IDFC US Equity Fund of Fund - Benefit from Strong Structural Opportunities in a Resilient US Market - NET
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IDFC US Equity Fund of Fund Benefit from Strong Structural Opportunities in a Resilient US Market
1. Why Invest in US Equities?
? 2. Why Invest in US Equities Now?
3. Why IDFC US Equity Fund of Fund?
Participation only in Indian assets has historically limited the Indian investor’s portfolio
Investing in global markets offers a powerful opportunity for improved diversification
Traditional
Diversification Suggested
Strategies in the Additional
Home Country / Diversification
Domestic Market
Asset Class Within Asset Class Geographical
Split between Equity, Split basis company
Split across different
Fixed Income, size, sector,
markets in the world
Commodities, etc creditworthiness, etc
3
Low Correlation between India and US equity markets
Combining investments with low correlation improves portfolio efficiency and diversification
Rolling 1-year returns
80%
60%
40%
20%
0%
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Jun-21
Sep-14
Sep-21
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17
Mar-18
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Mar-21
-20%
-40%
US equity market India equity market
Russell 1000 Growth index considered as investment in US markets and Nifty 50 as investment in India. Both the indices have been rebased to INR 10,000 on Dec 2011 to arrive at the above rolling returns.
Source: Russell website, investing.com, internal analysis
Data as on 31st Dec 2021
Past performance is not an indicator of future performance
4
A combined India + US Portfolio can be considered more efficient
An (illustrative) 80% India & 20% US Portfolio has a far better return and risk characteristic than a pure Indian equity portfolio
Value of INR 10,000 invested in the US market, India
Market and a combined portfolio
20% US +
%^ US* India*
80% India
40,000
34,813
5 year
30,000 28.3 16.2 18.9
23,789 INR return
20,000
21,198 Standard
10,000 16.5 18.6 16.5
Deviation
-
Return per
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Apr-19
Apr-21
Aug-17
Apr-17
Apr-18
Apr-20
Aug-18
Aug-19
Aug-20
Aug-21
1.72 0.87 1.15
unit of risk
US equity market India equity market 20% US + 80% India
Source: Russell website, investing.com, internal analysis, the indices have been rebased to INR 10,000 on Dec 2016
Data as on 31st Dec 2021
*Russell 1000 Growth Index considered for US market returns and Nifty 50 considered for India market returns
^5-year return, standard deviation and risk per unit of risk as on 31st Dec 2021
Past performance is not an indicator of future performance
5
Purely India focused assets participate in just ~3% of Global GDP
Investing in the US offers a substantial opportunity to benefit from global GDP growth
GDP
US contributes the highest
US, 25% i.e. about 1/4th of Global
GDP
Rest of the
world, 44%
China, 17%
Japan, 6%
India, 3%
Germany, 5%
Source : World Bank. Data as on 2020
6
US Companies are a good mix of US and Global Revenues
Over 40% of Revenues in a portfolio of US Equities* can come from Non-US revenue pools
Global Revenue split of US companies*
41%
Non -
US Market
59%
US Market
*includes companies invested in by the underlying fund of IDFC US Equity FoF. Data as on 31st Mar’21; Source: Factset
7
US has been the most consistent equity market with low volatility over the last decade
In addition to the high return, it has also displayed the low risk (volatility)
In a negative/low return environment Globally, US In a Global rally, US has rewarded well;
has shown resilience and performed better than e.g. 2012, 2017
other geographies; e.g. 2008, 2013, 2016, 2018, 2021
Annual Risk
