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Benchmark InfraBees NFO
Citation preview
Infrastructure Benchmark Exchange Traded Scheme
(An Open Ended Listed Index SchemeExchange Traded Fund)
NFO opens onSeptember 09, 2010
NFO opens onSeptember 09, 2010
NFO closes onSeptember 23, 2010
NFO closes onSeptember 23, 2010
InfrastructureThe Driver of Economic Growth
Good quality infrastructure is the most critical physical requirement for attaining faster growth in a competitive world
Average GDP growth of 7.7% achieved in the tenth five year plan period has been the highest in any Plan period so far
India has entered the Eleventh Plan period with an impressive record of economic growth
Adequate investment is necessary to support higher growth and improved quality of both urban and rural class
Average GDP growth of 9% or above can be achieved and sustained only if infrastructure deficit can be overcome
Source: Planning Commission Government of India – 11th Five Year Plan Report
Infrastructure – For Sustainable Growth
Source: CIA- The World Factbook
Infrastructure – Miles To Go
110000 (2008 est.)
41009 (2008 est.)14500 (2008 est.)Waterways (KMS)
3,583,715 (2007 est.)
6,465,799 (2007 est.)
3,320,410 (2009 est.)Roadways (KMS)
77834 (2008 est.)
226427 (2007 est.)64015 (2009 est.)Railways (KMS)
50215079352Airports (2010)
3,451(2008 est.)4,110 (2008 est.)723.8 (2009 est.)Electricity Production (billion KWH)
ChinaUnited StatesIndiaInfrastructure Facilities
Source: Planning Commission Government of India – 11th Five Year Plan Report
Infrastructure Bottlenecks – A Major Concern....
Sector
Roads /Highways
Ports
Airports
Railways
Power
Irrigation
Telecom/IT
Inadequa te runways , a ircra ft handling , capacity, pa rking s pace and termina l building s
65590 km of NH comprise only 2% of network; ca rry 40% of tra ffic; 12% 4-laned; 50% 2-laned; and 38% s ing le-laned
Deficit
Inadequa te berths and ra il/road connectivity
1123 BCM utilizable wa ter resources ; yet nea r cris is in per capita a va ila bility and s tora ge; only 43% of net sown a rea irrig a ted
Only 18% of market a ccess ed; obsolete ha rdware; a cute human resources ’ s horta ges
Old technology; s a tura ted routes ; s low s peeds (freight: 22 kmph; pa s sengers : 50 kmph); low payload to ta re ra tio (2.5)
13.8% peaking deficit; 9.6% energy shorta ge; 40% transmis s ion and dis tribution los ses ; a bsence of competition
Source: Planning Commission Government of India – 11th Five Year Plan Report and Mid Term Appraisal of11th 5 year plan report. At 2006-07 prices.
Total Infrastructure investment as % of GDP in XIth Five Year Plan is estimated to increase to 7.55% as against 5.08% in Xth Five Year Plan
....But Government Has Started Addressing Them
5.435.98 6.53
7.258.19
9.34
0
100000
200000
300000
400000
500000
600000
700000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Proj
ecte
d To
tal I
nfra
. Inv
. (R
s.
Crs
.)
012345678910 Projected Infra. Inv. as %
of GD
P
Projected Total Infra. Inv. (Rs. Crs.) Projected Infra. Inv. as % of GDP
Source: Planning Commission Government of India – 11th Five Year Plan Report & Internal.Exchange rate: Rs. 40/US$. At 2006-07 prices.
Government Renewed Focused Reflected in Increased Spending...
