SBI Magnum Equity Fund: An Open Ended Growth Scheme - Feb 2016
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Transcript of SBI Magnum Equity Fund: An Open Ended Growth Scheme - Feb 2016
*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 investment.
Investments in high growth companies
along with the liquidity of an open-ended
scheme through investments primarily in
equities.
Introduction
WHY LARGE CAP?
INVESTMENT MANAGEMENT PROCESS
SBI MAGNUM EQUITY FUND
CURRENT POSITIONING OF THE FUND
PERFORMANCE ANALYSIS
FUND STATISTICS
SYNOPSIS
FUND MANAGER BIOGRAPHIES
Why Large Cap?
Large caps are generally more consistent & stable
compared to small caps. While they may not generate aggressive returns , one may not see large declines in them either
Source: Bloomberg
Past performance may or may not be sustained in future
Data as on February 29, 2016
In a downward trending market, large caps tend to outperform mid and small caps Large caps generally recover faster than small and mid cap stocks
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
2009 2010 2011 2012 2013 2014 2015
Annual Returns
S&P BSE Large Cap S&P BSE Mid Cap S&P BSE Small Cap
90
100
110
120
130
140
150
160
170
180
Feb/1
4M
ar/
14
Apr/
14
May/1
4Ju
n/1
4Ju
l/14
Aug/1
4Sep/1
4O
ct/
14
Nov/1
4D
ec/1
4Ja
n/1
5Feb/1
5M
ar/
15
Apr/
15
May/1
5Ju
n/1
5Ju
l/15
Aug/1
5Sep/1
5O
ct/
15
Nov/1
5D
ec/1
5Ja
n/1
6Feb/1
6
Re-b
ased
to
10
0
S&P BSE Large Cap S&P BSE MID CAPS&P BSE SMALL CAP
Investment Management Process
Stock Universe
Quant Screening
Investment Universe
Fundamental analysis
Fund Mandate Risk ControlsPortfolio
A robust investment management process for portfolio construction to provide diversification as well as maintain a balance of risk: return
SBI Magnum Equity Fund
Macro Outlook
Sector Allocation
Stock Selection
TOP DOWN APPROACH STYLE BOX
FUND FEATURES
Growth Blend Value
Large
Mid
Small
Source: CRISIL Fund Analyser. Risk Free rate : Overnight Mumbai Interbank Outright Rate (6.96% as on 29/Feb/2016). Basis for Ration Calculation : 3 Years Daily Data Points
QUANTITATIVE ANALYSIS
Standard deviation 13.99%
Beta# 0.93
Sharpe ratio# 0.37
Total expense ratio (Regular)
2.08%
Total expense ratio (Direct)
1.48%
Fund Philosophy
• Currently a focused large cap fund• A concentrated portfolio ,investing in 25 to 40 stocks, yet offering adequate diversification benefit• Follows a top-down approach for investment, starting with analyzing the broader economic outlook, then
identifying the sectors & eventually narrowing down to stock selection
SBI Magnum Equity Fund: Portfolio Holdings
Data as on February 29, 2016
Top Sectors (%) Top 10 Holdings
Stock Name % of Total AUM
INFOSYS LTD. 9.66
HDFC BANK LTD. 9.36
ITC LTD. 6.46
STATE BANK OF INDIA 5.66
COAL INDIA LTD. 5.29
AXIS BANK LTD. 5.17
HCL TECHNOLOGIES LTD. 4.61
ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD.
