Flow of the presentation Midcap biased portfolio Stocks Story Performance and Risk Analytics Fund Details
Long Term Trends CAGR returns since Jan 03, 2005 Volatility since Jan 03, 2005 25% Daily standard deviation (%) 40% 20% Percentage 30% 15% 20% 10% 5% 10% 0% 0% BSE Sensex BSE Midcap BSE Smallcap BSE Sensex BSE Midcap BSE Smallcap BSE Sensex, BSE Midcap and BSE Small cap have Daily volatility over long term of BSE Sensex, delivered similar returns in last 6 years. BSE Midcap and BSE small cap is very Similar • BSE Sensex, BSE Midcap and BSE Small cap show very similar characteristics over a long period. • Risk, Returns imply that investments over a long periods are capitalization agnostic. • But long term trends results are derived on various short term trends.Source: BSE & internal calculation. Data as on 31.12.2010
Short Term Trends Yearly Returns Yearly Volatility 150% 60% Daily standard deviation (%) 100% 40% Percentage 50% 20% 0% -50% 2005 2006 2007 2008 2009 2010 0% 2005 2006 2007 2008 2009 2010 -100% Sensex Midcap Smallcap Sensex Midcap Smallcap • In upward trending markets generally midcaps • In 2007, 2008 and 2009 largecaps were more volatile outperform largecaps than midcaps • In downward trending markets, generally • In 2010 Midcaps had marginally higher volatility largecaps outperform midcaps than largecaps Constant monitoring , review & active allocation between different market cap indices can outperform long term trendsSource: BSE & internal calculation. Data as on 31.12.2010
Bottom up stock selection process for Mid Caps Sell-Side Quantitative Tools Primary Research Business Outlook Management Valuations Management Valuations Interaction Stress Earnings Testing Model
Drivers of stock selection The stock selection is tilted towards following factors Strong Business Franchise High Returns on Capital High Barriers to Entry Secular Business Models Buy and Hold Strategy
REDINGTON (INDIA) LTD 160 150Price movements with base 100 140 130 120 110 100 90 80 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Redington BSE 100 Beneficiary of the market potential in India, Middle East and Africa Dominant player in India with a 30% market share High RoE and demonstrated process discipline Stock is being held in the portfolio of the scheme as on date & may/may not be in the portfolio in the future depending on the fund house view on the stock. This should not be construed as recommendation to buy/sell the stock in any way. Past performance may or may not be sustained in future.Source: Bloomberg & BSE. Data as on 31.12.10
BOSCH LIMITED 150 Price movements with base 100 140 130 120 110 100 90 80 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Bosch BSE 100 Impeccable pedigree High technological barriers and growth prospects in user segments Quality earnings, conservative accounting policies and a strong balance sheetStock is being held in the portfolio of the scheme as on date & may/may not be in the portfolio in the future depending on the fund house view on the stock.This should not be construed as recommendation to buy/sell the stock in any way. Past performance may or may not be sustained in future.Source: Bloomberg & BSE. Data as on 31.12.10
MRF LTD 160 150Price movements with base 100 140 130 120 110 100 90 80 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 MRF BSE 100 One of the larger players in the domestic tyre market Conservative management; growth through internal accruals Appealing contra bet based on absolute valuations Stock is being held in the portfolio of the scheme as on date & may/may not be in the portfolio in the future depending on the fund house view on the stock. This should not be construed as recommendation to buy/sell the stock in any way. Past performance may or may not be sustained in future. Source: Bloomberg & BSE. Data as on 31.12.10
In a Nut Shell: Magnum Global Fund Portfolio Large cap Portfolio Midcap Portfolio • Hedge against falling • Bottom up stock selection markets • Buy and hold strategy • Create liquidity in the portfolio
Investment Management Process Stock Universe Quant Screening Fundamental analysis Investment Universe Fund Risk Controls Mandate Portfolio