Government’s projected infrastructure spending in XIth Five Year Plan has more than doubled to 514.04 US$ bn from 217.86 US$ bn in Xth plan Five Year Plan
Rs. Crs US$ bn* Share (%) Rs. Crs US$ bn* Share (%)Electricity 291850 72.96 33.49 666525 166.63 32.42 128.38%Roads & Bridges 144892 36.22 16.63 314152 78.54 15.28 116.82%Telecommunications 103365 25.84 11.86 258439 64.61 12.57 150.03%Railways 119658 29.91 13.73 261808 65.45 12.73 118.80%Irrigation 111503 27.88 12.80 253301 63.32 12.32 127.17%Water Supply & Sanitation 64803 16.2 7.44 143730 35.93 6.99 121.80%Ports 14071 3.52 1.61 87995 22 4.28 525.36%Airports 6771 1.69 0.78 30968 7.74 1.51 357.36%Storage 4819 1.2 0.55 22378 5.59 1.09 364.37%Gas 9713 2.43 1.11 16855 4.21 0.82 73.53%Total 871445 217.85 100.00 2056151 514.02 100.00 135.95%
Projected Investment in Infrastructure During Eleventh Five Year Plan
XIth Plan % Increase Over Xth PlanSectors Xth Plan XIth Plan
Source: Planning Commission Government of India – 11th Five Year Plan Report & Internal. At 2006-07 prices.
Increased Private Sector
Participation
....With Private Sector Participation
Rs. Crs Share (%) Rs. Crs Share (%)Electricity 291850 666525Public 200016 68.53 481013 72.17Private 91834 31.47 185512 27.83Roads & Bridges 144892 314152Public 137888 95.17 207359 66.01Private 7004 4.83 106792 33.99Telecommunications 103365 258439Public 49013 47.42 80753 31.25Private 54352 52.58 177686 68.75Railways 119658 261808Public 119352 99.74 211453 80.77Private 307 0.26 50354 19.23Irrigation 111503 253301Public 111503 100.00 253302 100.00Private - - - -Water Supply & Sanitation 64803 143730Public 63781 98.42 138309 96.23Private 1022 1.58 5421 3.77Ports 14071 87995Public 3715 26.40 33516 38.09Private 10356 73.60 54479 61.91Airports 6771 30968Public 3835 56.64 9338 30.15Private 2936 43.36 21630 69.85Storage 4820 22378Public 1443 29.94 11189 50.00Private 3377 70.06 11189 50.00Gas 9713 16855Public 8713 89.70 10327 61.27Private 1000 10.30 6528 38.73Total 871445 100.00 2056150 100.00Public 699257 80.24 1436559 69.87Private 172188 19.76 619591 30.13
Projected Investment in Infrastructure During Eleventh Five Year Plan
SectorsXth Plan XIth Plan
Source: Planning Commission Government of India – 11th Five Year Plan Report
Eleventh Plan Physical Targets
Sector
Roads /Highways
Ports
Airports
Railways
Power
Irrigation
Telecom/IT
Develop 16 mha ma jor and minor works ; 10.25
Reach 600 m subscribers—200 m in rura l a rea s ; 20 m broadband; 40 m Internet
8132 km new ra il; 7148 km gauge convers ion; modernize 22 s ta tions ; dedica ted freight corridors
Add 78577 MW; access to a ll rura l households
Modernize 4 metro and 35 non-metro a irports ; 3 g reenfield in NE R ; 7 other g reenfield a irports
6-lane 6500 km in GQ; 4-lane 6736 km NS -E W; 4-lane 20000 km; 2-la ne 20000 km; 1000 km E xpres sway
Eleventh Plan Targets
New capa city: 485 m MT in ma jor ports ; 345 m MT in minor ports
Government Committed To Infrastructure Development
Source: Planning Commission Government of India – 11th Five Year Plan ReportEstimates: GDP to grow at 9% per year and GCF in infrastructure as percentage of GDP would rise from 9 % in 2011-12 to 10.25 % in 2016-17. Exchange rate: Rs. 40/US$. At 2006-07 prices.
