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SBI Blue Chip Fund Product Labeling This product is suitable for investors Riskometer who are seeking*: Long term capital appreciation. Investment in equity shares of companies whose market capitalization is at least equal to or more than the least market capitalized stock of S&P BSE 100 index to provide long term capital growth opportunities. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Index Why Large Caps & Why now? • SBI Blue Chip Fund • Investment Philosophy & Fund Details • Why Invest? • Performance •
Why Large Caps?
Large caps are relatively stable In the long term, large caps are usually more consistent than mid & small caps along with • a lower downside risk Rolling 3 year returns (2005 - 2017) 40.00% 30.00% 20.00% 8.02% 10.00% 13.07% 9.04% 0.00% -10.00% -20.00% -30.00% S&P BSE Large Cap S&P BSE Mid Cap S&P BSE Small Cap Past performance may or may not be sustained in future. Source: BSE India. The above chart depicts the high- average-low 3 year return (CAGR) of the specified indices. Period: September 16, 2005 to May 31, 2017
Large caps perform across market cycles Large caps perform in line with broader markets during bull markets • During a recessionary cycle, large caps are better equipped to withstand a slowdown • Performance across market cycles Rising Market Falling Market Rising Market Falling Market Rising Market (31-Dec-05 to 31-Dec-07) (31-Dec-07 to 31-Mar-09) (28-Feb-09 to 31-Oct-10) (31-Oct-10 to 30-Dec-11) (31-Dec-13 to 30-Jan-15) 215% 192% 158% S&P BSE Large Cap S&P BSE Mid Cap 129% 123% 118% S&P BSE Small Cap 67% 54% 40% -24% -36% -40% -53% -64% -72% Past performance may or may not be sustained in future. Source: BSE India. The performance depicted above are absolute returns.
Large caps have higher liquidity & lower drawdown Large caps are more widely traded making them more liquid than mid & small caps • Large caps usually have lower drawdowns than mid & small caps restricting the fall in • down markets Maximum Drawdown Average Volumes Traded (in lacs): 6 Months (Sep 2005 – May 2017) S&P BSE -61.6% Mid & Small Cap 3.14 Large Cap S&P BSE -71.0% Mid Cap Large Cap 35.48 S&P BSE -76.1% Small Cap Source: Bloomberg. All listed Indian securities have been utilised for classifying market cap. The top 100 companies have been classified as large cap & the rest as mid & small cap. Data as on May 31, 2017.
SBI Blue Chip Fund
Fund Positioning Diversified basket of equity stocks of companies whose market cap is at least equal to or • more than the least market capitalised stock of S&P BSE 100 index Allocation to large caps through bottom-up stock selection; currently large caps are • 77.7% of net assets Opportunistic allocation to high conviction midcaps; current allocation is 18% of net assets • Max cash allocation endeavoured to be capped at 10% • Benchmark: S&P BSE 100; Fund Manager: Ms. Sohini Andani • Investment perspective – medium to long term, 2-3 years • Growth Blend Value Cash Futures (Long) 4% 5% Mid Cap Large 18% Mid Large Cap 73% small
Investment Philosophy Bottom-up investment strategy along with focus on sector dynamics • Focus on alpha generation through better stock selection within a sector • Mid Caps (up to 20%): Large Caps (80 to 100%): Investment made with a 2-3 perspective Investment with a 1 year perspective Allocation based on better growth outlook & valuation gap with large caps Stock Selection Parameters Management with Valuations – Monitoring key consistent relative to own strategic performance in Change in leadership history & change in management terms of growth & growth profile decisions capital allocation
Fund Details Top 10 Equity Top 10 Sectors Holdings % of Sector % of Assets Holdings Assets FINANCIAL SERVICES 29.68 HDFC BANK LTD. 8.40 AUTOMOBILE 11.85 LARSEN & TOUBRO LTD. 4.76 CONSUMER GOODS 8.04 MAHINDRA & MAHINDRA LTD. 3.14 CONSTRUCTION 6.99 INFOSYS LTD. 3.13 ENERGY 6.74 UPL LTD. 3.09 IT 5.60 NESTLE INDIA LTD. 2.93 ITC LTD. 2.89 PHARMA 5.45 RELIANCE INDUSTRIES LTD. 2.85 FERTILISERS & PESTICIDES 4.50 STATE BANK OF INDIA 2.84 INDUSTRIAL MANUFACTURING 4.29 INDUSIND BANK LTD. 2.75 CEMENT & CEMENT PRODUCTS 3.72 Total 36.77 Total 86.86 Data as on 31.05.2017
