SBI Emerging Businesses Fund focuses on the theme of emerging businesses - businesses showing promise based on the growth potential arising out of export/outsourcing opportunities or global competitiveness.The fund also evaluates Emerging Businesses with growth potential and domestic focus. To know more about this mutual fund check SBI Mutual Fund page
https://www.sbimf.com/Products/EquitySchemes/MSFU_-_Emerging_Businesses_Fund.aspx
SBI Emerging Businesses Fund: An Open-ended Equity Fund - Sep 16
1.
2. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product Labeling
This product is suitable for investors
who are seeking*:
Riskometer
Long term capital appreciation.
Investments in in companies that are
considered emergent and have export
orientation/ outsourcing opportunities or
globally competitive to participate in
growth potential of Indian businesses
potential to provide investors maximum
growth opportunity.
3. Capital Agnostic: Flexible
• Large, mid & small caps usually follow the same market trend
• However, during times of volatility, large caps have comparatively been more consistent; whereas, when
markets rally, mid & small caps have taken the lead
SBI Emerging Businesses Fund is a market capitalization agnostic fund; it may invest into large, mid and/or
small cap stocks in any proportion based on the market conditions making the most of different market
phases.
Source: Bloomberg. As on date: Sep 30, 2016.
* 2016 returns are YTD 2016
-50%
0%
50%
100%
150%
2009 2010 2011 2012 2013 2014 2015 2016*
Annual Returns
S&P BSE Large Cap S&P BSE Mid Cap S&P BSE Small Cap
4. High Conviction: Focused Approach
• The portfolio invests in 20-30 stocks based on return expectationsHigh Conviction
• The current top 10 holdings amount to 61.7%Concentrated
• Since there are no sector holding limits, the portfolio is more flexible thereby
allowing the fund manager to hold the sectors that the fund manager believes
are the best suited for the portfolio
Flexibility
5. Bottom-up
Sell - Side
Primary
Research
Management
Interaction
Earnings ModelStress Testing
Valuations
Quantitative Tools
Bottom Up Strategy
The fund has the flexibility to invest across market caps. However, to maintain liquidity on a portfolio basis, we
maintain a meaningful proportion in large caps
Bottom Up: Stock selection is from a bottom up perspective which uses a combination of factors including
business model, profitability, growth, management and valuations
6. Five Pillars of Bottom-up Stock Picking
Management:
Integrity, Capability
Consistency
Growth: Cyclicality,
Scalability,
Sustainability
Business Model:
Competitive Edge,
Market share, Brand
Franchise
Valuations:
Absolute valuations;
relative to historic
valuations & peers
Returns on Capital:
Past record,
sustainable drivers
A combination of the above factors are considered for stock picking under the bottom-up approach for mid & small
cap stocks
7. SBI Emerging Businesses Fund
Current Strategy
An actively managed, diversified equity portfolio, currently skewed towards mid and small caps given the
sheer size of the population available in this space and the price-value arbitrage due to lower coverage
The fund has no sector holding limits & may invest in any sectors as per the market view.
Since liquidity risks are technically higher and investment is made from a 3-year perspective. To offset this
liquidity risk, between one-fourth to one-fifth of the portfolio is into pure large caps (including cash, which
has an upper ceiling of 10%)
Source: CRISIL Fund Analyse
Risk Free rate : FBIL Overnight Mumbai Interbank Outright Rate 6.50% as on 30/Sep/2016.
Basis for Ration Calculation : 3 Years Daily Data Points
Quantitative Data Ratio
Standard Deviation 13.73%
Beta 0.75
Sharpe Ratio 1.42
Expense Ratio (Regular Plan) 2.11%
Expense Ratio (Direct Plan) 1.42%
8. Asset Allocation
Fund Details
Currently portfolio skewed towards mid cap stocks
Sector Exposure (%)
Data as on 30.09.2016
Higher concentration on Services, Consumer Goods
and Financial Services
20.23
19.42
17.41
14.59
12.36
6.28
3.49
3.43
0 5 10 15 20 25
Services
Consumer Goods
Financial Services
Industrial Manufacturing
Pharma
Chemicals
Healthcare
Automobile
Large Cap,
30.3%
Mid Cap,
53.6%
Small Cap,
13.3%
Cash, 2.8%
9. Funds Details
Top 10 Holdings Dividend History
Top 10 stocks comprise 61.74% of the fund
Data as on 30.09.2016
Past performance may not be sustained in the future. Pursuant to payment of dividend, the NAV of Dividend
option of scheme/plan would fall to the extent of payout and statutory levy, if applicable.
