Invesco India Caterpillar Portfolio - A portfolio following Mid & Small Cap strategy - Invesco Mutual Fund
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Invesco India Caterpillar Portfolio A portfolio following Mid & Small Cap strategy March 2019
Why Mid & Small cap strategy?
Widening pool of entrepreneurial talent in India is best tapped in mid & small sized companies
– New entrant in an industry/ Participation in an emerging businesses
Provides exposure to structural growth stories
– Niche/ Local business opportunity
Better compounding machines
– Acquiring future large companies – early
Provides alpha generation as they are under-researched & largely overlooked
– Beneficiaries of earning growth and P/E multiple expansion
Mid & Small cap transition in last 15 years
Period: June 2003 to June 2018
Stock Categorisation as June 29, 2003 Stock Categorisation as June 30, 2018
Market Cap No. Of Stock Large Cap Mid Cap Small Cap
Mid Cap 150 25 89 36
Small Cap 78 4 36 38
Stock classification definition used:
Large Caps: 1st to 100th company in terms of full market capitalization
Mid Cap: 101st to 250th company in terms of full market capitalization
Small Cap: 251st company onwards in terms of full market capitalization
Past performance may or may not be sustained in future. Source: Bloomberg. Stock Universe: Listed stocks as on June 30, 2003 with minimum INR 100 Crs full market capitalization. Stock which have got
delisted or not quoted on June 29, 2018, have been excluded from the stock universe for the above study.
3
Transition leads to better performance…
Period: June 30, 2003 – June 29, 2018. Return basis: Average CAGR
37.85%
32.18%
22.55%
17.47%
Mid Cap (2003) to Mid Cap (2018) Small Cap (2003) to Mid Cap (2018) Mid Cap (2003) to Large Cap (2018) Small Cap (2003) to Large Cap (2018)
Stocks Stocks Stocks Stocks
Mid Cap (2003) to Mid Small Cap (2003) to Mid Cap (2003) to Small Cap (2003) to
Cap (2018) Mid Cap (2018) Large Cap (2018) Large Cap (2018)
Past performance may or may not be sustained in future. Return Method: Compound Annual Growth Return (CAGR). Source: Bloomberg. Definition: Large Caps:1st to 100th company in terms of full market
capitalization. Mid Cap:101st to 250th company in terms of full market capitalization. Small Cap:251st company onwards in terms of full market capitalization. Stock Universe: Listed stocks with minimum 100 Crs full
market capitalisation as on June 30, 2008. Stock which have got delisted or not quoted on June 29, 2018, have been excluded from the stock universe for the above study. The return of individual stock in a category is
based on adjusted stock price considering corporate action excluding dividends. The average return of each category is calculated as simple average of CAGR returns of all the stocks in that particular category.
4
… however stocks may have divergent performance
hence stock selection is the key
Period: June 30, 2003 – June 29, 2018. Return basis: Average CAGR
60%
55% Maximum Return
49.59%
50% Maximum Return
45.01%
45%
Average
40% Maximum Return Return
Maximum Return
34.77% 37.85%
32.93% Average
35%
Return
30% 32.18%
25% Average
Minimum Return
Return
27.49%
20% Average 22.55% Minimum Return
Return 22.59%
15% 17.47%
Nifty Midcap 100
15 Year CAGR: 18.94%
10%
Minimum Return
5% 11.43%
0%
-5% Minimum Return
-1.46%
-10%
Mid Cap (2003) to Mid Cap (2018) Small Cap (2003) to Mid Cap (2018) Mid Cap (2003) to Large Cap (2018) Small Cap (2003) to Large Cap
(2018)
Past performance may or may not be sustained in future. Return Method: Compound Annual Growth Return (CAGR). Source: Bloomberg. Definition: Large Caps:1st to 100th company in terms of full market
capitalization. Mid Cap:101st to 250th company in terms of full market capitalization. Small Cap:251st company onwards in terms of full market capitalization. Stock Universe: Listed stocks with minimum 100 Crs full
market capitalisation as on June 30, 2003. Stock which have got delisted or not quoted on June 29, 2018, have been excluded from the stock universe for the above study. The return of individual stock in a category is
based on adjusted stock price considering corporate action excluding dividends. Maximum Return and Minimum Return are of individual stock in that particular category. The average return of each category is
calculated as simple average of CAGR returns of all the stocks in that particular category.
