ICICI Prudential Value Discovery Fund

An Open Ended Diversified Equity Scheme

August Review Note

Only for reading and understanding of distributors and advisors of ICICI Prudential
Mutual Fund

Why ICICI Prudential Value Discovery Fund ?

About the Fund

The scheme focuses on identifying value stocks that are likely to transform into tomorrows market
leaders resulting in potential capital appreciation over time.
The scheme, through its process of discovery, seeks to identify stocks whose prices are low relative to
their historic performance, earnings, book value and cash flow potential.
The Fund Manager may use contra investing strategy which involves selection of stocks that are not
popular at the moment but have the potential to do wellover time because of factors such as strong
fundamentals, future turnaround in the business cycle and revival in economic growth.
The scheme is suitable for investors who are willing to invest for a fairly long term to benefit from the full
investment cycle and has over 5 years of investment horizon.

Market Outlook

Launched on August 16, 2004, ICICI

Prudential Value Discovery Fund is an openended equity fund. The Fund follows a
value investment style. The Fund follows a
bottom-up investment approach.

Investment Style

In India, manufacturing industries show lower capacity utilization at this point, this could bring operating
leverage and help the growth in topline without incurring any additional cost in the near term. Additionally,
local factors also favour India. After two consecutive deficient monsoons, 2016 saw respite as monsoons
were about the same level as the long term average or above that. This is expected to help the crop yield,
thus, allowing higher income opportunities in rural India. In turn it will help increase the spending capacity
for rural consumers and thus supporting the growth of various sectors associated with the rural market.
Zero-interest rates globally is expected to move institutional money in the developed world from fixed
income to equity market. With India among the fastest growing large-size country, the Indian stock markets
could benefit as better returns for sustained time period is possible. Additionally the government is being
supportive in creating conducive business environment, therefore, there is high probability of registering
good growth.
While local and certain global factors are supportive of Indian equities, there are also other global factors
that could result in high volatility in the stock market such as US rate high or a geo-political crisis. A cause
for concern on the global growth can also result in high volatility.

Curent Portfolio Positioning

Value

Style

Blend

Growth

Size
Large
Mid
Small

Investment Approach

ICICI Prudential Value Discovery Fund is overweight on the following sectors:

Banks: Banks may benefit from falling interest rates and could gain from expected cyclical economic growth.
Among the banks, the fund has more exposure to private banks as they are better placed in terms of valuation,
growth prospect, and asset quality.
Construction Project: The sector can benefit from the government's focus on roads, railways, ports, and airports.
Infrastructure is among the building blocks in place for a steady and gradual recovery. Announcement of new
projects could improve capacity utilisation levels and bottom-lines.
Cement: Continued revival in the economy and focus government focus on infrastructure could boost the sector.
Power: The sector could gain from falling interest rates and good earnings growth is expected over the long term.
Transportation: Expected expansion in road network and revival in the economy will benefit this sector.

Key Portfolio Changes

Value based approach

Captures special situations and

contra calls

Bottom-up approach with

flexicap exposure

Portfolio Statistics

Top 3 Entries

Top 3 Exits

N.A

Eclerx Services Ltd

No. of stocks

53

N.A

Triveni Turbine Ltd.

No. of sectors

20

N.A

N.A

Top 5 Holdings

27.84%

Top 3 Increase

Top 3 Decrease

Top 10 Holdings

44.39%

Infosys Ltd.

Larsen & Toubro Ltd.

Top 5 Sectors

54.39%

Hdfc Bank Ltd.

Bank Of Baroda

Top 10 Sectors

77.44%

Icici Bank Ltd.

Punjab National Bank

Portfolio P/E

20.01

Top 3 Sector Increase

Top 3 Sector Decrease

Portfolio P/B

4.18

SOFTWARE

CONSTRUCTION PROJECT

BANKS

INDUSTRIAL CAPITAL GOODS

FINANCE

TRANSPORTATION

Closing AUM as on
on
Jun
July 30
31,2016
2016

Rs. 13882.84 Crore

ICICI Prudential Value Discovery Fund

An Open Ended Diversified Equity Scheme
August Review Note
Only for reading and understanding of distributors and advisors of ICICI Prudential Mutual Fund

Top 10 Holdings

Top Sectors (% Holdings)

Stocks

% to net Assets

Sectors

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

19.72%

20.28%

20.78%

18.77%

18.88%

19.64%

Larsen & Toubro Ltd.