Face Value: Rs. 10/-
Past performance may or may not be sustained in future.
Stock Name
% of Total
AUM
HDFC BANK LTD. 9.84
PROCTER & GAMBLE HYGIENE AND HEALTH CARE
LTD.
9.39
DIVI'S LABORATORIES LTD. 9.05
SOLAR INDUSTRIES INDIA LTD. 6.28
ELGI EQUIPMENTS LTD. 5.33
THE GREAT EASTERN SHIPPING CO. LTD. 5.25
3M INDIA LTD. 4.61
KOTAK MAHINDRA BANK LTD. 4.29
SUPREME INDUSTRIES LTD. 3.86
ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD. 3.83
Record Date
Dividend
(in Rs./ Unit)
NAV
(on the day of
declaration of
dividend)
07-Apr-16
(Regular Plan)
2.00
07-Apr-16
(Direct Plan)
2.50
28-Nov-14
(Regular Plan)
2.70 21.2616
26-Apr-13
(Regular Plan)
2.50 15.3680
30-Mar-12 2.50 14.37
30-Jul-09 2.50 11.47
28-Mar-08 2.50 18.14
31-Oct-05 5.10 17.74
10. Synopsis
MAGNUM SECTOR
FUNDS UMBRELLA -
EMERGING
BUSINESSES FUND
High Conviction portfolio,
concentrated portfolio with no
sector bias
Bottom -up stock picking
approach for Mid & Small Caps
The scheme is ideal for investors who
would like to invest for long-term
capital appreciation
Market Capitalization
agnostic, may invest into
Large, Mid or Small caps
11. Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated
for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional
benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance calculated for Regular Plan.
Performance
30-Sep-15 to 30-
Sep-16
30-Sep-14 to 30-
Sep-15
30-Sep-13 to 30-
Sep-14
Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP Returns
(INR)
SBI Emerging Businesses Fund 15.98 10.02 65.20 21.48 1,04,220
S&P BSE 500 Index (Scheme Benchmark) 11.45 3.19 44.92 14.69 52,118
S&P BSE Sensex (Additional Benchmark) 6.54 -1.79 37.41 14.32 50,108
-10
0
10
20
30
40
50
60
70
30/09/2015 to
30/09/2016
30/09/2014 to
30/09/2015
30/09/2013 to
30/09/2014
Since Incpetion
SBI Emerg Buss Fund - Growth
S&P BSE 500
S&P BSE Sensex
12. Performance of Schemes Managed by R. Srinivasan
30-Sep-15
to 30-Sep-
16
30-Sep-14
to 30-Sep-
15
30-Sep-13 to
30-Sep-14 Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP
Returns
(INR)
SBI Magnum Equity
Fund
14.09 9.97 44.99 14.93 3,60,298
Nifty 50 Index
(Scheme Benchmark)
8.33 -0.20 38.87 13.65 2,70,012
S&P BSE Sensex
(Additional
Benchmark)
6.54 -1.79 37.41 13.79 2,78,895
Past performance may or may not be sustained in future. Returns
(in %) other than since inception are absolute, calculated for dividend
option and in INR are point-to-point (PTP) returns calculated on a
standard investment of 10,000/-. It is assumed that dividends declared
under the scheme have been reinvested at the then prevailing NAV.
Growth option introduced on 27/11/2006. Additional benchmark as
prescribed by SEBI for equity schemes is used for comparison purposes.
Performance calculated for Regular Plan Performance of dividend plan for
investor would be net of dividend distribution tax as applicable.
Performance calculated for Regular Plan
30-Sep-15
to 30-Sep-
16
30-Sep-14 to
30-Sep-15
30-Sep-13
to 30-Sep-
14
Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP
Returns
(INR)
SBI Magnum
Global Fund
9.71 18.77 77.70 15.28 2,28,870
S&P BSE Midcap
Index (Scheme
Benchmark)
21.92 13.31 70.00 N.A. N.A.
