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DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
DSP BlackRock World Gold Fund
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DSP BlackRock World Gold Fund

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DSP BlackRock World Gold Fund - An Open Ended Fund Of Funds Scheme investing in Gold Mining Companies through International Funds …

DSP BlackRock World Gold Fund - An Open Ended Fund Of Funds Scheme investing in Gold Mining Companies through International Funds

This Open-ended Fund of Funds Scheme is suitable for investors who are seeking* :
1. Long-term capital growth

2. Investment in units of overseas funds which invest primarily in equity and equity related securities of gold mining companies

3. High risk (Brown)

*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.

Note : Risk may be represented as :
(Blue) : Investors understand that their principal will be at low risk
(Yellow) : Investors understand that their principal will be at medium risk
(Brown) : Investors understand that their principal will be at high risk

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  • 1. DSP BlackRock World Gold Fund Investing In Gold Mining Companies Through International Funds An Open Ended Fund Of Funds Scheme April 2014 FOR PROFESSIONAL INTERMEDIARIES ONLY This Open-ended Fund of Funds Scheme is suitable for investors who are seeking* : • Long-term capital growth • Investment in units of overseas funds which invest primarily in equity and equity related securities of gold mining companies • High risk  (Brown) *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Note: Risk may be represented as:  (Blue): Investors understand that their principal will be at low risk |  (Yellow): Investors understand that their principal will be at medium risk |  (Brown): Investors understand that their principal will be at high risk
  • 2. DSP BlackRock World Gold Fund: Product Structure 2 Indian Investors Investing predominantly in Gold Mining companies Source: BlackRock; AUM of BlackRock Global Funds (BGF) – WGF as on March 31, 2014;* Funds investing in Gold mining companies USD 3.5 billion Accessing one of the largest funds in its category* with a performance track record over 18 years FOR PROFESSIONAL INTERMEDIARIES ONLY
  • 3. DSP BlackRock World Gold Fund
  • 4. Robust physical demand Sources: top-right chart: Macquarie Month End January 2014, bottom charts: World Gold Council Month End December 2013  Demand for jewellery and physical investment products has strengthened in response to gold’s weakness  Gold consumption in China was up 54% y-o-y in H1 2013 according to the China Gold Association  Sales of gold coins have risen  This demand is price sensitive and has eased when the gold price has consolidated 0 200 400 600 800 1,000 1,200 1,400 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Tonnes Hong Kong net exports to China, rolling 12m 4 Central bank net purchases -800 -600 -400 -200 0 200 400 600 800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Tonnes Bank of Iraq added 60t in Q1 2014
  • 5. Source clockwise from top: Bloomberg December 2013, BMO March 2013, looking at the top 25 gold producers by market capitalisation, BMO March 2014 Industry cost of gold production versus the gold price Costs and capex 0 5,000 10,000 15,000 20,000 25,000 30,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 US$million Project Capex Sustaining Capex Historic and forecast capex by the gold industry 1.00 1.50 2.00 2.50 3.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 g/t Reserve Grade (g/t) Average reserve grades for the gold industry 5 US$0/oz US$400/oz US$800/oz US$1200/oz US$1600/oz US$2000/oz Gold Price Total Cash Costs All-In Sustaining Cost All-In Cost After-Tax All-In Cost
  • 6. $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 GoldPriceUS$ NAVMultipleBasedOffOfGold PricingWithin$50/ozOfSpot NAV Multiple Gold Price Gold equities adjusting to lower prices Source: CIBC, 28th March 2014Source: Bloomberg, 18th February 2014 EV/EBITDA gold sector versus base metal sector Price/NPV versus the gold price Source: CIBC, 28th March 2014 Analyst consensus forecasts for the gold price CIBC restate their long term gold price to $1,200/oz 6 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2012 2013 2014e 2015e 2016e 2017e Jan-12 Jul-12 Jul-13 Jan-14 Spot Price as at15/04/14 0x 5x 10x 15x 20x 25x 30x Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 TrailingEBITDAMultiples EV To EBITDA Base Metals EV To EBITDA Golds
  • 7. y = 0.9309x - 0.0048 R² = 0.4943 -15% -10% -5% 0% 5% 10% -15% -10% -5% 0% 5% 10% Beta of gold equities to gold bullion – 2011 Beta of gold equities to gold bullion – End November 2013 to 28th March 2014 Beta’s back Source: Thomson Reuters Datastream. Data points indicate weekly returns of the FTSE Gold Mines Index and gold bullion. R squared is a statistical measure that represents the percentage of the FTSE Gold Mines Index movements that can be explained by movements in gold bullion. The circled figures relate to the gradients of the trend lines and are therefore measures of the sensitivity of gold equity returns to gold bullion returns over each period. The higher the gradient, the greater the sensitivity.  Gold equities have not offered the leverage to the gold price investors desired in recent years. Why? • Cost inflation • Poor capital allocation • Loss of investor trust • Physically backed gold ETFs as an alternative  Given a lower gold price, companies are more leveraged to moves in bullion and their beta has returned 7 y = 1.9053x + 0.0026 R² = 0.7436 -15% -10% -5% 0% 5% 10% -15% -10% -5% 0% 5% 10%