2021 Return (Volatility)
2008 2012 2013 2014 2015 2016 2017 2018 2019 2020
Japan India U.S. China A Japan Taiwan China U.S. Taiwan Korea U.S. U.S. China A
-29.1% 26.0% 32.4% 52.1% 9.9% 19.6% 54.3% -4.4% 37.7% 45.2% 28.7% 16.6% 23.8%
U.S. China Japan India China A U.S. Korea India China A Taiwan Taiwan Taiwan India
-37% 23.1% 27.3% 23.9% 2.4% 12.0% 47.8% -7.3% 37.2% 42.0% 26.8% 16.0% 21.4%
Taiwan ASEAN Europe U.S. U.S. Korea India Taiwan U.S. China A India India China
-45.9% 22.8% 26.0% 13.7% 1.4% 9.2% 38.8% 8.2% 31.5% 38.4% 26.7% 10.9% 19.6%
Europe APAC ex- Taiwan Taiwan Europe APAC ex-JP APAC ex- ASEAN Europe China Europe China A Korea
-46.1% JP 22.6% 9.8% 10.1% -2.3% 7.1% JP 37.3% -8.4% 24.6% 29.7% 17.0% 9.9% 19.3%
ASEAN Korea Korea China India ASEAN China A Japan China APAC ex-JP Japan Europe Taiwan
-47.6% 21.5% 4.2% 8.3% -6.1% 6.2% 32.6% -12.6% 23.7% 22.8% 2.0% 8.8% 16.4%
China Europe China ASEAN Korea Japan ASEAN APAC ex-JP Japan U.S. ASEAN Japan ASEAN
-50.8% 19.9% 4.0% 6.4% -6.3% 2.7% 30.1% -13.7% 20.1% 18.4% 0.2% 8.7% 15.5%
APAC ex-JP Taiwan APAC ex- APAC ex-JP China China Taiwan Europe APAC ex-JP India China A APAC ex-JP Europe
-51.6% 17.7% JP 3.7% 3.1% -7.6% 1.1% 28.5% -14.3% 19.5% 15.9% -1.0% 8.0% 15.5%
Korea U.S. China A Japan APAC ex- Europe Europe China Korea Japan APAC ex-JP Korea APAC ex-JP
-55.1% 16.0% -2.6% -3.7% JP -9.1% 0.2% 26.2% -18.7% 13.1% 14.9% -2.7% 7.5% 15.4%
China A China A India Europe Taiwan India Japan Korea ASEAN Korea China Japan
Europe 5.9%
-63.2% 10.9% -3.8% -5.7% -11.0% -1.4% 24.4% -20.5% 8.8% -7.9% 7.4% 13.1%
India Japan ASEAN Korea ASEAN China A U.S. China A India ASEAN China ASEAN US
-64.6% 8.4% -4.5% -10.7% -18.4% -15.2% 21.8% -27.6% 7.6% -6.2% -21.6% 2.8% 13.0%
Source: Factset, MSCI, Standard & Poor’s, Guide to the markets by J.P. Morgan Asset Management; Data as on 31st Dec 2021.
Returns are total returns in U.S. Dollars based on MSCI indices, except the U.S., which is the S&P 500, China A, which is the CSI 300 index in the USD terms. China return is based on the MSCI China index. 10-
yr total (gross) return data is used to calculate annualized returns and annualized volatility and reflect the period 31/12/11 - 31/12/21. Past performance is not an indicator of future performance.
8
US Equity Performance has been driven by higher Earnings growth Vs Rest-of-the-world
Positive earnings growth in the US witnessed Vs negative for the rest of the world
12 Months trailing earnings per share 15 Year Annualized Performance
Russell 1000 Value Russell 1000 Growth 14.0%
12.5%
MSCI ACWI ex USA Index S&P 500 Index
12.0%
3.00
9.90%
10.0%
2.50
8.0% 7.3%
2.00
6.0% 5.40%
1.50
4.0%
1.00
2.0%
0.50
0.0%
0.00 Russell 1000 S&P 500 Index Russell 1000 MSCI ACWI ex-
'05 '07 '08 '10 '11 '13 '14 '16 '17 '19 '20 Growth Index Value Index USA Index
Source: IDFC internal analysis, Bloomberg, Guide to the markets by J.P. Morgan Asset Management. As of 31 December 2020. Past performance is not an indicator of future performance
9
Exposure to USD currency addresses the need for a USD asset for future USD expenses
The underlying investments being in USD, Indian investors will also gain if the USD rises over time Vs the INR
Illustration of additional returns through INR depreciation on an investment of INR 10,000
30,000
INR 2,056 earned
more due to fall in
25,000 INR value vs USD
20,000 INR 14,046 earned
through investment
15,000 in US market
10,000
5,000
Jun-19
Aug-19
Jun-20
Jun-21
Aug-21
Aug-20
Apr-19
Apr-20
Apr-21
Dec-18
Dec-20
Oct-19
Dec-19
Oct-21
Feb-19
Feb-20
Oct-20
Dec-21
Feb-21
US Market Investment INR US Market Investment USD
Russell 1000 Growth index considered as investment in US markets; the index has been rebased to INR 10,000 on Dec 2018.
