IDFC Intro Presentation - Jan 2012

8/2/2019 IDFC Intro Presentation - Jan 2012

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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

107

157 159

225

288

0

50

100

150

200

250

300

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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10

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)

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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

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IDFC Intro Presentation - Jan 2012