NFO Period: July 17, 2012 to July 31, 2012Prajna Capital Prajna CapitalCall 94 8300 8300 dsp blackrock Call 94 8300 8300 Now!Now! us flexible equity fund An Open Ended Fund Of Funds Scheme Investing In a US Equity Fund (*The term “Flexible” in the name of the Scheme signifies that the Investment Manager of the Underlying Fund can invest either in growth or value investment characteristic securities placing an emphasis as the market outlook warrants.) Product construct dsp blackrock Indian Investors us flexible equity fund GET ACCESS TO An Open Ended Fund Of Funds Scheme BlackRock Global Funds (BGF) US EQUITIES Investing In a US Equity Fund US Flexible Equity Fund AUM: USD 1.3 billion Source: Internal; AUM as at May 31, 2012 Why invest in US equities? l equity market is the largest in the world. At USD 15.7 trillion, its market capitalization is greater than that of the next 6 countries combined. The US US equities are a core component of almost every major global equity or sector portfolio/index l - On average, US equities represent close to 50% of global equity indices - US equities represent over 75%* of the global information technology sector and over 50%* of the global healthcare, consumer discretionary, consumer staples, utilities, and industrials sectors It is among the most well diversified markets in the world - the top two sectors (Financials & Technology) account for only ~34% of US equity market l capitalisation. l equity market provides investors access to a universe of companies exhibiting huge innovation and leading many global trends & investment The US themes. l macroeconomic challenges, the US economy is showing remarkable resilience presently as witnessed in: Despite - Decrease in unemployment numbers, improvement in the level of industrial production, encouragement in consumer confidence numbers, and expansion of purchasing managers index US equities represent close to 50% of almost every major global equity index Source: Bloomberg; CLSA Research, ISI, Internal, *S&P Global Indices; data as at May 31, 2012. Past performance may or may not be sustained in future. Why now? Attractive Valuations Free cash flow yields of corporations have increased and the excess l Valuations of US equities are compelling on both absolute and relative l cash in balance sheets has resulted in a record number of buybacks and levels and are at multi year lows. dividends. l forward P/E ratio is below its the long term average of 16.9x. S&P500 US equities could likely continue outperforming other global equity l P/E multiples of leading companies with good business fundamentals l markets. are also trading much lower than they were over 10 years ago. Bridging Quantitative and Fundamental Investing Continued out-performance in recent times Combining both fundamental research and quantitative analysis, the l l US Stocks outperformed non-US stocks for the third year in a row (FY construct of the portfolio is one that is pragmatic, focused, and 2011-12). Global portfolios are presently overweight on US equities. disciplined while forecasts are evidentiary in nature as they are based on future performance and historical facts. Strong Corporate Balance Sheets US Companies display strong fundamentals, with improving corporate l profits and balance sheets. US equities are trading at near 30 year lows^ Source: BofA Merrill Lynch Global Research, Bloomberg, ^Forward P/E basis; data as at March 2012. Past performance may or may not be sustained in future. Access to global investment themes Global Trend Investable Themes Company Examples # Technology Apple Inc. Google Lifestyle Shifts New Media Microsoft IBM New Health Services Pfizer Abbot Labs Demographic Shifts Economic Shift Johnson & Johnson Proctor & Gamble Niche Growth Expedia NASDAQ Productivity Enhancement Market Theme McGraw Hill Companies General Electric Investment universe has companies that have exhibited huge innovation to lead many global trends #Company examples are for illustration purposes only, there is no guarantee that they will form a part of the portfolio of BlackRock Global Funds - US Flexible Equity Fund
Sector Allocation: BGF US Flexible Equity Fund Top 10 Stocks: BGF US Flexible Equity Fund Telecommunication Services 3.19% Utilities 3.02% Top 10 holdings (%) Consumer Staples 3.76% Materials 4.28% Information Technology 20.47% Apple Inc. 3.71 Exxon Mobil Corp. 2.59 Financials 5.26% Chevron Corp. 2.52 Industrials 7.84% Pfizer Inc. 2.27 Verizon Communications Inc. 1.91 Abbott Laboratories 1.70 Consumer Discretionary 19.25% ConocoPhillips 1.53 Microsoft Corp. 1.53 Energy 16.42% UnitedHealth Group Inc. 1.48 Health Care 16.49% Goldman Sachs Group Inc. 1.40 Source: BlackRock; Data as on May 31, 2012 Source: BlackRock; Data as on May 31, 2012 BlackRock: World’s Largest Asset Management Company One of the world’s pre-eminent asset management companies lGlobal trading capabilities enable BlackRock to source assets and lUSD 3.68 trillion assets under management with USD 1.74 trillion in negotiate favorable terms for investors equity assets lSuperior insights and perspective as an investor across the capital l Broad product range available through mutual funds, ETFs, structure in thousands of companies worldwide commingled funds, and separate accounts lRecognized as ‘go to’ leader in recent credit and liquidity crises l Fiduciary model/culture - no proprietary trading l BlackRock Solutions ® oversees USD 12 trillion in assets Investment insights gained at a local level & shared globally maximize l Financial Markets Advisory Group advises public and private financial investment opportunities for clients institutions on key assignments l Investment platform