IC ICIC ICI I Prud udent ential ial Val alue ue Fun und d – Se Seri ries es 16 16 th July th Augu NFO Perio iod: : 24 24 th ly 201 017 7 to to 7 th gust st 201 017 All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time. The recipient of this material is solely responsible for any action taken based on this material. The he inf infor orma mation ion herein herein is is sole solely ly fo for priva rivate circ irculat ulation ion and and for or read reading/und ing/understa rstanding nding of of reg registere istered Adv dviso isors/Distribut rs/Distributors ors and and should should no not be be circ irculat ulated ed to to inve vest stor ors/p s/prosp ospec ective ive inve vestor stors.
Our Outlook for Indian Equity Market From a global context, India stands out for three reasons – stable macros, prudent fiscal and monetary policies, and gradual but steady pace of reforms. With the implementation of Goods and Services Tax (GST), there is huge expectation of the tax base increasing and a larger part of the economy coming under taxation. We recommend that investors can continue to maintain over-weight exposure in equities. Reasonable growth is expected from equity markets over the next two-to- three years. The information herein is solely for private circulation and for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective 2 investors.
Emerging Markets Flows – India among favourite destination 12 Months Flows (in US$ mn) 3 Months Flow (in US$ mn) India has seen robust FII inflows so far this year. Better relative macro indicators are the reason of attracting higher % share. Source: Kotak Institutional Equity, Press Reader. The information herein is solely for private circulation and for reading/understanding of registered Advisors/Distributors and should 4 not be circulated to investors/prospective investors. FII: Foreign Institutional Investors
India Story - Corporate Profitability Likely to Pick Up 12% 12% Average Profit/GDP% 10% 10% 8.0% 8% 8% 6% 6% Prof Profits / GDP GDP % 4% 4% 2% 2% 0% 0% 1991 1991 1992 1992 1993 1993 1994 1994 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017e Due to low capacity utilisation, the Corporate profitability has been muted. Data Source: Morgan Stanley March 31, 2017, E : Estimate, The infor formation mation herein in is sole lely ly for priva vate circula lation tion and d for readin ding/ g/unde derstan standin ding g of regis giste tered 4 Advisor visors/Dis Distr tribu ibutor tors s and d shou ould ld not t be circula late ted d to inve vestor stors/ s/pr prospe ospectiv tive inve vestor stors.
India Story - Capacity Utilization below Long Term Average Cap apacity ity Utiliz lizatio ation( n(%) %) Long Term Average 90.0 86.3 82.6 82.2 79.2 76% 74.1 73.8 73.5 73.5 73.3 72.8 72.6 70.2 69.0 68.8 67.7 The capacity ity utili lisat atio ion is below w the long ng term average of 76%. %. As demand and increas ases, the corporat ates may be able to manu nufac actur ture more witho hout spend nding ing additi tional nally ly to build ld capacit ity. This may result t in highe her operat ating ing leverage. 5 Data as on April 30 2017, Source: Bloomberg. The information herein is solely for private circulation and for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.
Equity Valuation Index – We are in the Mid Cycle Equity ity Valuation tion Index 160 As Global 140 Book Profit its / Stay Invested uncertainties cannot be ruled out, near 120 105 Current nt Zone – Invest t in term volatility can be funds which h limit its down wnsid ide 100 expected. Hence, investor could Invest in Equiti ities 80 consider investing in funds which limit 60 Aggressiv ively ly Invest downside due to in Equiti ities volatility. 40 Equity Valuation index is calculated by assigning equal weights to Price-to-Earnings (PE), Price-to-Book (PB), G-Sec*PE and Market Cap to GDP ratio. G-Sec – Government Securities. GDP Equity Va Valuation ind ndex is calculated by by assi signing equ qual weights to o Price-to to-Earnings (PE) E), Price-to to-Book (PB) B), G-Sec*PE and nd Market Cap to o GDP rati tio. G-Sec – Gross Domestic Product; SIP – Systematic Investment Plan, The infor ormation on herein n is solely y for priva vate circu culation on and for reading/un ng/unde derstandi nding ng of registered d Adviso sors/ s/Distri stributors butors and d 7 – Gov overnment Se Securities. GDP – Gross s Domestic Product shoul uld d not be circu culated d to inves vestor ors/ s/pr pros ospe pective ctive inves vestor ors. s.