Government’s projected GCF (Gross Capital Formation) in Infrastructure investment in XIIth Five Year Plan would increase to US$ 1018.74 bn
From US$ 502.88 bn in XIth Five Year Plan
10.25109.759.59.259
0
200000
400000
600000
800000
1000000
1200000
2011-12 2012-13 2013-14 2014-15- 2015-16 2016-17
Proj
ecte
d G
CF
in In
fra.
(Rs.
Crs
.)
5
6
7
8
9
10
11 Projected GC
F in Infra. as % of
GD
P
Projected GCF in Infra. (Rs. Crs.) Projected GCF in Infra as % of GDP
Presenting
Infra BeES – Best of Both WorldsLike an Index Fund…
Constructed to track the IndexOpen ended mutual fundLow expense ratioLow turnoverTransparent
Like a Stock…Trading flexibility intraday on the exchangeReal Time PricePut Limit PriceMinimum Trading lot is just 1 unitDelivery in your Demat account
ETF
Index Fund Stocks
Includes companies belonging to Telecom, Power, Port, Air, Roads, Railways, shipping and other Utility Services providers
Index is calculated using the market capitalisation weighted method
Base value and base date of index are 1000 and Jan. 01, 04 resp.
Companies are selected based on the below parameters
Market capitalisationTurnoverNet worthCompany should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE
For detailed criteria of CNX Infrastructure index, refer to indices section of www.nseindia.com
About CNX Infrastructure Index
CNX Infrastructure Index – Security Weightage
Source: NSE. Data as on August 31, 2010 & AMFI.
2.51Cement Jaiprakash Associates Ltd.13
2.53Industrial Capital GoodsSiemens Ltd.12
2.56Telecom - ServicesIdea Cellular Ltd.11
2.65Power Reliance Infrastructure Ltd.10
2.85Power Neyveli Lignite Corporation Ltd.9
3.14Power Tata Power Co. Ltd.8
3.49Telecom - ServicesReliance Communications Ltd.7
3.95Power Reliance Power Ltd.6
5.55ConstructionDLF Ltd.5
11.84Construction ProjectLarsen & Toubro Ltd.4
12.75Industrial Capital Goods
Bharat Heavy Electricals Ltd.3
13.45Telecom - ServicesBharti Airtel Ltd.2
17.48Power NTPC Ltd.1
%IndustryCompany NameSr. No.
0.38Construction ProjectPunj Lloyd Ltd.25
0.42Telecom - ServicesMahanagar Telephone Nigam Ltd.24
0.74TransportationShipping Corporation of India Ltd.23
0.81HotelsIndian Hotels Co. Ltd.22
0.87Industrial Capital GoodsSuzlon Energy Ltd.21
1.00TransportationIRB Infrastructure Developers Ltd.20
1.03Telecom - ServicesTata Communications Ltd.19
1.72Construction ProjectLanco Infratech Ltd.18
1.79Industrial Capital GoodsABB Ltd.17
2.06Industrial Capital GoodsCrompton Greaves Ltd.16
2.11ConstructionUnitech Ltd.15
2.35Construction ProjectGMR Infrastructure Ltd.14
%IndustryCompany NameSr. No.
CNX Infrastructure Index – Industry Classification
Source: NSE. & AMFI. Data as on Aug. 31, 2010.
30.08%
0.81%
1.74%
7.66%
2.51%
16.28%19.99%
20.94%
Pow er Telecom - ServicesIndustrial Capital Goods Construction ProjectConstruction Cement Transportation Hotels
Performance - Indices
Source: MFI explorer. Data as on Aug. 31, 2010. Past performance may or may not be sustained in future.Past performance is no guarantee of future results.