4.30
KOTAK MAHINDRA BANK LTD. 4.03
ICICI BANK LTD. 3.23
30.29
17.26
8.81
6.47
6.46
6.43
6.21
5.29
2.33
2.19
2.16
- 5 10 15 20 25 30 35
FINANCIAL SERVICES
IT
ENERGY
SERVICES
CONSUMER GOODS
AUTOMOBILE
PHARMA
METALS
CHEMICALS
CEMENT & CEMENT PRODUCTS
INDUSTRIAL MANUFACTURING
Synopsis
Large caps are relatively consistent & stable compared to mid & small cap
SBI Magnum Equity Fund backed by robust investment management process
SBI Magnum Equity Fund: focused large cap fund investing into 25-40 stocks
Follows a top-down approach of investing
Record DateDividend
(in Rs./ Unit)
NAV(on the day of declaration
of dividend)
24-Apr-15 (Regular Plan) 6.00 31.75
24-Apr-15 (Direct Plan) 7.00 36.76
02-May-14 (Regular Plan) 4.00 27.88
14-Dec-12 4.00 32.22
28-Jan-11 3.50 28.44
31-Dec-09 5.00 29.27
07-Nov-07 5.00 36.61
Fund Statistics
FUND MANAGER Mr. R. SRINIVASAN
INCEPTION DATE JAN 01, 1991
BENCHMARK CNX NIFTY Index
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/-
Dividend History
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculatedfor dividend option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumedthat dividends declared under the scheme have been reinvested at the then prevailing NAV. Growth option introduced on27/11/2006. Additional benchmark as prescribed by SEBI for equity schemes is used for comparison purposes. Performance ofdividend plan for investor would be net of dividend distribution tax as applicable. Performance calculated for Regular Plan.
Performance
31-Dec-2014 to 31-Dec-
2015
31-Dec-2013 to 31-Dec-
2014
31-Dec-2013 to 31-Dec-
2014Since Inception
Absolute Returns (%)CAGR
Returns (%)PTP Returns
(INR)
SBI Magnum Equity Fund 2.43 42.65 5.54 14.84 318,516.59
Nifty 50 Index (Scheme Benchmark) -4.06 31.39 6.76 13.72 249,141.00
S&P BSE Sensex (Additional Benchmark) -5.03 29.89 8.98 13.94 261,369.00
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
31-Dec-2014 To 31-Dec-2015
31-Dec-2013 To 31-Dec-2014
31-Dec-2012 To 31-Dec-2013
Since Inception
SBI Magnum Equity Fund
Nifty 50 Index (SchemeBenchmark)
S&P BSE SENSEX (AdditionalBenchmark)
Performance of Schemes Managed by R. Srinivasan
31-Dec-2014 to 31-Dec-
2015
31-Dec-2013 to 31-Dec-
2014
31-Dec-2012 to 31-Dec-
2013Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Contra Fund -0.10 47.66 -1.75 20.45 215,501.85S&P BSE 100 Index
(Scheme Benchmark) -3.25 32.28 5.87 13.01 75,294.70S&P BSE Sensex
(Additional Benchmark) -5.03 29.89 8.98 11.54 60,648.20Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend optionand in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the schemehave been reinvested at the then prevailing NAV. Growth option introduced on 06/05/2005. Additional benchmark as prescribed by SEBI for equityschemes 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
31-Dec-2014 to 31-Dec-
2015
31-Dec-2013 to 31-Dec-
2014
31-Dec-2012 to 31-Dec-
2013
Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Emerging Businesses Fund 4.33 58.02 -7.87 21.82 92,919.50
S&P BSE 500 Index (Scheme Benchmark) -0.82 36.96 3.25 14.77 47,368.00
S&P BSE Sensex (Additional Benchmark) -5.03 29.89 8.98 14.68 46,964.30
Past performance may or may not be sustained in future. Returns (in%) other than since inception are absolute, calculated for growth optionand in INR are point-to-point (PTP) returns calculated on a standardinvestment of 10,000/-. Additional benchmark as prescribed by SEBI forequity schemes is used for comparison purposes. Performance calculatedfor Regular Plan.
31-Dec-2014 to 31-Dec-
2015
31-Dec-2013 To 31-Dec-
2014
31-Dec-2012 To 31-Dec-
2013
Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Magnum Global Fund 7.92 66.56 9.71 15.39 209,735.65
S&P BSE Midcap Index (Scheme
Benchmark) 7.43 54.69 -5.73 N.A. N.A.S&P BSE Sensex
(Additional Benchmark) -5.03 29.89 8.98 8.88 61,008.00
Past performance may or may not be sustained in future. Returns(in %) other than since inception are absolute, calculated for dividendoption and in INR are point-to-point (PTP) returns calculated on astandard investment of 10,000/-. It is assumed that dividends declaredunder the scheme have been reinvested at the then prevailing NAV.Growth option introduced on 27/06/2005. Additional benchmark asprescribed by SEBI for long-term equity schemes is used for comparisonpurposes. Performance calculated for Regular Plan. Performance ofdividend plan for investor would be net of dividend distribution tax asapplicable.
