Benchmark InfraBees Fund
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Benchmark InfraBees Fund

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Benchmark InfraBees NFO

Benchmark InfraBees NFO

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Benchmark InfraBees Fund Benchmark InfraBees Fund Presentation Transcript

  • Infrastructure Benchmark Exchange Traded Scheme (An Open Ended Listed Index Scheme Exchange Traded Fund) NFO opens on NFO opens on NFO closes on NFO closes on September 09, 2010 September 09, 2010 September 23, 2010 September 23, 2010
  • Infrastructure The Driver of Economic Growth
  • Infrastructure – For Sustainable Growth Good quality infrastructure is the most critical physical requirement for attaining faster growth in a competitive world Average GDP growth of 7.7% achieved in the tenth five year plan period has been the highest in any Plan period so far India has entered the Eleventh Plan period with an impressive record of economic growth Adequate investment is necessary to support higher growth and improved quality of both urban and rural class Average GDP growth of 9% or above can be achieved and sustained only if infrastructure deficit can be overcome Source: Planning Commission Government of India – 11th Five Year Plan Report
  • Infrastructure – Miles To Go Infrastructure Facilities India United States China Electricity Production 723.8 (2009 est.) 4,110 (2008 est.) 3,451(2008 est.) (billion KWH) Airports (2010) 352 15079 502 226427 (2007 77834 (2008 Railways (KMS) 64015 (2009 est.) est.) est.) 3,320,410 (2009 6,465,799 (2007 3,583,715 (2007 Roadways (KMS) est.) est.) est.) 41009 (2008 110000 (2008 Waterways (KMS) 14500 (2008 est.) est.) est.) Source: CIA- The World Factbook
  • Infrastructure Bottlenecks – A Major Concern.... Sector Deficit 65590 km of NH compris e only 2% of network; ca rry 40% of tra ffic; Roads /Highways 12% 4-la ned; 50% 2-la ned; a nd 38% s ing le-la ned Ports Ina dequa te berths a nd ra il/roa d connectivity Ina dequa te runwa ys , a ircra ft ha ndling , ca pa city, pa rking s pa ce a nd Airports termina l building s Old technolog y; s a tura ted routes ; s low s peeds (freig ht: 22 kmph; Railways pa s s eng ers : 50 kmph); low pa yloa d to ta re ra tio (2.5) 13.8% pea king deficit; 9.6% energ y s horta g e; 40% tra ns mis s ion Power a nd dis tribution los s es ; a bs ence of competition 1123 BCM utiliza ble wa ter res ources ; yet nea r cris is in per ca pita Irrigation a va ila bility a nd s tora g e; only 43% of net s own a rea irrig a ted Only 18% of ma rket a cces s ed; obs olete ha rdwa re; a cute huma n Telecom/IT res ources ’ s horta g es Source: Planning Commission Government of India – 11th Five Year Plan Report
  • ....But Government Has Started Addressing Them 700000 9.34 10 Projected Infra. Inv. as % of GDP Projected Total Infra. Inv. (Rs. 9 600000 8.19 7.25 8 500000 6.53 7 5.98 5.43 6 400000 Crs.) 5 300000 4 200000 3 2 100000 1 0 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Projected Total Inf ra. Inv. (Rs. Crs.) Projected Inf ra. Inv. as % of GDP Total Infrastructure investment as % of GDP in XIth Five Year Plan is estimated to increase to 7.55% as against 5.08% in Xth Five Year Plan Source: Planning Commission Government of India – 11th Five Year Plan Report and Mid Term Appraisal of 11th 5 year plan report. At 2006-07 prices.
