nfo - infra bees - product presentation

8/8/2019 NFO - Infra BeES - Product Presentation

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Infrastructure Benchmark Exchange Traded Scheme

(An Open Ended Listed Index Scheme

Exchange Traded Fund)

NFO opens on

September 09, 2010

NFO opens on

September 09, 2010

NFO closes on

September 23, 2010

NFO closes on

September 23, 2010


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InfrastructureThe Driver of Economic Growth


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Good quality infrastructure is the most critical physical requirement forattaining faster growth in a competitive world

Average GDP growth of 7.7% achieved in the tenth five year plan period hasbeen the highest in any Plan period so far

India has entered the Eleventh Plan period with an impressive record ofeconomic growth

Adequate investment is necessary to support higher growth and improvedquality of both urban and rural class

Average GDP growth of 9% or above can be achieved and sustained only if

infrastructure deficit can be overcome

Source: Planning Commission Government of India11th Five Year Plan Report

Infrastructure For Sustainable Growth


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Source: CIA- The World Factbook

Infrastructure Miles To Go

110000 (2008est.)

41009 (2008est.)

14500 (2008 est.)Waterways (KMS)

3,583,715 (2007est.)

6,465,799 (2007est.)

3,320,410 (2009est.)

Roadways (KMS)

77834 (2008est.)226427 (2007est.)64015 (2009 est.)Railways (KMS)

50215079352Airports (2010)

3,451(2008 est.)4,110 (2008 est.)723.8 (2009 est.)Electricity Production(billion KWH)

ChinaUnited StatesIndiaInfrastructure Facilities


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Infrastructure Bottlenecks A Major Concern....

Sector

Roads/Highways

Ports

Airports

Railways

Power

Irrigation

Telecom/IT

Inadequa te runways, aircra ft handling, c apa city, parking s pace a nd

terminal building s

65590 km of NH comprise only 2% of network; ca rry 40% of tra ffic;

12% 4-laned; 50% 2-laned; and 38% single-laned

Deficit

Inadequa te berths and rail/road connectivity

1123 B CM utilizable water res ources ; yet nea r cris is in per capita

ava ilability and s torage; only 43% of net sown area irriga ted

Only 18% of market a cces s ed; obsolete ha rdware; a cute huma n

res ources s horta ge s

Old technology; s a tura ted routes ; s low spe eds (freight: 22 kmph;

pa sseng ers: 50 kmph); low payload to tare ra tio (2.5)

13.8% pea king deficit; 9.6% e nergy shortag e; 40% transm iss ion

and dis tribution loss es ; a bsence of competition


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Source: Planning Commission Government of India11th Five Year Plan Report and Mid Term Appraisal of11th 5 year plan report. At 2006-07 prices.

Total Infrastructure investment as % of GDP in XIth Five Year Plan is estimated to

increase to 7.55% as against 5.08% in Xth Five Year Plan

....But Government Has Started Addressing Them

5.435.98

6.537.25

8.19

9.34

0

100000

200000

300000

400000

500000

600000

700000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

ProjectedT

otalInfra.Inv.(Rs.

Crs.)

0

1

2

34

5

6

7

8

9

10ProjectedInfra.Inv.as%ofGDP

Projected Total Infra. Inv. (Rs. Crs.) Projected Infra. Inv. as % of GDP


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Source: Planning Commission Government of India11th Five Year Plan Report & Internal.Exchange rate: Rs. 40/US$. At 2006-07 prices.

Government Renewed Focused Reflected in Increased Spending...

Governments projected infrastructure spending in XIth Five Year Plan has more

than doubled to 514.04 US$ bn from 217.86 US$ bn in Xth plan Five Year Plan

Rs. Crs US$ bn* Share (%) Rs. Crs US$ bn* Share (%)

Electricity 291850 72.96 33.49 666525 166.63 32.42 128.38%

Roads & Bridges 144892 36.22 16.63 314152 78.54 15.28 116.82%

Telecommunications 103365 25.84 11.86 258439 64.61 12.57 150.03%Railways 119658 29.91 13.73 261808 65.45 12.73 118.80%

Irrigation 111503 27.88 12.80 253301 63.32 12.32 127.17%Water Supply & Sanitation 64803 16.2 7.44 143730 35.93 6.99 121.80%

