idfc intro presentation - jan 2012
TRANSCRIPT
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Townhall Presentation
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Mutual Fund
About IDFC
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Established in 1997 by the Government of India to
lead private capital to commercially viable
infrastructure projects and to promote Public-
Private-Partnerships (PPP)
Listed in 2005 on the National Stock Exchange and
on the Bombay Stock Exchange
Key shareholders include Government of India,
Khazanah ( Govt of Malaysia), Govt of Singapore,
IFC, IDBI, LIC, CDC, and Nikko Cordial. Operates
as an independent commercial entity
Achieved compounded annual growth in loans of
45% from 20022008
History and Profile
Net Profit (US$ MN)
Key Statistics
Superior Financial Performance
Market capitalisation US$4.40bn
Total assets US$10.69bn
Assets under
ManagementUS$7.4bn
Employees 540
Financial Strength (as at 31 March 2011)
Capital adequacy ratio of 24.48%
Net NPA 0.1%
Rated AAA by ICRA
Note: Figures are as on March 31, 2011. Market Capitalisation as onJune 13, 2011.
IDFC Bridging the Infrastructure Gap
Performance of the sponsor has no bearing on the performance of the scheme
Mutual Fund
6683
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157 159
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2005 2006 2007 2008 2009 2010 2011
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Multiple Origination Channels and Leverage Over
Project SponsorsAdvisory and
Project DevelopmentAsset ManagementProject Finance Investment Banking
IDFC Portfolio Offering
Leading project finance franchise with 30% of debt f inancing market share
Proprietary deal access and unparalleled relationships with developers across the country
Strong fund management experience
Broad network of industry contacts
Strong government relationship and access to policy makers
Domain knowledge and
expertise
Unique deal platform
Deal referral and
sourcing
Superior deal visibility
Established relationships with
private developers
Strong advisory relationship
with the Government on
infrastructure policy issues
Largest Manager of Private
Equity Capital Focused on
Indian Infrastructure
IDFC Private Equity manages
three infrastructure focused
funds AUM of US$1.2bn
IDFC Project Equity manages
the India Development Fund
with AUM of $ 927 mn
IDFC Mutual Fund manages $
4.0 bn of funds under various
debt and equity schemes
Superior market share
Loan financing of
US$8.4bn across 220projects
In FY2008, IDFC
facilitated 30% of all
debt financing to
infrastructure projects
from Indian banks
Strong growth in loans to
infrastructure projects
Superior asset quality
IDFC SSKI has been
consistently rated as best
domestic brokerage house byAsia Money and Euro Money
Leading league table position
in India Syndicated Loans
In CY2007, was a Top
3 arranger in all
currencies
In CY2007 was the top
non-State Bank
arranger of Rupee
loans
*Performance of sponsor has no bearing on theperformance of schemes
Mutual Fund
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Mr. M. K. Sinha is the President and CEO of IDFC Project Equity which manages the India Infrastructure Fund (IIF) with a
target size of USD 1.25 billion. A prominent investment expert, he has over 18 years of international experience in privateequity, project finance, corporate finance and investment banking .
IDFC
The People (Asset Management)Dr. Rajiv Lall: MD and CEO at IDFC. Has over two decades of experience with Warburg Pincus, Morgan Stanley, World
Bank and Asian Development Bank. Dr. Lall is an economist from the Universities of Columbia and Oxford.
MD & CEO
Executive Director
Mr. Vikram Limaye: Executive Director and Member of the Board of Directors of IDFC. He has over two decades of
experience with Credit Suisse First Boston, Citibank, Ernst & Young and Arthur Anderson. He is a Chartered Accountantand an MBA from the Wharton School, University of Pennsylvania.
Mr. Naval Bir Kumar : President and CEO of IDFC Asset Management Company Limited. Has about two decades of
experience in Indian capital markets through his association with ANZ Grindlays and Standard Chartered Bank. He is a
rank holder in Mathematics from Bombay University and holds an MBA from the Indian Institute of
Management, Calcutta.
President & CEO, IDFC AMC
Managing Partner, IDFC Private EquityMr. Satish Mandhana, Managing Partner IDFC Private Equity. He has 28 years of private equity and corporate finance /
business strategy experience. Mr. Mandhana is a member of the Government of Indias Working Group on Power for the
Eleventh Plan (2007-12), and is a founding member of the Cleantech Forum in India. Passionate about promoting green
infrastructure, he received an MBA from the Faculty of Management Studies, Delhi University, and holds a BE degree in
Industrial Engineering from the Indian Institute of Technology (IIT), Roorkee.