5
Shree Cement Ltd.
Transition from Mid Cap to Large Cap
Share Price Chart. Period: June 30, 2003 – June 30, 2018.
21,000
FY2003 FY 2018 Growth
Financials
(In INR Crs.) (In INR Crs.) (CAGR)
18,000
Sale 494.28 9,833.10 23.81%
EBITDA 134.68 2,861.83 24.40%
15,000 Profit after Tax 13.04 1,384.18 39.54%
12,000
9,000
6,000
3,000
0
Jun/03 Jun/04 Jun/05 Jun/06 Jun/07 Jun/08 Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17 Jun/18
Company Financial Data Source: Capitaline. Company Share Price Data Source: Bloomberg. Data for the period June 30, 2003 till June 30, 2018
Past Performance may or may not be sustained in future.
CAGR: Compound Annual Growth Rate. CAGR shown for price movement. EBITDA: Earnings before interest, taxes, depreciation, and amortization
Disclaimer: The stocks referred above are for the purpose of explaining the concept transition of stock from Mid Cap to Large Cap category and should not be construed as recommendations from Invesco Asset
Management (India) Pvt. Ltd. The stock referred above should not be construed as recommendations from Invesco Asset Management (India) Private Limited. The Portfolio may or may not have any present or future
positions in these stock or in any other portfolios offered by Invesco Asset Management (India) Private Limited. The performance of above stocks should not be construed as performance of the portfolio as the portfolio
would be constituted of number of stocks having different weights and the individual stock held by the portfolio may or may not give positive returns. Invesco Asset Management (India) Private Limited is not
guaranteeing or promising or forecasting any returns.
6
United Breweries Ltd.
Transition from Small Cap to Large Cap
Share Price Chart. Period: June 30, 2003 – June 30, 2018.
1,400
FY2003 FY 2018 Growth
Financials
(In INR Crs.) (In INR Crs.) (CAGR)
1,200 Sale 493 5,619 19%
EBITDA 58 915 22%
1,000 Profit after Tax -12.27 653.85 19%*
800
600
400
200
0
Jun/03 Jun/04 Jun/05 Jun/06 Jun/07 Jun/08 Jun/09 Jun/10 Jun/11 Jun/12 Jun/13 Jun/14 Jun/15 Jun/16 Jun/17 Jun/18
Company Financial Data Source: Capitaline. Company Share Price Data Source: Bloomberg. Data for the period June 30, 2003 till June 30, 2018. * From INR 55.11 Crs. Profit after Tax in March 31, 2007 to INR
653.85 Crs. Profit after Tax in March 31, 2018. CAGR: Compound Annual Growth Rate. CAGR shown for price movement. EBITDA: Earnings before interest, taxes, depreciation, and amortization
Past Performance may or may not be sustained in future.
Disclaimer: The stocks referred above are for the purpose of explaining the concept transition of stock from Small Cap to Large Cap category and should not be construed as recommendations from Invesco Asset
Management (India) Pvt. Ltd. The stock referred above should not be construed as recommendations from Invesco Asset Management (India) Private Limited. The Portfolio may or may not have any present or future
positions in these stock or in any other portfolios offered by Invesco Asset Management (India) Private Limited. The performance of above stocks should not be construed as performance of the portfolio as the portfolio
would be constituted of number of stocks having different weights and the individual stock held by the portfolio may or may not give positive returns. Invesco Asset Management (India) Private Limited is not
guaranteeing or promising or forecasting any returns.
