L&T Mutual Fund - Monthly Income Plan

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L&T Monthly Income Plan* (An open ended Income Scheme with no Assured Returns) April 2011 * Monthly Income is not assured and is subject to the availability of distributable surplus. Subject to statutory levy as applicable.

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Debt Views for the Quarter April -June 2011 2

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Macroeconomic update during q uarter (Dec 10 – March 2011) 3 4 th Quarter FY11 GDP growth was at 8.2% vs. 8.9% in 3 rd Quarter FY11. Indian economy expected to grow at 8.50% in FY11 Fiscal deficit for FY11 was re-estimated to be at 5.1% and for FY12 at 4.6 % in the Union Budget The net & gross borrowing figure for FY12 is Rs 3.43 trillion and Rs 4.17 trillion respectively. IIP (Index of Industrial Production) was low at 3.7% for Jan 2011 compared to 2.5% in Dec 2010 and 3.7% in Nov 2010 primarily on account of high base effect. Cumulatively FY11, India’s BoP saw a surplus of $11 bn around same level as was in corresponding period last year on back of robust FII flows during the current fiscal. Rupee remained almost flat for the last quarter ending at 44.59 in March 2011. RBI hiked Repo and Reverse Repo rate twice during the quarter by 25bps . Currently the Repo is at 6.75% and Reverse Repo is at 5.75%. Source: RBI WSS and Wire agencies as 31-March2011

Macroeconomic update during quarter (Dec 10 – March 2011) :

Macroeconomic update during quarter (Dec 10 – March 2011) Source: RBI WSS and Wire agencies as 31-March2011 4 Bank deposit growth has increased to 19% in March 2011 as compared to 14% in Dec 2010 on account of increase in deposit rates by 50-75 bps. Credit growth remained flat around 24% yoy for the Q4FY11. Banking system liquidity (reflected in RBI’s LAF reverse repo auction) averaged (-) negative Rs 47,000 crore in FY11 on account of prevailing tight liquidity conditions in the market. Overnight rates (CBLO/CALL/repo) which in the beginning of FY11 were at low levels increased during the year due to interest rate tightening & tight liquidity conditions. Short term Money market instruments saw a rise in yields during the last quarter due to rate hikes, tight liquidity conditions and strong credit growth vs. low deposit growth.

Summing up…..:

Summing up….. Source: Bloomberg, Internal Research 5 Since April 2010 ,Ten yr benchmark G sec yield has risen by 15 bps from 7.83% to 7.98% in FY11. 5 yr benchmark AAA corporate bond yield is at 9.24% in comparison to 8.54% in Mar 2010 Inflation (WPI) remained at double digit levels during first 4 months of FY11 and has come down in recent months (Jan-March 2011) due to base effect but still remains above RBI comfort level. Currently latest figure stands at 8.31% as on 31 st March 2011 . Crude oil prices remained at high level on account of MENA (Middle East & North Africa) tensions, up from US$ 84 per barrel in Mar 2010 to US$ 107 per barrel in March 2011. US economy shows signs of recovery, however Eurozone plunged into crisis due to fiscal problems in Greece, Ireland, Spain and lack of strong bailout package from EU Commodity prices including oil prices have risen sharply which is expected to have a negative effect on inflation Other benchmarks: (as on 31 st March 2011) 1 yr CD rate 9.50% 3 month CD rate 9.55% RBI’s LAF repo/reverse repo rate 6.75% / 5.75% CRR 6.00% WPI Inflation 8.31% Liquidity in banking system -106000 crs .

