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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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Source: Planning Commission Government of India11th Five Year Plan Report
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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Source: Planning Commission Government of India11th Five Year Plan Report
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/8/8/2019 NFO - Infra BeES - Product Presentation
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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
12.75Industrial Capital
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
0.87Industrial Capital
GoodsSuzlon Energy Ltd.21
1.00TransportationIRB InfrastructureDevelopers Ltd.
20
1.03Telecom - ServicesTata Communications Ltd.19
1.72Construction ProjectLanco Infratech Ltd.18
1.79Industrial Capital
GoodsABB Ltd.17
2.06Industrial Capital
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/8/8/2019 NFO - Infra BeES - Product Presentation
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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.)
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Thank You