President & CEO, IDFC Project Equity
Mutual Fund
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Mutual Fund
IDFC Asset Management Business
IDFC
IDFC AMC IDFC Project EquityIDFC Private Equity
Established in 2000
Acquired in 2008 from
Standard Chartered
Has got strategic promoter as
Natixis Global Asset
Management (NGAM) one of the
15 largest asset managers in the
world based on AuM
One of the fastest growing
fund house of the industry
Established in 2002
Manages a corpus of USD
1.33 Billion
Indias largest and most active
private equity fund focused on
infrastructure
Established in 2007
Manages the India
Infrastructure Fund (USD $ 927
Million)
President and CEO:
Mr. Naval Bir Kumar
Managing Partner:
Mr. Satish Mandhana
President and CEO
Mr. M. K. Sinha
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Mutual Fund
About IDFC AMC
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Mutual Fund
Aim to be one of the Top 5 player in the MF space
Invest in brand and distribution
Provides scale and relevance
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Mutual Fund
IDFC Asset Management Company (AMC)
IDFC AMC
IDFC Mutual Fund IDFC Pension FundIDFC Investment Advisors
Debt Equity StructuredProducts Domestic Offshore
Listed
Un-listedLong Only(Proposed)
Long - short
10th largest MF in India based on
Average AuM tally
Currently manages a corpus of Rs.
26,476 Crores as on December
31, 2011.
Target raising US$ 100 million inHybrid Infrastructure portfolio
Advisors to Indias largest domestic
multi manager fund
Advises off shore investors on Long-Short mandate
In the process of launching listed
PMS offering for domestic investors
Set up in April 2009 to manage thePension Fund for the un-organizedsector.
One of the Six Pension FundManagers selected by Pension FundRegulatory and DevelopmentAuthority of India (PFRDA)
Equity Corp Debt G-Sec
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PMS
1.Leverage IDFC knowledge roots
2. High margin product suite
3. Embedded profit share
4. Variety of asset classes
5. Builds share of mind among distributors
Margin expansion and build market image on knowledge
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Pension Fund
Nuclear families
Longer life spans
No social security
No retirement savings
Adds to brand building and retail connect
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AUM(
INR
bio)
Hybrid Equity Debt
that has a deep understanding of markets in generaland the Indian capital markets in particular
that has delivered strong investment managementperformance
that has redefined the Indian mutual fund industrywith product innovations
that partners Sales and Operations to help grow thebusiness and enhance brand
One of the largest Mutual Fund houses in India
Started off in 2000 as a debt fund house and
successfully transitioned into equity
Direct presence in 40 Indian cities and an indirect
presence in 208 Indian towns
Innovated successfully on the product and service
front
History and Profile Key Statistics
Superior Financial PerformanceA Qualified, Experienced Team
IDFC Asset Management Company Ltd.
MF Market Share: 3.88% (as on Jan. 31, 2012)
Closing AAuM as on December 2011 Rs. 26,476 Crs Debt: Equity = 82:18
No. of Employees: Over 179
Direct credit arrangement: 14 banks
Phone Transact
One phone number access from more than 950 cities
ISO 9001:2000 certification of Customer Services
Mutual Fund
CAGR: 46%
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Top Management Team- IDFC AMC
Kenneth Andrade, Head - Investments
Kenneth Andrade is the portfolio manager for IDFC-Premier, IDFC Imperial, IDFC Enterprise Equity Fund and
IDFC Small & Midcap Equity and IDFC Strategic Sector (50-50)Equity Fund.
Kenneth has over 14 years experience in equity research & fund management.
His last assignment was with Kotak Mahindra Mutual Fund
Sandeep Prabhani, Head Operations Sandeep has over 19 years of experience in Depository and Broking Operations.
In his last assignment with JP Morgan Services India Pvt Ltd, he was responsible for ensuring OTC
Derivative confirmations are tracked & resolved accurately, people management, mentoring and risk review
of operations
Sandeep has Master of Business Administration from Bajaj Institute in Bombay and Graduate in Science
(Physics) from Mumbai University.