  • Government Renewed Focused Reflected in Increased Spending... Projected Investment in Infrastructure During Eleventh Five Year Plan Xth Plan XIth Plan XIth Plan % Increase Sectors Over Xth Plan Rs. Crs US$ bn* Share (%) Rs. Crs US$ bn* Share (%) Electricity 291850 72.96 33.49 666525 166.63 32.42 128.38% Roads & Bridges 144892 36.22 16.63 314152 78.54 15.28 116.82% Telecommunications 103365 25.84 11.86 258439 64.61 12.57 150.03% Railways 119658 29.91 13.73 261808 65.45 12.73 118.80% Irrigation 111503 27.88 12.80 253301 63.32 12.32 127.17% Water Supply & Sanitation 64803 16.2 7.44 143730 35.93 6.99 121.80% Ports 14071 3.52 1.61 87995 22 4.28 525.36% Airports 6771 1.69 0.78 30968 7.74 1.51 357.36% Storage 4819 1.2 0.55 22378 5.59 1.09 364.37% Gas 9713 2.43 1.11 16855 4.21 0.82 73.53% Total 871445 217.85 100.00 2056151 514.02 100.00 135.95% Government’s projected infrastructure spending in XIth Five Year Plan has more than doubled to 514.04 US$ bn from 217.86 US$ bn in Xth plan Five Year Plan Source: Planning Commission Government of India – 11th Five Year Plan Report & Internal. Exchange rate: Rs. 40/US$. At 2006-07 prices.
  • ....With Private Sector Participation Projected Investment in Infrastructure During Eleventh Five Year Plan Xth Plan XIth Plan Sectors Rs. Crs Share (%) Rs. Crs Share (%) Electricity 291850 666525 Public 200016 68.53 481013 72.17 Private 91834 31.47 185512 27.83 Roads & Bridges 144892 314152 Public 137888 95.17 207359 66.01 Private 7004 4.83 106792 33.99 Telecommunications 103365 258439 Public 49013 47.42 80753 31.25 Private 54352 52.58 177686 68.75 Railways 119658 261808 Public 119352 99.74 211453 80.77 Private 307 0.26 50354 19.23 Irrigation 111503 253301 Public 111503 100.00 253302 100.00 Private - - - - Water Supply & Sanitation 64803 143730 Public 63781 98.42 138309 96.23 Private 1022 1.58 5421 3.77 Ports Public 14071 3715 26.40 87995 33516 38.09 Increased Private Airports 10356 6771 73.60 54479 30968 61.91 Private Public Private 3835 2936 56.64 43.36 9338 21630 30.15 69.85 Sector Participation Storage 4820 22378 Public 1443 29.94 11189 50.00 Private 3377 70.06 11189 50.00 Gas 9713 16855 Public 8713 89.70 10327 61.27 Private 1000 10.30 6528 38.73 Total 871445 100.00 2056150 100.00 Public 699257 80.24 1436559 69.87 Private 172188 19.76 619591 30.13 Source: Planning Commission Government of India – 11th Five Year Plan Report & Internal. At 2006-07 prices.
  • Eleventh Plan Physical Targets Sector Eleventh Plan Targets 6-la ne 6500 km in GQ; 4-la ne 6736 km NS -E W; 4-la ne 20000 km; 2- Roads /Highways la ne 20000 km; 1000 km E xpres s wa y Ports New ca pa city: 485 m MT in ma jor ports ; 345 m MT in minor ports Modernize 4 metro a nd 35 non-metro a irports ; 3 g reenfield in NE R ; Airports 7 other g reenfield a irports 8132 km new ra il; 7148 km g a ug e convers ion; modernize 22 Railways s ta tions ; dedica ted freig ht corridors Power Add 78577 MW; a cces s to a ll rura l hous eholds Irrigation Develop 16 mha ma jor a nd minor works ; 10.25 R ea ch 600 m s ubs cribers —200 m in rura l a rea s ; 20 m broa dba nd; Telecom/IT 40 m Internet Source: Planning Commission Government of India – 11th Five Year Plan Report
  • Government Committed To Infrastructure Development 1200000 11 Projected GCF in Infra. (Rs. Crs.) Projected GCF in Infra. as % of 10 10.25 1000000 9.5 9.75 10 9.25 9 800000 9 GDP 600000 8 400000 7 200000 6 0 5 2011-12 2012-13 2013-14 2014-15- 2015-16 2016-17 Projected GCF in Infra. (Rs. Crs.) Projected GCF in Infra as % of GDP Government’s projected GCF (Gross Capital Formation) in Infrastructure investment in XIIth Five Year Plan would increase to US$ 1018.74 bn From US$ 502.88 bn in XIth Five Year Plan Source: Planning Commission Government of India – 11th Five Year Plan Report Estimates: GDP to grow at 9% per year and GCF in infrastructure as percentage of GDP would rise from 9 % in 2011-12 to 10.25 % in 2016- 17. Exchange rate: Rs. 40/US$. At 2006-07 prices.