Key Expectations:

Concerns Persistently high inflation Higher than expected rate hikes Sharp rise in global bond yields Key Expectations RBI expected to ensure liquidity deficit does not exceed 40000 cr to 50000 cr on an average Expectation of high short term rates is expected to attract investors on attractive carry Expected FII inflows to debt could be a positive for rates Government’s borrowing program for first half lower than market expectations Positives 6 For information purposes only & should not be construed as offer for purchase of schemes of L&T Mutual fund. Recipient should understand that views /statements made here in may or may not be realized and are personal views of the author and do not necessarily reflect the views of L&T investment Management Ltd. Or any of its associates One could start moving the debt portfolio to income mutual fund s like MIP to take advantage of the high yields and potential appreciation from equity exposure. High Yields also stand to benefit Income Funds

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Based on Absolute returns over long period of time.One may consider equities to be the only option to invest For illustration purposes only . Sectors/Scrips /Indices mentioned are not recommendations from the AMC or its associates Source ACEMF. For information purposes only . Should not be construed as offer for purchases schemes of L&T Mutual Fund Data as on 31 st March 2011 7 MIP Rationale % Returns

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But in volatile times like shown here that added comfort of debt returns could have benefitted the investor with some positive returns if he had diversified in debt funds as well For illustration purposes only . Sectors/Scrips / indices mentioned are not recommendations from the AMC or its associates . Jan-08-March-09 Jan-08-Dec-10 Jan-04-Dec-10 Jan-04-Dec-07 8 Contd..

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SO HYBRID FUND COULD BE A GOOD OPTION TO INVEST IN VOLATLE MARKETS For information purposes only . Sectors/Scrips / indices mentioned are not recommendations from the AMC or its associates . Should not be construed as offer for purchases schemes of L&T Mutual Fund 9

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The fund will predominantly invest in debt and marginally in equity stocks with an endeavor to provide regular monthly income to investors . A hybrid fund which brings together 2 assets classes; Fixed income securities which brings stability to the investment and equity which brings scope for capital appreciation. Ideal for those investors who are looking for stability of returns and also want to have some upside through small equity exposure . Past Performance may or may be sustained in future and is not a guarantee of future results. L&T Monthly Income Plan An open ended income scheme with no assured returns 10 Period Cumulative Option Crisil MIP Blended Index Last 1 Year 4.92% 6.17% Last 3 Years 5.19% 6.83% Last 5 Years 9.44% 7.41% Since Inception ( August 9-2004) 9.25% 8.01% Performance (CAGR) as on 31 st MARCH 2011 (Returns in %)

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L&T Monthly Income Plan An open ended income scheme with no assured returns Face Value: Rs. 10/- per unit. Past performance may or may not be sustained in future. Pursuant to the payment of dividend, the NAV of the Scheme ( Dividend Option ) will fall to the extent of payout and statutory levy, (if applicable). Monthly Income is not assured and is subject to the availability of distributable surplus. Past performance is no guarantee of future results. Subject to statutory levy as applicable Record Date Dividend % Ex-Dividend NAV (Monthly dividend Option) Mar-11 0.527 11..31 Feb-11 0.527 11.28 Jan-11 0.527 11.35 Dec-10 0.527 11.55 Nov-10 0.527 11.53 Oct-10 o.527 11.6 Sep-10 0.527 11.6 Aug-10 0.527 11.5 Jul-10 0.527 11.5 Jun-10 0.527 11.5 May-10 0.527 11.4 Apr-10 0.527 11.6 Mar-10 0.657 11.5 Feb-10 0.657 11.5 Jan-10 0.657 11.6 Dec-09 0.657 11.7 Nov-09 0.788 11.7 Oct-09 0.876 11.7 Sep-09 0.876 11.8 Aug-09 0.876 11.7 Jul-09 0.876 11.7 Jun-09 0.876 11.6 May-09 0.876 11.4 Apr-09 0.876 11.3 Mar-09 0.876 11.2 Feb-09 0.876 11.3 Jan-09 0.876 11.4 Dec-08 0.876 11.4 Nov-08 0.876 11.3 Oct-08 0.876 11.3 Sep-08 0.876 11.8 Aug-08 0.876 12.0 Jul-08 0.876 12.0 Jun-08 0.876 12.1 May-08 0.876 12.6 Apr-08 0.876 12.7 Mar-08 0.876 12.4 Record Date Dividend % Ex-Dividend NAV (Monthly dividend Option) 11 Uninterrupted dividend track record since March 08 in Monthly dividend option