Source: Russell website, investing.com, internal analysis
Data as on 31st Dec’21
Past performance is not an indicator of future performance
10In Summary, 5 key reasons why US Equities are a powerful complementary addition for the Indian
investor’s portfolio
2. Access a 4. Earnings
1. Effective 3. Consistent 5. Creation of
large Global Driven
Diversification Performance a USD asset
Revenue Pool
Low correlation with Not just the largest Among major blocks, Higher US Equity Add currency
Indian Equities helps economy, US the US has provided market performance exposure to your
US Equities provide Equities offer attractive returns with may be attributed to portfolio to meet
attractive participation in a low risk – a great its superior earnings future expenses
diversification significant global combination of growth and/or for potential
benefits revenue pool reward with resilience gains from currency
movement
Past performance is not an indicator of future performance
111. Why Invest in US Equities?
? 2. Why Invest in US Equities Now?
3. Why IDFC US Equity Fund of Fund?US Markets : Some of the dilemmas
Isn’t the pandemic What can drive
going to hurt US US earnings
growth? growth?
Aren’t US market
valuations already Aren’t we too late
too high? to enter now?
Is the end of this bull
market nearing?
13US market: Is it expensive?
Valuation Premium of non-Top 10 stocks more reasonable, which contribute significantly to overall Earnings
P/E ratio of the top 10 and remaining Market Cap and Earnings Contribution of the
stocks in the S&P 500 top 10 in S&P 500
Next 12 months Current Average % of avg. Weight of the top 10 stocks in the S&P 500
Top 10 33.2x 19.8x 168% % of market capitalization of the S&P 500
Remaining
19.7x 15.7x 126%
stocks
S&P 500 21.2x 16.4x 129%
Earnings contribution of the top 10 in the S&P 500
Based on last 12 months’ earnings
Source: Factset, Standard & Poor’s, J.P. Morgan Asset Management. The top 10 S&P 500 companies are based on the 10 largest index constituents at the beginning of each month. The weight of each of
these companies is revised monthly. As of 1st Dec 2021, the top 10 companies in the index were Apple (6.8%), Microsoft (6.5%), Amazon (3.9%), Tesla (2.3%), Alphabet Class A (2.2%), Alphabet Class C
(2.1%), Nvidia (2.1%), Facebook (1.9%), Berkshire Hathaway Class B (1.3%), JPMorgan Chase (1.2%), and Johnson & Johnson (1.2%).The remaining stocks represent the rest of the 494 companies in the S&P
500. Guide to the Markets – U.S. Data as on 31st December 2021; P/E – Price to Earnings Ratio. Past performance is not an indicator of future performance.
14Is the bull market over?
Past Bull market phases have lasted longer
S&P 500 bull market gains
• If the bull market ended today, it would be the shortest and the weakest bull market since the 1960s
• Low policy rates and spending helping
Source: FactSet, Standard & Poor’s, Guide to the markets Asia by J.P. Morgan Asset Management as on 31 st Dec’21. A bull market represents a 20% increase from a market trough. Charts and labels refer to
price return. Past performance is not a reliable indicator of current and future results. Provided for information only to illustrate general market trends not to be construed as research or investment advice.
Investments involve risks and are not similar or comparable to deposits. Not all investment ideas referenced are suitable for all investors. Provided for information only, not to be construed as investment
advice.
15Invest for the long-term – Timing doesn't matter
Investing when the market has touched a new high can provide reasonable returns too
Average cumulative S&P 500 total returns (Jan 1988 – Mar 2021)
90%
79.2%
80%
72.1%
70%
60%
49.9%
50%
39.3%
40%
30%
20% 15.0%
11.9%
10%
0%
1 year 3 years 5 years
Invest on any day Invest at a new high
Source: FactSet, Guide to the markets by J.P. Morgan Asset Management, IDFC internal Analysis, investing.com; Data are as of 31st March 2021. Provided for information only to illustrate general market
trends not to be construed as research or investment advice. Investments involve risks and are not similar or comparable to deposits. Not all investment ideas referenced are suitable for all investors. Past
performance is not an indicator of future performance.