Mutual Fund
Naval Bir Kumar, President & CEO
Naval has about two decades of experience in Indian capital markets through his association with ANZ
Grindlays and Standard Chartered Bank.
He is a rank holder in Mathematics from Bombay University and holds an MBA from the Indian Institute of
Management, Calcutta.
Kalpen Parekh, Deputy CEO & Head Sales & Marketing
Kalpen has over 12 years of experience in the Mutual Fund space.
Before joining IDFC AMC, Kalpen was with Birla SunLife AMC where he was Head Sales & Distribution
across Mutual Fund, PMS and Real Estate.
He holds a MMS degree from NMIMS, Mumbai and a BE from Bharti Vidyapeeth, Pune.
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The Investments Team- IDFC AMC
Kenneth Andrade, Head - Investments
Kenneth Andrade is the portfolio manager for IDFC-Premier, IDFC Imperial, IDFC Enterprise Equity Fund and
IDFC Small & Midcap Equity and IDFC Strategic Sector (50-50)Equity Fund.
Kenneth has over 14 years experience in equity research & fund management.
His last assignment was with Kotak Mahindra Mutual Fund
Tridib Pathak, Sr. Fund Manager Equity
Tridib Pathak is the Portfolio Manager for IDFC Classic Equity Fund and IDFC GDP Growth fund
Tridib is a Chartered Accountant and has over 19 years of experience in Project Finance, EquityResearch and Fund Management
His last assignment was with Lotus India Asset Management
Suyash Choudhary, Head Fixed Income Suyash is the portfolio manager for IDFC Super Saver Income Fund Invt. Plan; IDFC Dynamic Bond Fund;
Super Saver Income Fund Medium Term; Super Saver Income Fund Short Term; IDFC Govt. Securities
Fund; IDFC All Seasons Bond Fund
Suyash has a graduate degree from Delhi University & also a PGDM from IIM Calcutta
His last assignment was with HSBC Asset Management.
Mutual Fund
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Mutual Fund
IDFC AMC Investment Process
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PORTFOLIO DECISION ATTRIBUTERECOMMENDATION
ECONOMICFUNDAMENTALS
MARKETPSYCHOLOGY
MARKETVALUATIONS
MONEY SUPPLYDEPOSIT GROWTHFISCAL POLICYCREDIT GROWTHECONOMIC GROWTHINFLATION
POLICY & EVENT RISK
MONEY FLOW
INDIAN RUPEE
SENTIMENT
VOLUME TRADED
STEEPNESS OF YIELD
CURVE
OVERSEAS RATE
An objective decision making process insulates from excessive market noise
Fixed Income
3D Factor Process A proprietary decision making tool
Mutual Fund
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Idea generation
Macro Themes
Stock filters
Business Valuation Market interest
Great Business
Risk Control and Portfolio Construction
Industry
Business ROI
Management
Free float
Institutional interest
Research coverage
P/E vs growth
Sector / market P/E
DCF vs Enterprise value
Economic Value Add
Undervalued Stock Price Performance
Equity Circle encompasses the entire process from idea generation to portfolio riskmanagement
Equity
Equity Circle A proprietary decision making tool
Mutual Fund
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Mutual Fund
IDFC AMC Fund Positioning, Awards & Achievements
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Mutual Fund
IDFC
Cash Fund
IDFC
MM Fund
TP/IP
IDFC
SSIF
ST
IDFCSSIF
MT
Return
Duration (Risk)
IDFC
G-Sec Fund
IP
IDFC
SSIF
IP
Max 91 d 91365 d Max 3 yrs Max 5 yrs Longer MaturitiesMATURITY
IDFC AMC Debt Funds Positioning
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Large Cap
Top 75 Stocks
Mature Mid cap
Top 300 Stocks
Young High Growth
500 Stocks
Small & Mid-cap Equity Fund
Premier Equity Fund
IDFC AMC Equity Funds Positioning
Enterprise Equity Fund
Imperial Equity Fund
Strategic Sector (50:50) Equity Fund
Classic Equity Fund: Captures the breadth of the market
India GDP Growth Fund : Reflects Indias high GDP growth through a diversified portfolio
IDFC Classic Equity Fund Captures the breadth of the marketIDFC GDP Growth Fund Reflects Indias high growth through a diversified portfolio
IDFC Enterprise Equity Fund Tracks the index of the large cap stocks and invests in IPO opportunities
IDFC Imperial Equity Fund Active portfolio construction with large cap bias
IDFC Strategic Sector (50-50) Equity Fund Builds a portfolio with part concentration risk of a sector
IDFC Small and Mid cap Equity Fund (IDFC SMEF) Builds a portfolio of small and mid-cap companies
IDFC Premier Equity Fund Builds a portfolio of companies with strong tailwinds of cultural and societal trends
Mutual Fund
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Mutual Fund
Other Recognition
Funds across debt and equity recognized as Seven Star funds by ICRA awards (Dec 2011) IDFC Dynamic
Bond Fund & IDFC Premier Equity Fund.
