Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — ICICI Prudential Asset Management Company — Investor Presentation (April 2011)
24 slides from Prudent Corporate Advisory Services's investor presentation, Apr 14, 2011
Slide 1: ICICI Prudential MIP 5
ICICI Prudential MIP 5 (An Open Ended Income Scheme) (Monthly Income is not assured and is subject to availability of distributable surplus) Offer of Units at Rs. 10/- each for cash during the New Fund Offer and thereafter on continuous basis at NAV related prices. Only for distributors The informat
Slide 2: Presentation Structure
Presentation Structure 1. What is ICICI Prudential MIP 5?(An Open Ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus) 2. Why should one invest? 2 Please read the Scheme Information Document and detailed risk factors carefully before investing.
Slide 3: What is ICICI Prudential MIP 5 (The Scheme)?
What is ICICI Prudential MIP 5 (The Scheme)? (An Open Ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus) 3 Please read the Scheme Information Document and detailed risk factors carefully before investing. Strictly Private & Confidential
Slide 4: Investment Approach
What is the Scheme? Investment Approach Debt allocation focused on accrual income with minimal volatility Fixed income allocation managed with conservative approach Equity allocation focused on capital preservation rather than aggressive returns Equity allocation with an aim to act as return
Slide 5: Fund Positioning
What is the Scheme? Fund Positioning Positioned as a conservative d nce MIP Bala Debt allocation to have IP 25 moderate average maturity M and duration. Securities Return predominantly in the 1 to 3 MIP years maturity bucket 5 Equity allocation to provide MIP potential for gains - Flavour of e
Slide 6: Investment Strategy
What is the Scheme? Investment Strategy Debt Aim to identify securities that offer superior levels of yield at lower levels of risks Primarily, hold securities to manage a stable duration; duration management aimed to be strategic and directional Equity Exposure to equity diversified across st
Slide 7: Debt Investment Philosophy
What is the Scheme? Debt Investment Philosophy Minimize credit risk - Majority of investment in above AA-/P1+ rated assets Independent credit research − Due diligence to evaluate a borrower's SAFETY ability and willingness to repay the debt on time − Investment in entities with large and diversi
Slide 8: Debt Investment Philosophy
What is the Scheme? Debt Investment Philosophy Endeavor to minimize liquidity risks Asset-liability match and stress test SAFETY Aims to maintain high quality portfolio investments from liquidity perspective LIQUIDITY RETURN Endeavor to meet redemption payments in timelines at all times Our
Slide 9: Debt Investment Philosophy
What is the Scheme? Debt Investment Philosophy Optimize return per unit of risk Endeavor to maintain consistency in SAFETY performance Focus on returns without undue risks in the portfolio LIQUIDITY RETURN Generally maintain cash holding to the extent to meet liquidity requirement Our Debt I
Slide 10: Equity Investment Philosophy
What is the Scheme? Equity Investment Philosophy Fundamental investing backed by analysis of company’s and industry’s performance and prospects Centered on generating capital appreciation for the investor Aim to buy good businesses at attractive valuations Blend of top-down & bottom-up analy
Slide 11: Who Should Invest / Ideal for
What is the Scheme? Who Should Invest / Ideal for Traditional debt investors, now looking for an opportunity to participate in equity markets on a conservative basis with limited equity exposure Investors looking to earn returns from accrual income through investment in a largely debt portfolio
Slide 12: Why should one invest?
Why should one invest? 12 Please read the Scheme Information Document and detailed risk factors carefully before investing. Strictly Private & Confidential
Slide 13: Income from Debt + Growth from Equity
Why should one invest? Income from Debt + Growth from Equity = “Debt plus#” returns Bond yields have begun to 10 10 Year G-Sec Yield peak out, creating positive 9 environment for a medium to long term bond portfolio 8 S&P CNX Nifty 7 7000 6 6000 5000 5 4000 4 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan
Slide 14: Interest rate cycle is favorable
Why should one invest? Interest rate cycle is favorable LAF corridor Interest rates go through peak and 10 trough cycles 9 8 Interest rates are not expected to 7 6 remain at high levels on a sustained 5 basis. Low interest rates work as 4 Repo lubricants for smooth functioning of 3 Reverse Repo
Slide 15: Equity markets are poised for takeoff
Why should one invest? Equity markets are poised for takeoff Nifty has yielded 16.77% per Rs. Cr. annum for the last 10 years 36000 7500 Indian equity is at an inflection 24000 5000 FII Investment S&P Nifty point, since India is one of the few emerging economies which 12000 2500 is growing at >8
Slide 16: Traditional avenues not as lucrative
Why should one invest? Traditional avenues not as lucrative Even at the height of monetary Policy Rates vs Deposit Rate tightening in 2008, a one year deposit would have fetched close to 7% on a post tax basis Policy rates are nowhere near their 2008 highs, and already seem to be peaking out D
Slide 17: Our expertise with MIPs
Why should one invest? Our expertise with MIPs ICICI Prudential Monthly Income Plan (An Open Ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus) 12% Monthly Income Plan Crisil MIP Blended Index 10% 9.55% 8.05% 7.79% 8% 7.41% 6.86% 6.82% 6.17% 6
Slide 18: Our expertise with MIPs
Why should one invest? Our expertise with MIPs ICICI Prudential MIP 15 (An Open Ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus) 12% ICICI Prudential MIP 25 Crisil MIP Blended Index 10.03% 10% 8.52% 8.33% 8% 7.41% 6.91% 7.20% 6.82% 6.17% 6%
Slide 19: Ideal for first time equity investors
Why should one invest? Ideal for first time equity investors Its almost like a first hand sky diving experience Taking the leap into the world of investments with the safety net of Debt. You may free fall into the world of investments, get lifted by the winds of Equity and at the same time cushion y
Slide 20: ICICI Prudential MIP 5 Scheme Features
ICICI Prudential MIP 5 (An Open Ended Income Scheme. Monthly Income is not assured and is subject to availability of distributable surplus) Scheme Features Options Cumulative Option (with Automatic Encashment Plan facility) Dividend Option with payout and reinvestment facility (Monthly, Quarterly an
Slide 21: Risk Factors
Risk Factors •Statutory Details: ICICI Prudential Mutual Fund (the Fund) was set up as a Trust sponsored by Prudential plc (through its wholly owned subsidiary namely Prudential Corporation Holdings Ltd) and ICICI Bank Ltd. ICICI Prudential Trust Limited (the Trust Company), a company incorporated u
Slide 22: Risk Factors
Risk Factors Unitholder Information & General Services: Account statement, indicating the number of unit allotted, will be sent (by ordinary post or email) to the unit holder within the time stipulated under the Regulation from the closure of NFO. The account statement will be sent through email, wh
Slide 23: Risk Factors
Risk Factors Disclaimer: 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/ information used in the document may have been obtained from members/persons other than the
Slide 24: Thank You
Thank You 24 Please read the Scheme Information Document and detailed risk factors carefully before investing. Strictly Private & Confidential
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