16US : A strong consumption-driven economy
24 4.7% Housing
22
13.0% Investment ex-housing
3Q21 nominal GDP, USD (trillions)
20
18 17.6% Government spending
Components of GDP
16
• Consumption is the most
prominent driver of the US
14 economy.
12
10 • Strength of its economy is
dependent on the strength
8 68.8% Consumption of its consumers.
6
4
2
-2
--4.1% Net exports
Source: BEA, FactSet, J.P. Morgan Asset Management Guide to the Markets – Asia as on 31st Dec’21; Values may not sum to 100% due to rounding.
17Aggressive Vaccination rollout and sharply falling Covid cases in the US have led to expectations of
quicker normalization
Change in confirmed cases and fatalities in the U.S. Progress toward immunity
(7-day moving average) Percentage of population, end of month
Confirmed Cases Fatalities
Source: Centers for Disease Control and Prevention, Johns Hopkins CSSE, Our World in Data, J.P. Morgan Asset Management. *Share of the total population that has received at least one vaccine dose. **Est. Infected
represents the number of people who may have been infected by COVID-19 by using the CDC’s estimate that 1 in 4.2 COVID-19 infections were reported. ***Est. Infected & vaccinated reflects those that have been both
infected and vaccinated, assuming those infected equally likely to be vaccinated as those not infected. Guide to the Markets –U.S. Data are as of 31st Dec’21.
18Low household debt + Historically high net worth = Expected to unleash pent-up consumption demand
Household Debt at a historic low + Household Net Worth at a historic high
Household debt service ratio Household net worth
Debt payments as % of disposable personal income, SA Not seasonally adjusted, USD (billions)
4Q21**:
4Q07: 13.2% $150,788
1Q80:
3Q07: $70,730
10.6%
4Q21**:
9.0%
Source: BEA; JP Morgan Guide to the Markets – US
Data includes households and non-profit organisations.
**4Q21 figures for debt service ratio and household net worth are J.P. Morgan Asset Management estimates. Data are as of 31 st Dec 2021.
19Expectations of strong recovery in economic activity and earnings
Pent-up demand expected to drive GDP growth in the second half of 2021, with GDP
growth expected to be the highest in almost 40 years
Earnings per share for S&P 500
Earnings Growth1 2021E
Consumer 55%
Finance 47%
Health care 20%
Industrials/Commodities 94%
Technology 36%
Utilities/Telecoms 6%
S&P 500 43%
Source: JP Morgan Asset Management; estimates as of 30th Sep 2021. 1. Shows earnings estimates for super sectors. Opinions, estimates, forecasts, projections and statements of financial market trends
that are based on current market conditions constitute the judgement of JP Morgan Asset Management and are subject to change without notice.
20The US remains at the centre-stage of new-age innovations
Energy ENERGY INDUSTRIALS / AUTOS
Solar & Wind Energy Electric Vehicles
• Innovations across sectors
expected to advance the
economy further
MEDIA
Connected TV & US FINANCIALS
Payments • Many of these i innovative
Streaming themes may not be directly
available in India
CONSUMER HEALTHCARE
Home Automation Medical Technology
Use of data / AI
Source: J.P. Morgan Asset Management. As of 31st March 2021. Opinions, estimates, forecasts, projections and statements of financial market trends are based on market conditions at the date of the publication,
constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Provided for information only to illustrate general market trends not to be construed as research or
investment advice. Investments involve risks and are not similar or comparable to deposits. Not all investment ideas referenced are suitable for all investors.
21In Summary, 5 key reasons why US equities continue to be well-poised to deliver growth
1. Expected 2. For the 3. Highest GDP 4. Reopening
growth in ~40 of the US 5. Innovative
broader market long-term themes
pick up investor years expected economy
Lower Valuations Irrespective of market Being essentially a US to benefit from Participate in the
for the Broader timing, investing for consumption-driven lowering Covid-19 growth of innovative
market vs top 10 the long-term offers economy, US to cases and reaching themes that may not
stocks, thereby significant potential^ benefit from herd immunity be available in India
offering the consumers unleashing and are expected to
potential to benefit their pent-up demand advance the US
from growth in the
and savings, economy further
Broader market
supported by low
debt levels and high
net worth
^Past performance is not an indicator of future performance
221. Why Invest in US Equities?
? 2. Why Invest in US Equities Now?
