Mahindra Manulife Focused Equity Yojana · 2020. 10. 19. · MAHINDRA MANULIFE FOCUSED EQUITY YOJANA What is a Focused Fund? • A focused fund, as per SEBI Categorization, is an

MAHINDRA MANULIFE FOCUSED EQUITY YOJANA

An open ended equity scheme investing in maximum 30 stocks

across market caps (i.e Multi Cap)

New Fund Offer Opens on: 26 October, 2020

New Fund Offer Closes on: 9 November, 2020

Scheme reopens for continuous sale and

repurchase from: within 5 business days from the

date of allotment


What is a Focused Fund?

• A focused fund, as per SEBI Categorization, is an equity scheme consisting of upto 30

stocks, with minimum 65% investment in equity and equity related instruments.

• Can choose to define its own market cap concentration.

Focused Fund Multi Cap Fund (Diversified Fund)

Can hold up to 30 stocksNo such restriction on number of stocks. Usually Multi

Cap Funds hold around 50 stocks in their portfolio

Focused Funds can define their own market cap

concentration and hence has the flexibility to find

suitable opportunities

Effective February 2021, such funds are to hold

minimum 25% in each of large, mid and small cap*

Suitable for medium to long term investors looking for

relatively better risk adjusted return potential

Suitable for medium to long term investors looking for

steady growth

*As per SEBI Circular dated September 11, 2020, the Multi Cap Funds shall be required to maintain exposure of minimum 25% each in large, mid and small cap stocks

within one month from the date of publishing the next list of stocks by AMFI, i.e. January 2021.


Why A Focused Fund? Additional Diversification May Not Reduce Risk Significantly

Representing a

portfolio of 30 stocks

Representing a


Representing a


Representing a


28.41%26.88% 27.84%

26.73%

32.87%

Std.Deviation of 1 year daily rolling returns

S&P BSE Sensex TRI Nifty 50 TRI Nifty 100 TRI Nifty 200 TRI Nifty 500 TRI

Representing a


Standard Deviation is calculated on Compounded Annualized Growth Returns (CAGR) rolled daily for the study period 1 Jan 2010 – 19 Sep 2020 for respective

benchmark | Data Source: MFI. The data provided above is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard

of capital. Mahindra Manulife Investment Management Private Limited (Formerly known as Mahindra Asset Management Company Private Limited)/Mahindra

Manulife Mutual Fund is not guaranteeing or forecasting any returns. Past performance may or may not be sustained in future.


Introducing Mahindra Manulife Focused Equity Yojana

A professionally managed agile focused fund that aims to identify the

most potential winning ideas through robust research, focuses on quality

of portfolio and risk management.


NFO opens 26 October, 2020


Reasons to invest in Mahindra Manulife Focused Equity Yojana

Selection of the next potential winners through the GCMV process

High conviction focused portfolio with strong risk management processes

Potential to generate relatively better risk adjusted returns

Refer Slide no. 10 for GCMV Process


The Focus is on

High

Conviction

FOCUSED

PORTFOLIO

Active

Management

Flexi Cap

Multi Sector


Framework for Finding the Winners

• Selection of around 500+ investible ideas from the domestic stock-scape studied by team of analysts

Broad Domestic Stock-scape

• Selection of around 160+ investible ideas out of 500+ ideas through GCMV process

Growth, CashflowManagement and Valuation

filter

• 60+ ideas based on risk return evaluation

• Bottom up fundamental analysisAnalyst Conviction

• Identify and evaluate catalysts to form a portfolio of around 30 stocks

• Active portfolio Management for suitable weights and appropriate entry/exit levels

Refer Slide no. 10 for GCMV Process

Focused

Fund


Investment Style

Construction of the focused fund portfolio of upto 30 stocks from across market caps considering the following:

• Domestic and global macro economic factors

• Stage of business cycle

• Absolute vs relative valuation

• Assessment of portfolio weight based on liquidity and market cap

And other business factors like:

• Sector’s future growth outlook

• Business outlook (priority to 1-3 years of growth)

• Valuation of stock vs future growth

• Management capabilities and corporate governance


GCMV Process

GROWTH

Evaluating the growth

opportunity for the business

Market size

Business Growth

• Geographical Coverage (more

customer)

• Penetration (more

consumption per capita)

• Premiumisation opportunity

(higher quality/valued

products based on income

affordability)

• Global expansion (serving

global customer – quality, cost

competitiveness, natural

advantage)

Profit Growth

• Pricing power

• Cost efficiency

CASHFLOWS

Evaluating the strength of the

business based on Cash Flow

generation

“Free Cash Flow for shareholders”

adjusted for capital needed to

meet growth potential/aspirations

Capital structure: Businesses

with low/ nil debt levels

support higher income

distribution to shareholders

Focus on Cash generation vis

a vis Accounting Profits

Capital efficiency

• Businesses that consume

cash in working capital v/s

those who do not

• Businesses that require low

capex v/s those which require

high capex (initial as well as

maintenance)