Ports 14071 3.52 1.61 87995 22 4.28 525.36%

Airports 6771 1.69 0.78 30968 7.74 1.51 357.36%

Storage 4819 1.2 0.55 22378 5.59 1.09 364.37%

Gas 9713 2.43 1.11 16855 4.21 0.82 73.53%

Total 871445 217.85 100.00 2056151 514.02 100.00 135.95%

Projected Investment in Infrastructure During Eleventh Five Year Plan

XIth Plan % Increase

Over Xth PlanSectors

Xth Plan XIth Plan


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Source: Planning Commission Government of India11th Five Year Plan Report & Internal. At 2006-07 prices.

Increased

Private

Sector

Participation

....With Private Sector Participation

Rs. Crs Share (%) Rs. Crs Share (%)

Electricity 291850 666525

Public 200016 68.53 481013 72.17Private 91834 31.47 185512 27.83

Roads & Bridges 144892 314152

Public 137888 95.17 207359 66.01

Private 7004 4.83 106792 33.99

Telecommunications 103365 258439Public 49013 47.42 80753 31.25Private 54352 52.58 177686 68.75

Railways 119658 261808

Public 119352 99.74 211453 80.77Private 307 0.26 50354 19.23

Irrigation 111503 253301

Public 111503 100.00 253302 100.00Private - - - -

Water Supply & Sanitation 64803 143730Public 63781 98.42 138309 96.23

Private 1022 1.58 5421 3.77

Ports 14071 87995Public 3715 26.40 33516 38.09Private 10356 73.60 54479 61.91

Airports 6771 30968Public 3835 56.64 9338 30.15

Private 2936 43.36 21630 69.85

Storage 4820 22378

Public 1443 29.94 11189 50.00Private 3377 70.06 11189 50.00

Gas 9713 16855Public 8713 89.70 10327 61.27

Private 1000 10.30 6528 38.73

Total 871445 100.00 2056150 100.00

Public 699257 80.24 1436559 69.87

Private 172188 19.76 619591 30.13

Projected Investment in Infrastructure During Eleventh Five Year Plan

SectorsXth Plan XIth Plan


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Eleventh Plan Physical Targets

Sector

Roads/Highways

Ports

Airports

Railways

Power

Irrigation

Telecom/IT

Develop 16 mha ma jor and minor works ; 10.25

Rea ch 600 m s ubscribers200 m in rura l areas ; 20 m b roadba nd;

40 m Internet

8132 km new ra il; 7148 km ga uge conversion; modernize 22

s ta tions ; ded ica ted freig ht corridors

Add 78577 MW; acce ss to all rura l households

Modernize 4 metro and 35 non-metro a irports ; 3 g reenf ield in NE R ;7 other g reenfie ld a irports

6-lane 6500 km in GQ; 4-lane 6736 km NS -EW; 4-lane 20000 km; 2

lane 20000 km; 1000 km Expres sway

Eleventh Plan Targets

New ca pa city: 485 m MT in ma jor ports ; 345 m MT in m inor ports


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Government Committed To Infrastructure Development

Source: Planning Commission Government of India11th Five Year Plan ReportEstimates: GDP to grow at 9% per year and GCF in infrastructure as percentage of GDP would rise from 9 % in 2011-12 to 10.25 % in 2016-17. Exchange rate: Rs. 40/US$. At 2006-07 prices.

Governments projected GCF (Gross Capital Formation) in Infrastructure

investment in XIIth Five Year Plan would increase to US$ 1018.74 bn

From US$ 502.88 bn in XIth Five Year Plan

10.25109.759.5

9.259

0

200000

400000

600000

800000

1000000

1200000

2011-12 2012-13 2013-14 2014-15- 2015-16 2016-17

ProjectedG

CFinInfra.(Rs.Crs.)

5

6

7

8

9

10

11 ProjectedGCFinInfra.as%of

GDP

Projected GCF in Infra. (Rs. Crs.) Projected GCF in Infra as % of GDP


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Presenting


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Infra BeES Best of Both Worlds

Like an Index Fund

Constructed to track the Index

Open ended mutual fund

Low expense ratio

Low turnover

Transparent

Like a Stock

Trading flexibility intraday on the

exchange

Real Time Price

Put Limit Price

Minimum Trading lot is just 1 unit

Delivery in your Demat account

ETF

Index Fund Stocks


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Includes companies belonging to Telecom, Power, Port, Air, Roads, Railways,shipping and other Utility Services providers

Index is calculated using the market capitalisation weighted method

Base value and base date of index are 1000 and Jan. 01, 04 resp.