3. Why IDFC US Equity Fund of Fund?An overview of the IDFC US Equity Fund of Fund
An open-ended fund of fund scheme investing in units/shares of overseas Mutual Fund Scheme (/s) / Exchange
Traded Fund (/s) investing in US Equity securities
• The underlying fund(/s) will be based on the existing US market view and outlook of the fund manager
• Currently, the fund will invest in an underlying fund with a Growth-style investing
Structure of the Investment
IDFC US Equity Underlying Equity shares
Investors Fund of Fund Fund of US
companies
Note: It will not be a dedicated feeder fund structure and the Indian fund is open to invest in funds that meet the investment objective and strategy
24Underlying Fund: The J.P. Morgan US Growth Fund
A carefully chosen fund with a well-tested investment process and well-proven track record
Fund Inception Date: 20th Oct’00
Share Class inception date: 3rd Oct’13*
60-90 stock portfolio – Large-cap
focused with some mid-cap exposure USD 2Bn of assets as on Dec’21
J.P. Morgan
US Growth
Fund
An experienced lead portfolio Global exposure: 40% of the revenue
manager supported by a team of the underlying stocks contributed
of sector research analysts by countries outside of US^
Bottom-up investment approach to identify companies with :
• A large addressable market undergoing meaningful change
• Sustainable competitive advantage and strong execution
• Good price momentum
*Underlying fund is JPMorgan Funds – US Growth Fund; Class: JPM US Growth I (acc) USD
^As on 31st March 2021
25The Underlying Fund deploys a fundamentals driven, bottom-up process to build a portfolio of high
conviction companies
Idea Generation Fundamental Analysis Portfolio Construction
• Run proprietary quantitative • Determine if a prolonged • Bottom-up, fundamental
screens on Russell 1000 growth opportunity exists
Growth Index (approx. 800 • Giri Devulapally, lead portfolio
names) • Assess competitive dynamics manager, uses the fundamental
analysis coupled with his insights to
➢ earnings revisions • Evaluate the attractiveness create a portfolio of 60-90 stocks
➢ price momentum of the business model
➢ valuation
• Position sizes determined by
• Track record of conviction level
• Narrow investable universe management’s ability to
➢ quality of business
to 150-200 companies execute
➢ risk/reward
• Company meetings • Potential for margin ➢ diversification impact on portfolio
expansion
• Industry conferences • Portfolio guidelines:
• Balance sheet strength ➢ Sectors at + / - 10% relative to the
benchmark
➢ Stocks at + / - 5% relative to the
benchmark
Source: J.P. Morgan Asset Management
26ESG principles embedded in the research process of the Underlying Fund
A robust framework to evaluate each company under coverage on ESG dimensions
Environment Social Governance
Global Equity Research Team
• Decades of insight • Climate Change • Human Capital • Corporate Governance
• Globally consistent • Natural Resources • Product Liability • Corporate Behaviour
• Systematic approach • Pollution and Waste • Stakeholder Opposition
• Environmental • Social Opportunities
Opportunities
Supported by:
Investment Stewardship Professionals 12 questions 12 questions 16 questions
Over 20 years experience with corporate
engagement and governance oversight
Source: J.P. Morgan Asset Management. ESG = Environment, Social, and Governance.
27The Underlying Fund provides access to unique business models and companies
Digital Advertising Financials Technology - Enabled Technology
Merchants spending more Increased conviction in Companies leveraging Largest underweight but
on digital advertising to traditional financials while technology to create largest in absolute weight
build mindshare in the owning secular winners in competitive advantages
online world payments • Select industrials are poised • Semiconductor
• Snap, Alphabet, Meta to benefit from companies with
• High-quality franchises technological innovation
Platforms that have robust sustainable growth
tailwinds: Charles Deere, Freeport-McMoRan, drivers
Schwab, Morgan Rockwell Automation ASML, Advanced Micro
Stanley, Blackstone, SVB • Consumer-facing platforms: Devices, Synopsys
Financial
Chipotle, Align Technology,
• Payments: • Underweight stocks that
Carvana
PayPal, Square have outperformed
substantially
Apple, Microsoft
Source: J.P. Morgan Asset Management. The securities highlighted above have been selected based on their significance and are shown for illustrative purposes only. It should not be interpreted as a
recommendation to buy or sell. It should not be assumed that other securities in the portfolio have performed in a similar manner. The Strategy is an actively managed portfolio, holdings, sector weights,
allocations and leverage, as applicable are subject to change at the discretion of the Investment Manager without notice.