  • Presenting
  • Infra BeES – Best of Both Worlds Like an Index Fund… Like a Stock… Constructed to track the Index Trading flexibility intraday on the Open ended mutual fund exchange Low expense ratio Real Time Price Low turnover Put Limit Price Transparent Minimum Trading lot is just 1 unit Delivery in your Demat account Index Fund Stocks ETF
  • About CNX Infrastructure Index Includes companies belonging to Telecom, Power, Port, Air, Roads, Railways, shipping and other Utility Services providers Index is calculated using the market capitalisation weighted method Base value and base date of index are 1000 and Jan. 01, 04 resp. Companies are selected based on the below parameters Market capitalisation Turnover Net worth Company should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE For detailed criteria of CNX Infrastructure index, refer to indices section of www.nseindia.com
  • CNX Infrastructure Index – Security Weightage Sr. No. Company Name Industry % Sr. No. Company Name Industry % 1 NTPC Ltd. Power 17.48 14 GMR Infrastructure Ltd. Construction Project 2.35 2 Bharti Airtel Ltd. Telecom - Services 13.45 15 Unitech Ltd. Construction 2.11 Bharat Heavy Industrial Capital Industrial Capital 3 12.75 16 Crompton Greaves Ltd. 2.06 Electricals Ltd. Goods Goods 4 Larsen & Toubro Ltd. Construction Project 11.84 Industrial Capital 17 ABB Ltd. 1.79 5 DLF Ltd. Construction 5.55 Goods 6 Reliance Power Ltd. Power 3.95 18 Lanco Infratech Ltd. Construction Project 1.72 Reliance 19 Tata Communications Ltd. Telecom - Services 1.03 7 Telecom - Services 3.49 Communications Ltd. IRB Infrastructure 8 Tata Power Co. Ltd. Power 3.14 20 Transportation 1.00 Developers Ltd. Neyveli Lignite Industrial Capital 9 Power 2.85 21 Suzlon Energy Ltd. 0.87 Corporation Ltd. Goods Reliance Infrastructure 10 Power 2.65 22 Indian Hotels Co. Ltd. Hotels 0.81 Ltd. 11 Idea Cellular Ltd. Telecom - Services 2.56 Shipping Corporation of 23 Transportation 0.74 India Ltd. Industrial Capital 12 Siemens Ltd. 2.53 Mahanagar Telephone Goods 24 Telecom - Services 0.42 Nigam Ltd. Jaiprakash Associates 13 Cement 2.51 Ltd. 25 Punj Lloyd Ltd. Construction Project 0.38 Source: NSE. Data as on August 31, 2010 & AMFI.
  • CNX Infrastructure Index – Industry Classification 16.28% 19.99% 7.66% 2.51% 1.74% 0.81% 20.94% 30.08% Pow er Telecom - Services Industrial Capital Goods Construction Project Construction Cement Transportation Hotels Source: NSE. & AMFI. Data as on Aug. 31, 2010.