promotes knowledge sharing across the firm; l Dedicated transitions team helps clients change investment daily calls connect investment teams, linking the insights from up to exposure, minimizing risk and cost seven trading desks and 79 portfolio teams across asset classes and geographies Global footprint enables a deep understanding of local markets, l Nearly 10,000 employees, including more than 1,600 investment industries, and regulatory dynamics professionals, leverage the firm’s global resources l 24 investment centers worldwide facilitate access to major capital l Presence in 67 cities across 27 countries provides local experience markets and global expertise to a diverse client base Source: Internal, Bloomberg; as at Mar 31, 2012 DSP BlackRock US Flexible* Equity Fund: Scheme Features Name of Fund DSP BlackRock US Flexible* Equity Fund Exit Load For holding period from the date of allotment: (DSPBRUSFEF) < 12months: 1%, >= 12 months: Nil Type of Fund Open ended Fund of Funds Scheme investing in a Fund Managers Mr. Mehul Jani & Mr. Laukik Bagwe US Equity Fund Risk Factors 1. Risks associated with underlying schemes Benchmark Russell 1000 Index 2. Risks associated with overseas investments 3. Risks associated with investments in debt and Minimum investment Rs. 5,000/- and multiples of Re. 1/- thereafter money market instruments amount 4. Risks associated with transaction in Units through stock exchange mechanism Options Available Growth; Payout Dividend; Reinvest Dividend 5. Risks associated with trading in derivatives Please read the Scheme Information Document carefully for details on risk factors before investment. *The term “Flexible” in the name of the Scheme signifies that the Investment Manager of the Underlying Fund can invest either in growth or value investment characteristic securities placing an emphasis as the market outlook warrants. Prajna Capital www.dspblackrock.com Call 94 8300 8300 Now!Investment objective: The primary investment objective of DSP BlackRock US Flexible Equity Fund (Scheme) is to seek capital appreciation by investing predominantly in units of BlackRockGlobal Funds US Flexible Equity Fund (BGF - USFEF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes,which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSPBlackRock Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized. It shall benoted ‘similar overseas mutual fund schemes’ shall have investment objective, investment strategy and risk profile/consideration similar to those of BGF – USFEF The term “Flexible” in the .name of the Scheme signifies that the Investment Manager of the Underlying Fund can invest either in growth or value investment characteristic securities placing an emphasis as the marketoutlook warrants. Asset Allocation: Units of BGF – USFEF# or other similar overseas mutual fund scheme(s): 95%-100%, Money market securities and/or units of money market/liquid schemesof DSP BlackRock Mutual Fund: 0-5%, # in the shares of BGF – USFEF an Undertaking for Collective Investment in Transferable Securities (UCITS) III fund. Terms of Issue: Rs. 10/- per Unit. Min ,Investment – Rs. 5,000/- and multiple of Re. 1/- thereafter. Load Structure & Expenses: Entry Load – NIL Exit Load- For holding period from the date of allotment: <12 months: 1%; >= 12months: Nil. Investor Benefits & General Services: During Continuous Offer, sale (at Purchase Price) and redemption (at Redemption Price) on all Business Days (Redemption normally within 5Business Days). SIP SWP STP & Nomination facilities available. If the SEBI limits for overseas investments allowed to the Fund are expected to be exceeded, the NFO may be closed / , ,subscriptions and switches into the Scheme (During Continuous Offer) may be temporarily suspended / SIP/STP into the Scheme may be terminated. Declaration of NAV for each Business Dayby 10 a.m. of the next Business Day. Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt.Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSP BlackRock InvestmentManagers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Schemes’ objectives will beachieved. As with any investment in securities, the NAV of Units issued under the Schemes can go up or down depending on the factors and forces affecting capital markets. Pastperformance of the sponsor/AMC/mutual fund does not indicate the future performance of the Schemes. Investors in the Schemes are not being offered a guaranteed or assured rate of return.The Schemes are required to have (i) minimum 20 investors and (ii) no single investor holding>25% of the corpus of the Schemes. In case of non-fulfillment of the condition of minimum 20investors, the investor’s money would be refunded, in full, immediately after the close of the New Fund Offer Period. In case of non-fulfillment with the condition of 25% holding by a singleinvestor on the date of allotment, the application to the extent of exposure in excess of the 25% limit would be rejected, and the allotment would be effective only to the extent of 25% of thecorpus collected. The name of the Scheme does not in any manner indicate the quality of the Scheme, its future prospects or returns. For detailed Schemes specific risk factors, pleaserefer the relevant Scheme Information Document (SID). For more details, please refer the Key Information Memorandum cum Application Forms, which are available on the website,www.dspblackrock.com, and at the ISCs/Distributors. DSP BlackRock Mutual Fund has used information that is publicly available including information developed in-house. Informationgathered 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 anyinformation. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.