7
Invesco India Caterpillar Portfolio 8
Invesco India Caterpillar Portfolio
Capitalizing on transformational opportunities
Investment Fundamentally strong and high growth mid-sized1 and small-sized2 companies
Universe
Investment Scalable business model coupled with sustainable growth prospects
Focus Companies with niche or emerging business prospects
Under owned & overlooked investment opportunities
Attributes Competitive advantages and industry attractiveness
Good quality management with sound corporate governance
Attractive returns on capital and adequate cash flow
Potential for Earning growth and P/E multiple expansion
Quantitively For Manufacturing Companies: Return on Capital Employed & Free Cash Flow
Filters For Financial Companies: Return of Equity & Return on Assets
Stock Selection Bottom-up stock picking
Approach
Portfolio High conviction portfolio
Construct 15 to 25 Stock Portfolio
1 Mid Cap:101st to 250th company in terms of full market capitalization. Small Cap:251st company onwards in terms of full market capitalization. P/E: Price to Earnings
9
Investment Process
Fund Objective
Investment Universe
10Stock Categorization Framework
Stock Descriptions Growth Prospects Company Attribute Financial Parameter
Category (e.g.) (e.g.) (e.g.) (e.g.)
Track record of
In line or better than Industry leading
Leader Established companies leadership, globally
industry margin / ROE
competitive
Young / established Unique proposition and / Margin & ROE Growth
Warrior Better than industry
companies or right place, right time expansion
Entrepreneur vision,
Star Young companies High growth Operating Leverage
scalability
Company with Management intent to Value of
Diamond Low growth
valuable assets unlock value asset / business
Value
Company in a Intrinsic strengths in
Frog Prince Back to growth P2P, ROE expansion
turnaround situation core business
Corporate event,
Shotgun Opportunistic investment Positive surprise restructuring, earnings Event visibility Event
news
Call on the cycle Integration, cost efficiency,
Commodities Positive Profit leverage
is paramount globally competitive
P2P: Path to Profit; ROE: Return on Equity.
Based on internal proprietary stock categoristaion and subject to change from time to time
11Stock Selection Process
Stock
Investment Strategy & Portfolio Construction
Categorization
Quantitively Filters Levers
Framework#
5 Benchmark
Indices*
+ Categorized Portfolio Portfolio
Select Bottom- Stocks Universe
up ideas
No. of Stocks: No. of Stocks: No. of Stocks: No. of Stocks:
301 127 65 15–25
Data as on March 31, 2019
#For details on Stock Categorization Framework please refer previous slide.
*5 Benchmark Indices: S&P BSE 200 Index, Nifty Midcap 100 Index, Nifty Infrastructure Index, Nifty Bank Index and S&P BSE PSU Index. Quantitative Filters: Return on Capital Employed & Free Cash Flow.
12City Union Bank Ltd.
Financials
Amount in INR Crs. Except return ratios
Brief description & our thesis Financial Data Data / Estimate as on March 31, 2019
City Union Bank Ltd. (CUBK) is one of the oldest private sector bank YoY Growth
CAGR
having more than 100 years of profitable operations. The bank has a better Financial Snapshot FY19 FY20E FY21E (9MFY19 v/s
FY19-21E
regional presence in Tamil Nadu and is well-poised to leverage high-quality 9MFY18)
growth in micro, small & medium enterprises (MSME) and retail segments Sales 1,638 1,787 1,991 10% 12%
where it has grown its loan mix.
PPOP 1,051 1,126 1,247 9% -1%
The bank has demonstrated consistent performance over long term. The 5
year average Return On Asset (ROA) has been at 1.5% and Return on Profit After Tax 698 792 826 9% 15%
Equity (ROE) at 17%.
In FY18, the bank reported healthy growth in adjusted book value of 17%.
