Mahindra Manulife Investment Management Private Limited*
@ 51% @ 49%
Mahindra & Mahindra Financial Manulife Investment Management
Services Limited (Singapore) Pte. Ltd.
* Formerly known as Mahindra Asset Management Company Private Limited
About Mahindra Finance
Mahindra & Mahindra Financial Mahindra Finance is a leading
Focused on the rural and semi-
Services Limited (Mahindra vehicle and tractor financier,
urban sector, the Company has
Finance), part of the Mahindra provides loans to SMEs and also
over 6.8 Million customers and
Group, is one of India’s leading offers fixed deposits.
has an AUM of over USD 10
non-banking finance companies.
Billion.
Mahindra Finance has over 1,380
Mahindra Finance is the only
offices and reaches out to Mahindra Finance has been
financial institution from India to
customers spread over 3,80,000 ranked 25th on the list of India’s
be listed on the Dow Jones
villages across the country. Best Companies to w ork for 2020
Sustainability Index in the
Emerging Market Category 2019. by Great Place to Work® Institute.
As on March 31, 2021
Internal Data
About Manulife Investment Management
Leading international Provides financial advice,
financial services group insurance, as well as wealth and
that helps people make asset management solutions for
their decisions easier and individuals, groups and More than 150 years of global
lives better. institutions. financial stewardship of client
Manulife Investment Management assets across its institutional,
(Singapore) Pte. Ltd. (MIMS) is a retail, and retirement businesses
member of the Manulife Financial globally.
group of companies and is an indirect
wholly owned subsidiary of Manulife
Financial Corporation.
MIMS has a strong presence in Manulife had over 37,000 employees,
Singapore, managing retail fund over 1,18,000 agents, serving over 30
schemes, institutional client mandates million customers, and with assets under
as well as managing assets on behalf of management and administration of
its insurance affiliate Operating primarily as John Hancock in US$1000 billion as of 31 March, 2021.
the United States and Manulife
elsewhere, and headquartered in
Canada
As on March 31, 2021
Internal Data
Historical long term returns provided by equity along with periods of volatility
2021:
Covid 19
Unlock
Phases
2015: Global 61,766
60,100 markets and
China stocks
2011:
High inflation, higher crashing, …
16.5% CAGR over 42 years interest rates, Indian rupee
fall, Crude 51,935
50,100 Dividends extra !!
depreciating local
currency, slowing prices fall:
domestic growth and 22% fall
60,967
Sensex 30 Value
2008: Global crisis due
global uncertainties:
to exposure of
25% fall
40,100 securities of sub prime
loans:
56% fall
29,362
30,100
2000: 20,287 20,069 25,981
The advent of dot-
20,100 1992: Harshad
Mehta Security
cot bubble or
23,002
Scam : internet bubble:
32% fall
52% fall
15,455 March 2020:
11 years to cross 1000 Mark
10,100 Covid -19
4,285 5,447 5,696 8,892 37% Fall
1,295
2,193 3,711 4,795
100
11-79
11-84
11-85
11-90
11-91
11-96
11-97
11-02
11-03
11-08
11-09
11-14
11-15
11-20
11-80
11-81
11-82
11-83
11-86
11-87
11-88
11-89
11-92
11-93
11-94
11-95
11-98
11-99
11-00
11-01
11-04
11-05
11-06
11-07
11-10
11-11
11-12
11-13
11-16
11-17
11-18
11-19
11-21
Years
Source :- BSE, Bloomberg as on Nov 27, 2021
Period(s) of volatility has been represented by a few major events as covered in the graph above
Indian Economy in a structural upcycle
Government focus on reforms
Demography
Digital & Transparent Economy
Stabilization of NPAs in the banking system
PLI^ : Thrust on domestic manufacturing, import substitution & export promotion
Supportive inflation and interest rates
Revival of PSU sector and divestments leading to efficiency gains
^Production-Linked Incentive
Long Term Outlook
Corporate Profits as a % of GDP Gross fixed capital formation as % of GDP
Structurally we are building a base for strong economic upcycle
Source: ACE Equity, Jefferies, MoSPL
Long Term Outlook
Market Cap to GDP ( Trailing) Listed India PAT to GDP off two decades low
Source: Bloomberg, Capitalline, I-Sec research
Policy Reforms
Production Linked Incentives for Make-in-India
Import Export
Substitution Potential
Self- Reliant India
Defence Auto
White Goods Pharma
Chemicals Batteries
Mobiles
Intent: India as the trusted source for “China Plus One” global sourcing strategy
For illustrative purposes only
Overlapping Virtuous Cycles of Growth
➢ Formal ready
➢ Large domestic
businesses
market gives
benefitted from
companies
digitization, in
Formalization opportunities to
turn, driving Re-Invest
Better substitute, localize,
more
Infrastructure bring down cost.
businesses to
formalize.
➢ Incentives of
Better reinvestment
➢ Digital India Jobs Import
Digitization pushing
has reached Substitution competitiveness
an inflection / Export which further drives
point which
reinvestment
continues to
push
formalization
For illustrative purposes only
Economic Growth
Source: World Bank, IMF, BofA
Publication date:
Do you find
markets
confusing?
Equity
Debt
Volatility
Cheap /expensive Market Drivers
valuations
Political /
Debt Market
Economy news
Equity Market Company's
earnings
Too many variables in the market make investing complicated
Confused Investor behavior leads to emotional decisions & sub optimal returns
Ins ad
Sell low Buy high Buy low Sell high
Presenting Mahindra Manulife Balanced Advantage Yojana
Equity markets Interest rates
are high / low are trending
up / down
Asset Allocation Optimal mix of equity and
between Debt &
Equity is
debt across market cycles
generally
considered as
primary driver of
the performance
News on
economy, Liquidityin
earnings, politics markets is
is favorable/ high / low
unfavorable
Mahindra Manulife Balanced Advantage Yojana, aims to follow the dynamic
asset allocation using the multi variate approach.
