Growth opportunities No borders for - ICICI Prudential Mutual Fund
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No borders for growth opportunities Presenting ICICI Prudential Benefit from global diversification with multinationals
GDP & Market-Cap Trend
200,000,000
180,000,000 GDP Mcap
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
-
Dec-18
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Jun-05
Jun-18
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Marketcap moves with Nominal GDP over longer period
Source : Axis Capital, Bseindia.com , Figures in Rs. Millions
2
India’s Journey to a $2 trillion economy
5,000.00
4,500.00
GDP ( USD bn) 4,330
3,941
4,000.00
3,587
3,500.00 3,259
3,000.00 2,692
2,500.00
2,396
2,179
1,966
2,000.00 1,781
1,605
1,421
1,500.00 1,248
1,091
1,000.00 788 909
608 700
455 519
500.00
0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023 E
Years
• India took 60 years to enter prestigious Trillion Dollar Club
• But it took only 7 years to double the size
Source: statisticstimes.com Data as on 3rd Feb. 2019, E: Estimates. Past Performance may or may not be sustained in future. 3
Combining Global Expertise With India’s Vast Potential
UK’s Health Care
Development & Tech
German Engineering
& Machinery
Swiss Japanese Precision
Innovation & Electronics
American
Technology & AI
With Indian Potential!
This map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognised by
the Survey of India. AI: Artificial Intelligence
MNCs Catering to our daily needs…
Colgate
Kansai Nerolac
Hindustan Unilever
Nestle Apple Inc.
Samsung
Britannia Industries
Pfizer
TATA Motors Glaxosmithkline
Pharma
The stocks mentioned in this document do not constitute any recommendation of the same and the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. The
above stocks are for indicating the investment universe of the scheme .The Scheme will invest as per the asset allocation and investment strategy mentioned in the SID of the Scheme.MNCs catering to our Industrial needs…
GE Power | Castrol Siemens | Cummins
Bosch | Ashok Leyland Vedanta | Ambuja Cement
The stocks mentioned in this document do not constitute any recommendation of the same and the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. The
above stocks are for indicating the investment universe of the scheme .The Scheme will invest as per the asset allocation and investment strategy mentioned in the SID of the Scheme.Characteristics of Multi National Companies
Wide Moat Good Technological High ROE Strong Balance Strong Global
Management Edge Sheet Brand
7Characteristics of MNCs
Wide Moat: Good Management:
• A moat represents the ability to stave off • Strong management is the backbone of
competition and to thrive in the market any successful company. Good
place. It could be in the form of strong management ensures corporate
brands, patent rights, low cost governance, operational efficiency and
manufacturing ability. maximizes shareholder wealth.
8Characteristics of MNCs
Technological Edge High ROE:
• Due to their foreign parentage, MNCs • ROE helps to identify well-managed
generally have better technical know companies by measuring how much
how,. innovative engineering and profit a company generates from its
production processes. total net assets.
• Efficient use of Resource
• A high ROE is indicative of competitive
advantage that separates them from
their peers.
9Characteristics of MNCs
Strong Balance Sheet: Strong Global Brand:
• A strong balance sheet indicates a • MNCs are characterized as having strong
company has no significant debt, global presence by consistently
allowing financial freedom to fund promoting universally appealing
operations, meet obligations and messages that promotes a “global”
withstand negative surprises culture.
• A company with a strong balance sheet
creates opportunities for re-investing
capital into overall growth of the
company
10Performance of MNC Companies
6,000
Britannia Industries Ltd.
5,000
4,000
3,000
2,000
1,000
-
Returns in absolute, Amount in Rs. Past Performance may or may not be sustained in future. The stocks mentioned in this document do not constitute any recommendation of the same and
the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. Data as on 30th April 2019
11Performance of MNC Companies
1,400
1,200
Colgate Ltd.