As of FY18, it has Tier 1 ratio of 15.79% and would not require any capital Ratios FY19 FY20E
even under stress scenarios. As a result, the bank is well placed to utilize
capital for growth. ROA 1.6% 1.5%
ROE 16.1% 14.8%
Net slippage at 1.55% (FY18) is better to the average ratio of 2.9% of its
peers which include Karur Vysya Bank, South Indian Bank & Federal Bank.
Price / Adj. Book 3.1 2.7
CUBK at Rs. 205/- trades at price to adjusted book of 2.7x FY20E for P/E 19.2 16.9
adjusted book value CAGR of 15% over FY19-21.
Market Cap / Current Market Price
Market Cap (In INR Crs) 13,426
Current Market Price 205
Past performance may or may not be sustained in future.
Source: Company, Bloomberg, Internal Estimates. CAGR: Compounded annualized growth rate. ROE: Return on Equity. ROCE: Return on Capital Employed. P/E: Price to Earnings.
EPS: Earnings per Share. PPOP: Pre-Provision Operating Profit. ROA: Return on Assets
Disclaimer: The stock referred above should not be construed as recommendation, advice to buy, sell or in any manner transact in this stock and neither should it be considered as
Research Report from IAMI. IAMI may or may not have any present or future positions in this stock or in any other portfolios offered by IAMI. The performance of above stock should not
be construed as performance of IAMI portfolio offerings as each portfolio would be constituted of number of stocks having different weights and the individual stock held by the portfolio
may or may not give positive returns. Invesco Asset Management (India) Private Ltd. is not guaranteeing or promising or forecasting any returns.
13Music Broadcast Ltd.
Consumer Discretionary
Amount in INR Crs. Except return ratios
Brief description & our thesis Financial Data Data / Estimate as on March 31, 2019
Music Broadcast Ltd. (MBL), a part of Jagran Prakashan group, is amongst YoY Growth
CAGR
the top 3 players with pan India presence, and the frequency is commonly Financial Snapshot FY19 FY20E FY21E (9MFY19 v/s
FY19-21E
known as “Radio City”. 9MFY18)
Sales 331 375 428 14% 9%
Radio is the 3rd fastest growing advertising medium in India and offers
extended period of healthy growth with healthy RoCE for most of the large EBITDA 116 142 174 22% 17%
players.
Profit After Tax 66 86 112 30% 22%
MBL offers high operating leverage through higher capacity utilization of
legacy operating channels and scale up in revenues from new frequencies
which have recently got operational.
Ratios FY19 FY20E
The startup of operations in 11 new cities, over its existing presence in 28
cities, resulted in a lot of set up and operating expenses which negatively ROCE 13% 15%
impacted profits in FY16 and FY17. Subsequent scale up in the same radio
ROE 13% 15%
stations will drive operating leverage to the profitability over the next few
years. EV/EBITDA 12.7 10.4
MBL at Rs 58/- trades at 19x PE and 10x EV/EBIDTA based on FY20E P/E 24.5 18.8
numbers for expected EPS CAGR of 30% and EBITDA CAGR of 22% over
FY19-21.
Market Cap / Current Market Price
Market Cap (In INR Crs) 1,616
Current Market Price 58
Past performance may or may not be sustained in future.
Source: Company, Bloomberg, Internal Estimates. CAGR: Compounded annualized growth rate. ROE: Return on Equity. ROCE: Return on Capital Employed. P/E: Price to Earnings.
EPS: Earnings per Share. EV: Enterprise Value. EBITDA: Earnings before interest, tax, depreciation, and amortization.
Disclaimer: The stock referred above should not be construed as recommendation, advice to buy, sell or in any manner transact in this stock and neither should it be considered as
Research Report from IAMI. IAMI may or may not have any present or future positions in this stock or in any other portfolios offered by IAMI. The performance of above stock should not
be construed as performance of IAMI portfolio offerings as each portfolio would be constituted of number of stocks having different weights and the individual stock held by the portfolio
may or may not give positive returns. Invesco Asset Management (India) Private Ltd. is not guaranteeing or promising or forecasting any returns.