We were also the winner of the NDTV Profit Mutual Fund Awards 2010 (IDFC Super Saver Income Fund
Medium Term Plan A : Runner up under Debt: Income category) and CNBC-TV18-CRISIL Mutual Fund
Awards Winners (IDFC Super Saver Income Fund - Medium Term under Income Funds - Short Term
category).
IDFC AMC rated as the Best Performing Fund House by the Economic Times (ET) Quarterly Mutual Fund
Tracker for Q1 and Q2 of FY 09-10.
The domestic research agency Value Research has given 5 Star rankings to Premier Equity Fund, IDFC Ultra
Short Term Fund, IDFC SSIF Medium Term Fund & IDFC Gov. Sec. Fund for the month of Jan. 2012. IDFC
Cash Fund, IDFC Money Manager Fund TP and IDFC Imperial Equity Fund has been ranked 4 Star.
The international research agency Morningstar has given 5 Star rankings to Premier Equity Fund, IDFC SSIF
Medium Term Fund, IDFC Cash Fund & IDFC Gov. Sec. Fund for the month of Jan. 2012. IDFC Cash
Fund, IDFC Money Manager Fund TP & IP, IDFC Dynamic Bond Fund and IDFC Imperial Equity Fund has
been ranked 4 Star.*Refer to the disclosure slide for greater detail on the awards
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Mutual Fund
Other Highlights
Full service AMC having products in all segments and catering to all investor segments
One of the fastest growing MFs in India in FY 2008-09
Among the Top 4 in terms of percentage growth in AuM
Among the few funds to get an ISO 9001:2000 certification for its entire range ofcustomer service activities.
The only MF to operate a PIN free Phone Transact system.
Working with best in class vendors for both front-end dealing and back-end fund
account and custody
Dealing system Bloomberg
Fund Accountants Deutsche Bank
Custodian Deutsche Bank
Selected as one of 6 AMCs to manage Pension Funds in India
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Mutual Fund
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Awards and Accolades
Mutual Fund
Best Equity Fund 2010 Front Runner SchemeIDFC Premier Equity Fund
Fund :IDFC Dynamic Bond Fund
Star ranking :7 Star(Best Performance amongThe 5 star Funds)
Category:Open Ended Debt Long Term(1 Year ending Dec 2011)
23
ICRA MF Awards 2011
Fund :IDFC Premiere Equity Fund
Star ranking :7 Star(Best Performance amongThe 5 star Funds)
Category:Open Ended Equity Mid & Small cap(1 Year & 3 years ending Dec 2011)
IDFC was named Asset Manager of the Year byAsian Investor Magazine, for our work in privateequity, mutual funds and sustainable investments inemerging markets.
In the Equity Category: Business World awardedus the Smartest Fund Manager (Kenneth
Andrade, Chief Investment Officer- the SmartestFund Managerand his fund IDFC Premier equityFund-the Best Mid cap and Small cap fund) - atestimony of our innovative and efficient approach tomanaging assets.
