SBI Equity Balance Fund Presentation
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SBI Equity Balance Fund Presentation

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SBI Equity Balance Fund Presentation April 2011

SBI Equity Balance Fund Presentation April 2011

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SBI Equity Balance Fund Presentation SBI Equity Balance Fund Presentation Presentation Transcript

  • MSFU – Emerging Business Fund
  • Flow of the Presentation Focused Portfolio Risk Management Synopsis Fund and Portfolio Details Biographies
  • EBF Portfolio FOCUSED PORTFOLIO = Large Cap + Mid Cap + Small Cap
  • LARGE CAP PORTFOLIO withTOP DOWN ASSET ALLOCATION APPROCH
  • Top Down Approach for stock bets Economic Qualitative Liquidity Interest Rates Regulation Growth Factors Flows Macro Outlook Demand- Business Profitability Pricing Supply Cycle Sector Allocation Business Mgmt Valuations Model Stock Selection
  • Bottom Up Mid Cap & Small Cap Allocation
  • Bottom up Process for Mid Caps Sell-Side Quantitative Tools Primary Research Business Outlook Management Valuations Management Valuations Interaction Stress Earnings Testing Model
  • Concentrated Portfolio Texmaco Rail & Eng Ltd. Agro Tech Foods Ltd. Mannapuram General Fin. HDFC Bank Ltd Page Ind. Top 5 holdings in the portfolio contribute to 34.57 % of the total portfolio Stocks in the portfolio as on 30/04/2011. These stocks may/ may not be in portfolio in future Fund manager may alter/modify the portfolio in accordance with the asset allocation pattern/ investment objective as mentioned in the SID. Views expressed about the stocks is for the purpose of general information only on the basis of various available sources. It should not be construed as recommendations to buy/sell the stocks. Investors are requested to take the professional advice and read the scheme information document carefully before investing. Data as on 30.04.2011
  • Stock Story: Page Industries Ltd. 200.00 Stock Price Movement (Base 100) 175.00 150.00 125.00 100.00 75.00 50.00 1/4/10 2/4/10 3/4/10 4/4/10 5/4/10 6/4/10 7/4/10 8/4/10 9/4/10 10/4/10 11/4/10 12/4/10 Page Industries BSE 500• Large unorganized innerwear market• High market share in the men’s segment; women’s segment yet to be tapped• Strong brand franchiseStocks in the portfolio as on 30/04/2011. These stocks may/ may not be in portfolio in future Fund manager may alter/modify the portfolio in accordance with theasset allocation pattern/ investment objective as mentioned in the SID. Views expressed about the stocks is for the purpose of general information only on the basis ofvarious available sources. It should not be construed as recommendations to buy/sell the stocks. Investors are requested to take the professional advice and read thescheme information document carefully before investing. Source: Bloomberg
  • Manappuram General Finance Ltd. 300.00 Stock Price Movement (Base 100) 250.00 200.00 150.00 100.00 50.00 1/4/10 2/4/10 3/4/10 4/4/10 5/4/10 6/4/10 7/4/10 8/4/10 9/4/10 10/4/10 11/4/10 12/4/10 Manappuaram Gen Fin BSE 500• Huge potential market given the stock of gold in India• Good combination of high growth and high return on equity• Relatively low asset quality risksStocks in the portfolio as on 30/04/2011. These stocks may/ may not be in portfolio in future Fund manager may alter/modify the portfolio in accordance with theasset allocation pattern/ investment objective as mentioned in the SID. Views expressed about the stocks is for the purpose of general information only on the basis ofvarious available sources. It should not be construed as recommendations to buy/sell the stocks. Investors are requested to take the professional advice and read thescheme information document carefully before investing. Source: Bloomberg
  • In a Nut Shell: EBF Portfolio Midcap Portfolio Large cap Portfolio •Bottom up stock selection •Hedge against following • Buy and hold strategy markets •Concentrated stock picks • Create liquidity in the portfolio
  • EBF Portfolio Position Bottom up strategy Market Cap Agnostic Concentrated EBF Portfolio
  • RISK & PERFORMANCE ANALYSIS
  • Risk Analysis Quantitative Data Ratio Standard Deviation* 45.99 % Beta* 1.21 R-Squared* 0.93 Sharpe Ratio* 0.17 Portfolio Turnover* 1.63 Total Expense Ratio 2.32* Source: Crisil Fund AnalyserData as on Apr 30, 2011
  • Performance Analysis CAGR Return 30.00% 25.00% 24.07% 19.19% 20.00% 18.33% 19.03% 15.00% 11.84% 10.00% 6.08% 5.14% 5.00% 2.56% 0.00% 1 year 3 years 5 years Since Inception Fund Benchmark Past performance may or may not be sustained in future. Returns are CAGR and for dividend option. It is assumed that dividend declared under the scheme has been reinvested at the prevailing NAV. NAV (Growth ) as on 30/04/2011 is Rs. 41.66. Date of inception is 11th October 2004. Source: MFI Explorer. Data as on 30/04/2011
  • Synopsis • Mid and small cap exposure likely to remain high • Concentrated portfolio of 25- 30 stocks • Currently allocation in the money market instruments is restricted to less than 10% of the fund • Portfolio has outperformed benchmark on 1 year, 3 year & since inception basis
