caps usually follow the same market trend• However, during times of volatility, large caps have comparatively been more consistent; whereas, when
markets rally, mid & small caps have taken the lead
SBI Emerging Businesses Fund is a market capitalization agnostic fund; it may invest into large, mid and/or small cap stocks in any proportion based on the market conditions making the most of different market phases.
Source: Bloomberg. As on date: 31st Dec 2015
2009 2010 2011 2012 2013 2014 2015-60%-40%-20%
0%20%40%60%80%
100%120%140%
Annual Returns
S&P BSE Large Cap S&P BSE Mid Cap S&P BSE Small Cap
High Conviction: Focused Approach
• The portfolio invests in 20-30 stocks based on return expectations High Conviction
• The current top 10 holdings amount to 62.36% Concentrated
• Since there are no sector holding limits, the portfolio is more flexible thereby allowing the fund manager to hold the sectors that the fund manager believes are the best suited for the portfolio
Flexibility
Bottom-up
Sell - Side
Primary Research
Management Interaction
Earnings ModelStress Testing
Valuations
Quantitative Tools
Bottom Up Strategy
The fund has the flexibility to invest across market caps. However, to maintain liquidity on a portfolio basis, we maintain a meaningful proportion in large caps
Bottom Up: Stock selection is from a bottom up perspective which uses a combination of factors including business model, profitability, growth, management and valuations
Five Pillars of Bottom-up Stock Picking
Management: Integrity, Capability
Consistency
Growth: Cyclicality, Scalability,
Sustainability
Business Model: Competitive Edge,
Market share, Brand Franchise
Valuations: Absolute valuations; relative
to historic valuations & peers
Returns on Capital: Past record,
sustainable drivers
A combination of the above factors are considered for stock picking under the bottom-up approach for mid & small cap stocks
SBI Emerging Businesses Fund
Current StrategyAn actively managed, diversified equity portfolio, currently skewed towards mid and small caps given the sheer size of the population available in this space and the price-value arbitrage due to lower coverage
The fund has no sector holding limits & may invest in any sectors as per the market view.
Since liquidity risks are technically higher and investment is made from a 3-year perspective. To offset this liquidity risk, between one-fourth to one-fifth of the portfolio is into pure large caps (including cash, which has an upper ceiling of 10%)
Source: CRISIL Fund Analyser Risk Free rate : FBIL Overnight Mumbai Interbank Outright Rate 6.57% as on 29/Apr/2016. Basis for Ration Calculation : 3 Years Daily Data Points
Quantitative Data Ratio
Standard Deviation 15.39%
Beta 0.81
Sharpe Ratio 0.82
Expense Ratio (Regular Plan) 2.46%
Expense Ratio (Direct Plan) 1.51%
Asset Allocation
Fund Details
Currently portfolio skewed towards mid & small cap stocks
Sector Exposure (%)
Data as on 29.04.2016
Higher concentration on Financial Services, Consumer Goods and Services
CONSUMER GOODS
SERVICES
FINANCIAL SERVICES
INDUSTRIAL MANUFACTURING
PHARMA
CHEMICALS
HEALTHCARE SERVICES
AUTOMOBILE
CASH & OTHER ASSETS
- 5 10 15 20 25
23.68
22.88
16.92
9.85
8.17
7.12
4.67
2.72
3.97
Large Cap39%
Mid Cap48%
Small Cap9% Cash
4%
Funds Details
Top 10 Holdings Dividend History
Top 10 stocks comprise 64.33% of the fund
Data as on 29.04.2016
Past performance may not be sustained in the future. Pursuant to payment of dividend, the NAV of Dividend option of scheme/plan would fall to the extent of payout and statutory levy, if applicable.
Face Value: Rs. 10/-Past performance may or may not be sustained in future.