1,000
800
600
400
200
Returns in absolute, Amount in Rs. Past Performance may or may not be sustained in future. The stocks mentioned in this document do not constitute any recommendation of the same and
the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. Data as on 30th April 2019
12Performance of MNC Companies
14,000
12,000
United Spirits Ltd.
10,000
8,000
6,000
4,000
2,000
-
Oct/11 Apr/12 Oct/12 Apr/13 Oct/13 Apr/14 Oct/14 Apr/15 Oct/15 Apr/16 Oct/16 Apr/17 Oct/17 Apr/18 Oct/18 Apr/1
Returns in absolute, Amount in Rs. Past Performance may or may not be sustained in future. The stocks mentioned in this document do not constitute any recommendation of the same and
the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. Data as on 30th April 2019
13Performance of MNC Companies
4,500
4,000 Whirlpool Ltd.
3,500
3,000
2,500
2,000
1,500
1,000
500
-
Returns in absolute, Amount in Rs. Past Performance may or may not be sustained in future. The stocks mentioned in this document do not constitute any recommendation of the same and
the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. Data as on 30th April 2019
14Performance of MNC Companies
750
650 Sanofi India Ltd.
550
450
350
250
150
50
Returns in absolute, Amount in Rs. Past Performance may or may not be sustained in future. The stocks mentioned in this document do not constitute any recommendation of the same and
the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. Data as on 30th April 2019
15Performance of MNC Companies
9,000
8,000 Schaeffler India Ltd.
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
Returns in absolute, Amount in Rs. Past Performance may or may not be sustained in future. The stocks mentioned in this document do not constitute any recommendation of the same and
the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. Data as on 30th April 2019
16ICICI Prudential MNC Fund
(An open ended equity scheme following MNC theme)
NFO Period: May 28, 2019 to June 11, 2019
Fund Manager*: Mr. Anish Tawakley and Mr. Lalit Kumar
* Priyanka Khandelwal for investment in overseas securities.
17ICICI Prudential MNC Fund INVESTMENT OBJECTIVE*: The primary objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities within MNC space. INVESTMENT STYLE: • High quality & diversified portfolio • Market Cap and Sector Agnostic approach • Bottom up approach for stock selection * However there can be no assurance or guarantee that the investment objective of the scheme would be achieved. The portfolio of the scheme is subject to changes with in the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. The asset allocation and investment strategy will be as per Scheme Information Document. 18
Capturing Opportunities through ICICI Prudential MNC Fund
1 Indian Multi-national Companies
Companies incorporated in India with business operations across globe
2 Multi-national Companies listed in India
Foreign Companies having business operations in India and listed on Indian
Stock exchanges
3 Global Multi-national Companies
Foreign Companies having business operations across globe but not listed on Indian
Stock exchanges
19Ways to play the MNC story…
Indian MNC
Dr. Reddys Infosys Dabur TATA Motors Wipro
MNCs listed in India
Colgate Nestle Castrol Pfizer Siemens
Global MNCs (Not listed in India)
Google Apple Inc. Toyota Amazon Samsung
The stocks mentioned in this document do not constitute any recommendation of the same and the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in the stocks. The above
stocks are for indicating the investment universe of the scheme .The Scheme will invest as per the asset allocation and investment strategy mentioned in the SID of the Scheme.Presence of MNC’s across Sectors
Industrial
Consumer Automobiles Manufacturing Metals
Information
Technology Cement Pharmaceuticals
The Sectors mentioned in this document do not constitute any recommendation of the same and the scheme/ICICI Prudential Mutual Fund may or may not have any future positions in
the Sectors. 21Case to Invest in ICICI Prudential MNC Fund Today !!
120.00
Nifty 50 TRI Nifty MNC TRI
115.00
116.56
110.00
105.00 -22%
100.00
Underperforms
95.00
94.18
90.00
85.00
Apr/18 Jul/18 Oct/18 Jan/19 Apr/19
• In recent times Nifty MNC Index has underperformed Nifty
• Nifty MNC Index has underperformed Nifty by ~22% on a one Year basis
Source : MFI, Growth of Rs. 100, Data in absolute, Past Performance may or may not be sustained in future.
