Professional Documents
Culture Documents
ICICI Bankex Fund
ICICI Bankex Fund
ICICI Bankex Fund
Services Fund
(An Open Ended Equity Scheme)
Drashti Invesments
Drashti.Invesments@rediffmail.com
2
Current Market Dynamics
Drashti Invesments
Drashti.Invesments@rediffmail.com
3
Current Market Dynamics
Inflation Rates are Rising
WPI (YoY%)
12
11
10
3
Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08
8.4
8.2
8.0
7.8
7.6
7.4
7.2
7.0
Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08
9.00
8.00
7.00
6.00
5.00
Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07
Drashti Invesments
Drashti.Invesments@rediffmail.com
13.00
12.00
11.00
10.00
9.00
8.00
Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07
Drashti Invesments
Drashti.Invesments@rediffmail.com
4.00 4.00
3.00 3.00
2.00 2.00
1.00 1.00
0.00 0.00
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
Drashti Invesments
Drashti.Invesments@rediffmail.com
8 Data Source: Emkay Share and Stock Brokers Ltd, The Stock mentioned above does not constitute any recommendation of
the same and the portfolios may or may not have any future positions in this Stock.
Current Market Dynamics
Recent IIP numbers suggest some softening
IIP (% change YoY)
16
12
0
Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08
Drashti Invesments
Drashti.Invesments@rediffmail.com
Drashti Invesments
Drashti.Invesments@rediffmail.com
10
Current Market Dynamics
Do Prices factor majority of bad news?
Bank 52-Week High CMP % Fall from
(18/06/08) 52-Week High
State Bank of India 2397 1351 43.64%
Drashti Invesments
Drashti.Invesments@rediffmail.com
11 Data Source: Capital line (As on 18/06/2008), The Stock mentioned above does not constitute any recommendation of the
same and the portfolios may or may not have any future positions in this Stock.
Current Market Dynamics
Price-to-Book Value
6.0
5.0
5.0
0.0
BoB FedBk HDFC ICICI PNB SBI
Drashti
Majority Invesments
of bad news already Priced in ?
Drashti.Invesments@rediffmail.com
12 Data Source: Capital line, Bloomberg, Current P/BV as on 18/06/08, The Stock mentioned above does not constitute any
recommendation of the same and the portfolios may or may not have any future positions in this Stock.
Banking and Financial Services
Drashti Invesments
Drashti.Invesments@rediffmail.com
13
Banking and Financial Services
Standard Chartered Bank – Branch in Kolkata
1858 2008
15 Data Source: Bloomberg, World Economic Outlook 2008(IMF), Market Cap as on 18/06/08, The Stock mentioned above does not constitute any
recommendation of the same and the portfolios may or may not have any future positions in this Stock.
Banking and Financial Services
SPAIN
16 Data Source: Bloomberg, World Economic Outlook 2008(IMF), Market Cap as on 18/06/08, The Stock mentioned above does not constitute any
recommendation of the same and the portfolios may or may not have any future positions in this Stock.
Banking and Financial Services
INDIA
17 Data Source: Bloomberg, World Economic Outlook 2008(IMF), Market Cap as on 18/06/08, The Stock mentioned above does not constitute any
recommendation of the same and the portfolios may or may not have any future positions in this Stock.
Banking and Financial Services
Top 5 Banks in the World in terms of Market Cap
2 HSBC UK 191
Where
Drashti Invesmentsis India?
Drashti.Invesments@rediffmail.com
18 Data Source: Bloomberg, Market Cap as on 18/06/08, The Stock mentioned above does not constitute any recommendation of the same and the
portfolios may or may not have any future positions in this Stock.
ICICI Prudential Banking and
Financial Services Fund
Drashti Invesments
Drashti.Invesments@rediffmail.com
19
ICICI Prudential Banking and Financial Services Fund
20
ICICI Prudential Banking and Financial Services Fund
Investment Strategy
Bottom-up Stock Picking
Intrinsic value arrived at after intensive, internal research; reference to analyst
reports and face-to-face meetings with management to analyze company’s
strengths, business model, sustainable competitive advantages and ability to
grow
Across Market Capitalization
The fund would look at stocks across the universe of banking and financial
services companies without any capitalization bias
Target Investment Companies
Focus will be on companies gaining market share in businesses through
excellent customer service, product innovation and operating efficiency
Drashti Invesments
Drashti.Invesments@rediffmail.com
21
ICICI Prudential Banking and Financial Services Fund
Scheme Features
An Open-ended Equity Scheme seeking to generate long-term capital
Type of Scheme
appreciation
Retail: (i) For investments of less than Rs.5 Crores: 2.25% of applicable
Entry Load NAV (ii) For investments of Rs.5 Crores and above: Nil
Institutional Option I: Nil
Retail: (i) For investments of Rs.5 Crores and above: Nil (ii) For
investments of less than Rs.5 Crores made during the NFO period and
Exit Load redeemed before 6 months from the date of allotment: 1% of applicable
NAV
Institutional Option I: Nil
Drashti Invesments
Drashti.Invesments@rediffmail.com
22
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 under the Companies Act, 1956, is the Trustee to the Fund. ICICI Prudential Asset
Management Company Ltd (the AMC). a company incorporated under the Companies Act, 1956, is the Investment Manager to
the Fund. ICICI Bank Ltd and Prudential Plc (acting through its wholly owned subsidiary namely Prudential Corporation Holdings
Ltd) are the promoters of the AMC and the Trust Company.