28Portfolio performance of the Underlying Fund (INR)
Annualised Return
As on 30th November 2021 One Year Three Years Five Years Since inception
JPM US Growth Fund 27.7% 36.9% 31.1% 23.5%
Russell 1000 Growth Index
32.3% 32.1% 27.0% 22.0%
(Benchmark)
Excess Return -4.6% 4.8% 4.1% 1.5%
Source: J.P. Morgan Asset Management and IDFC internal analysis. INR performance has been derived from the USD returns. Fund performance is shown based on the NAV of the share class I in USD with
income (gross of shareholder tax) reinvested including actual ongoing charges excluding any entry and exit fees. Figures greater than 1 year are annualised. The benchmark figures are net of 30%
withholding tax. Past performance may or may not be sustained in the future.
29Portfolio performance of the Underlying Fund (INR)
Calendar year performance
As on 30th November 2021 CY’21 YTD CY’20 CY’19 CY’18 CY’17 CY’16 CY’15 CY’14
JPM US Growth Fund 23.5% 59.4% 42.2% 8.7% 29.3% 0.0% 12.8% 14.9%
Russell 1000 Growth Index
28.2% 41.3% 39.4% 6.9% 21.8% 9.4% 10.5% 14.8%
(Benchmark)
Excess Return -4.7% 18.1% 2.9% 1.7% 7.4% -9.3% 2.3% 0.2%
Source: J.P. Morgan Asset Management and IDFC internal analysis. INR performance has been derived from the USD returns. Fund performance is shown based on the NAV of the share class I in USD with
income (gross of shareholder tax) reinvested including actual ongoing charges excluding any entry and exit fees. Figures greater than 1 year are annualised. The benchmark figures are net of 30%
withholding tax. Past performance may or may not be sustained in the future.
30Sector breakdown Vs the benchmark of the Underlying Fund
Portfolio repositioned towards cyclicals, beneficiaries of reopening of the economy
Sector positions (%)
Portfolio Over/ (Under) Weight Portfolio Weight Benchmark Weight
6.6 Financials 8.8 2.2
0.7 Industrials 1.3 0.6
0.2 Health Care 8.3 8.1
(0.1) Basic Materials 0.0 0.1
(0.2) Consumer Staples 2.3 2.5
(0.3) Utilities 0.3 0.6
(0.5) Energy 0.1 0.6
(1.5) Telecommunications 10.1 11.6
(1.6) Consumer Discretionary 20.9 22.5
(1.6) Technology 48.0 49.6
(1.8) Real Estate 0.0 1.8
Source: Wilshire. The portfolio is actively managed. Holdings, sector weights, allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice. As of September
2020, Russell Global Sectors (RGS) classification scheme has been decommissioned and has been replaced by the new Industry Classification Benchmark (ICB) classification. Data as on 30th Nov 2021.
31Portfolio Details of the Underlying Fund
An active overweight in select ‘non-traditional’ stocks and an underweight in the recent winners
Fund weight Fund Relative
Top 10 Holdings Key Portfolio Statistics Fund Benchmark
(%) weight (%) position (%)
Microsoft 9.0 Advanced Micro
overweights1
3.4 2.5 Weighted Average
Devices USD 850.0b USD 986.1b
Apple 8.7 Market Cap
Top 5
Blackstone Group 2.9 2.5
Alphabet2 7.4 Price / Earnings,
Deere 2.4 2.0 25.5x 27.4x
Tesla Motors 4.9 12-mth fwd3
Morgan Stanley 1.9 1.9
Amazon.com 3.5 Charles Schwab 1.9 1.9 EPS Growth,
15.0% 14.8%
Advanced Micro 12-mth fwd
3.4
underweights1
Devices
Amazon.com 3.5 -3.1
NVIDIA 3.3 Number of holdings 69 496
Top 5
Apple 8.7 -2.4
Meta Platforms 3.1 Home Depot* 0.0 -1.8 Weight in top 10 index
Blackstone Group 2.9 40% 50%
Microsoft 9.0 -1.7 holdings
Deere 2.4 Visa* 0.0 -1.4
Market Capitalisation (%)
Top Buys in 3Q 2021 Top Sells in 3Q 2021
78.8 83.1
Blackstone Group Fund Benchmark
Microsoft
Advanced Micro Devices Alphabet 21.3 14.7
0.0 2.2
Visa* Zillow Group*
> USD 50 bn USD 10-50 bn < USD 10 bn
Source: Factset, Wilshire (excludes cash), J.P. Morgan Asset Management. 1. Relative to the Russell 1000 Growth Index. 2. Based on combining the positions of both Alphabet share classes (GOOGL and
GOOG) which are listed in the Russell 1000 Growth Index. 3. excludes negatives *Indicates stock not held in the portfolio as of 30th Nov 2021. The portfolio is actively managed. Holdings, sector weights,
allocations and leverage, as applicable, are subject to change at the discretion of the investment manager without notice.
