About DHFL Pramerica Asset Managers

Transcription

1 About DHFL Pramerica Asset Managers PGIM, Inc. ( PGIM ) is the principal asset management business of Prudential Financial, Inc. (PFI) of the United States. Pramerica is a trade name used by Prudential Financial, Inc. ( PFI ) in select countries outside the US. PFI is not affiliated with Prudential plc, a company incorporated in the United Kingdom. For purposes of this presentation, all references to Prudential have been replaced with Pramerica.

2 About DHFL

3 DHFL - a leading housing finance company Business overview Founded in 1984, DHFL is a leading housing finance company in India s private sector Focused on low and medium income group in India one of the largest and fastest growing mortgage segment DHFL also has a presence in education loans segment (Avanse Education Loans), life insurance (DHFL Pramerica Life Insurance) and asset management (DHFL Pramerica Asset Managers) through joint ventures with Pramerica Financial, USA. DHFL has a presence in general insurance (DHFL General Insurance) DHFL is present in 352^ locations, with significant penetration in Tier 2/3 towns Key highlights (As of 31 st Mar 2017) AUM ` bn Avg ticket size ` 1.40m Gross NPA 0.94% PAT* ` bn EPS ` Loan sanctions ` bn * The impact of the stake sale of DPLI# by DHFL (Rs bn) reflected in FY17 / Q4FY17 Total Income, Net Worth & PAT Shareholding overview (As of 31 st Mar 2017) Data Source: DHFL Corporate Presentation Q4 FY ^Includes two representative offices in London & Dubai, number of branches as on 31 st Mar 2017 # DPLI: DHFL Pramerica Life Insurance Co. Ltd.

4 DHFL Financial Services Group LMI focused financial services group Group companies with potential for significant value unlocking Partners with marquee organizations like IFC, Prudential Financial Inc. (Pramerica), etc. Data Source: DHFL Corporate Presentation Q4 FY AUM and shareholding as on 31 Mar 2017 ^ Total of direct and indirect holding

5 About Pramerica

6 Prudential Financial, Inc. (Pramerica)* Company Overview Fortune 100 company; Fortune 30 Financial Services company Prudential Financial s Assets Under Management (AUM) Total AUM $1.299 trillion* Among the top 10 global life insurers Known as Pramerica in India and select countries outside the US Focus on Insurance, Retirement and Asset Management Over $1.299 trillion in AUM ~60% of earnings are from the US; ~40% are from international businesses, primarily within Asia ~$45.79 billion market cap Data Source: Pramerica financials as on 03/31/2017, Market Cap as of 03/31/2017 *Prudential Financial Inc. of US is not affiliated with Prudential PLC, which is headquartered in the UK.

7 Global Footprint Minneapolis Memphis San Francisco Los Angeles Dallas Atlanta Mexico City Chicago Boston London New YorkParis Newark Madison Arlington Lisbon Orlando Miami Luxembourg Frankfurt Munich Milan Shanghai Seoul Tokyo Taipei Hong Kong Mumbai Singapore Rio de Janeiro Sydney

8 PGIM About PGIM PGIM AUM: $1 trillion 1 Top 10 worldwide institutional money manager 2 8th largest U.S. institutional defined contribution manager 2 Presence in 16 countries 1,100 investment professionals Average portfolio manager experience of 23 years in industry, 16 of which are with Pramerica Financial Inc. Strong Institutional Relationships 14 consecutive years of positive third party institutional net flows Over 1,260 third party clients Over 200 clients have relationships longer than 20 years 80 third party clients have over $1 billion invested Our clients include: - 23 of the 25 largest corporate US pension plans of the largest 300 Global Pension Funds 5-6 of the top 10 Fortune 500 companies 6 Assets as of March 31, Includes all assets managed by PGIM, the principal asset management business of Prudential Financial, Inc. (PFI) Assets include public and private fixed income, public equity (both fundamental and quantitative), and real estate. Effective December 31, 2012, International Investments is part of PGIM, historical financial results have been restated to reflect the combined businesses. 2 Pensions & Investments Top Money Managers list, May 30, 2016; based on PFI total worldwide institutional assets under management as of December 31, Based on US Plan Sponsor rankings in Pensions & Investments as of Dec 31, 2016, published Feb P&I/Towers Watson Top 300 Pension Funds ranking, data as of December 31, 2015, published September Based on CNN Money, Fortune 500 list 2016 annual ranking of America s largest corporations published June 2016 Multi-Manager Model Proven track records and focused investment expertise: PGIM Fixed Income Pramerica Real Estate Jennison Associates QMA Pricoa Capital Group Pramerica Real Estate Finance International Investments PGIM Investments Distinct, autonomous investment processes focus on investment performance and alpha generation Entrepreneurial culture allows boutiques to attract/retain top talent and execute nimbly

