1

Index

TOPICS COVERED PAGE NUMBER

Global investing as a theme 3-6

How investors global portfolio looks like? 7-9

Metals and Oil as a diversification avenue 10 - 15

About the Scheme 16 - 23

About ICICI Prudential AMC Ltd. and about First Trust 24 - 26

Summary 27
2
 Global Investing as a theme

Global investing as a theme has picked-up in big way, with Indian investors pouring money into mutual fund schemes investing overseas.
The main reasons which can be attributed are: Tapping new themes, diversification and investing in companies whose product or
services are consumed domestically (overcoming home bias)

Net Flows-CY 2018 Net Flows-CY 2019 Net Flows-CY 2020 Net Flows-YTD 2021
Region
(INR Mn) (INR Mn) (INR Mn) (INR Mn)
USA 2,702.6 6,263.6 45,053.3 89,642.4
Global -470.2 1,837.0 28,243.8 73,842.9
China 216.7 536.6 4,946.0 15,280.4
Emerging Markets 34.6 12.7 1,465.9 3,004.9
Europe 237.2 -195.7 72.9 1,281.9
Japan 0.0 0.0 530.2 1,281.7
Asia 55.0 -3.1 514.1 1,142.2
Asia Ex-Japan -88.9 -52.4 97.4 402.4
Brazil -25.8 26.3 -61.5 100.0

Data Source: Morningstar, Data as on Nov 30, 2021

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 Reason for increased preference for Global schemes

TAPPING OVERCOMING DIVERSIFICATION

THEMES GLOBALLY HOME BIAS

4
 Tapping themes globally: Expand your hitting zone

World Market Capitalization

India,
3%
Expand your hitting zone:
Although India is one of the
fastest growing economy, but its
share in the world market
capitalization remains smaller. So,
World, when you are investing your
97% hitting zone should be bigger

India World
Source: Edelweiss .Research, Data as on Dec 2021

5
 Home Bias: Preference for the Familiar

Familiarity maybe one of the investor biasness for shirking global investing. But, some of the products we consume comes from the
biggest companies listed in the global markets.

The biggest Gold mining company

The biggest computer services company

The biggest FMCG company

The biggest computer hardware company

The biggest Oil & Gas company

6
 Diversification: Winners keeps changing

Country 2015 2016 2017 2018 2019 2020 2021

France 9.0% 4.9% 8.8% -11.0% 26.4% -7.1% 28.0%
Germany 10.0% 6.9% 11.4% -18.3% 25.5% 3.5% 15.7%
Brazil -10.6% 38.9% 28.2% 15.0% 31.6% 2.9% -11.8% Markets around the Globe
Indonesia -12.4% 15.3% 20.0% -2.5% 1.7% -5.1% 7.2% perform differently each
year, diversification to
India -5.1% 1.8% 28.1% 6.7% 13.8% 15.6% 20.7%
International Markets
South Korea 1.8% 3.3% 21.8% -17.3% 7.7% 30.8% 1.1% may allow investor’s
Japan 9.3% 0.4% 19.1% -12.1% 18.2% 16.0% 5.6% portfolio to deliver better
Russia -0.6% 52.2% 0.2% -7.6% 45.3% -10.4% 12.0% returns compared to
domestic markets
Switzerland -14.5% -0.1% 18.1% -9.8% 5.0% -11.8% 19.9%
Singapore -1.4% -6.8% 14.1% -10.2% 26.0% 0.8% 9.3%
US 8.6% 5.9% 31.5% -1.0% 38.0% 47.6% 23.2%
Data Source: BSE, MFIE. Data as on December 31,2021. Returns are of calendar year in absolute terms in the local currency of respective economies. France: CAC 40 Index, Germany: DAX Index,
Brazil: Ibovespa Sao Paulo Index, Indonesia: Jakarta Composite Index, India: S&P BSE Sensex, South Kore: Kospi, Japan: Nikkei, Russia: RTS Index, Switzerland: Swiss Market Index, Singapore:
Strait Times Index and US: Nasdaq 100. Past performance may or may not sustain in the future.