32The Underlying Fund has a tight-knit portfolio team focused on Large Cap Growth
100+ years of combined experience
Giri Devulapally
Managing Director
Portfolio Manager
Experience: 30/18
Joe Wilson Holly Fleiss Sarah Dodson Larry Lee Robert Maloney
Managing Director Executive Director Managing Director Vice President
Executive Director
Co-PM*/Technology Health Care Analyst Financials / Business Industrials, Energy &
Consumer Analyst
Analyst Health Care Consumer Services Analyst Materials Analyst
Technology Experience: 17/9 Experience: 12/4 IT Services & Financial Svcs Industrials
Experience: 16/7 Experience: 28/15 Experience: 21/8
Also leverages the insights of the J.P. Morgan Equity organization, which includes
over 40 research analysts in the U.S. and over 200 globally
As of 30th September 2021. Years of experience: Industry/Firm. *Back-up PM. There can be no assurance that professionals currently employed by JPMAM will continue to be employed by JPMAM or that
past performance or success of such professionals serve as an indicator of the professionals’ future performance or success.
33Investment in the FoF akin to any other Indian Mutual Fund
Exit Load
1% of applicable NAV - if the units are Investment Objective The Fund seeks to
redeemed/switched out within 1 year from the generate long term capital appreciation by
date of allotment investing in units/shares of overseas Mutual
Nil – if the units are redeemed / switched-out Fund Scheme (/s) / Exchange Traded Fund (/s)
after 1 year from the date of allotment investing in US Equity securities.*
Subscription: Fresh Purchase (including switch-
Benchmark Russell Investment in) - Rs.5,000/- and in multiples of Re. 1/-
1000 Growth Index^ in the FoF thereafter.
Additional Purchase (including switch-in) -
Rs.1,000/- and any amount thereafter
Maximum Total Expense Fund Manager
Ratio (including underlying Mr. Viraj Kulkarni – overseas investments
fund expense): 2.25% Mr. Harshal Joshi – domestic fixed income
securities
*However, there can be no assurance that the investment objective of the Scheme will be realized. ^Total Return Net of 30% withholding tax
34In Summary, 5 key reasons to choose the IDFC US Equity Fund of Fund
1. Investment 3. Reduced 5. Ease of
2. Portfolio 4. Expertise
Approach concentration Investment
An actively managed The Underlying Fund Broad exposure to Seasoned, proven Hassle-free
Underlying Fund with is Growth-oriented, US equity markets fund management investment process
a well-tested, positioned to benefit without a sector/ team of the into US market;
fundamental, from reopening of market-cap bias, Underlying Fund subscribe and
bottom-up stock the economy while with currently a with deep US redeem like a regular
selection process majorly being lower exposure to expertise# Indian mutual fund
invested in long term top 10 index
secular trends constituents
#The IDFC US Equity Fund of Fund is open to invest in funds that meet the investment objective and strategy.