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Thank You
Mutual Fund
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Mutual Fund
Disclaimers & Risk FactorsICRA Online Mutual Fund Awards:
IDFC Dynamic Bond Fund has been ranked as a Seven Star Fund in the category of Open Ended Debt Long Term schemes for its 1 year performance till December 31, 2011.The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, fund size, sector concentration, credit indicator and average maturity.The ranking methodology did not take into account loads imposed by the Fund. There were 25 schemes considered in Open Ended Debt Long Term category for the ranking exercise. Therank is neither a certificate of statutory compliance nor any guarantee on the future performance of IDFC Dynamic Bond Fund
IDFC Premier Equity Fund has been ranked as a Seven Star Fund in the category of Open Ended Equity Mid & Small Cap schemes for its 1 year performance till December 31, 2011.The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, company concentration, sector concentration, Liquidity Analysis andFund size. The ranking methodology did not take into account loads imposed by the Fund. There were 36 schemes considered in Open Ended Equity Mid & Small Cap category for theranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of IDFC Premier Equity Fund.
IDFC Premier Equity Fund has been ranked as a Seven Star Fund in the category of Open Ended Equity Mid & Small Cap schemes for its 3 year performance till December 31, 2011.The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, company concentration, sector concentration, Liquidity Analysis andFund size. The ranking methodology did not take into account loads imposed by the Fund. There were 27 schemes considered in Open Ended Equity Mid & Small Cap category for the
ranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of IDFC Premier Equity Fund.Ranking Source & Publisher: ICRA Online Limited
Morningstar Ranking Disclaimer:
This Morningstar-sourced information is provided to you by IDFC AMC and is at your own risk. Morningstar is not responsible for any damages or losses arising from any use of this information. Also,this information must not be relied upon without ppropriate verification. IDFC AMC informs you as follows: (i) no investment decision should be made in relation to any of the information providedother than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results;and (iii) the value and income derived from investments can go down as well as up.
The Morningstar fund rating methodology is based on a fund's risk-adjusted return within a given Morningstar category. Morningstar ratings are calculated every month for the 3 year, 5 year and 10year period. Within each rating period, the top 10% funds receive a five star rating, the next 22.5% earn a four star rating, the next 35% get three stars, the next 22.5% receive two stars, and thebottom 10% get one star. Loads are not considered for the rating purpose. The rating is based on NAV provided by respective funds. The current fund rating is for the 3 year period as of Dec 31st,2011. IDFC Premier Equity Fund Growth has been rated 5-Star fund in the category of Small/Mid Cap schemes (143 Schemes), IDFC Sterling Equity Fund Growth has been rated 4-Star fund in thecategory of Small/Mid Cap schemes (143 Schemes), IDFC Imperial Equity Fund Growth has been rated 4-Star fund in the category of Large Cap schemes (314 Schemes), IDFC Dynamic Bond FundGrowth has been rated 4-Star fund in the category of Intermediate Bond schemes (148 Schemes), IDFC Gov Sec PF Fund Growth has been rated 4-Star fund in the category of Intermediate
Government schemes (72 Schemes), IDFC SS Inc M/T Fund Growth has been rated 4-Star fund in the category of Short-term Bond schemes (97 Schemes), IDFC SS Inc IP Fund Growth has beenrated 4-Star fund in the category of Intermediate Bond schemes (148 Schemes)
Value Research Rating Disclaimer:
Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based on the weighted average monthly returns for thelast 3 and 5-year periods. In the case of debt funds this rating is based on the weighted average weekly returns for the last 18 months and 3- year periods and in case of short-term debt funds -weekly returns for the last 18 months. These ratings do not take into consideration any entry or exit load. Each category must have a minimum of 10 funds for it to be rated. Effective, July 2008, wehave put an additional qualifying criteria, whereby a fund with less than `5 crore of average AUM in the past six months will not be eligible for rating.
Five-stars indicate that a fund is in the top 10% of its category in terms of historical risk-adjusted returns. Four stars indicate that a fund is in the next 22.5%, middle 35% receive three stars, the next22.5% are assigned two stars while the bottom 10% receive one star. The number of schemes in each category is mentioned along side the categories name. Equity: Large Cap (48), Equity: Large &Mid Cap (56), Equity: Multi Cap (37), Equity: Mid & Small Cap (49) Equity: Tax Planning (29), Equity: Infrastructure (18), Equity: Banking (10), Hybrid: Equity-oriented (23), Hybrid: Debt-orientedAggressive (14), Hybrid: Debt-oriented Conservative (41), Hybrid: Arbitrage (14) Debt: Income (65), Debt: Gilt Medium & Long Term (35), Debt: Short Term (20), Debt: Ultra Short Term (150), Debt:Liquid (100). These Fund Ratings are as on January 31, 2012.
The Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating is based on primary