Dividends and/or Buybacks

MANAGEMENT

Evaluating the quality of

Management

Management Matrix

• Ability to execute

• Integrity/credibility

Historical actions for

Corporate Governance &

transparency

Value creation and sharing

with shareholders

Related party transactions

VALUATION

Evaluation of key financial

metrics

Historical Value creation

• ROEs / ROCEs

• Asset Turns & Margin

• Peer comparison

Fair value Analysis based on

• Growth

• Cash Flow

• Management

Gap analysis

• What’s priced in vis a vis the

fair value ?

G C M V

ROE: Return on EquityROCE: Return on Capital Employed


Market Outlook

• India Unlock

• Economy Revival

• Consumer Confidence

• Economy Disconnect

• Valuation


Scheme Details

Instruments Indicative Allocation (% of assets) Risk Profile

Minimum Maximum High/Medium/Low

Equity and Equity related Securities$^ 65 100 High

Debt and Money Market Securities

(including TREPS (Tri-Party Repo),

Reverse Repo)

0 35 Low to Medium

Units issued by REITs & InvITs 0 10 Medium to High

$ Subject to overall limit of 30 stocks across market capitalization.

^ including derivative instruments to the extent of 50% of the Net Assets of the Scheme. Investment in derivatives shall be for hedging, portfolio balancing and such

other purposes as maybe permitted from time to time under the Regulations and subject to guidelines issued by SEBI/RBI from time to time. For Detailed Asset

Allocation refer SID/KIM available online at www.mahindramanulife.com or visit nearest ISC

Benchmark: NSE 500 Index TRI

Fund Manager: Krishna Sanghavi

• Concentrated agile portfolio of upto 30 stocks

• Selection of potential winners from across market cap and sectors through research

• Adequate Quality and Risk Management

Highlights


• Regular

• Direct (D)Available Plans for subscription

by investors

• Growth (D)

• DividendAvailable Option under each

plan

• Dividend Payout

• Dividend Reinvestment (D)Available Facilities under

Dividend option

Exit Load:

-An Exit Load of 1% is payable if Units are redeemed / switched-out upto 1 year from the date of allotment;

-Nil if Units are redeemed / switched-out after 1 year from the date of allotment.

Minimum Purchase/ Additional

Purchase Amount

Mimimum Redemption/

Switch-out Amount

Minimum Switch-in Amount

Rs. 1,000/- and in multiples of Re.

1/- thereafter

Rs. 1,000/- or 100 units or

account balance, whichever is

lower

Rs. 1,000/- and in multiples

of Re. 0.01/- thereafter

D- Default



This product is suitable for Investors who are seeking*:

• Long term capital appreciation;

• Investment in equity & equity related instruments in a concentrated portfolio of maximum 30 stocks across market capitalization.

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Investors understand that their principal will be at moderately high risk


Disclaimer

The views expressed here in this presentation are for general information and reading purpose only and do not constitute anyguidelines and recommendations on any course of action to be followed by the reader / user of this presentation. No representationor warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The views arenot meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale ofany financial product or instrument or mutual fund units for the reader / user. This presentation has been prepared on the basis ofpublicly available information, internally developed data and other sources believed to be reliable. While utmost care has beenexercised while preparing this presentation, Mahindra Manulife Investment Management Private Limited [Formerly known asMahindra Asset Management Company Private Limited] (MMIMPL) does not warrant the completeness or accuracy of theinformation and disclaims all liabilities, losses and damages arising out of the use of this information. The data/statistics, whereverprovided, are given to explain general market trends in the securities market, it should not be construed as any researchreport/research recommendation. Readers / users of this presentation should rely on information / data arising out of their owninvestigations and are advised to seek independent professional advice and arrive at an informed decision before making anyinvestments. Neither Mahindra Manulife Mutual Fund, MMIMPL nor Mahindra Manulife Trustee Private Limited (Formerly known asMahindra Trustee Company Private Limited), its directors or associates shall be liable for any damages that may arise from the useof the information contained herein.

For detailed asset allocation, investment strategy, scheme specific risk factors and more details, please read the SchemeInformation Document and Key Information Memorandum of Mahindra Manulife Focused Equity Yojana available at theISCs of MMIMPL and Computer Age Management Services Limited and are also available on www.mahindramanulife.com.Past performance may or may not be sustained in the future and should not be used as a basis for comparison with otherinvestments.

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Documents

Mahindra Manulife Focused Equity Yojana · 2020. 10. 19. · MAHINDRA MANULIFE FOCUSED EQUITY YOJANA What is a Focused Fund? • A focused fund, as per SEBI Categorization, is an