  • 8.  Over the past 20 years the number of large gold discoveries has been falling  Randgold Resources has a robust growth profile  Randgold Resources increased production by 15% in 2013 (Source: Randgold Resources, April 2014) Portfolio Themes – Growth in a constrained market 8 0 50 100 150 200 250 300 350 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Millionounces >10 Moz 1-10 Moz 0.1-1 Moz Other Est World Discovery Trends Randgold Resources 8.6% of the Fund 2000 2400 2800 3200 2009 2011 2013 2015 2017 2019 2021 2023 Scenario B Scenario C Base Case GFMS – Global Mine Production Forecast (Tonnes) Source: Top-Left: Gold Fields, August 2010. Bottom left: GFMS, April 2014 - base case scenario assumes a gold price of $980/oz until 2016, before increasing to $1620/oz by the end of the forecast. Scenario B is the high GDP growth scenario and assumes prices will remain above $1,300/oz. Scenario C assumes a slower economic recovery and assumes a gold price fall to $900/oz by 2016, but then due to weaker mine production a stronger price recovery. Bottom-right: Bloomberg, December 2013. Position size, as at end March 2014. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. MillionOunces 200 400 600 800 1,000 1,200 1,400 2009 2010 2011 2012 2013 2014E 2015E 2016E Annual Gold Mine Production (000 tonnes) Forecasted Annual Gold Mine Production (tonnes)
  • 9. 0 500 1,000 1,500 2,000 2,500 2006 2007 2008 2009 2010 2011 2012 2013 Revenues Cost of Sales Gold 100.0% 00 0 0 0 0 Portfolio Themes – Showcasing our main silver holdings 9 Gold 72.8% Silver 14.6%Other 12.6% 0 0 0 0 BGF World Gold Fund FTSE Gold Mines Index Fresnillo 6.0% of the Fund Tahoe Resources 2.6% of the Fund  Escobal Mine is Tahoe Resources’ key asset  Tahoe Resources has a strong production profile  World’s largest primary silver producer  Operates within the lowest cost quartile of silver producers  Attractive margins at current silver prices Robust Profit Margins Escobal – 18 Year Minelife SilverEquivalentOuncesProduced (Millions) TotalCashCostpersilverOz(netof by-products) Source: Top charts: BlackRock Internal, as at end March 2014. Bottom-left chart: Fresnillo interactive factsheet, April 2014. Bottom-right chart: Preliminary Economic Assessment May 2012 by M3 Engineering/Tucson, Arizona – based on Ag $25.00, Au $1,300, Pb $0.95, Zn %0.90. Position sizes, as at end March 2014. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. USMillions
  • 10. Portfolio Themes – Backing new management 10 AngloGold Ashanti 2.1% of the FundBarrick Gold Corporation 3.1% of the Fund $ millions 2013 2014E Minesite Sustaining 2,418 2,000-2,200 Minesite expansion 468 300-375 Projects 2,114 100-125 Capex 5,000 2,400-2,700 Mr. John Thornton Will become Executive Chairman of Barrick Gold Corporation on 30th April 2014 Mr. Srinivasan Venkatakrishnan Appointed CEO of AngloGold on 8th May 2013 Source: Barrick, 2nd April 2014 764 773 834 967 894 898 809 748 1089 1157 1254 1551 1275 1302 1155 1015 0 500 1000 1500 2000 2500 Q1, 2012 Q2, 2012 Q3, 2012 Q4, 2012 Q1, 2013 Q2, 2013 Q3, 2013 Q4, 2013 All-in-sustaining costs $/oz Total cash costs $/oz Improving costs AngloGold Annual Production, oz Source: AngloGold Ashanti, BMO Conference Presentation, 25th February 2014 Position sizes, as at end March 2014. Reference to the names of each company mentioned in this communications is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. Underweight positions, but improving outlooks  De-levered balance sheet with $3.0bn equity offering  Total value of asset sales in 2013 = $522mn (cash) + $179mn (royalty and stock)  Reduced costs by ~$2.0bn in 2013  Completion of further asset sales in 2014
  • 11. Sector Allocation Geographic Allocation (by primary risk country) BGF World Gold Fund: Asset allocation 11 Source: Internal. Data as at end March 2014. Geographic exposure shown by BlackRock assessment of primary risk country. Gold 72.8% Silver 14.6% Copper 3.8% Other 3.7% Cash 2.8% Diversified 1.5% Diamonds 0.7% World 37.5% Latin America 18.3% Africa (ex South Africa) 10.9% North America 9.5% South Africa 7.0% Russia 6.6% Australasia 5.4% Cash 2.8% Asia 1.9%
  • 12. BGF World Gold Fund - Top Ten 12 Stock % of Fund Geography Commodity Franco-Nevada 9.0% Global Gold Randgold Resources 8.6% Africa Gold Goldcorp 7.3% North America Gold Fresnillo 6.0% Latin America Silver/Gold Eldorado 4.7% Global Gold Royal Gold 4.7% North America Gold Newcrest Mining 4.3% Australia/PNG Gold Yamana Gold 3.5% North America Gold Polyus Gold 3.3% Russia Gold Barrick Gold 3.1% Global Gold Total 54.4% Number of Holdings: 63 Source: Internal as at end March 2014. Indicative only and subject to change.
  • 13. This document is meant for professional intermediaries only and may not be reproduced, distributed or published, in whole or in part, by any recipient thereof or any purpose without prior consent. For Scheme specific risk factors including risk associated with underlying scheme, please read the relevant Scheme Information Document and Key Information Memorandum carefully. Past performance may or may not be sustained in the future and should not be used as a basis of comparison with other investments. The views expressed/data provided are as on March 31, 2014 and may change as subsequent conditions vary Information gathered and materials used in this presentation are believed to be from reliable sources. The Fund/AMC, however does not warrant the accuracy, reasonableness and/or completeness of any information. Mutual Fund investments are subject to market risks, read all scheme related documents carefully Disclaimer 13

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