  • Performance - Indices Normalised To 1 Lac As On Jan 01, 2004 750000 650000 550000 450000 350000 250000 150000 50000 01-Jan-04 01-Jul-04 01-Jan-05 01-Jul-05 01-Jan-06 01-Jul-06 01-Jan-07 01-Jul-07 01-Jan-08 01-Jul-08 01-Jan-09 01-Jul-09 01-Jan-10 01-Jul-10 CNX Infrastructure Index S&P CNX Nifty BSE Sensex Rs. CNX Infrastructure Index S&P CNX Nifty BSE Sensex Initial Investment As On 100000 100000 100000 Jan 1, 2004 Value As On Aug. 31, 339180 282515 303799 2010 CAGR(%) 20.10% 16.85% 18.13% Source: MFI explorer. Data as on Aug. 31, 2010. Past performance may or may not be sustained in future. Past performance is no guarantee of future results.
  • Performance - Indices 45 34 30 25 26 22 19 20 15 13 5 Yrs Rolling Returns, (%) 7 7 5 5 5 0 Frequency – Daily, Minim um Maxim um Ave rage Annualised Period – Jan 01, 09 to Aug 31, 10 Volatility -15 -30 CNX Infrastructure Index S&P CNX Nifty BSE Sensex 90 75 72 60 49 53 45 3 Yrs Rolling Returns, (%) 30 27 20 24 21 15 17 Frequency – Daily, 15 -6 -6 -8 Period – Jan 02, 07 to Aug 31, 10 0 -15 Minimum Maximum Average Annualised Volatility -30 CNX Infrastructure Index S&P CNX Nifty BSE Sensex Source: MFI explorer and Internal. Note: The above performance is CAGR(%). Past performance may or may not be sustained in future. Past performance is no guarantee of future results.
  • Statistics - Indices CNX (As on Aug 31, 2010) S&P CNX Nifty Infrastructure Full Market Cap 924,141 3,397,141 (Rs. Crores) P/E Ratio 29.6 22.73 P/B 3.14 3.54 Dividend Yield 0.77 1.12 Source: NSE.
  • About
  • Overview Investment Objective The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Infrastructure Index by investing in the securities in the same proportion as in the Index. However, the performance of Scheme may differ from that of the Underlying Index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved. Investment Pattern Instruments % Risk Profile Securities covered by the CNX Infrastructure 95%-100% Medium to High Index Money Market Instruments, G-Secs, Bonds, 0%-5% Low Debentures and cash at call Taxation of a equity oriented fund is applicable to the scheme Note: Please refer to SID & SAI for more details.
  • Scheme Features Minimum Application Amount During NFO Rs. 10,000/- (Rupees Ten Thousand only) and in multiples of Re. 1/- thereafter On Ongoing Basis On the Exchange The units of Infra BeES would be listed on the National Stock Exchange of India Ltd. (NSE). On NSE, the units of Infra BeES can be purchased/redeemed in minimum lot of 1 unit and in multiples thereof. Directly with the Fund The Minimum number of units of Infra BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof.
  • Scheme Features Option The Scheme offers only growth option Entry & Exit Load Nil Benchmark Index CNX Infrastructure Index Investor Benefits and General Services During the NFO, investors can subscribe to the units through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and Mutual Fund Service System (MFSS) of NSE. The AMC will calculate and publish the first NAV of the Scheme not later than October 07, 2010. Subsequently, the NAVs will be calculated and disclosed at the close of every Business Day.