Investor Behaviour at Mid Cycle of the Market S&P BSE Sensex Growth vs. Net Equity Flows 37000 14000 Investors tend to invest more when market is in 32000 uptrend. 9000 27000 Investors tend to invest S&P BSE SENSEX less when market is in Rs Cr.) 4000 recovery phase 22000 Net (Rs 17000 -1000 12000 -6000 7000 2000 -11000 Net(Cr.) S&P BSE Sensex Data source: MFI. As on June 30, 2017 The information herein is solely for private circulation and for reading/understanding of registered Advisors/Distributors and should not be circulated to investors/prospective investors.
Presenting - ICICI Prudential Value Fund – Series 16 ICICI Prudential Value Fund - Series 16 invests in equities with an aim to limit the downside. follows Multicap approach uses hedging strategy to limit the downside Mix x of Equi quity ty and d Hedgi dging ng position sition to Stock ock Selection lection Debt bt manage nage Equity uity Risk Invest in debt Use Hedging Multicap when equity positions, when Approach valuations are valuations are expensive expensive The asset allocation and investment strategies will be as per Scheme Information Document of the Scheme, The informatio rmation n herein in is solely ly for private ate 8 circulatio ulation and for reading ing/und underst rstan anding ing of regist istered red Adviso visors/Dist rs/Distrib ributo utors rs and should uld not be circulated ulated to invest stors/p rs/pro rosp spective ive invest stors. s.
Wh Why ICICI I Prud udent ential ial Value ue Fund nd - Series es 16? As we are in the midst of economic uptrend and investors could participate in the equity market with a conservative approach The fund aims to limit downside by using hedging strategy and counter cyclical investment approach Earnings cycle is yet to improve and most micro indicators have just started picking-up Stock specific value investing opportunities are available Value/Contra investing approach could be a prudent way forward The infor orma mation ion herein in is solely ly for private ate circulat ulation ion and d for readin ing/u /under nderst stan andin ing of registere stered d Advisors sors/Dist Distribut ributors rs and should ould not be circu culat lated to invest stors/ s/prosp spect ectiv ive inves estors tors. 9
ICICI Prudential Value Fund – Series 16 – Key Themes Businesses Shifting From Information Unorganised to Organised Pharmaceutical Banking Infrastructure Technology Segment of the Economy The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). The asset allocation and investment strategy will be as per Scheme Information Document, The informatio rmation n herein in is solely ly for 10 privat vate circulatio ulation n and for reading ing/un underst rstand anding ing of regis istered red Adviso isors/Dist rs/Distrib ribut utors rs and should ld not be circulated ulated to invest stors/ rs/prosp spective tive invest stors. rs.
Infrastructure Sector Valuations Still Reasonable (Calendar Year Return %) 100 80 Sector r has underpe rperf rform ormed d the 60 broade ader r market in the l last 10 years 40 10 Years ars Index Absolute ute % % 20 0 Nifty ty 50 129.61 61 -20 -40 Nifty ty Infras astru tructur cture -9.89 89 -60 Nif Nifty 50 ty 50 Nifty In Nif ty Infr frastr tructu ucture re The sector(s)/stock(s) mentioned in this presentation do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future position in these sector(s)/stock(s). Data as on 15 June 2017. Past performance may or may not be sustained in future, The infor ormation on herein n is solely y for priva vate circu culation on and for 11 reading/un ng/unde dersta standi nding ng of registered d Adviso sors/ s/Distribu butor ors and shoul uld d not be circu culated d to inves vestor ors/ s/pr pros ospe pective ctive inves vestor ors. s.
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