Companies are selected based on the below parameters

Market capitalisation

Turnover

Net worth

Company should be available for trading in the derivatives segment

(Stock Futures & Options market) on NSE

For detailed criteria of CNX Infrastructure index, refer to indices section ofwww.nseindia.com

About CNX Infrastructure Index
http://www.nseindia.com/


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CNX Infrastructure Index Security Weightage

Source: NSE. Data as on August 31, 2010 & AMFI.

2.51CementJaiprakash AssociatesLtd.

13

2.53Industrial Capital

GoodsSiemens Ltd.12

2.56Telecom - ServicesIdea Cellular Ltd.11

2.65PowerReliance InfrastructureLtd.

10

2.85PowerNeyveli LigniteCorporation Ltd.

9

3.14PowerTata Power Co. Ltd.8

3.49Telecom - ServicesRelianceCommunications Ltd.

7

3.95PowerReliance Power Ltd.6

5.55ConstructionDLF Ltd.5

11.84Construction ProjectLarsen & Toubro Ltd.4


GoodsBharat HeavyElectricals Ltd.

3

13.45Telecom - ServicesBharti Airtel Ltd.2

17.48PowerNTPC Ltd.1

%IndustryCompany NameSr. No.

0.38Construction ProjectPunj Lloyd Ltd.25

0.42Telecom - ServicesMahanagar TelephoneNigam Ltd.

24

0.74Transportation

Shipping Corporation of

India Ltd.23

0.81HotelsIndian Hotels Co. Ltd.22


GoodsSuzlon Energy Ltd.21

1.00TransportationIRB InfrastructureDevelopers Ltd.

20

1.03Telecom - ServicesTata Communications Ltd.19

1.72Construction ProjectLanco Infratech Ltd.18


GoodsABB Ltd.17


GoodsCrompton Greaves Ltd.16

2.11ConstructionUnitech Ltd.15

2.35Construction ProjectGMR Infrastructure Ltd.14

%IndustryCompany NameSr. No.


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CNX Infrastructure Index Industry Classification

Source: NSE. & AMFI. Data as on Aug. 31, 2010.

30.08%

0.81%

1.74%

7.66%

2.51%

16.28%19.99%

20.94%

Power Telecom - ServicesIndustrial Capital Goods Construction ProjectConstruction CementTransportation Hotels


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Performance - Indices

Source: MFI explorer. Data as on Aug. 31, 2010. Past performance may or may not be sustained in future.Past performance is no guarantee of future results.

50000

150000

250000

350000

450000

550000

650000

750000

01-Jan-04

01-Jul-04

01-Jan-05

01-Jul-05

01-Jan-06

01-Jul-06

01-Jan-07

01-Jul-07

01-Jan-08

01-Jul-08

01-Jan-09

01-Jul-09

01-Jan-10

01-Jul-10

NormalisedTo1LacAsOnJan01,2004

CNX Infras tructure Index S&P CNX Nifty BSE Sensex

Rs. CNX Infrastructure Index S&P CNX Nifty BSE Sensex

Initial Investment As OnJan 1, 2004

100000 100000 100000

Value As On Aug. 31,

2010339180 282515 303799

CAGR(%) 20.10% 16.85% 18.13%


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5 Yrs Rolling Returns,

Frequency Daily,

Period Jan 01, 09 to Aug 31, 10

Source: MFI explorer and Internal. Note: The above performance is CAGR(%). Past performance may or may not be sustained in future.Past performance is no guarantee of future results.

3 Yrs Rolling Returns,

Frequency Daily,

Period Jan 02, 07 to Aug 31, 10

Performance - Indices

5

13

34

22

5

19

7

25

5

26

20

7

-30

-15

0

15

30

45

Minimum Maximum Average Annualised

Volatility

(%)

CNX Infrastructure Index S&P CNX Nifty BSE Sensex

24

-6

72

27

1520

-6

49

17

53

21

-8

-30

-15

0

15

30

45

60

75

90

Minimum Maximum Average Annualised

Volatility

(%)

CNX Infrastructure Index S&P CNX Nifty BSE Sensex


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Statistics - Indices

Source: NSE.