S&P BSE Sensex
(Additional
Benchmark)
6.54 -1.79 37.41 8.88 65,092
Past performance may or may not be sustained in future. Returns
(in %) other than since inception are absolute, calculated for dividend
option and in INR are point-to-point (PTP) returns calculated on a
standard investment of 10,000/-. It is assumed that dividends declared
under the scheme have been reinvested at the then prevailing NAV.
Growth option introduced on 27/06/2005. Additional benchmark as
prescribed by SEBI for long-term equity schemes is used for comparison
purposes. Performance calculated for Regular Plan. Performance of
dividend plan for investor would be net of dividend distribution tax as
applicable.
30-Sep-15 to 30-
Sep-16
30-Sep-14 to
30-Sep-15
30-Sep-13 to 30-
Sep-14 Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP Returns (INR)
SBI Contra Fund 11.50 9.46 50.79 20.26 2,41,034
S&P BSE 100 Index
(Scheme Benchmark)
9.73 0.77 40.05 13.00 82,419
S&P BSE Sensex
(Additional Benchmark)
6.54 -1.79 37.41 11.43 64,708
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option
and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme
have been reinvested at the then prevailing NAV. Growth option introduced on 06/05/2005. Additional benchmark as prescribed by SEBI for equity
schemes is used for comparison purposes. Performance of dividend plan for investor would be net of dividend distribution tax as applicable.
Performance calculated for Regular Plan
13. Performance of Schemes Managed by R. Srinivasan
Performance of Scheme Managed by R. Srinivasan & Dinesh Ahuja
30-Sep-15 to 30-
Sep-16
30-Sep-14 to
30-Sep-15
30-Sep-13 to
30-Sep-14 Since Inception
Absolute Returns (%)
CAGR
Returns (%)
PTP Returns (INR)
SBI Small and Midcap Fund –
Growth
19.31 29.69 99.07 20.40 37,118
S&P BSE Small Cap Index
(Scheme Benchmark)
15.97 3.18 95.41 8.50 17,792
S&P BSE Sensex (Additional
Benchmark)
6.54 -1.79 37.41 8.00 17,219
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth option
and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for equity
schemes is used for comparison purposes. Performance calculated for Regular Plan
30-Sep-15 to 30-
Sep-16
30-Sep-14 to
30-Sep-15
30-Sep-13 to
30-Sep-14 Since Inception
Absolute Returns (%)
CAGR
Returns
(%)
PTP Returns (INR)
SBI Magnum Balanced Fund –
Growth
11.11 13.25 51.08 16.36 2,40,784
Crisil Balanced Fund Index
(Scheme Benchmark)
9.68 4.38 28.89 N.A. N.A.
S&P BSE Sensex (Additional
Benchmark)
6.54 -1.79 37.41 10.27 77,775
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend option
and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the scheme
have been reinvested at the then prevailing NAV. Growth option introduced on 25/05/2005. Additional benchmark as prescribed by SEBI for equity
schemes is used for comparison purposes. Performance calculated for Regular Plan Performance of dividend plan for investor would be net of dividend
distribution tax as applicable. Performance calculated for Regular Plan
14. NAV of the schemes Managed by the Fund Manager
Scheme Name 30/09/2016 30/09/2015 30/09/2014 30/09/2013
SBI Emerging Bussinesses Fund - Growth 104.2198 89.8634 81.6823 49.4435
SBI Magnum Equity Fund - Growth 83.5371 73.2232 66.5835 45.9215
SBI Magnum Global Fund 94 - Growth 146.4535 133.4901 112.3929 63.2499
SBI Contra Fund - Growth 95.2542 85.4287 78.049 51.7607
SBI Small & Midcap Fund - Growth 37.1177 31.1101 23.9882 12.05
SBI Magnum Balanced Fund - Growth 105.0945 94.5893 83.5216 55.2837
Performance of Schemes Managed by R. Srinivasan
15. • Mr. Navneet Munot
Mr. Navneet Munot joined SBI Funds Management Pvt. Ltd. as Chief Investment Officer in Dec.