Stock Name % of Total AUM
PROCTER & GAMBLE HYGIENE AND HEALTH CARE LTD. 10.98
HDFC BANK LTD. 10.19
SOLAR INDUSTRIES INDIA LTD. 7.12
MANPASAND BEVERAGES LTD. 6.04 3M INDIA LTD. 5.59 ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD. 5.29
ELGI EQUIPMENTS LTD. 5.01
DIVI'S LABORATORIES LTD. 4.98
DR. LAL PATHLABS LTD. 4.67 NAVKAR CORPORATION LTD. 4.46
Record Date Dividend (in Rs./ Unit)
NAV(on the day of declaration of
dividend)07-Apr-16
(Regular Plan) 2.0007-Apr-16
(Direct Plan) 2.5028-Nov-14
(Regular Plan) 2.70 21.261626-Apr-13
(Regular Plan) 2.50 15.3680
30-Mar-12 2.50 14.3730-Jul-09 2.50 11.4728-Mar-08 2.50 18.1431-Oct-05 5.10 17.74
Synopsis
MAGNUM SECTOR FUNDS UMBRELLA -
EMERGING BUSINESSES FUND
High Conviction portfolio, concentrated portfolio with no
sector bias
Bottom -up stock picking approach for Mid & Small Caps
The scheme is ideal for investors who would like to invest for long-term
capital appreciation
Market Capitalization agnostic, may invest into Large, Mid or Small caps
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan.
Performance
31-Mar-2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-2015
28-Mar-2013 To 31-Mar-2014
Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Emerging Businesses Fund -1.44 53.78 10.46 20.97 90,016.20
S&P BSE 500 Index (Scheme Benchmark) -7.82 33.19 17.08 14.00 45,367.60
S&P BSE Sensex (Additional Benchmark) -9.36 24.89 18.85 14.04 45,569.50
31-Mar-2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-2015
28-Mar-2013 To 31-Mar-2014
Since Inception
-20.00
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
SBI Emerging Businesses FundS&P BSE 500 Index (Scheme Benchmark)S&P BSE SENSEX (Additional Benchmark)
Performance of Schemes Managed by R. Srinivasan31-Mar-
2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-
2015
28-Mar-2013 To 31-Mar-2014
Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns
(INR)SBI Magnum Equity
Fund -3.49 39.76 16.21 14.63 315,147.66Nifty 50 Index
(Scheme Benchmark) -8.86 26.65 17.98 13.46 242,621.00S&P BSE Sensex
(Additional Benchmark) -9.36 24.89 18.85 13.65 253,606.00
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 27/11/2006. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan Performance of dividend plan for investor would be net of dividend distribution tax as applicable. Performance calculated for Regular Plan
31-Mar-2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-
2015
28-Mar-2013 To 31-Mar-
2014Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns
(INR)SBI Magnum Global
Fund -6.19 66.01 26.68 14.88 197,946.90S&P BSE Midcap Index (Scheme
Benchmark) 0.25 49.55 15.32 N.A. N.A.S&P BSE Sensex
(Additional Benchmark) -9.36 24.89 18.85 8.62 59,196.10
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 27/06/2005. Additional benchmark as prescribed by SEBI for long-term equity schemes is used for comparison purposes. Performance calculated for Regular Plan. Performance of dividend plan for investor would be net of dividend distribution tax as applicable.
31-Mar-2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-2015
28-Mar-2013 To 31-Mar-2014 Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Contra Fund -7.10 45.24 9.43 20.22 218,667.46S&P BSE 100 Index
(Scheme Benchmark) -8.96 28.32 18.11 12.59 72,857.40S&P BSE Sensex
(Additional Benchmark) -9.36 24.89 18.85 11.16 58,847.00Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 06/05/2005. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance of dividend plan for investor would be net of dividend distribution tax as applicable. Performance calculated for Regular Plan
Performance of Schemes Managed by R. Srinivasan
Performance of Scheme Managed by R. Srinivasan & Dinesh Ahuja
31-Mar-2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-2015
28-Mar-2013 To 31-Mar-
2014 Since Inception
Absolute Returns (%) CAGR Returns (%) PTP Returns (INR)
SBI Small and Midcap Fund – Growth 8.66 89.90 26.07 18.97 31,268.00
S&P BSE Small Cap Index (Scheme Benchmark) -3.20 53.99 21.83 6.02 14,675.10
S&P BSE Sensex (Additional Benchmark) -9.36 24.89 18.85 7.07 15,659.02
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan
31-Mar-2015 To 31-Mar-2016
31-Mar-2014 To 31-Mar-2015
28-Mar-2013 To 31-Mar-
2014 Since Inception
Absolute Returns (%) CAGR Returns (%) PTP Returns (INR)
SBI Magnum Balanced Fund – Growth -0.28 43.64 21.24 16.21 217,103.07
Crisil Balanced Fund Index (Scheme Benchmark) -2.90 22.53 13.40 N.A. N.A.