9 About DHFL Pramerica Asset Managers in India

10 DHFL Pramerica Asset Managers Pvt. Ltd. (erstwhile Pramerica Asset Managers Pvt. Ltd.) A full service asset management company, covering Equity, Debt, Hybrid and Portfolio Management Service joint venture between DHFL and PFI Launched Mutual Fund business in 2010 and Portfolio Management Service in 2013 Headquartered in Mumbai, presence in 24 cities Primary Distributor Focus IFAs and National Distributors Trained over 2600 Individual Distributor across 25 Cities Created differentiated asset allocation solutions Average AUM for Jan-Mar 2018 of over Rs.23,595 crore

11 Management Team Name & Designation Qualifications Experience & Professional History Rajesh Iyer, Chief Executive Officer Ajit Kumar Menon, Chief Business Officer CFA, USA; FRM, GARP, USA; Chartered Accountant (ICAI) and Cost Accountant (ICWAI) B.Com, Post Graduate degree in Management Mumbai University Experience: Over 22 years of experience in equity research, proprietary fund management and investment advisory Professional History: Kotak Mahindra Bank - Senior Executive Director & Head - Investment Advisory Services & Family Office; National Bank of Bahrain, Bahrain - Fund Manager TAIB Bank, Bahrain - Deputy Director - Treasury & Funds UTI Nomura Securities - Senior Analyst Experience: Over two decades of leadership experience in business strategy, distribution, sales and marketing Professional History: Head of Strategy with Tata Asset Management Company, Head of Sales and co-head Marketing with DSP Blackrock E.A. Sundaram, Chief Investment Officer-Equities PGDM IIM, Ahmedabad Experience: Over 27 years of investment management experience in Indian equity investing on the buy side. Professional History: Portfolio Manager at M3 Investment Managers Pvt. Ltd. Fund Manager of the Portfolio Management Services of HDFC AMC Worked with Zurich AMC and SBI Fund Management

12 Management Team Name & Designation Qualifications Experience & Professional History Kumaresh Ramakrishanan, Head Fixed Income MBA (MMS) and Bachelor of Engineering from Mumbai University Experience: Over 20 years of investment management experience in Indian Fixed Income market. Professional History: Head Fixed Income at Deutsche AMC Senior Credit Analyst at Societe Generale Worked with CARE earlier Vinod Venkateswaran, Chief Operational Officer B.COM, ACS, AIII Experience: Close to 20 years of experience in leading Operations, Technology and Customer Service functions. Professional History: Head - Enterprise Operations & Omni-Channel Service at L&T Financial Services, Head Operations & Customer Services at L&T Mutual Fund, Director Operations & Customer Services at Fidelity Mutual Fund, Head Investor & Distributor Services at Kotak Mahindra Mutual Fund

13 Name & Designation Chandrashekar Jain Head Institutional Sales Management Team Experience & Professional History Experience: Over 19 years of experience in Sales & Distribution of financial products Professional History: Head Institutional Sales at Deutsche AMC Head - Institutional Sales, West at IDFC AMC Has also worked with Birla Sun Life Distribution Murali Ramasubramanian Head Operations & Investor Relations Officer Experience: Over 23 years of experience Professional History: Head Operations - Deutsche AMC. Asst. Vice President - Operations at Alliance Capital AMC Has also worked with Birla AMC and Datamatics Financial Services Sandeep Kamath Head Compliance & Legal Experience: Over 17 years of experience Professional History: Head Compliance & Legal Kotak Mahindra AMC Has also worked with Principal AMC