35Annexure: Other details of IDFC US Equity Fund of Fund
Minimum Subscription / Redemption amounts:
Subscription: Fresh Purchase (including switch-in) - Rs.5,000/- and in multiples of Indicative Allocation
Instruments
Re. 1/- thereafter (as % of total assets) Risk Profile
Additional Purchase (including switch-in) - Rs.1,000/- and any amount thereafter
Redemption: Rs.1,000/- or the account balance of the investor, whichever is less. Units/Shares of overseas
Redemption TAT: T+5 business days^ Mutual Fund Scheme (/s) /
Exchange Traded Fund (/s) 95% - 100% Very High
SIP: Rs.1,000/- and in multiples of Re.1 thereafter investing in US Equity
STP (being Target Scheme): Rs.1,000/- and any amount thereafter (for Fixed securities
amount option) / Rs.500/- and any amount thereafter (for capital appreciation
option) Debt Securities, Money
Market Instruments, and/or 0% - 5% Low to
SWP: Rs. 200 and any amount thereafter units of Debt and Liquid Medium
Maximum Total Expense Ratio (including underlying fund expense): 2.25% schemes
Taxation
Resident Investor Mutual Fund
Dividend*
Tax on Dividend As per respective slab rate or corporate tax rate Nil
applicable to the investor
Capital Gains*
Long Term (holding period more than 36 months) 20% with indexation Nil
Short Term (holding period up to 36 months) As per respective slab rate or corporate tax rate Nil
applicable to the investor
*plus applicable surcharge and Health & Education cess
^As per SEBI regulations, redemption has to be processed within 10 business days; TAT - Turn Around TimeImportant Disclosure
This product is suitable for investors who are seeking*:
To create wealth over long term
Diversification of returns through investing in a fund mainly investing in units/shares of overseas Mutual Fund
Scheme (/s) / Exchange Traded Fund (/s) which invests in US Equity securities
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The identity of the issuer of the Promotion Material and the investment product which is the subject of the Promotion Material and the content of the Promotion Material has been verified by the issuer thereof;
The Promotion Material is not issued by J.P. Morgan Asset Management (Singapore) Limited (JPMAMSL), any of its Affiliates or a JPMorgan Fund and the Promotion Material does not relate to a direct investment
in any JPMorgan Fund; neither JPMAMSL, any of its Affiliates or a JPMorgan Fund has reviewed the contents of the Promotion Material and accordingly takes no responsibility for the accuracy of the contents of
the Promotion Material or any liability for any statement or misstatement in the Promotion Material; and an investor would be investing into an investment product which is established, offered and sold by the
Company or its Affiliates and would not be investing in any JPMorgan Fund, and accordingly there is no contractual relationship between the Investor and JPMAMSL, any of its Affiliates or a JPMorgan Fund.
Investors will bear the recurring expenses of the Scheme in addition to the expenses of the underlying schemes in which investments are made by the Scheme. IDFC US Equity Fund of Fund is not a dedicated
Feeder fund and investment in underlying fund will be undertaken subject to fulfilment of documentation and regulatory requirements applicable for investing in the underlying fund. The FoF performance is
subject to the movements of the underlying fund. IDFC AMC does not have an active role in managing the underlying fund. The IDFC US Equity Fund of Fund can invest only in similar mutual fund/s or exchange
traded fund/s with similar investment strategy, similar investment objective, similar asset allocation, similar benchmark.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
The Disclosures of opinions/in house views/strategy incorporated herein is provided solely to enhance the transparency about the investment strategy / theme of the Scheme and should not be treated as
endorsement of the views / opinions or as an investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document has been prepared on
the basis of information, which is already available in publicly accessible media or developed through analysis of IDFC Mutual Fund. The information/ views / opinions provided is for informative purpose only and
may have ceased to be current by the time it may reach the recipient, which should be taken into account before interpreting this document. The recipient should note and understand that the information provided
above may not contain all the material aspects relevant for making an investment decision and the stocks may or may not continue to form part of the scheme’s portfolio in future. The decision of the Investment
Manager may not always be profitable; as such decisions are based on the prevailing market conditions and the understanding of the Investment Manager. Actual market movements may vary from the anticipated
trends. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alterations to this statement as may be required from time to time. Neither IDFC
Mutual Fund / IDFC AMC Trustee Co. Ltd./ IDFC Asset Management Co. Ltd nor IDFC, its Directors or representatives shall be liable for any damages whether direct or indirect, incidental, punitive special or
consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
37Thank You
IDFC Asset Management Company
One World Centre, 6th Floor,
841 Jupiter Mills Compound,
Elphinstone Road (West), Mumbai 400013,
Maharashtra, India
www.idfcamc.com
www.idfcmf.com
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