6.29%

BANKS

Icici Bank Ltd.

6.11%

SOFTWARE

8.03%

7.62%

7.16%

9.28%

8.68%

10.56%

National Thermal Power Corp. Ltd.

5.69%

CONSTRUCTION PROJECT

11.62%

11.60%

10.83%

11.56%

11.20%

8.95%

Infosys Ltd.

4.96%

PHARMACEUTICALS

3.22%

2.89%

3.23%

6.00%

8.06%

8.26%

Sun Pharmaceutical Inds. Ltd.

4.79%

POWER

7.35%

7.00%

7.07%

7.01%

7.17%

6.98%

Axis Bank Ltd.

4.67%

TRANSPORTATION

5.17%

6.84%

6.70%

6.58%

6.23%

6.00%

Hdfc Bank Ltd.

4.21%

FINANCE

2.71%

3.60%

3.65%

3.42%

4.26%

4.62%

Container Corpn. Of India Ltd.

3.04%

AUTO ANCILLARIES

5.22%

4.93%

4.97%

4.67%

4.49%

4.60%

Mahindra & Mahindra Ltd.

2.33%

CEMENT

4.33%

4.59%

4.20%

4.13%

4.53%

4.44%

Bajaj Finserv Ltd.

2.30%

PESTICIDES

3.37%

3.18%

3.37%

3.48%

3.31%

3.39%

Portfolio Sector Weightage v/s Benchmark

% Weight
Benchmark
Portfolio

Sector
BANKS
SOFTWARE

(a)

(b)

19.64%

17.72%

10.56%
8.95%

3.30%

PHARMACEUTICALS

8.26%

7.36%

POWER

6.98%

2.61%

TRANSPORTATION

6.00%

1.35%

FINANCE

4.62%

9.82%

AUTO ANCILLARIES

4.60%

1.88%

CEMENT

4.44%

3.21%

PESTICIDES

3.39%

0.69%

BANKS

1.92%

SOFTWARE

-0.50%

11.06%

CONSTRUCTION PROJECT

CONSTRUCTION PROJECT

5.65%

PHARMACEUTICALS

0.90%

POWER

4.37%

TRANSPORTATION

4.65%

FINANCE

-5.20%

AUTO ANCILLARIES

2.72%

CEMENT

1.23%

PESTICIDES

2.70%

Portfolio Market Cap Breakup

Portfolio Features

65%

23%
3%
Largecap

Portfolio Underweight / Overweight against benchmark

Midcap

Type of Scheme
Plans

An Open Ended Diversified Equity Scheme

Minimum Application Amount

Minimum Additional Application Amount
Minimum Redemption Amount

Rs. 1000 (plus in multiple of Re. 1)

Rs. 1000 (plus in multiple of Re. 1)
Rs. 500 (plus in multiple of Re. 1 thereof)

Exit Load

Upto 12 months from allotment

ICICI Prudential Value Discovery Fund & ICICI Prudential

Value Discovery Fund Direct; Options Growth & Dividend

1% of applicable NAV
Nil

Smallcap

Portfolio Quantitative Indicators

Alpha

14.84

Beta

1.03

Sharpe

1.51

R Squared

0.87

Standard Deviation

17.21

Fund Manager

Mr. Mrinal Singh managing this Scheme since Feb 2011 &
has overall 14 years of experience.

Benchmark Index

S&P BSE 500

SIP / STP

Available

Historical Asset Class Breakup

100%
98%
96%
94%
92%
90%
88%
86%

Equity & Equity Related

Cash & Cash Equivalents

Money Market

Jul-16

Jun-16

Apr-16

May-16

Mar-16

Jan-16

Feb-16

Dec-15

Oct-15

Nov-15

Sep-15

Aug-15

Jul-15

Jun-15

May-15

Apr-15

Feb-15

Mar-15

Jan-15

Dec-14

Nov-14

Oct-14

Sep-14

Aug-14

Jul-14

Jun-14

May-14

Apr-14

Mar-14

Feb-14

Jan-14

Dec-13

Nov-13

Oct-13

Sep-13

Aug-13

Jul-13

84%

ICICI Prudential Value Discovery Fund

An Open Ended Diversified Equity Scheme
August Review Note
Only for reading and understanding of distributors and advisors of ICICI Prudential Mutual Fund