14Equitas Holdings Ltd.
Financials
Amount in INR Crs. Except return ratios
Brief description & our thesis Financial Data Data / Estimate as on March 31, 2019
Equitas is a diversified small finance bank (SFB) with presence in YoY Growth
CAGR
microfinance business (28% of AUM), vehicle finance (27% of AUM), Loan Financial Snapshot FY19 FY20E FY21E (9MFY19 v/s
FY19-21E
against Property (26% of AUM), housing finance (6%) and business loans 9MFY18)
(5% of AUM) for FY18. Sales 1,157 1,440 1,774 24% 25%
Company has demonstrated a better track record during the period FY11- PPOP 367 587 788 46% 97%
FY16 when Equitas reported an AUM Growth of 50% CAGR aided by
better growth in micro finance business (33% CAGR) and commencement Profit After Tax 159 279 380 54% 100%
of new business lines.
better AUM growth has also been complimented by Net Interest Income
CAGR of 32%, pre-provisioning profit CAGR of 35% and Profit after Tax Ratios FY19 FY20E
CAGR of 42% during the same period.
ROA 1.6% 1.8%
FY17 and FY18 got negatively impacted due to advancement of expenses
ROE 8.6% 11.0%
towards SFB transitioning, higher credit costs on microfinance book and
conscious reduction in microfinance book.
Price / Adj. Book 1.6 1.5
However, since the transitioning related costs are now fully incurred, we P/E 24.1 13.8
expect Return on Assets expansion from 0.3% in FY18 to 1.1% in FY19
driven by operating leverage and normalization of credit costs (financial
leverage) leading to 183% CAGR in earnings from FY19-21 and ROE’s to
improve from 1.5% in FY18 to 7% in FY20 Market Cap / Current Market Price
Equitas at Rs. 137/- trades at price to adjusted book of 1.5x FY20E for Market Cap (In INR Crs) 3,834
adjusted book value CAGR of 10% over FY19-21.
Current Market Price 137
Past performance may or may not be sustained in future.
Source: Company, Bloomberg, Internal Estimates. CAGR: Compounded annualized growth rate. ROE: Return on Equity. ROCE: Return on Capital Employed. P/E: Price to Earnings.
EPS: Earnings per Share. PPOP: Pre-Provision Operating Profit. ROA: Return on Assets
Disclaimer: The stock referred above should not be construed as recommendation, advice to buy, sell or in any manner transact in this stock and neither should it be considered as
Research Report from IAMI. IAMI may or may not have any present or future positions in this stock or in any other portfolios offered by IAMI. The performance of above stock should not
be construed as performance of IAMI portfolio offerings as each portfolio would be constituted of number of stocks having different weights and the individual stock held by the portfolio
may or may not give positive returns. Invesco Asset Management (India) Private Ltd. is not guaranteeing or promising or forecasting any returns.
15Portfolio Performance 16
Since inception model portfolio performance
As on March 31, 2019
If Rs. 25 Lahks were invested in Invesco India Caterpillar Portfolio, Nifty Midcap 100 Index and Nifty 50 Index on
June 26, 2006, its present value would have been…
INR 2.09 Cr.
CAGR: 18.12%
8.38 X
INR 1.14 Cr.
CAGR: 12.62%
INR 0.95 Cr.
4.56 X CAGR: 11.05%
3.81 X
Invesco India Caterpillar Portfolio Nifty Midcap 100 Nifty 50
Period: June 26, 2006 – March 31, 2019.