S&P BSE Sensex (Additional Benchmark) -9.36 24.89 18.85 10.02 70,730.00
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on 25/05/2005. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan Performance of dividend plan for investor would be net of dividend distribution tax as applicable. Performance calculated for Regular Plan
• Mr. Navneet Munot Mr. Navneet Munot joined SBI Funds Management Pvt. Ltd. as Chief Investment Officer in Dec. 2008.
Prior to SBIFM he was the Head of Multi Strategies fund at Morgan Stanley Investment Management before which he worked as the Chief Investment Officer (Fixed Income and Hybrid Funds) of Birla Sun Life Asset Management Company Ltd. Navneet has been associated with the financial services business of the Birla group for over 13 years and worked in various areas such as fixed income, equities and foreign exchange. His articles on matters related to financial markets have widely been published. Navneet holds a Masters in Commerce and is also a rank holder Chartered Accountant. He is a charter holder of Chartered Financial Analyst Institute, US and Chartered Alternative Analyst Institute, US. He has also done Financial Risk Management, FRM from Global Association of Risk Professionals (GARP).
• Mr. R. SrinivasanMr. Srinivasan joined SBI Funds Management as a Senior Fund Manager in May 2009, now heads equities and also directly manages a few funds. He has an experience of nearly 20 years in capital markets having worked with FCH, Principal PNB, Oppenheimer & Co, Indosuez WI Carr and Motilal Oswal, among others. Srinivasan is a post graduate in commerce and has done his MFM from the University of Bombay.
Biographies
SBI Funds Management Private Limited
63% 37%
• India’s premier and largest bank with over 200 years experience (Estd: 1806)
• Asset base of USD 399 bn*• Pan-India network of ~22,972 branches
and ~ 50,000 ATM’s as at end of Dec 2014
• Servicing over 256 million customers
• Global leader in asset management• Backed by Credit Agricole and Société
Générale • More than 2,000 institutional clients and
distributors in 30 countries • Over 100 million retail clients via its partner
networks • € 866 bn AuM as at end of December 2014#
*Source: SBI Analyst Presentation as on end December 2014# Source : Amundi website as on end December 2014
SBI Funds Management: India’s First Bank Sponsored Funds
Source: SBI Funds Management Private Limited, AMFI; Average AUM (AAUM) for the quarter ending on December 31, 2015
Established in 1987: A leading asset manager in India
• Expertise in managing assets across mutual funds, segregated managed accounts, domestic advisory and offshore advisory business
• Multiple asset classes ranging from equities and debt, money market to ETFs and structured funds
• Investment team of 33 professionals with strong track record
• Broad customer base with ~ 4.09 million folios related to individual, corporate and institutional investors
Broad Investor
Base
AUM USD 14.09 bn
Wide Distribution
Network
Experienced Investment
Team
ExtensiveProductRange
Broad Investor
Base
AAUM Rs. 104405 crs
Wide Distribution
Network
Experienced Investment
Team
ExtensiveProductRange
SBIFM: A Complete Framework
ExpertiseHighly
experienced team
Strong industry relations
Complete in-house research Processe
sStructured & DisciplinedRigorous
investment templatesAgility with Flexibility
Risk Manage
mentSix member independent
teamInternational
standardsCoherent
monitoring
Group Advantag
e25 years of experience
Both domestic and
international strengths
Investors trust
Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. The views expressed herein are based on the basis of internal data, publicly available information & other sources believed to be reliable. Any calculations made are approximations meant as guidelines only, which need to be confirmed before relying on them. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. Neither SBI Funds Management Private Limited, SBI Mutual Fund nor any person connected with it, accepts any liability arising from the use of this information. The recipient of this material should rely on their investigations and take their own professional advice