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L&T Monthly Income Plan An open ended income scheme with no assured returns 12 Top 10 holdings as on 31 st March 2011 Company Name Sector Instrument % Net Assets Siemens Ltd Industrial Capital Goods Equity 0.63 ITC Ltd. Consumer Non Durable Equity 0.56 Reliance Industries Ltd Petroleum Products Equity 0.53 Indian Hotels Co.Ltd . Hotels Equity 0.45 Tata Chemicals Ltd Chemical Equity 0.44 Infrastructure Development Finance Company Ltd. Finance Equity 0.44 Jet Airways (India) Ltd Logistics Equity 0.42 Zuari Industries Ltd. Fertilizers Equity 0.36 PTC India Financial Services Ltd. Finance Equity 0.36 Gujarat Mineral Development Corporation Ltd. Minerals Equity 0.36 Monthly Income is not assured and is subject to the availability of distributable surplus. Past performance is no guarantee of future results. Subject to statutory levy as applicable

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L&T Monthly Income Plan An open ended income scheme with no assured returns 13 Key features: Investment objective: The primary investment objective of is to generate monthly income through investments in a range of Debt, Equity and Money Market Instruments. Applicable load: Entry load: NIL, Exit load: 1% if redeemed ≤ 1 Year ; Nil if Redeemed > 1 Year. Options for investment: Monthly Dividend, Quarterly Dividend and Cumulative Options. Minimum Investment: Rs. 5000/- for Cumulative and Rs. 10,000 for Monthly and Quarterly Dividend. Benchmark: CRISIL MIP Blended Ind ex Asset Allocation as on 31 st March 2010 Rating profile as on 31 st March 2011

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Legacy of L&T Mutual Fund Legacy f L&T Mutual Fund 14 L&T Finance took over DBS Chola Mutual Fund in January 2010 The Fund got rechristened as L&T Mutual Fund on February 16, 2010 after completing all statutory processes The entire management team was retained The team includes a 12 member investment team and total staff strength of over 294 members (Feb 28,2011) The AMC is head quartered in Mumbai since 2000 The Fund House has a suite of Debt and Equity products for different investor requirements. Some funds have a track record built over last 14 years. (L&T Triple Ace Fund) Houses the first ever launched AAA rated debt fund – LTMF Triple Ace Fund and Multi Cap Equity Fund in the industry

Legacy of L&T Mutual Fund:

Legacy of L&T Mutual Fund 15 Contd.. Over 112 Man Years of Investment Management experience Has won many Awards and Ratings over the years for performance of schemes Led by Sanjay Sinha, CEO – one of the respected Fund Managers in the country Past Performance is no guarantee of future results. For Risk factors , scheme related information please refer page 35. For information purposes only & should not be construed as offer for purchase of schemes of L&T mutual fund.

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“Provide long term gains to investors through strong research based stock selection and active portfolio management ” 16 Investment Philosophy Investment Philosophy

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17 Investment Process

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Research Flow Research Flow 18

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Analysts propose action on a stock/sector Investment team evaluates the proposal based on risk return score for individual stock/sector for its inclusion/exclusion. Fund manager decides on stock weight age (overweight/underweight/neutral) in the portfolio Investment committee meets on fortnightly basis to review the sector/stock performance vis a vis the markets and decides on future course of action Decision Making Process Decision Making Process 19

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Ratings Of Our Funds By Independent Ratings Agencies Past performance may or may not be sustained in future. Past performance is no guarantee of future results. Please refer to ranking methodology at the end of the presentation. 20 Ranking at the ICRA Mutual Fund awards 2011 L&T Monthly Income Plan “ 5 Star Ranking” Ratings by Value Research (31 st January 2010 ) L&T Monthly Income Plan Economic Times Intelligence Group : (December 2010 Quarter) L&T Monthly Income Plan “A Gold Medal Winner”