Past performance may or may not be sustained in future. The data given above is for model portfolio. The returns are calculated on the basis of daily market value of the Portfolio. Disclaimer: The returns of model
portfolio given above are for illustration purpose only. Model portfolio returns does not take into account expenses/charges and Profit/Loss on account of derivative transactions. Returns under client wise portfolio may
vary vis-à-vis returns of model portfolio due to various factors viz. timing of investment/additional investment in client’s portfolio, timing of withdrawals in client’s portfolio, mandates given by respective client, profit/loss
on account of derivative transactions, expenses charged to respective portfolio, dividend income in the respective portfolio etc. The Portfolio manager does not offer guaranteed or assured returns. Securities
investments are subject to market risks, please read the Disclosure Document carefully before investing.
17Model portfolio performance
As on March 31, 2019
30.85%
22.96% 23.22%
18.28% 18.12%
15.69% 16.22%
12.72% 13.11% 12.62%
7.34%
3.04%
-1.23%
-2.66%
1 Year 2 Years 3 Years 5 Years 7 Years 10 Years Since Inception
(June 26, 2006)
Invesco India Caterpillar Portfolio Nifty Midcap 100
Past performance may or may not be sustained in future. Returns over 1 year are Compound Annual Growth Return. The data given above is for model portfolio. The returns are calculated on the basis of daily
market value of the Portfolio. Disclaimer: The returns of model portfolio given above are for illustration purpose only. Model portfolio returns does not take into account expenses/charges and Profit/Loss on account of
derivative transactions. Returns under client wise portfolio may vary vis-à-vis returns of model portfolio due to various factors viz. timing of investment/additional investment in client’s portfolio, timing of withdrawals in
client’s portfolio, mandates given by respective client, profit/loss on account of derivative transactions, expenses charged to respective portfolio, dividend income in the respective portfolio etc. The Portfolio manager
does not offer guaranteed or assured returns. Securities investments are subject to market risks, please read the Disclosure Document carefully before investing.
18Consistent outperformance
Rolling return analysis: Model portfolio vs Benchmark
Period: January 1, 2010 to March 31, 2019
2 Year Rolling Return (CAGR) 3 Year Rolling Return (CAGR) 4 Year Rolling Return (CAGR) 5 Year Rolling Return (CAGR)
No. of Observations 2,648 No. of Observations 2,283 No. of Observations 1,917 No. of Observations 1,552
Negative Observations: Model Portfolio 44 Negative Observations: Model Portfolio 0 Negative Observations: Model Portfolio 0 Negative Observations: Model Portfolio 0
Negative Observations: Benchmark 513 Negative Observations: Benchmark 305 Negative Observations: Benchmark 3 Negative Observations: Benchmark 0
Maximum Return Minimum Return Average Return
69.91%
46.87% 47.15%
39.90%
34.72%
32.95%
27.43% 30.34% 27.76%
25.53%
24.20%
25.02%
21.04%
14.00% 15.14% 15.50%
13.17%
8.99%
1.56% 5.61%
-1.90% -0.32%
-11.11% -10.11%
Invesco India Caterpillar Nifty Midcap 100 Invesco India Caterpillar Nifty Midcap 100 Invesco India Caterpillar Nifty Midcap 100 Invesco India Caterpillar Nifty Midcap 100
Portfolio Portfolio Portfolio Portfolio
Past performance may or may not be sustained in future. Data as on March 31, 2019.The performance details provided herein is of model portfolio. Model portfolio returns does not take into account expenses/charges and Profit/Loss on account of