  • About Benchmark
  • Benchmark - Highlights Differentiation in Investment Philosophy, Product structures and Product delivery mechanism Leadership position in indexing and ETF areas A track record of successfully conceptualizing and launching innovative products with many Firsts Nifty BeES – The First ETF In Asia (Barring Japan) Junior BeES – The First Midcap ETF In India Liquid BeES – The First Money Markey ETF In The World and The Only One In India Bank BeES – The First Sector Based ETF In India Gold BeES – The First Gold Linked ETF In India PSU Bank BeES – The First PSU Bank Sector Based ETF In India Shariah BeES – The First S&P CNX Nifty Shariah Based ETF In India Hang Seng BeES – India’s First ETF investing in overseas securities which are constituents of Hang Seng Index Benchmark Derivative Fund – The First Equity Arbitrage Fund In India Benchmark S&P CNX 500 Fund – The First and Only Index Fund In India Benchmarked to S&P CNX 500 Index
  • Achievements Nifty Benchmark Exchange Traded Scheme (Nifty BeES) was Awarded Best Performing Mutual Fund of The Year Award In The Index Fund Category at the CNBC – TV18 – CRISIL Mutual Fund of The Year Award 2007, 2008 & 2009*, respectively 2007 2008 2009 Eligibility Criteria & Methodology In total 11 schemes in year 2007, 12 schemes in year 2008 and 13 schemes in year 2009 were eligible for award universe. Schemes present in all four quarterly CRISIL CPRs for each calendar year were considered for the award. The award is based on consistency of the scheme’s performance in the four quarterly CRISIL CPR rankings released during the respective calendar year. The individual CRISIL CPR parameter scores averaged for the four quarters for each calendar year were further multiplied by the parameter weights as per the CRISIL CPR methodology to arrive at the final scores. A detailed methodology of the CRISIL CPR is available at www.crisilfundservices.com. Past performance is no guarantee of future results. Rankings and Award Source: CRISIL FundServices, CRISIL Ltd. * Past performance is no guarantee of future results.
  • Investment Objective The investment objective of Nifty BeES is to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the S&P CNX Nifty Index. However, the performance of Scheme may differ from that of the Underlying Index due to tracking error. Investment Pattern Upto 100% of net assets in Securities covered by the S&P CNX Nifty Index; Upto 10% of net assets in Money Market instruments, convertible bonds & other securities including cash at call but excluding subscription & redemption Cash Flow An Open-ended, exchange listed, Index Scheme Terms of Issue On NSE, the units of Nifty BeES can be purchased/sold in minimum lot of 1unit and in multiples thereof. Directly with the Fund - The minimum number of units of Nifty BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof. Load Structure: Entry Load : Nil Exit Load: Nil
  • Disclaimers Risk Factors General: (1) All Mutual funds and Securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Schemes will be achieved. (2) As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Schemes can go up or down depending on the factors and forces affecting the securities market/bullion market. (3) Past performance of the Sponsors/Investment Manager/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provided a basis of comparison with other investments. (4) Infrastructure Benchmark Exchange Traded Scheme (Infra BeES), Nifty BeES, Junior BeES, Bank BeES, PSU Bank BeES, Shariah BeES, Gold BeES, Liquid BeES, Hang Seng BeES, Benchmark Derivative Fund and Benchmark S&P CNX 500 Fund are the name of the Schemes and does not in any manner indicate either the quality of the Schemes or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Schemes. (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. (6) The present Scheme is not a guaranteed or assured return Scheme.
  • Disclaimers (Contd.) (7) The Scheme’s NAV will react to the securities / bullion market movements. The Investor could lose money over short periods due to fluctuation in the Scheme’s NAV in response to factors such as economic and political developments, changes in interest rates and perceived trends in securities / bullion prices, market movements, and over longer periods during market downturns. (8) IISL Disclaimer : The Product on CNX Infrastructure Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the Product linked to CNX Infrastructure Index or particularly in the ability of the CNX Infrastructure Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Infrastructure Index in the Scheme Information Document / Prospectus / Information Statement. (9) NSE Disclaimer : It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document . The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. (10) Please read the Scheme Information Document and Statement of Additional Information carefully before investing. (11) For Scheme specific risk factors kindly refer SID.
  • Disclaimers (Contd.) Statutory Details: Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Trustee: Benchmark Trustee Company Pvt. Ltd. Investment Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial Services Pvt. Ltd. For more details please refer the SID, Key Information Memorandum and Application Form which are available at the Office of the AMC or can be downloaded from www.benchmarkfunds.com
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