7
But, how does Investors Global allocation looks like?

BIASED TOWARDS EQUITY STOCKS (NON-GOLD and

Underlying Asset
NON-OIL)
Class: Equity

BIASED TOWARDS US STOCKS

US Stocks

BIASED TOWARDS US TECH STOCKS

US Tech Stocks

8
So, what do we have here?

Global Investing is important for diversification

But most of the portfolios are biased either towards

US companies or tech Stocks

And top of that most of the stocks movement are

related to same underlying asset class

So, What's the solution

9
 So, What’s the solution?

Investors Portfolio Allocation (Illustrative Purpose)

We are trying We are trying

to address this to address this
piece space

US Stocks or US Tech Global investing Varied Thematic or Commodity or other

Stocks (excluding US) Sector Schemes asset class oriented
schemes

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 Metal & Energy as a strategy

The strategy provides Global exposure and also provides diversification by taking exposure to stocks whose performance are
dependent on Oil and Gold movement

GLOBAL EXPOSURE Invests in companies listed globally

DIVERSIFICATION Invests in Oil and Gold stocks

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 Why Metal & Energy as an investment avenue?

The approach aims to hedge against potential declines in the

Indian Rupee and the Indian economy as a result of potential
spikes in oil and gold prices.

SOME FACTS
India is consistently one of the world’s largest importers
of both Oil and Gold

Top 2 import of India are Oil and Gold

Both the commodities are denominated in dollars thus

making Indian economy sensitive to rupee movements

80% of India’s domestic usage of gold and oil

are imported

• Data from Worldstopexports.com, Top 10 India Imports and Import Sources (cogoport.com), Data as on March 31, 2021
• 1Theoretical Economic Letters, “Crude Oil Prices: An Asset Class Analysis ….” Oswal, Sunny; Goel, Kushagra
• 2Business Standard, “India May Stop Refined Gold Imports in Next Five Years, Experts Say”, Bhayani, Rajesh; February 26,2020
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 Why Metal & Energy as a strategy?

Global Economies have expanded their balance sheets manifold in the last decade thereby increasing
liquidity. This may help in improving economic activity and may result in inflation moving higher creating
a conducive environment for Metal & Gold.

Change in Central Banks Balance Sheets (%

US, EA, Japan, UK
GDP, 12M change) Central Bank Balance Sheet (Trn. USD)

18% 30
28
14%
26
10% Expected trajectory
24
6%
22
2% 20
-2% 18
Nov-11

Nov-12

Nov-13

Nov-14

Nov-15

Nov-16

Nov-17

Nov-18

Nov-19

Nov-20

Nov-21
16

Dec-19

Dec-20

Dec-21

Dec-22

Dec-23
Jun-20

Jun-21

Jun-22

Jun-23
US EA Japan UK Total

Source: Morgan Stanley Research. Data as of Nov 30, 2021. EA – Euro Area, UK – United Kingdom, US – United States. G4 indicates
13
 Why Metal & Energy as a strategy?

Several valuation metrics show growth and technology stocks to be near or exceeding levels reached
during the Dot.com bubble while gold and oil stocks have reasonably attractive valuations.
Pr i c e t o B o o k Price to Sales EV to EBITDA
Rich 15 Rich Rich Rich Rich Rich
R1000 Growth S&P 500 Tech 8 30

(EV/EBITDA Ratio)
(P/S RATIO)
10 6
(P/BV Ratio)

20
4
5 10
2
-
Cheap - Cheap Cheap Cheap Cheap - Cheap
2000 2004 2007 2020 2021 Y est 2000 2004 2007 2020 2021 Y 2000 2004 2007 2020 2021 Y est
R1000 Growth S&P 500 Tech
est R1000 Growth S&P 500 Tech

Pr i c e t o B o o k Price to Sales EV to EBITDA

Rich 12 Rich Rich
Rich Rich Rich
7 25
(P/BV Ratio)

(EV/EBITDA Ratio)
(P/S RATIO)

7 5
15
3
2
5
1
N.A. N.A.
2000 2004 2007 2020 2021 Y
Cheap(3) Cheap
Cheap(5) 2000 2004
2020 2021 Y Cheap 2007
est Cheap(1) 2000 2004 2007 2020 2021 Y Cheap
est
NYSE ARCA Gold Miners S&P 500 Oil & Gas Expl. NYSE ARCA Gold Miners S&P 500 Oil &estGas Expl.
NYSE ARCA Gold Miners S&P 500 Oil & Gas Expl.
Source: First Trust. (First Trust Portfolios L.P., First Trust Advisors L.P., First Trust Global Funds plc, and First Trust Global Portfolios Management Limited and their affiliates collectively
referred as “First Trust”) 14
 OUR OFFERING
ICICI Prudential
Strategic Metal and Energy Equity
Fund of Fund

15
About the Fund

INVESTMENT PHILOSOPHY :
ICICI Prudential Strategic Metal and Energy Equity Fund of Fund (the Scheme) is an open ended fund of
fund scheme that invests in the units/shares of First Trust Strategic Metal and Energy Equity UCITS
Fund.