derivative transactions. Returns under client wise portfolio may vary vis-à-vis returns of model portfolio due to various factors viz. timing of investment/additional investment in client’s portfolio, timing of withdrawals in client’s portfolio, mandates given by
respective client, profit/loss on account of derivative transactions, expenses charged to respective portfolio, dividend income in the respective portfolio etc. The Portfolio manager does not offer guaranteed or assured returns. Securities investments
are subject to market risks, please read the Disclosure Document carefully before investing. Returns above 1 year are Compounded Annualised Growth Rate (CAGR)
19Portfolio Update 20
Model Portfolio Holdings
As on March 31, 2019
Top 15 Holdings Sector
Scrip Name % of Net Assets Sector Name % of Net Assets
Mahanagar Gas Ltd. 7.11 Financials 29.57
Consumer Discretionary 17.05
Mahindra Logistics Ltd. 6.33
Utilities 13.02
City Union Bank Ltd. 6.32
Industrials 11.23
Equitas Holdings Ltd. 6.02 Consumer Staples 10.64
Indraprastha Gas Ltd. 5.91 Materials 8.07
Music Broadcast Ltd. 5.91 HealthCare 5.02
United Breweries Ltd. 5.69 Cash & Cash Equivalent 5.40
Exide Industries Ltd. 5.14
Sanofi India Ltd. 5.02 Market Capitalization Break Up (In INR Crs. )
Karur Vysya Bank Ltd. 5.00 Market cap range % of Net Assets No. of Scrips
Heritage Foods India Ltd. 4.95 Less Than to 10,000 39.97 8
10,000 to 15,000 15.90 3
Voltas Ltd. 4.90
15,000 to 20,000 16.36 3
RBL Bank Ltd. 4.90
20,000 to 40,000 22.39 5
Tata Metaliks Ltd. 4.31 Median Market Cap ₹ 12,613 crores
V-Mart Retail Ltd. 3.98 Average Weighted Market Cap ₹ 11,945 crores
Source: Internal / Bloomberg
Disclaimer: The stocks / sectors referred above should not be construed as recommendations from Invesco Asset Management (India) Private Limited. The Portfolio may or may not have any present or future
positions in this stock /sectors or in any other portfolios offered by Invesco Asset Management (India) Private Limited. This should not be seen as an investment advice. Securities investments are subject to market
risks, please read the Disclosure Document carefully before investing.
21Model Portfolio Characteristic
As on March 31, 2019
Fundamental Attributes Portfolio Nifty Midcap 100 Performance Attributes
Dividend Yield1 0.31% 0.43% Standard Deviation 3.94%
Price to Earnings1 FY 19 Estimate 24.0 17.6 Beta 0.69
Price to Earnings1 FY 20 Estimate 19.5 15.6 Sharpe Ratio 0.17
Based on 3 years, monthly data points
Price to Earnings1 FY 21 Estimate 16.0 13.6 (Risk-free rate of 7.45% based on Overnight MIBOR)
2 Year EPS CAGR (FY19-FY21)2 20.3% 13.0%
Return on Assets1 FY 19 Estimate 2.8% 2.2%
Return on Equity1 FY 19 Estimate 13.8% 12.1%
1 Weighted Harmonic Mean
2 EPS Growth is derived from P/E ratios
Note: Excludes companies with net loss for appropriate results for various ratios
Source: Factset, Internal. EPS: Earning Per Share. CAGR: Compounded annualize growth rate
22Key Portfolio Facts
Portfolio Name Invesco India Caterpillar Portfolio
Investment Objective To achieve capital appreciation over a long term by investing in a diversified portfolio.
Indicative Asset Indicative Allocation
Allocation Instruments (% of Portfolio Value) Risk Profile
Equity & Equity Related Instruments1 90–100% High
Cash & Cash Equivalent 0–10% Low to medium
1The Portfolio may have exposure to derivatives upto 30% of portfolio value in accordance with guidelines issued by SEBI.
Benchmark Nifty Midcap 100 Index
Portfolio Manager Mr. Amit Nigam
Total Experience: 17 Years.
Experience in managing this portfolio: May 16, 2018.
Inception Date June 26, 2006
Minimum Investment INR 25 Lacs
Subscription Mode: Cheque and/or Stock Transfer.