2008. Prior to SBIFM he was the Head of Multi Strategies fund at Morgan Stanley Investment
Management before which he worked as the Chief Investment Officer (Fixed Income and Hybrid
Funds) of Birla Sun Life Asset Management Company Ltd. 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. Srinivasan joined SBI Funds Management as a Senior Fund Manager in May 2009, now heads
equities and also directly manages a few funds. He has an experience of nearly 20 years in capital
markets having worked with FCH, Principal PNB, Oppenheimer & Co, Indosuez WI Carr and Motilal
Oswal, among others. Srinivasan is a post graduate in commerce and has done his MFM from the
University of Bombay.
Biographies
16. SBI Funds Management Private Limited
63% 37%
India’s premier and largest bank with over 200
years experience (Estd: 1806)
Asset base of USD 445 bn*
Pan-India network of ~23,010 branches and
57,986 ATM’s as at end of December 2015
Servicing over 299 million customers
Only Indian bank in Fortune 500 list; ranked
among the top 100 banks in the world
Global leader in asset management
Backed by Credit Agricole and Amundi, the parent
company of Amundi Asset Management listed in
Euronext Paris
More than 2,000 institutional clients and distributors in
30 countries
Over 100 million retail clients via its partner networks
USD 1114 bn AuM as at end of June 2016
Ranking No 1 in Europe, Top 10 worldwide #
Source: SBI Analyst Presentation as on end June 2016. USD 1 = INR 67.03
# Source : Amundi website as on end June 2016
17. SBI Funds Management: India’s First Bank Sponsored Funds
Source: SBI Funds Management Private Limited, AMFI; Average AUM (AAUM) for the quarter ending on June 30, 2016
Established in 1987: A leading asset manager in India
• Expertise in managing assets across mutual funds,
segregated managed accounts, domestic advisory and
offshore advisory business
• Multiple asset classes ranging from equities and debt,
money market to ETFs and structured funds
• Investment team of 33 professionals with strong track
record
• Broad customer base with ~ 4.60 million folios related to
individual, corporate and institutional investors
Broad
Investor
Base
AUM
USD 14.09 bn
Wide
Distribution
Network
Experienced
Investment
Team
Extensive
Product
Range
Broad
Investor
Base
AAUM
Rs. 125415 crs
Wide
Distribution
Network
Experienced
Investment
Team
Extensive
Product
Range
18. SBIFM: A Complete Framework
Expertise
Highly experienced
team
Strong industry
relations
Complete in-house
research
Processes
Structured &
Disciplined
Rigorous investment
templates
Agility with Flexibility
Risk
Management
Six member
independent team
Coherent monitoring
Group
Advantage
25 years of experience
Both domestic and
international strengths
Investors trust
19. Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund
units/securities. The views expressed herein are based on the basis of internal data, publicly available information &
other sources believed to be reliable. Any calculations made are approximations meant as guidelines only, which need to
be confirmed before relying on them. 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, SBI Mutual Fund 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
Editor's Notes
When the markets have an upwards rally, its usually small & mid caps that lead
Large caps generally rise slower & also fall lesser; low risk: low returns
EBF is a capital agnostic fund, which means it can invest into large mid & small cap in any combination
However, in practice, it usually has a mid & small cap bias & large cap is usually held for liquidity purposes
The portfolio will have a focused approach holding 20-30 stocks due to which each stock will have meaningful weightage.
Hence, any upside in the particular stock will have a noticeable impact on the portfolio performance & vise-versa.
Currently, highest stock holding is 7.03%, 18 out of 25 stocks have at least 2% or above allocation & all expect one stock have above 1% allocation.
The fund can invest up to 10% in any stock.
The fund manager may invest into any sector in any proportion as there are no sector limits, this gives him the freedom to buy stocks that he is most convinced about regardless of the sector weightage.
Bottom-up approach is the key strategy of this portfolio as it is biased towards small & mid-cap
The fund manager analyses & filters the stocks based on the above parameters & eventually picks up the stocks
The sectors weightages/over-weights/ under-weights are an outcome of the stocks (mid & small cap) that are picked in the portfolio
The above are the key parameters based on which the stocks are picked
The stock picking could be based on an evaluation of a combination of any of the parameters or all of them
For eg: A company may have a business model with an unique core competency, & good future growth prospects which is driven by a very capable management. The fund manager may pick this particular stock even if he may get it at a relatively higher valuation if he has enough conviction in the stock.
EBF is a blend in capitalization style as well as a blend of growth & value.
Since EBF is a mid & small cap biased fund, it tends to have a higher standard dev & beta, compared to a large cap fund