Performance of Schemes Managed by R. Srinivasan
Performance of Scheme Managed by R. Srinivasan & Dinesh Ahuja
31-Dec-2014 to 31-Dec-
2015
31-Dec-2013 to 31-Dec-
2014
31-Dec-2012 to 31-Dec-2013
Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Small and Midcap Fund –Growth 20.56 110.66 7.85 21.76 34,650.80
S&P BSE Small Cap Index (Scheme Benchmark) 6.76 69.24 -11.23 8.23 16,477.91
S&P BSE Sensex (Additional Benchmark) -5.03 29.89 8.98 7.88 16,138.33
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for growth optionand in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for equityschemes is used for comparison purposes. Performance calculated for Regular Plan
31-Dec-2014 to 31-Dec-
2015
31-Dec-2013 to 31-Dec-
2014
31-Dec-2012 to 31-Dec-2013
Since Inception
Absolute Returns (%)CAGR
Returns (%)
PTP Returns (INR)
SBI Magnum Balanced Fund –Growth 7.36 43.24 11.86 16.56 222,225.23
Crisil Balanced Fund Index (Scheme Benchmark) 0.48 25.34 6.05 N.A. N.A.
S&P BSE Sensex (Additional Benchmark) -5.03 29.89 8.98 10.31 72,895.00
Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for dividend optionand in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. It is assumed that dividends declared under the schemehave been reinvested at the then prevailing NAV. Growth option introduced on 25/05/2005. Additional benchmark as prescribed by SEBI for equityschemes is used for comparison purposes. Performance calculated for Regular Plan Performance of dividend plan for investor would be net of dividenddistribution tax as applicable. Performance calculated for Regular Plan
• Mr. Navneet Munot
Navneet joined SBIFM as a Chief Investment Officer in 2008. In his current role as CIO, Navneet is
responsible for overseeing investments across various asset classes worth over USD11 billion. His
prior stint was with Morgan Stanley Investment Management as Executive Director and head- multi
strategy. Prior to Morgan Stanley, Navneet was the Chief Investment Officer - Fixed Income and
Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Navneet was associated with the
financial services business of the Birla group for 14 years and worked in various areas such as fixed
income, equities and foreign exchange.
Navneet holds masters degree in accountancy and business statistics from University of Ajmer and
is a Chartered Accountant from ICAI. He is a charter holder of the CFA Institute, USA and CAIA
Institute, USA. He is also a FRM charter holder of 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
SBI Funds Management Private Limited
63% 37%
• India’s premier and largest bank with
over 200 years experience (Estd: 1806)
• Asset base of USD 399 bn*
• Pan-India network of ~22,972 branches
and ~ 50,000 ATM’s as at end of Dec
2014
• Servicing over 256 million customers
• Global leader in asset management
• Backed by Credit Agricole and Société
Générale
• More than 2,000 institutional clients and
distributors in 30 countries
• Over 100 million retail clients via its partner
networks
• € 866 bn AuM as at end of December 2014#
*Source: SBI Analyst Presentation as on end December 2014# Source : Amundi website as on end December 2014
SBI Funds Management: India’s First Bank Sponsored Funds
Source: SBI Funds Management Private Limited, AMFI; Average AUM (AAUM) for the quarter ending on December 31, 2015
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 ~ 4.09 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. 104405 crs
Wide
Distribution
Network
Experienced
Investment
Team
Extensive
Product
Range
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
International standards
Coherent monitoring
Group Advantage
25 years of experience
Both domestic and international strengths
Investors trust
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 fundunits/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 tobe confirmed before relying on them. These views alone are not sufficient and should not be used for the developmentor implementation of an investment strategy. It should not be construed as investment advice to any party. All opinionsand estimates included here constitute our view as of this date and are subject to change without notice. Neither SBIFunds Management Private Limited, SBI Mutual Fund nor any person connected with it, accepts any liability arising fromthe use of this information. The recipient of this material should rely on their investigations and take their ownprofessional advice