Fund DetailsBenchmark: CNX MidcapInception Date: September 30, 1994Load Structure: For exit within 1 Year from date of allotment- 1% For exit after 1 Year from date of allotment- NilMinimum Investment: Rs. 2000 Normal Asset Allocation Normal Allocation (% of Net Assets) Risk ProfileType of InstrumentEquity Partly convertible debentures and fullyconvertible debentures and Bonds 80-100% Medium to HighMoney Market instruments 0-20% Low
Fund Details Asset Allocation Sector Exposure 2.80 5.64 14.92 10% 5.08 0.80 22% 8.82 2.29 9% 12.22 19.94 3.38 1.76 13.09 Automobiles Energy Construction Consumer Goods 59% I.T Financial Services Industrial Manufacturing Pharma Services Textile Large Cap Mid Cap Small Cap Other current assets Cement & Cement Product Media & Entertainment Overweight in services, automobile and media & Skewed towards Mid Cap for alpha play entertainment sectorData as on 30.04.2011
Funds Details Top 10 Holdings Dividend History LAST DIVIDENDS Dividend (in NAV as on record STOCK % Of NAV Record Date Rs./Unit) date (Rs.)REDINGTON (INDIA) LTD 4.94%BOSCH LIMITED ( PREV. MOTOR INDUSTRIES 12-Mar-10 5.00 27.52COMPANY LIMITED) 4.32%MRF LTD 4.07%BLUE DART EXPRESS LIMITED 3.89% 23-Mar-07 5.00 27.34ASIAN PAINTS LIMITED 3.83%SKF INDIA LIMITED 3.38%BLUE STAR LTD 3.26% 30-June-05 4.20 15.01CADILA HEALTHCARE LIMITED 3.15%GLAXOSMITHKLINE CONSUMER HEALTHCARE LIMITED 3.12%LUPIN LIMITED 3.11% Top 10 stocks comprise 37.07% of the fund Data as on 30.04.2011
Performance Analysis CAGR Return 25.00% 21.42% 20.00% 19.12% 15.00% 10.71% 10.00% 5.43% 5.40% 5.00% 3.24% 0.00% 1 year 3 years 5 years Fund Benchmark Past performance may or may not be sustained in future. Returns are CAGR calculated for dividend option and assumed that the dividend declared under the scheme have been reinvested at the prevailing NAV. Growth option was introduced on 27th June 2005. NAV (Growth ) as on 30/04/2011 is Rs. 57.06. Date of inception is 30th September 1994. Source: MFI Explorer. Data as on 30/04/2011
Synopsis• Predominantly mid cap fund• Benchmark aware but with no specific active stock limits• Bottom up strategy based on stock selection rather than sector calls• Defensive portfolio, due to the nature of stocks owned
Risk Analysis Quantitative Data RatioStandard Deviation 41.49%Beta 1.03R-Squared 0.94Sharpe Ratio 0.14Portfolio Turnover 0.84Expense Ratio 2.05 Data as on 30.04.2011 Source: Crisil fund Analyser
Biographies • 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
DisclaimerRisk Factors: Mutual Funds and Securities Investments are subject to market risks and there is noassurance or guarantee that the schemes objectives will be achieved. As with any other investmentin securities, the NAV of the Magnums/Units issued under the scheme(s) may go up or downdepending upon the various factors and forces affecting the securities market. Past performance ofthe Sponsor/AMC/Mutual Fund/Scheme(s) and their affiliates do not indicate the future performance ofthe Scheme(s) of the Mutual Fund. Investment Objective: Magnum Global Fund (An open – endedequity scheme) - To provide the investors maximum growth opportunity through well researchedinvestments in Indian equities, PCDs, and FCDs from selected industries with high growth potential, andBonds. Magnum Global Fund is only the name of the schemes and does not in any manner indicatethe quality of the scheme, its future prospects and returns. Statutory details: SBI Mutual Fund hasbeen set up as a trust under the Indian Trusts Act, 1882. State Bank of India (SBI), the sponsor is notresponsible or liable for any loss resulting from the operation of the schemes beyond the initialcontribution made by it of an amount of Rs. 5 lakhs towards setting up of the mutual fund. AssetManagement Company: SBI Funds Management Private Limited (A joint venture between SBI andSociété Générale Asset Management). Trustee Company: SBI Mutual Fund Trustee Company Pvt. Ltd.Please read the Scheme Information Document carefully before investing.
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