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Ahmedabad: 9898029991 , Agra: 9839075275 , Allahabad: 9918500388/0532-3010574 , Amritsar : 9855721024, Bengaluru : 080-42497000/32952142 , Baroda : 8128997153/0265-2491673 , Bhopal : 0755-2552452-53/ 9893654246 , Bhubaneshwar : 9937062565, Chandigarh : 0172 – 3068051 / 9878406940, Chennai : 044-66881190/ 98400 96828/ 9003072863, Cochin : 0484-6533130/ 9895168160, Coimbatore : 0422 4504047- 48 / 9994997599, Cuttack : 9937009935, Durgapur : 9932241935, Guwahati : 9401775040, Goa : 0832 2422720/ 9923285799, Gorakhpur : 8896041988, Gwalior : 9669966100, Hyderabad : 040 44545578/44545577/ 9849523638, Hubli : 0836-4264140/ 9886105569 Indore : 0731 4286032 / 9826012555, Jaipur : 0141- 4043108/ 4043101/ 9950852103, Jalandhar : 9872838208, Jamshedpur : 9334289963, Jamnagar: 8905996999 , Jammu: 9419845915, Jodhpur : 9829309649 Kanpur : 9695051155, Kolhapur : 0231 6614834-5/ 8805020060, Kolkata: 033-40182224/40182222/ 9831500225, Lucknow : 0522 4003245 / 3052460/ 09838119887, Ludhiana : 0161 5029019 / 9855095135, Madurai : 9865966013/0452-4514005, Mangalore: 0824-2443609/ 9663027893, Mumbai (Head Office) : 022- 61366600/ 61366601, Mumbai (Fort) : 022-61155555, Mumbai (Deonar) : 022-61130908/ 61130910 Mysore : 9886639557/0821-2331833, Nagpur : 0712 6621511 / 9372695617, Nashik : 0253 6611791/ 6619211/ 9960025000, New Delhi : 011 49533301-02, Patna : 9708038447 Pune : 020-32912911/ 25510468, Rajkot : 0281-2480131/9825219955, Raipur : 0771 4224107 / 9926808555, Ranchi : 08986724054, Rourkela : 9437648485, Siliguri : 0353 2545474/ 9800202292, Surat : 9924712128, Trichy: 9944055025, Trivandrum: 9605601122, Varanasi : 9839165055, Vijaywada : 9676785656, Vishakhapatnam: 0891- 6620401/ 9676970777 Branches 21

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SMS LNTMF to 567678 Toll Free No 1800 209 6565 Website www.LNTMF.com Contact Us 22

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23 Disclaimers This document have been prepared by L&T Investment Management Limited (LTIML) for information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any securities/ instruments or any of the Funds of L&T Mutual Fund. Market views expressed herein are for general information only and do not have regards to specific investment objectives, financial situation and the particular needs of any specific person who may have receive this information. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. Investments in mutual funds and securities markets inherently involve risks including possible loss of capital and recipient should consult their legal, tax and financial advisors before investing. The recipient of this material should rely on their investigations and take their own professional advice. Recipient of this document should understand that statements made herein regarding future prospects may not be realized. He/ She should also understand that any reference to the securities/ instruments/ sectors in this document is only for illustration purpose. The views expressed are of LTIML, neither this document nor the units of L&T Mutual Fund have been registered in any jurisdiction. The distribution of this document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this document are required to inform themselves about, and to observe, any such restrictions.