50000
150000
250000
350000
450000
550000
650000
750000
01-J
an-0
4
01-J
ul-0
4
01-J
an-0
5
01-J
ul-0
5
01-J
an-0
6
01-J
ul-0
6
01-J
an-0
7
01-J
ul-0
7
01-J
an-0
8
01-J
ul-0
8
01-J
an-0
9
01-J
ul-0
9
01-J
an-1
0
01-J
ul-1
0
Nor
mal
ised
To
1 La
c A
s O
n Ja
n 01
, 200
4
CNX Infrastructure Index S&P CNX Nifty BSE Sensex
Rs. CNX Infrastructure Index S&P CNX Nifty BSE Sensex
Initial Investment As On Jan 1, 2004 100000 100000 100000
Value As On Aug. 31, 2010 339180 282515 303799
CAGR(%) 20.10% 16.85% 18.13%
5 Yrs Rolling Returns, Frequency – Daily,
Period – Jan 01, 09 to Aug 31, 10
Source: MFI explorer and Internal. Note: The above performance is CAGR(%). Past performance may or may not be sustained in future.Past performance is no guarantee of future results.
3 Yrs Rolling Returns, Frequency – Daily,
Period – Jan 02, 07 to Aug 31, 10
Performance - Indices
5
13
34
22
5
19
7
25
5
2620
7
-30
-15
0
15
30
45
Minimum Maximum Average AnnualisedVolatility
(%)
CNX Infrastructure Index S&P CNX Nifty BSE Sensex
24
-6
72
2715
20
-6
49
17
53
21
-8
-30
-15
0
15
30
45
60
75
90
Minimum Maximum Average AnnualisedVolatility
(%)
CNX Infrastructure Index S&P CNX Nifty BSE Sensex
Statistics - Indices
Source: NSE.
1.120.77Dividend Yield
3.543.14P/B
22.7329.6P/E Ratio
3,397,141924,141Full Market Cap (Rs. Crores)
S&P CNX NiftyCNX Infrastructure(As on Aug 31, 2010)
About
OverviewInvestment ObjectiveThe investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Infrastructure Index by investing in the securities in the same proportion as in the Index.
However, the performance of Scheme may differ from that of the Underlying Index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Investment Pattern
Taxation of a equity oriented fund is applicable to the scheme
0%-5%
95%-100%
%Medium to HighSecurities covered by the CNX Infrastructure
Index
LowMoney Market Instruments, G-Secs, Bonds, Debentures and cash at call
Risk ProfileInstruments
Note: Please refer to SID & SAI for more details.
Scheme Features
During NFO
Rs. 10,000/- (Rupees Ten Thousand only) and in multiples of Re. 1/- thereafter
On Ongoing Basis
On the ExchangeThe units of Infra BeES would be listed on the National Stock Exchange of India Ltd. (NSE). On NSE, the units of Infra BeES can be purchased/redeemed in minimum lot of 1 unit and in multiples thereof.
Minimum Application Amount
Directly with the FundThe Minimum number of units of Infra BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof.
Scheme FeaturesOption
The Scheme offers only growth option
Entry & Exit Load
Nil
CNX Infrastructure Index
Benchmark Index
Investor Benefits and General Services
During the NFO, investors can subscribe to the units through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and Mutual Fund Service System (MFSS) of NSE. The AMC will calculate and publish the first NAV of the Scheme not later than October 07, 2010. Subsequently, the NAVs will be calculated and disclosed at the close of every Business Day.
About Benchmark
Differentiation in Investment Philosophy, Product structures and Product delivery mechanismLeadership position in indexing and ETF areasA track record of successfully conceptualizing and launching innovative products with many Firsts
Nifty BeES – The First ETF In Asia (Barring Japan)Junior BeES – The First Midcap ETF In IndiaLiquid BeES – The First Money Markey ETF In The World and The Only One In IndiaBank BeES – The First Sector Based ETF In IndiaGold BeES – The First Gold Linked ETF In IndiaPSU Bank BeES – The First PSU Bank Sector Based ETF In IndiaShariah BeES – The First S&P CNX Nifty Shariah Based ETF In IndiaHang Seng BeES – India’s First ETF investing in overseas securities which are constituents of Hang Seng IndexBenchmark Derivative Fund – The First Equity Arbitrage Fund In IndiaBenchmark S&P CNX 500 Fund – The First and Only Index Fund In India Benchmarked to S&P CNX 500 Index
Benchmark - Highlights
* Past performance is no guarantee of future results.