22MNCs: May also limit downside risk
110
100 Nifty MNC TRI S&P BSE 500 TRI
90
80
70
60
50
40
30
20
Jan-08 May-08 Sep-08 Jan-09 May-09
• MNCs can provide greater stability to a portfolio during times of market volatility.
• In the long term, it is much more important to focus on the quality companies with good management
• From 2008 - 2009, the broad market index fell by 35%, whereas the Nifty MNC index fell only by 17%
Source : MFI, Growth of Rs. 100, Data in absolute, Past Performance may or may not be sustained in future.
23MNCs: Allows participation in upside
450 235%
Nifty MNC TRI S&P BSE 500 TRI
400
350
300
250
95%
200
150
100
50
0
Jan-08 Oct-08 Jul-09 Apr-10 Jan-11 Oct-11 Jul-12 Apr-13 Jan-14 Oct-14 Jul-15 Apr-16 Jan-17 Oct-17 Jul-18 Apr-19
• With wide moats, superior tech know how, clean balance sheets and good management, MNCs have good potential to
outperform the broader market
• These companies have weathered the competition in many markets globally and have gained from the experience
Source : MFI, Growth of Rs. 100, Data in absolute, Past Performance may or may not be sustained in future.
24SIP: Suitable for MNC Funds
• MNCs have delivered consistent returns over longer time horizon, incrementally investing
through SIPs can further enhance investor experience
• Disciplined and regular investing helps investors in generating relatively better returns
25To Summarise..
• India one of the fastest growing economy: India is on the run to become a 4$ Trillion economy,
MNCs with its inherent advantage may benefit from this growth opportunity.
• MNCs generally have strong parentage and global experience thus helping create strong brands
and gain market share
• MNCs typically have high standards when it comes to Board composition, good management
ensures corporate governance, operational efficiency and maximizes shareholder wealth.
• MNCs generally have strong Balance-Sheet, this can bring greater stability during times of market
volatility.
• In Past MNCs have demonstrated better use of capital allocation and hence managed to
consistently deliver higher ROE.
Thus investing into MNCs may help investors allocate their investments into quality
companies with global exposure.
26ICICI Prudential MNC Fund
NFO Period May 28, 2019 to June 11, 2019
MICR Cheques Till end of business hours on June 11, 2019
RTGS and Transfer Cheques Till end of business hours on June 11, 2019
Switches from equity schemes and other schemes – June 11, 2019; Till cut off time (specified for
Switches
switch outs in the source scheme)
Plans/Option ICICI Prudential MNC Fund – Growth & Dividend
Minimum Application Amount Rs.5,000/- (plus in multiple of Re.1 thereafter)
Benchmark Nifty MNC TRI Index
Fund Manager* Mr. Anish Tawakley and Mr. Lalit Kumar
SIP Available during NFO & Ongoing offer period
SWP/ STP Available during ongoing offer period
* Priyanka Khandelwal for investment in overseas securities.
27Riskometer & Disclaimer
ICICI Prudential MNC Fund (The scheme is suitable for investors who are seeking*)
Moderate
• Long term wealth creation Investors understand
that their principal will
• An open ended equity scheme that aims to provide capital appreciation by investing predominantly in equity and equity related securities be at high risk
within MNC space.
LOW HIGH
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: All figures and data given in the document are dated unless stated otherwise. In the preparation of the material contained in this document, the AMC has used information that is publicly available, including
information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC
and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any
information. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such
expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect
to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies
of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc.
The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect,
punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on this
material.
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). Past perfor-
mance may or may not be sustained in the future. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern,
strategy and risk factors.
Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI Prudential Mutual Fund. The
information contained herein should not be construed as a forecast or promise nor should it be considered as an investment advice.
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