1.120.77Dividend Yield

3.543.14P/B

22.7329.6P/E Ratio

3,397,141924,141Full Market Cap

(Rs. Crores)

S&P CNX NiftyCNX

Infrastructure(As on Aug 31, 2010)


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About


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OverviewInvestment ObjectiveThe investment objective of the Scheme is to provide returns that, before expenses, closelycorrespond to the total returns of the securities as represented by the CNX Infrastructure

Index by investing in the securities in the same proportion as in the Index.

However, the performance of Scheme may differ from that of the Underlying Index due to

tracking error. There can be no assurance or guarantee that the investment objective of the

Scheme will be achieved.

Investment Pattern

Taxation of a equity oriented fund is applicable to the scheme

0%-5%

95%-100%

%

Medium to HighSecurities covered by the CNX Infrastructure

Index

LowMoney Market Instruments, G-Secs, Bonds,Debentures and cash at call

Risk ProfileInstruments

Note: Please refer to SID & SAI for more details.


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Scheme Features

During NFO

Rs. 10,000/- (Rupees Ten Thousand only) and in multiples of Re. 1/- thereafter

On Ongoing Basis

On the Exchange

The units of Infra BeES would be listed on the National Stock Exchange of

India Ltd. (NSE). On NSE, the units of Infra BeES can be

purchased/redeemed in minimum lot of 1 unit and in multiples thereof.

Minimum Application Amount

Directly with the Fund

The Minimum number of units of Infra BeES that investors can

create/redeem in exchange of Portfolio Deposit and cash component is

10,000 units and in multiples thereof.


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Scheme Features

Option

The Scheme offers only growth option

Entry & Exit Load

Nil

CNX Infrastructure Index

Benchmark Index

Investor Benefits and General Services

During the NFO, investors can subscribe to the units through the mutual fund trading

platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and Mutual

Fund Service System (MFSS) of NSE. The AMC will calculate and publish the first NAV

of the Scheme not later than October 07, 2010. Subsequently, the NAVs will be

calculated and disclosed at the close of every Business Day.


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About Benchmark


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Differentiation in Investment Philosophy, Product structures and Product

delivery mechanism

Leadership position in indexing and ETF areas

A track record of successfully conceptualizing and launching innovative

products with many Firsts

Nifty BeESThe First ETF In Asia (Barring Japan)

Junior BeESThe First Midcap ETF In IndiaLiquid BeESThe First Money Markey ETF In The World and The Only One In India

Bank BeESThe First Sector Based ETF In India

Gold BeESThe First Gold Linked ETF In India

PSU Bank BeESThe First PSU Bank Sector Based ETF In India

Shariah BeESThe First S&P CNX Nifty Shariah Based ETF In India

Hang Seng BeESIndias First ETF investing in overseas securities which are constituents of Hang

Seng IndexBenchmark Derivative FundThe First Equity Arbitrage Fund In India

Benchmark S&P CNX 500 Fund The First and Only Index Fund In India Benchmarked to S&P

CNX 500 Index

Benchmark - Highlights


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* Past performance is no guarantee of future results.

Eligibility Criteria & MethodologyIn total 11 schemes in year 2007, 12 schemes in year 2008 and 13 schemes in year 2009 were eligible for award universe. Schemes present in all fourquarterly CRISIL CPRs for each calendar year were considered for the award. The award is based on consistency of the schemes performance in thefour quarterly CRISIL CPR rankings released during the respective calendar year. The individual CRISIL CPR parameter scores averaged for the fourquarters for each calendar year were further multiplied by the parameter weights as per the CRISIL CPR methodology to arrive at the final scores. A

detailed methodology of the CRISIL CPR is available at www.crisilfundservices.com. Past performance is no guarantee of future results.

Rankings and Award Source: CRISIL FundServices, CRISIL Ltd.