14 Investment Team

15 Investment Team Equities (MF & PMS) CIO-Equities & PMS E.A. Sundaram Mutual Fund Fund Manager Alok Agarwal PMS Portfolio Manager Himanshu Upadhyay Equity Research Analysts (4) Fund Manager Avinash Agarwal Fund Manager Aniruddha Naha Dealer & PMS Operations (1) Fund Manager Utkarsh Katkoria FM & Equity Dealer (1)

16 Investment Team Fixed Income Head Fixed Income Kumaresh Ramakrishnan Deputy Head Fixed Income Puneet Pal Fund Manager Rakesh Suri Fund Manager Kunal Jain Credit Research (2) Trader-Fixed Income (1)

17 Investment Philosophy

18 Investment Philosophy Our investment philosophy resides on four tenets:

19 Investment Approach Our endeavor is to create wealth over the long term for our investors. Equity Investments Research is the bedrock of our investment process. A bottom-up stock picking approach is balanced with a top-down overlay by researching every sector and stock. A robust portfolio construction process is followed where every company is analyzed in-depth and the portfolio thus constructed is regularly reviewed. Fixed Income Investments We thoroughly analyze the macro economic scenario to base our investment decisions. Security selection is based on relative valuations, credit analysis and research. This process is complemented with a strong risk management framework. Portfolio Management Services The investment process of the PMS follows the rigorous discipline of sticking to companies that meet our quality and valuation criteria. Not being subjected to daily comparisons enables the PMS to build a portfolio with a longer term orientation and a focus on minimizing permanent loss of capital. The PMS thus offers a qualitative diversification and a complementary set of companies to the investor.

20 Products of Mutual Fund

21 Equity Funds Scheme Name DHFL Pramerica Large Cap Fund DHFL Pramerica Midcap Opportunities Fund DHFL Pramerica Diversified Equity Fund Category of Scheme Large Cap Fund Mid Cap Fund Multi Cap Fund Characteristic Minimum Large Cap allocation of 80% Minimum Mid Cap allocation of 65% Minimum Equity Exposure of 65% DHFL Pramerica Long Term Equity Fund ELSS Minimum Equity Exposure of 80%

22 Hybrid Funds Scheme Name DHFL Pramerica Arbitrage Fund DHFL Pramerica Hybrid Equity Fund DHFL Pramerica Equity Savings Fund DHFL Pramerica Hybrid Debt Fund Category of Scheme Arbitrage Fund Aggressive Hybrid Fund Equity Savings Conservative Hybrid Fund Characteristic Minimum Equity and stock derivatives exposure of 65% Equity exposure between 65%-80% Minimum Equity allocation of 65% and minimum Debt allocation 10% Minimum Debt allocation of 75% and minimum equity allocation of 10%

23 Fixed Income Funds (Duration) Scheme Name DHFL Pramerica Insta Cash Fund DHFL Pramerica Ultra Short Term Fund DHFL Pramerica Low Duration Fund DHFL Pramerica Short Maturity Fund DHFL Pramerica Medium Term Fund DHFL Pramerica Strategic Debt Fund DHFL Pramerica Dynamic Bond Fund Category of Scheme Liquid Fund Ultra Short Duration Fund Low Duration Fund Short Duration Fund Medium Duration Fund Medium to Long Duration Fund Dynamic Bond Characteristic Duration: 91 days. Portfolio Rated AAAmfs by ICRA Duration: 3-6 months. Portfolio Rated AAAmfs by ICRA Duration: 6-12 months Duration: 1-3 years. Portfolio Rated AAAmfs by ICRA Duration: 3-4 years. Portfolio Rated AAAmfs by ICRA Duration: 4-7 years Duration: Investment across duration. Portfolio Rated AAAmfs by ICRA

24 Fixed Income Funds (Instruments) Scheme Name DHFL Pramerica Floating Rate Fund DHFL Pramerica Gilt Fund DHFL Pramerica Premier Bond Fund DHFL Pramerica Credit Risk Fund DHFL Pramerica Banking and PSU Debt Fund Category of Scheme Floater Fund Gilt Corporate Bond Fund Credit Risk Fund Banking and PSU Fund Characteristic Minimum 65% investment in floating rate instruments. Portfolio Rated AAAmfs by ICRA Minimum 80% investment in G-secs & T-bills Minimum 80% investment in highest rated corporate bonds (AA+ and above). Portfolio Rated AAAmfs by ICRA Minimum 65% investment in AA and below (excludes AA+) rated corporate bonds Minimum 80% investment in Banking & PSU, PFI & Municipal Bonds. Portfolio Rated AAAmfs by ICRA

