CANARA ROBECO LARGE CAP+ FUND FEBRUARY 2018
Canara Robeco Large Cap+ Fund The sign (+) in the name of the fund has been used in terms of asset allocation and not in return/yield An Open Ended Equity Scheme This product is suitable for investors who are seeking* Capital appreciation over long term Investing in companies having a large market capitalization *Investors should consult their financial advisers if in doubt about whether the product is suitable
CONTENTS Large Caps Funds Risk-Reward Matrix An Introduction Canara Robeco Large Cap + Fund Investment Strategy Portfolio Performance Why Canara Robeco Large Cap + Fund Product Positioning Fund Facts
VOLATILITY RISK REWARD MATRIX Offer stable and sustainable returns over a period of time Mid & Small Cap Funds Thematic Funds Invests in companies with strong fundamentals Diversified Funds/ Multi Cap Funds/ ELSS Large Cap Fund Index Funds Balanced Fund RETURN LOW MEDIUM HIGH Large Cap Funds are less riskier than Diversified, Thematic & Mid & Small Cap Funds
LARGE CAP FUNDS AN INTRODUCTION Large Caps: Proxy to Economy Resembles the market L E A D E R S Leadership They define the market Economies of Scale Cost Advantage Access to Resources Better access, competitive edge Diversification Harness synergies, higher growth Experience Customer Understanding Resilient Insulated during bad times Strength of Balance Sheet Supports Expansion Plans
Quant Advantage Three Pronged Advantage Canara Robeco Advantage Large Cap Advantage INVESTMENT STRATEGY Large Cap Companies are proxies to the Economy and have potential to grow Large Cap Companies reflect characteristics of LEADERS Companies are defined as those which are ranked from 1-150 (basis market capitalization) Bottom up Stock Picking based on Canara Robeco Investment Philosophy Business Management Valuation (BMV) Filter to be applied on Selected Investment Universe Robeco s Globally Acclaimed Research Expertise in managing Quant Model Emotion Free Tool to assign weights to the variables To be used as an Idea Generator in the BMV Process Canara Robeco Large Cap+ Fund
STOCK SELECTION MODEL Robeco Emerging Markets Stock Selection Model India carve out Robeco Emerging Markets Stock Selection Model for emerging markets was launched in 2000 and has been continuously enhanced since The India carve out of the Model has been back tested since 1995 Indian Quant Model Key Variables to the Model Valuation Select inexpensive stocks These factors are based on finding cheap stocks, based on price compared to book value, earnings, sales or other fundamentals, that tend to outperform stocks that are expensive on the same measures Momentum Pick stocks with highest returns in past period These factors are based on recent past returns of stocks. Stocks with high returns over the past 6 to 12 months often outperform stocks with low past returns of stocks Earnings revisions Select stocks with upward revision These factors exploit the empirical finding that stocks for which analysts have recently upgraded their earnings forecasts tend to outperform, while stocks with negative earnings revisions tend to underperform
INVESTMENT PROCESS Macro Research Regulatory Limits Stock Specific Ideas Competent Management Robust Business Fundamentals Individual Stock Limits Robeco Emerging Markets Quant Model Idea Generation based on Valuation Momentum Earnings Revisions Reasonable Valuations Internal Risk Management Limits Tracking Error Ratio Var Beta Monitoring Stock Overweight Limits Sector Overweight Limits Investment Universe Investible Ideas Final Portfolio IDEATE SCREEN DESIGN
INVESTMENT PROCESS Type of analysis/rankings Fundamental Quantitative Objective Finding Best-in-class business models at attractive valuations Idea generator Factors Business Management Valuation Valuation Momentum Earnings revisions
PORTFOLIO SNAPSHOT Top 10 Holdings Industry Classification % of Net Assets HDFC Bank Ltd Banks 8.89% Infosys Ltd Software 5.51% ICICI Bank Ltd Banks 5.16% Kotak Mahindra Bank Ltd Banks 5.03% Larsen & Toubro Ltd Construction Project 4.97% Britannia Industries Ltd Consumer Non Durables 4.73% Housing Development Finance Corporation Ltd Finance 4.61% Bajaj Finserv Ltd Finance 4.61% Maruti Suzuki India Ltd Auto 4.53% MRF Ltd Auto Ancillaries 4.09% A concentrated portfolio with 27 stocks Top 3 sectors: 45.92% Top 5 Sectors: 60.79% Top 10 Stocks: 52.13% Top 5 Sector break up (% to NAV) Banks 21.60% Consumer Non Durables 15.10% Finance 9.22% Auto 7.67% Software 7.20% 0% 10% 20% 30% Asset Allocation Equities I 96% Money Market Instruments I 4.29% Others I -0.29% Data as on 28 th Feb 18
PORTFOLIO SNAPSHOT Market Capitalisation (%) Investment Style 3.96% 96.04% Large Cap Debt, Cash & Others Growth Blend Value Large Cap Mid Cap Small Cap Diversified Thematic Sector Quantitative Information Criteria Values Standard Deviation 13.61 Portfolio Beta 0.93 Portfolio Turnover Ratio 0.69 times R-Squared 0.90 Sharpe Ratio 0.13 Focus on large caps by investing in Top 150 companies based on market capitalisation Fund focuses on companies and sectors that are expected to perform better than the general market Fund uses inputs from internal quant model to identify investable companies Data as on 28 th Feb 18