Yearly & Cumulative Performance

Growth of Rs. 100,000 invested in the scheme v/s Benchmark Index performance
500
450
400
350

ICICI Prudential
Value Discovery
Fund

250
200

Lakhs

300

S&P BSE 500

150
100
50
0
2007
39.65
63.02

2008
-54.56
-58.14

2009
134.32
90.23

2010
27.71
16.35

2011
-23.73
-27.41

2012
46.01
31.20

2013
8.31
3.25

2014
73.76
36.96

2015
5.44
-0.82

2016
8.94
8.95

ICICI Prudential Value Discovery Fund

S&P BSE 500

Systematic Investment Plan

Value (Rs) of SIP in
Investment
Period

Total investment (Rs.)

NIFTY
Nifty 50

Returns (%)*

S&P BSE 500

ICICI Prudential Value

Discovery Gth

Nifty 50
NIFTY

S&P BSE 500

ICICI Prudential Value

Discovery Gth

Since Inception

14,30,000

28,29,941

29,23,508

54,27,008

10.88%

11.38%

20.74%

Last 5 Years

6,00,000

8,03,112

8,46,116

11,11,574

11.60%

13.71%

24.92%

Last 3 Years

3,60,000

4,19,469

4,40,046

5,10,095

10.17%

13.46%

23.96%

Last 1 Year

1,20,000

1,31,312

1,32,725

1,32,415

17.86%

20.13%

19.63%

Date of First Instalment : August 16,2004

The data assumes the investment of Rs 10000/- on 1st of every month or the susequent working day. Load and taxes are not considered for computation of returns. Past performance may or may not be sustained in future. *CAGR
Returns are computed after accounting for the cash flow by using the XIRR method (investment internal rate of return). S&P BSE 500 - Scheme Benchmark, Nifty 50 - Additional Benchmark.

Performance (As on July 31, 2016)

Value of Standard Investment of Rs 1,00,000

ICICI Prudential Value Discovery Fund

Investment Period

NIFTY50
50
Nifty

S&P BSE 500

Value (Rs.)

Returns ( % )

Value (Rs.)

Returns ( % )

Value (Rs.)

Last 1 Year

104781.21

4.78

103138.31

3.14

101238.16

Returns ( % )
1.24

Last 3 Years

251755.63

36.04

165855.85

18.37

150444.10

14.58

Last 5 Years

253712.42

20.47

162923.01

10.25

157579.35

9.52

Since Inception

1240400.00

23.44

564109.36

15.57

144019.32

15.15

Returns are in rupee terms assuming a standard investment of Rs.100000 at the start of the mentioned investment period. The scheme benchmark for is S&P BSE 500 and additional benchmark is Nifty 50.Loads and taxes are not
considered for computation of return.

Dividend History: ICICI Prudential Value Discovery Fund

Last 8 Dividends Declared for Dividend Option

Date

Ex Dividend NAV

Dividend

Date

Ex Dividend NAV

Dividend

23-Mar-16
20-Mar-15
14-Mar-14
15-Mar-13

28.20
32.69
20.07
19.08

2.50
3.30
2.14
2.00

16-Mar-12
30-Mar-11
28-Jun-10
18-Dec-09

18.36
19.32
19.73
19.37

1.00
1.50
1.00
1.50

Dividends mentioned above were on a face value of Rs. 10/unit. The NAV of the scheme, pursuant to payout of dividend would fall to the extent of the payout and statutory levy, if applicable. Declaration of dividend is at the
discretion of the trustees. Above statistics on dividend history are in Rs./Unit.
All the above performance are as on 31 July 2016 unless otherwise stated

Past performance may or may not be sustained in future. Returns less than one year calculated on absolute basis and more than one year on CAGR basis
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This Product is suitable for investors who are seeking*:

Long term wealth creation solution
A diversified equity fund that aims to generate returns by investing in stocks with attractive
valuations.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
In preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (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 AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not be 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. All figures and other data given in this document are dated and the same may or may not be relevant in
future. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of ICICI
Prudential Mutual Fund. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future
position in these sector(s)/stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information
document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.

Holding of stocks is considered at gross level of exposure without considering derivatives (both long and short)
Market cap break up is as per classification provided by Value Research