Valuations : Historical
Earnings Growth
PE & Forward PE
MULTI VARIATE APPROACH
Liquidity: Lead & Lag Interest Rate Vs
Indicators Earnings Yields
Multi Variate Approach - an internal investment approach that couples qualitative and quantitative assessment of
macro economic, market and technical indicators, valuations, growth outlook, interest rates, liquidity, etc.
For illustrative purpose only
Publishing Date: 24 th November 21
PE Ratio
10.00
12.00
14.00
16.00
18.00
20.00
22.00
24.00
26.00
28.00
30.00
32.00
34.00
36.00
11-1-2011
Source: Bloomberg
Data as on 25 th Nov 2021
4-1-2012
9-1-2012
2-1-2013
7-1-2013
12-1-2013
PE : Historical & Forward
5-1-2014
10-1-2014
3-1-2015
FY23E PE Ratio
8-1-2015
1-1-2016
6-1-2016
11-1-2016
4-1-2017
9-1-2017
2-1-2018
7-1-2018
Trailing 4Q PE Ratio
12-1-2018
5-1-2019
10-1-2019
3-1-2020
8-1-2020
1-1-2021
6-1-2021
11-1-2021
EPS estimate have seen increase in the past few months
Nfty-50 Index EPS estimates trend
Publishing Date: 24th November 21
Strong Correlation : Liquidity Vs. Equity Markets
~10 years, $ 6500 Bn
Source: Bloomberg
Data as on 25th Nov 2021
Market Outlook
Investment Style : Equity
❖To optimize the potential of equity
& debt over short to medium term
period.
❖Portfolio construction based on top
down approach and bottom up
stock selection.
❖Aim to construct the equity portfolio
using GCMV investment framework
India Market Cap Cycle
107%
Nifty 50 Nifty Midcap 100 Nifty Smallcap 100
99%
87%
77%
76%
57%
56%
55%
55%
47%
42%
42%
40%
39%
37%
33%
31%
29%
29%
28%
22%
21%
19%
19%
18%
18%
15%
12%
7%
7%
7%
6%
3%
3%
2%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
-4%
-10%
-4%
-5%
-8%
-15%
-25%
-29%
-31%
-34%
-52%
-59%
-71%
Source: Bloomberg
Data as of 30th October 2021
Investment Style : Debt
❖Invest in Liquid, debt
and money market
securities by
balancing the
maturity and credit
profile.
❖Aims to follow a
duration strategy
which looks to
optimize yields.
Mahindra Manulife Balanced Advantage Yojana
Dynamic Asset Allocation
0% - 100% 0% - 100%
Equity & Equity Debt & Money
related instruments Market securities
Introducing Mahindra Manulife Balanced Advantage Fund
*Though the scheme is a dynamic asset allocation scheme, the endeavour will be to invest a minimum of 65% of its net
assets in equity and equity related instruments which may help in attracting equity taxation as per prevailing tax laws.
WHO CAN INVEST ??
Long Term
First Timer Market Timer Investors
A cautious
Investor who is A goal oriented
First Time investor investor with a
concerned of
keen for an equity long horizon can
market level but
experience look at investing in
also aim to
generate wealth this product
Frankly, Everybody !!
Disclaimer
• The views expressed here in this presentation are for general information and reading purpose only and do not constitute any guidelines
and recommendations on any course of action to be followed by the reader / user of this presentation. No representation or warr anty is
made as to the accuracy, completeness or fairness of the information and opinions contained herein. The views are not meant to serve
as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or
instrument or mutual fund units for the reader / user. This presentation has been prepared on the basis of publicly available information,
internally developed data and other sources believed to be reliable. While utmost care has been exercised while preparing this
presentation, Mahindra Manulife Investment Management Private Limited [Formerly known as Mahindra Asset Management Company
Private Limited] (MMIMPL) does not warrant the completeness or accuracy of the information and disclaims all liabilities, losse s and
damages arising out of the use of this information. The data/statistics, wherever provided, are given to explain general market trends in
the securities market, it should not be construed as any research report/research recommendation. Readers / users of this presentation
should rely on information / data arising out of their own investigations and are advised to seek independent professional advice and
arrive at an informed decision before making any investments. Neither Mahindra Manulife Mutual Fund, MMIMPL nor Mahindra Manulife
Trustee Private Limited (Formerly known as Mahindra Trustee Company Private Limited), its directors or associates shall be liable for any
damages that may arise from the use of the information contained herein.
• For detailed asset allocation, investment strategy, scheme specific risk factors and more details, please read the Scheme
Information Document and Key Information Memorandum of Mahindra Manulife Balanced Advantage Yojana available at the
ISCs of MMIMPL and Computer Age Management Services Private 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 other investments.
• The information contained herein are not for distribution and do not constitute an offer to buy or sell or solicitation of an offer to buy or sell
any schemes/Units of Mahindra Manulife Mutual Fund / securities in the United States of America ('US') and/or Canada or for the benefit
of US Persons (being persons falling within h d ini i n h rm “US P rs n” und r h US S curi i s Ac 1933 r as d fined by
the U.S. Commodity Futures Trading Commission, as amended) or residents of Canada as defined under applicable laws of Canada .
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS READ ALL SCHEME RELATED
DOCUMENTS CAREFULLY.