• Risk Factors: Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that
the objectives of the Schemes will be achieved. As with any securities investment, the NAV of the Units issued under the
Schemes can go up or down, depending on the factors and forces affecting the capital markets. Past performance of the
Sponsors, AMC/Fund does not indicate the future performance of the Schemes of the Fund. The Sponsors are not responsible or
liable for any loss resulting from the operation of the Schemes beyond the contribution of an amount of Rs.22.2 lacs, collectively
made by them towards setting up the Fund and such other accretions and additions to the corpus set up by the Sponsors.
• Investment Objective: ICICI Prudential Banking and Financial Services Fund is an Open-ended equity scheme that seeks to
generate long-term capital appreciation to unitholders from a portfolio that is invested predominantly in equity and equity related
securities of companies engaged in banking and financial services. Asset Allocation Pattern: Equity & equity related securities
of companies engaged in Banking and Financial Services Sector # $ - 70% to 100%, Debt *$ - 0% to 30% $ Including derivatives
instruments to the extent of 75% of the Net Assets as permitted by SEBI #Including investment in ADR/GDR up to 50% of
allocation to Equity & Equity related securities maximum to the extent permitted under SEBI Regulations.*Including 50% in
Securitized debt. Stock lending upto 30% of the Net Asset of the Scheme Terms of issue: The Units of the Scheme can be
subscribed during the New Fund Offer (NFO) at Rs. 10/- per unit plus applicable loads and at NAV bases prices subject to load
upon re-opening. Liquidity: Being open-ended in nature, the Scheme will commence sale and redemption of units not later than
30 days after the close of the New Fund Offer period Retail and Institutional Option I are available for investments. Entry Load -
Retail Option: i)For investment of Rs. 5 crores and above: Nil. ii) For investment of less than Rs. 5 crores 2.25 % of the
applicable NAV. Institutional Option I: Nil. Exit Load - Retail Option : i)For investment of Rs. 5 crores and above: Nil. ii) For
investment of less than Rs. 5 crores and redeemed before 6 months from the date of allotment: 1% of the applicable NAV.
Institutional Option I: Nil. ICICI Prudential Banking and Financial Services Fund is only the name of the scheme and does not in
any manner indicate either the quality of the scheme, its future prospects or returns. Investors in the scheme are not offered any
guaranteed returns.For Scheme Specific Risk Factors and other details, Please refer to Offer Document and Key Information
Memorandum, contact your financial advisor or log onto www.icicipruamc.com or visit any of the branches of the AMC. Mutual
Fund Investments are subject to market risks. Please read the Offer Document carefully before investing.
Drashti Invesments
Drashti.Invesments@rediffmail.com
23
Risk Factors
• Disclaimer: In the preparation of the material contained in this document, ICICI Prudential Asset Management Company Ltd.
(the AMC) has used information that is publicly available, including information developed in-house. Some of the material
used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which
may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is
believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or
completeness of any information. We have included statements / opinions / recommendations in this document, which
contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such
expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward
looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to
market risks, general economic and political conditions in India and other countries globally, which have an impact on our
services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in
interest rates, foreign exchange rates, equity prices or other rates or prices etc.
• The Stock (s) /Sector(s) mentioned in this material do not constitute any recommendation of the same and the portfolios may
or may not have any future positions in this Stock.(s) /Sector(s)
• ICICI Prudential Asset Management Company Limited (including its affiliates), the Mutual Fund, The Trust and any of its
officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to
direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this
material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on this material.
Drashti Invesments
Drashti.Invesments@rediffmail.com
24
Thank you
Drashti Invesments
Drashti.Invesments@rediffmail.com
25