Why Invest? Macro economic conditions are gradually recovering; 1 policy reforms have been initiated 2 FPIs continue investing into Indian equity Large caps stocks are relatively stable, low risk & liquid; 3 perform across market cycles SBI Blue Chip Fund - A Large cap fund with 4 opportunistic allocations to mid caps (up to 20%)
Performance 60 50 40 30 SBI Blue Chip Fund - Reg Plan - Growth 20 Scheme Benchmark: - S&P BSE 100 Additional Benchmark: - S&P BSE Sensex 10 0 31/03/2016 to 31/03/2015 to 31/03/2014 to Since inception -10 31/03/2017 31/03/2016 31/03/2015 -20 31/03/2016 to 31/03/2015 to 31/03/2014 to Since Inception 31/03/2017 31/03/2016 31/03/2015 PTP CAGR Absolute Returns (%) Returns Returns (%) (INR) SBI Blue Chip Fund – Growth 20.24 -1.60 48.30 11.49 33572.20 S&P BSE 100 Index (Scheme Benchmark) 21.17 -8.96 28.32 10.62 30741.90 S&P BSE Sensex (Additional Benchmark) 16.88 -9.36 24.89 10.16 29366.10 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. Source: MFI Explorer. Data as on 30/12/2015. Performance of other schemes managed by Ms Sohini Andani is given on next slide. Performance calculated for Regular Plan.
Performance of Schemes Managed by Sohini Andani 31/03/2016 to 31/03/2015 to 31/03/2014 to Since Inception 31/03/2017 31/03/2016 31/03/2015 Managing since Sep-2010 CAGR PTP Returns Absolute Returns (%) Returns (%) (INR) SBI Magnum Midcap Fund – Growth 27.64 1.28 64.11 18.13 73981.40 Nifty MidSmall 400 Index (Scheme Benchmark) 37.24 -4.48 58.80 N.A. N.A. S&P BSE Sensex (Additional Benchmark) 16.88 -9.36 24.89 13.65 46515.60 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. Source: MFI Explorer. Data as on 30/12/2015. Performance calculated for Regular Plan. NAV of the schemes managed by the Fund Manager Scheme Name 30/03/2017 31/03/2016 31/03/2015 31/03/2014 SBI Bluechip Fund - Growth 33.5722 27.9209 28.3756 19.1341 SBI Magnum Midcap Fund - Growth 73.9814 57.9603 57.2301 34.8722
Biographies Mr. Navneet Munot • Navneet joined SBIFM as Chief Investment Officer in 2008. In his role Navneet is responsible for overseeing investments across asset classes worth over $29.10 billion. His prior stint was with Morgan Stanley Investment Management as Executive Director and head- multi strategy boutique. Prior to that, Navneet was the Chief Investment Officer - Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Navneet had been 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 in accountancy and business statistics from the 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 an FRM charter holder of Global Association of Risk professionals (GARP). Ms. Sohini Andani • Ms. Sohini Andani joined SBI Funds Management Pvt. Ltd. as Head of Research in 2007 and was subsequently promoted as a portfolio manager in 2010. Prior to joining SBIFM, Sohini was a senior research analyst at ING Investment Management. Sohini has over 11 years of experience in research on the sell side. Her previous assignments were with leading broking outfits like ASK Raymond James, LKP Shares and Securities, Advani Share Brokers and KR Choksey Shares and Securities. Sohini is a commerce graduate from Mumbai University and a Chartered Accountant from ICAI
SBI Funds Management Private Limited Global leader in asset management India’s premier and largest bank with over 200 years experience (Estd: 1806) Backed by Credit Agricole and Amundi, the parent company of Amundi Asset Management listed in Asset base of USD 465bn* Euronext Paris Pan-India network of ~23,737 branches and More than 2,000 institutional clients and distributors in 59,108 ATM’s as at end of December 2016 30 countries Servicing over 299 million customers Over 100 million retail clients via its partner networks Only Indian bank in Fortune 500 list; ranked USD 1083 bn AuM as at end of December 2016 among the top 100 banks in the world Ranking No 1 in Europe, Top 10 worldwide # 63% 37% *Source: SBI Analyst Presentation as on end December 2016. USD 1 = INR 67.95 # Source : Amundi website as on end December 2016
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