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24 Statutory Details and Risk Factors Statutory Details: L&T Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by L&T Finance Limited, Sponsor/ Settlor (liability restricted to the seed corpus of Rs. 1 lakh) with L&T Mutual Fund Trustee Limited as the Trustee Company and L&T Investment Management Limited as the Investment Manager. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAV of the Scheme of the Fund may go up or down depending upon the factors and forces affecting the securities market. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Scheme. The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund. L&T Contra Fund is the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and returns. There can be no assurance that the objectives of the Scheme/Mutual Fund will be achieved. Schemes’ specific risk factors: Investment in the Scheme shall be subject to various risks including but not limited to risk associated with: Investment in Equity and Equity related Instruments & Fixed Income Securities such as Performance Risk, Credit Risk, Reinvestment Risk, Interest Rate Risk, Investment in Derivatives, Securitised Debt, etc. Please read the Scheme Information Document and Statement of Additional Information carefully before investing. L&T Monthly Income Plan (Monthly Income is not assured and is subject to the availability of distributable surplus) (an open ended income scheme with no assured returns): the primary investment objective is to generate monthly income through investments in a range of Debt, Equity and Money Market Instruments. Income will be distributed only if the same is earned by the scheme and there can be no assurance that the objective of the scheme will be realized. Load Structure : Entry Load – Nil. Exit Load - 1% if redeemed ≤ 1 year; Nil - if redeemed > 1 year. Terms of Issue: Units of the Scheme are being offered at NAV based prices, subject to the prevailing loads. The AMC calculates and publishes NAVs and offers for sale, redemption and switch outs, units of the Scheme on all Business Days, at the Applicable NAV of the Scheme. Scheme Information Document, Statement of Additional Information, Key Information Memorandum and Application Forms are available at Mutual Fund Branches / Mutual Fund website at www.lntmf.com or at Investor Service Centres / Distributors. L&T Finance Holdings Limited (indirect Holding Company of L&T Investment Management Limited) is proposing, subject to market conditions and other considerations, to make a public issue of securities and has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is available on the website of SEBI at www.sebi.gov.in and the respective websites of the Book Running Lead Managers at www.jmfinancial.in , http://www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm , http://www.hsbc.co.in/1/2/corporate/equities-global-investment-banking , http://www.barclayswealth.com/india-offerdocuments.htm , http://www.credit-suisse.com/in/ipo/ and www.equirus.com . Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see ‘Risk Factors’ in the aforementioned DRHP.

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Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity and hybrid funds this rating is based on the weighted average monthly returns for the last 3 and 5-year periods. These ratings do not take into consideration any entry or exit load. 5-stars indicate that a fund is in the top 10% of its category in terms of historical risk-adjusted returns. 4 star indicates that a fund is in the next 22.5%.These Fund Ratings are as onJune , 2010. The Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating is based on primary data provided by respective funds, Value Research does not guarantee the accuracy. Value Research Fund Returns & Ranking: The return computations assume reinvestment of dividend and are adjusted for any bonus or rights. All trailing returns for over one-year period are annualised , while returns for less than one-year are percentage change. Funds are ranked on the basis of their return position in the respective Value Research Fund Category. Number of funds indicates the total number of funds ranked in respective fund category and the time period. ETIG Quarterly Mutual Fund Tracker: The ETIG list Mutual Fund (MF) schemes on the basis of their risk-adjusted performance. The period under consideration is 3 years. The return score is arrived by allotting 60% weight to the past 3 year’s absolute return and 40% weight to the past 1 year return. These weighted returns are compared vis -a- vis the average return for the category under consideration to arrive at the return score for each scheme. The top 10% funds in each category are then classified as 'Platinum‘ funds; the next 20% are graded 'Gold' while the next 40% are classified as 'Silver'. The quarter under consideration is Oct 2010 to Dec 2010 ICRA Mutual Fund Ranking Methodology: L&T Monthly Income Plan has been ranked as a Five Star Fund in the category of ‘Open Ended Marginal Equity’ schemes for its 3 year performance till December 31, 2010. The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, fund size, company concentration and portfolio turnover. The ranking methodology did not take into account loads imposed by the Fund. There were 45 schemes considered in ‘Open Ended Marginal Equity’ category for the ranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of L&T Mutual Fund. Ranking Source & Publisher: ICRA Online Limited. DISCLAIMERS 25

Thank you:

Thank you 26