PERFORMANCE AT A GLANCE Canara Robeco Large Cap+ Fund: Rs.22,600 on an investment of Rs.10,000 since inception Period Scheme Returns (%) S&P BSE 100 TRI # S&P BSE Sensex TRI ## Current Value of Standard Investment of Rs.10,000 in the Scheme S&P BSE 100 TRI # S&P BSE Sensex TRI ## Last 1 Year 18.32% 19.83% 20.46% 11,832 11,983 12,046 Last 3 Years 7.59% 8.18% 6.85% 12,459 12,664 12,204 Last 5 Years 14.72% 15.32% 14.28% 19,877 20,407 19,496 Since Inception (CAGR) 11.43% 11.20% 13.82% 22,600 22,246 26,504 The past performance may or may not be sustained in the future. Returns are based on growth NAV of Regular plan and are calculated on compounded annualized basis for a period of more than (or equal to) a year and absolute basis for a period less than a year. Inception Date: August 20, 2010. Different plans have a different expense structure. The performance details provided herein are of Regular Plan. The current fund managers Mr. Ravi Gopalakrishnan is managing the scheme since 16-Sep-12 and Mr. Shridatta Bhandwaldar is managing the scheme since 5-July-16. Performance as on 28 th Feb 18. #Scheme Benchmark, ##Additional Benchmark. Load is not taken into consideration for computation of returns. Returns of dividend option under the scheme for the investor would be net of distribution tax as applicable. The performance of other funds managed by fund manager of Canara Robeco Large Cap+ Fund is on the slide number 17.
PERFORMANCE AT A GLANCE - SIP 16% 14% 12% 10% 8% 6% 4% 2% 0% Canara Robeco Large Cap+ Fund has outperformed the benchmark & S&P BSE SENSEX TRI over long term 1 Year 3 Years 5 Years Since Inception Canara Robeco Large Cap+ Fund S&P BSE 100 TRI # S&P Sensex TRI ## Canara Robeco Large Cap+ Fund 1 year 3 years 5 years Since Inception Total Amt invested (INR) 1,20,000 3,60,000 6,00,000 9,10,000 Market Value (INR) 1,27,189 4,37,033 8,42,823 15,11,607 Investment date is taken to be 1st of the month or subsequent day if 1st is a holiday and investment of Rs.10,000 is taken. Returns are as on 28 th Feb 18 and are CAGR. The calculations are based on the regular growth plan NAVs. Past performance may or may not be sustained in the future. Scheme Benchmark#, Additional benchmark##. Inception Date: September 16, 2003
NEED BASED PRODUCT POSITIONING Large Cap Diversified Mid & Small Cap Thematic Fund CR Large Cap + CR Equity Diversified CR Emerging Equities CR Infrastructure CR FORCE SATELITE PORTFOLIO CORE PORTFOLIO ELSS CR Equity TaxSaver Above positioning is for illustration purpose only
WHY INVEST Opportunity to participate in the India Growth Story Focused large cap holdings by investing in Top 150 companies based on their Market capitalization Large Cap Companies are proxies to the Economy and have potential to grow Large Cap Companies reflect characteristics of LEADERS Can be part of the CORE portfolio of an investor s equity portfolio Concentrated & Seasoned portfolio compared to other sector / thematic funds.
FUND FACTS Fund Category Investment Objective Inception Date Asset Allocation Plans/Options Facilities Fund Size Load Structure Benchmark Fund Manager Open ended equity scheme To provide capital appreciation by predominantly investing in companies having a large market capitalization. However, there can be no assurance that the investment objective of the Scheme will be realized. 20-Aug-10 Large Cap equity and equity related instruments*: 65-100% (Risk Profile - High) Domestic Debt and Money Market instruments (including securitized debt up to 10% of AUM) : 0-35% (Risk Profile - Low) Regular & Direct Plan: Options: Growth / Dividend with payout & Reinvestment SIP/ STP/ SWP/ Dividend Transfer Facility Rs. 111.78 Crs (Month End AuM) Exit Load: 1% - if redeemed/switched out within 1 year; Nil- if redeemed/switched out after 1 year S&P BSE 100 TRI Mr. Ravi Gopalakrishnan & Mr. Shridatta Bhandwaldar Data as on 28 th Feb 18
Performance of Fund Manager Data as on 28 th Feb 18
DISCLAIMER The information used towards formulating the outlook have been obtained from sources published by third parties. While such publications are believed to be reliable, however, neither the AMC, its officers, the trustees, the Fund nor any of their affiliates or representatives assume any responsibility for the accuracy of such information. CRMF, its sponsors, its trustees, CRAMC, its employees, officer, directors, etc assume no financial liability whatsoever to the user of this document. Mutual Fund Investments are subject to market risk. Investors are requested to read the Scheme related documents carefully before investing. Mutual Fund investments are subject to market risks, read all Scheme related documents carefully.