23Portfolio Manager
Mr. Amit Nigam
Portfolio Manager – Portfolio Management Services
Amit has over 17 years’ experience in the Indian equity market. In his last assignment,
Amit was working with Essel Mutual Fund as Head of Equities where he was responsible
for the equity management function at the firm. In the past, he has also worked with
companies like BNP Paribas Investment Partners, BNP Paribas Mutual Fund, SBI Funds
Management & Reliance Industries Ltd. Amit holds a Mechanical Engineering Degree from
Indian Institute of Technology Roorkee and a PGDBM from Indian Institute of Management
- Indore.
24Who Should Invest Investor seeking long term capital appreciation Investor without short term liquidity needs Investor with long term investment horizon Investor who can tide over short term volatility An ability to take higher risk 25
Compliance Information Disclaimer: This presentation does not solicit any action based on the material contained herein. Invesco Asset Management (India) Private Limited (“the Portfolio Manager/the Company/IAM”) will not treat recipients as clients by virtue of their receiving this presentation. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this presentation. The Co's/sectors referred in this presentation are only for the purpose of explaining the concept of Portfolio and should not be construed as recommendations from Portfolio Manager. The Portfolio may or may not have any present or future positions in these stocks. The Portfolio(s) discussed in the presentation may not be suitable for all the investors. The recipient of this material alone shall be fully responsible/liable for any decision taken on the basis of this material. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. The distribution of this presentation in certain jurisdictions may be restricted or totally prohibited to registration requirements and accordingly, persons who come into possession of this presentation are required to inform themselves about and to observe any such restrictions and/ or legal compliance requirements. Persons who may receive this presentation should consider and independently evaluate whether it is suitable for his/her/their particular circumstances and are requested to seek professional/financial advice. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of principal may occur. The Company and its affiliates accept no liabilities for any kind of loss arising out of the use of this presentation. With respect to all information found in this presentation the Company has obtained data from sources it considers reliable however, the Company and its directors, officers, agents, or employees and its affiliates make no warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information contained therein and the Company shall not be liable for any indirect, incidental or consequential damages sustained or incurred in connection with the use, operation, or inability to use this presentation and information contained therein. Under no circumstances will the Portfolio Manager be liable for any loss or damage caused by anyone’s reliance on information contained in this presentation. Risk Factors: All securities investments are subject to market risks and there can be no assurance that the objectives of the portfolio(s) will be achieved. Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. The performance of the portfolio may be affected by changes in factors affecting the securities markets such as volume and volatility in the capital markets, interest rates, currency exchange rates, changes in law/policies of the Government, taxation laws, political, economic or other developments, general decline in the Indian markets, which may have an adverse impact on individual securities, a specific sector or all sectors. Further, the investments by the portfolio shall involve investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of capital. The portfolio with investment objective to invest in a specific sector/industry would be exposed to risk associated with such sector/industry and its performance will be dependent on performance of such sector/industry. The Portfolio Manager in accordance with the features of respective Portfolio may use derivatives which require an understanding not only of the underlying instrument but of the derivative itself. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Portfolio Manager to identify such opportunities. The decisions of Portfolio Manager may not always be profitable. The portfolio, returns and expenses charged including Portfolio Management fees for each Client may differ from that of the other Client. Investors of the Portfolio Management Services are not being offered any guaranteed/assured returns. The Portfolio Manager may invest in shares, debt, units of mutual funds, deposits or other financial instruments of associate/ group Co's. The name of the portfolio(s) does not in any manner indicate either the quality of the product or their future prospects and returns. Securities investments are subject to market risk, investors are advised to read the risk factors given in the Portfolio Management Services Agreement and Disclosure Document carefully before making investments. 26 MKTG/PMSPRODPPT/0418/C00196
Get in Touch Corporate Office: Invesco Asset Management (India) Private Limited 2101-A, A Wing, 21st Floor, Marathon Futurex, N. M. Joshi Marg, Lower Parel, Mumbai – 400013 T +91 22 67310000 F +91 22 23019422 To invest: Follow us on Call 1800-209-0007 ∆ sms ‘Invest’ to 56677 Invest Online www.invescomutualfund.com 27
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