25 Overseas Fund of Funds Scheme Name DHFL Pramerica Euro Equity Fund Category of Scheme FOF Overseas Characteristic Invests in UBI SICAV Euro Equity DHFL Pramerica Global Agribusiness Offshore Fund FOF Overseas Invests in the Deutsche Invest I Global Agribusiness

26 Risk-o-meter DHFL Pramerica Large Cap Fund DHFL Pramerica Ultra Short Term Fund DHFL Pramerica Short Maturity Fund DHFL Pramerica Medium Term Fund DHFL Pramerica Low Duration Fund DHFL Pramerica Strategic Debt Fund

27 Risk-o-meter DHFL Pramerica Dynamic Bond Fund DHFL Pramerica Credit Risk Fund DHFL Pramerica Premier Bond Fund DHFL Pramerica Banking & PSU Debt Fund DHFL Pramerica Gilt Fund DHFL Pramerica Floating Rate Fund

28 Risk-o-meter DHFL Pramerica Hybrid Debt Fund DHFL Pramerica Hybrid Equity Fund DHFL Pramerica Equity Savings Fund DHFL Pramerica Global Agribusiness Offshore Fund DHFL Pramerica Midcap Opportunities Fund DHFL Pramerica Diversified Equity Fund 28

29 Risk-o-meter DHFL Pramerica Long Term Equity Fund DHFL Pramerica Arbitrage Fund DHFL Pramerica Insta Cash Fund DHFL Pramerica Euro Equity Fund

30 Important Information The effective date of the proposed changes in the Scheme mentioned in this presentation is May 1 st, 2018 ICRA has assigned the [ICRA] AAAmfs (pronounced as ICRA triple A m f s) rating to the the DHFL Pramerica Insta Cash Fund, DHFL Pramerica Ultra Short Term Fund, DHFL Pramerica Floating Rate Fund, DHFL Pramerica Banking and PSU Debt Fund, DHFL Pramerica Dynamic Bond Fund, DHFL Pramerica Medium Term Fund and DHFL Pramerica Premier Bond Fund. Schemes with this rating are considered to have the highest degree of safety regarding timely receipt of payments from the investments that they have made. ICRA has assigned the [ICRA]AA+mfs (pronounced as ICRA double A plus m f s) to the DHFL Pramerica Short Maturity Fund. Schemes with this rating are considered to have high degree of safety regarding timely receipt of payments from the investments that they have made. The ratings should, however, not be construed as an indication of the performance of the Mutual Fund scheme or of volatility in its returns For complete rating scale and definitions please refer to ICRA s Website or other ICRA Rating Publications ICRA Credit Quality Rating Methodology for debt mutual fund schemes ICRA s mutual fund rating methodology is based on evaluating the inherent credit quality of the fund s portfolio. As a measure of the credit quality of a debt fund s assets, ICRA uses the concept of credit scores. These scores are based on ICRA s estimates of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores, ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA s assessment of a debt fund s published investment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to support its published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score is breached, ICRA gives a month s time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfolio credit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in credit quality.

31 Important Information The information contained herein is provided by DHFL Pramerica Asset Managers Pvt. Ltd. (Formerly known as Pramerica Asset Managers Pvt. Ltd.) (the AMC) on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. The information contained herein is current as of the date of issuance* (or such earlier date as referenced herein) and is subject to change without notice. The AMC has no obligation to update any or all of such information; nor does the AMC make any express or implied warranties or representations as to its completeness or accuracy. There can be no assurance that any forecast made herein will be actually realized. These materials do not take into account individual investor s objectives, needs or circumstances or the suitability of any securities, financial instruments or investment strategies described herein for particular investor. Hence, each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard. The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein. These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Distribution of these materials to any person other than the person to whom it was originally delivered and to such person s advisers is unauthorized, and any reproduction of these materials, in whole or in part without the prior consent of the AMC, is prohibited. Pramerica is the brand name used by Prudential Financial, Inc. ( PFI ) of the United States and its affiliates in select countries outside of the United States. Neither PFI nor any of the named Pramerica entities are affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom. MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Document date:20/04/2018 C14/18-19