  • Fund FeaturesInvestment Universe: 2937 listed stocks on BSE (traded regularly)Investment Style: GrowthInvestment Approach: Bottom upBenchmark: BSE 500Inception Date: October 11, 2004Normal Asset Allocation Style Box Growth Blend Value Type of Instrument (% of Net Assets) Risk Profile Large Market CapitalizationEquity and related instruments At least 90 % Medium to Highincluding derivatives across Middiversified sectors* SmallMoney Market Instruments* Upto 10 % Low* Investments in equities would be well diversified across various emerging sectors with exposure to a particular business would berestricted to 25% of the total investment portfolio under normal market conditions.
  • Investment Management Process Stock Universe Quant Screening Fundamental analysis Investment Universe Fund Risk Controls Mandate Portfolio
  • Fund Details Asset Allocation Sector Exposure 6.55 3.96 8.97 9% 12% 10.37 21.04 5.33 2.19 42% 37% 1.88 13.17 17.50 Automobiles Consumer Goods Fertilisers & Pestisides Financial Services Industrial Manufacturing Pharma Services Textile Large Cap Mid cap Small Cap Other Current asset Cement & Cement Product Media & EntertainmentCurrently portfolio highly skewed towards mid & small cap Overweight in Automobiles, Services and Textiles industrystocksData as on 30.04.2011
  • Fund Details Top 10 Holdings Dividend History Stocks % of Asset LAST DIVIDENDS PAGE INDUSTRIES LIMITED 8.88% Dividend (in NAV (as on record HDFC BANK LIMITED 8.40% Record Date Rs./Unit) date) MANAPPURAM GENERAL FINANCE & LEASIN 7.12% 28-Mar-11 2.50 14.55 AGRO TECH FOODS LTD 5.13% TEXMACO RAIL & ENGINEERING LIMITED 5.04% 30-Jul-09 2.50 11.47 MOTHERSON SUMI SYSTEMS LTD 4.54% 28-Mar-08 2.50 18.14 GILLETTE INDIA LIMITED 4.39% REDINGTON (INDIA) LTD 4.04% 31-Oct-05 5.10 12.7 SUN TV NETWORK LTD ( PREVIOUSLY SUN TV LIMITED ) 3.96% HAWKINS COOKERS LTD 3.80% Top 10 stocks constitute 55.30 % of the portfolioData as on 30.04.2011
  • Expertise Managing the Fund • Mr. Navneet Munot Mr. Navneet Munot joined SBI Funds Management Pvt. Ltd. as Chief Investment Officer in Dec. 2008. Most recently he was the Head of Multi Strategies fund at Morgan Stanley Investment Management. Prior to joining Morgan Stanley Investment Management, he worked as the Chief Investment Officer (Fixed Income and Hybrid Funds) of Birla Sun Life Asset Management Company Ltd. Several funds managed by Navneet got recognition for their consistent superior risk-adjusted performance and won several awards from independent agencies such as CRISIL, CNBC TV 18, ICRA, Reuters Lipper and got top ranking in Value Research. 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. Srinivasan Mr. R Srinivasan is the fund manager of the scheme. He started his career in 1992 with Capital Market Publications and subsequently worked on the Sell side with Indosuez WI Carr, Motilal Oswal Securities and Sunidhi Consultancy. He moved to the Buy side with Oppenheimer & Co (now Blackstone) and later joined Principal PNB Mutual Fund. Prior to joining SBIMF he was with Future Capital Holdings. He has completed his post graduation in Commerce and holds a Financial Management degree from the Mumbai University
  • Disclaimer Disclaimer: Risk Factors: Mutual Funds and Securities Investments are subject to market risks and there is no assurance or guarantee that the objective of scheme(s)/plan(s) will be achieved. As with any other investment in securities, the NAV of the Magnums/Units issued under the scheme(s)/plan(s) can go up or down depending on the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund/Scheme(s)/Plan(s) and their affiliates do not indicate the future performance of the scheme(s) of the Mutual Fund. Investment Objective: MSFU Emerging Businesses Fund (An Open-Ended Equity Scheme): To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors. There are four sub- funds dedicated to specific sectors viz. IT, Pharmaceuticals, FMCG, Contra sub fund for investment in stocks currently out of favour and Emerging Business Fund (EBF) to participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies. The fund may also evaluate emerging businesses with growth potential and domestic focus. MSFU Emerging Businesses Fund is only the name of the scheme and does not in any manner indicate either the quality of the scheme, its future prospects and returns. Statutory Details: SBI Mutual Fund has been set up as a Trust under The Indian Trusts Act, 1882. State Bank of India (‘SBI’), the sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution made by it of an amount of Rs. 5 lacs towards setting up of the Mutual Fund. Asset Management Company- SBI Funds Management Private Limited (A joint venture with SBI and Société Générale Asset Management). Trustee Company: SBI Mutual Fund Trustee Company Private Limited. Please read the Scheme Information Document carefully before investing. This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. 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, 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