Eligibility Criteria & MethodologyIn total 11 schemes in year 2007, 12 schemes in year 2008 and 13 schemes in year 2009 were eligible for award universe. Schemes present in all four quarterly CRISIL CPRs for each calendar year were considered for the award. The award is based on consistency of the scheme’s performance in the four quarterly CRISIL CPR rankings released during the respective calendar year. The individual CRISIL CPR parameter scores averaged for the four quarters for each calendar year were further multiplied by the parameter weights as per the CRISIL CPR methodology to arrive at the final scores. A detailed methodology of the CRISIL CPR is available at www.crisilfundservices.com. Past performance is no guarantee of future results.
Rankings and Award Source: CRISIL FundServices, CRISIL Ltd.
2007
Achievements
2008 2009
Nifty Benchmark Exchange Traded Scheme (Nifty BeES) was Awarded Best Performing Mutual Fund of The Year Award In The Index Fund Category at the CNBC – TV18 – CRISIL Mutual Fund of The
Year Award 2007, 2008 & 2009*, respectively
Investment ObjectiveThe investment objective of Nifty BeES is to provide investment returns that, before expenses, closely correspond to the total returns of the securities as represented by the S&P CNX Nifty Index. However, the performance of Scheme may differ from that of the Underlying Index due to tracking error.
Investment PatternUpto 100% of net assets in Securities covered by the S&P CNX Nifty Index; Upto 10% of net assets in Money Market instruments, convertible bonds & other securities including cash at call but excluding subscription & redemption Cash Flow
An Open-ended, exchange listed, Index SchemeTerms of IssueOn NSE, the units of Nifty BeES can be purchased/sold in minimum lot of 1unit and in multiples thereof. Directly with the Fund - The minimum number of units of Nifty BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof.
Load Structure:Entry Load : NilExit Load: Nil
(1) All Mutual funds and Securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Schemes will be achieved. (2) As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Schemes can go up or down depending on the factors and forces affecting the securities market/bullion market. (3) Past performance of the Sponsors/Investment Manager/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provided a basis of comparison with other investments. (4) Infrastructure Benchmark Exchange Traded Scheme (Infra BeES), Nifty BeES, Junior BeES, Bank BeES, PSU Bank BeES, Shariah BeES, Gold BeES, Liquid BeES, Hang Seng BeES, Benchmark Derivative Fund and Benchmark S&P CNX 500 Fund are the name of the Schemes and does not in any manner indicate either the quality of the Schemes or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Schemes. (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. (6) The present Scheme is not a guaranteed or assured return Scheme.
DisclaimersRisk Factors
General:
(7) The Scheme’s NAV will react to the securities / bullion market movements. The Investor could lose money over short periods due to fluctuation in the Scheme’s NAV in response to factors such as economic and political developments, changes in interest rates and perceived trends in securities / bullion prices, market movements, and over longer periods during market downturns. (8) IISL Disclaimer : The Product on CNX Infrastructure Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the Product linked to CNX Infrastructure Index or particularly in the ability of the CNX Infrastructure Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Infrastructure Index in the Scheme Information Document / Prospectus / Information Statement. (9) NSE Disclaimer : It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document . The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. (10) Please read the Scheme Information Document and Statement of Additional Information carefully before investing. (11) For Scheme specific risk factors kindly refer SID.
Disclaimers(Contd.)
Statutory Details:Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Trustee: Benchmark Trustee Company Pvt. Ltd. Investment Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial Services Pvt. Ltd.
For more details please refer the SID, Key Information Memorandum and Application Form which are available at the Office of the AMC or can be downloaded from www.benchmarkfunds.com
Disclaimers(Contd.)
Thank You