2007

Achievements

2008 2009

Nifty Benchmark Exchange Traded Scheme (Nifty BeES) was Awarded Best Performing Mutual Fundof The Year Award In The Index Fund Category at the CNBC TV18 CRISIL Mutual Fund of The

Year Award 2007, 2008 & 2009*, respectively
http://www.crisilfundservices.com/http://www.crisilfundservices.com/


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Investment ObjectiveThe investment objective of Nifty BeES is to provide investment returns that, before expenses, closelycorrespond to the total returns of the securities as represented by the S&P CNX Nifty Index.However, the performance of Scheme may differ from that of the Underlying Index due to trackingerror.

Investment Pattern

Upto 100% of net assets in Securities covered by the S&P CNX Nifty Index; Upto 10% of net assets inMoney Market instruments, convertible bonds & other securities including cash at call but excludingsubscription & redemption Cash Flow

An Open-ended, exchange listed, Index Scheme

Terms of Issue

On NSE, the units of Nifty BeES can be purchased/sold in minimum lot of 1unit and in multiples

thereof. Directly with the Fund - The minimum number of units of Nifty BeES that investors can

create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiplesthereof.

Load Structure:

Entry Load : Nil

Exit Load: Nil


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(1) All Mutual funds and Securities investments are subject to market risks and there

can be no assurance or guarantee that the objective of the Schemes will be achieved.

(2) As with any investment in securities, the Net Asset Value (NAV) of the units issued

under the Schemes can go up or down depending on the factors and forces affecting

the securities market/bullion market. (3) Past performance of theSponsors/Investment Manager/Mutual Fund and its affiliates does not indicate the

future performance of the Scheme and may not provided a basis of comparison with

other investments. (4) Infrastructure Benchmark Exchange Traded Scheme (Infra

BeES), Nifty BeES, Junior BeES, Bank BeES, PSU Bank BeES, Shariah BeES, Gold

BeES, Liquid BeES, Hang Seng BeES, Benchmark Derivative Fund and Benchmark

S&P CNX 500 Fund are the name of the Schemes and does not in any manner indicate

either the quality of the Schemes or its future prospects and the returns. Investors are

therefore urged to study the terms of offer carefully and consult their InvestmentAdvisor before they invest in the Schemes. (5) The Sponsor is not responsible or liable

for any loss or shortfall resulting from the operation of the Schemes beyond the initial

contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual

Fund. (6) The present Scheme is not a guaranteed or assured return Scheme.

DisclaimersRisk Factors

General:


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(7) The Schemes NAV will react to the securities / bullion market movements. The

Investor could lose money over short periods due to fluctuation in the Schemes NAV

in response to factors such as economic and political developments, changes in interest

rates and perceived trends in securities / bullion prices, market movements, and over

longer periods during market downturns. (8) IISL Disclaimer : The Product on CNX

Infrastructure Index is not sponsored, endorsed, sold or promoted by India Index

Services & Products Limited (IISL). IISL does not make and expressly disclaims any

representation or warranty, express or implied (including warranties ofmerchantability or fitness for particular purpose or use) regarding the advisability of

investing in the Product linked to CNX Infrastructure Index or particularly in the

ability of the CNX Infrastructure Index to track general stock market performance in

India. Please read the full Disclaimers in relation to the CNX Infrastructure Index in

the Scheme Information Document / Prospectus / Information Statement. (9) NSE

Disclaimer : It is to be distinctly understood that the permission given by NSE should

not in any way be deemed or construed that the Scheme Information Document has

been cleared or approved by NSE nor does it certify the correctness or completenessof any of the contents of the Draft Scheme Information Document . The investors are

advised to refer to the Scheme Information Document for the full text of the

Disclaimer Clause of NSE. (10) Please read the Scheme Information Document and

Statement of Additional Information carefully before investing. (11) For Scheme

specific risk factors kindly refer SID.

Disclaimers(Contd.)


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Statutory Details:

Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian

Trust Act, 1882. Trustee: Benchmark Trustee Company Pvt. Ltd. Investment

Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial

Services Pvt. Ltd.

For more details please refer the SID, Key Information Memorandum and ApplicationForm which are available at the Office of the AMC or can be downloaded from

www.benchmarkfunds.com

Disclaimers(Contd.)
http://www.benchmarkfunds.com/http://www.benchmarkfunds.com/


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Thank You

nfo - infra bees - product presentation

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