PRODUCT INDIAN INVESTOR

STRUCTURE:

ICICI PRUDENTIAL STRATEGIC METAL &

ENERGY EQUITY FUND OF FUND
Domestic Fund
FIRST TRUST STRATEGIC METAL & ENERGY
EQUITY UCITS FUND

International Fund 16
 Investment Process of the underlying Scheme- Illustration

Build portfolio of gold mining stocks Build portfolio of oil & gas stocks Allocate 50% of capital to the gold
with reference to market with reference to market portfolio and 50% of the capital to the
capitalization capitalization oil & gas portfolio

Calculate the correlation of oil and

Assign an overweight to the market Calculated the total
gold to movements in the rupee. sector (gold or oil) with the lowest return of oil and gold.
correlation.

Calculate the final weighting allocation

Assign an overweight to the market to gold stocks and oil stocks based upon
sector (gold or oil) with the highest prior steps. Rebalance monthly
recent total return. Review the final portfolio for compliance
with UCITs rules.

This is an indicative process flow for internal reference only, Source : First Trust
17
 Investment Process of the underlying Scheme - Illustration

STARTING ALLOCATION
Stocks are identified based on various parameters and
initial allocation is 50% to each sector 50% Gold Stocks 50% Oil Stocks

CORRELATION ANALYSIS
First factor: Allocation is adjusted based on correlation to Gold Correlation (-.35) Oil Correlation (-.05)
currency factor. Sector with lower correlation receives
an overweight of 10%
OVERWEIGHT GOLD STOCKS
Gold Stocks : 60% Oil Stocks : 40%
Second Factor: Allocation is further adjusted based on total
returns of the sectors. Sector with higher returns receives RECENT TOTAL RETURN
an overweight of 10%.
Gold Total Return : +2% Oil Total Return : -1%

OVERWEIGHT GOLD STOCKS

The maximum allocation to a sector is capped at 70%
Gold Stocks: +70% Oil Stocks: +30%
There can be no assurance that the Strategy will achieve its investment objectives., Source : First Trust
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 Portfolio Allocation of underlying Scheme

Portfolio Statistics (USD)

No of Holdings 123

Avg. Wgtd Mrkt Cap (Billions) $66.29

Avg Mrkt Cap (Billions) $23.01

Dividend Yield 3.02%

# of Gold Stocks 44

% of Gold Stocks 31.0%

# of Oil Stocks 79

% of Oil Stocks 69.0%

Source: First Trust, Data as on Dec 31, 2021.

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 Portfolio Statistics of underlying Scheme

Top 20 Holdings Weightage (%) Sector Country-wise Exposure

CONOCOPHILLIPS 6.2% Oil, Gas & Consumable Fuels Australia,

3.7%
CHEVRON CORP 6.1% Oil, Gas & Consumable Fuels

EXXON MOBIL CORP 6.0% Oil, Gas & Consumable Fuels

EOG RESOURCES INC 4.1% Oil, Gas & Consumable Fuels Canada,
29.5%
CANADIAN NATURAL RESOURCES 3.2% Oil, Gas & Consumable Fuels Unites United
States, Kingdom,
PIONEER NATURAL RESOURCES CO 3.1% Oil, Gas & Consumable Fuels 60.6% 0.8%
MARATHON PETROLEUM CORP 3.1% Oil, Gas & Consumable Fuels Mexico,
1.2%
SUNCOR ENERGY INC 2.9% Oil, Gas & Consumable Fuels
Peru, 0.3%
NEWMONT CORP 2.8% Metals & Mining Russia,
South
BARRICK GOLD CORP 2.7% Metals & Mining 1.2%
Africa, 2.9%

Source: First Trust, Data as on Dec 31, 2021.

.
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An India Specialist: ICICI Prudential AMC Ltd.

STARTED OPERATIONS IN 1993

• Among the largest asset management companies in India by its assets under management (AUM) under its
mutual fund business

STRONG PARENTAGE –
• ICICI Bank, one of India’s leading private sector bank

• Prudential plc - Asia-led portfolios of businesses focused on structural growth markets

• An experienced investment team managing over 50 funds in equity and fixed income

• Extensive distribution network across the country

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 About First Trust Asset Management

FIRST TRUST ADVISORS L.P./FIRST TRUST PORTFOLIOS L.P.

ASSETS UNDER MANAGEMENT (USD billion)
• Established in 1991
Total AUM as on 11/30/2021 – USD 216.525 billion
• Privately owned
VAs, 1.2 SMAs, 0.6 Other^, 0.6
• Over 900 employees
CEFs, 7.0

INNOVATIVE FINANCIAL SOLUTIONS

UITs, 64.7
• Exchange-traded funds (ETFs)
• Unit investment trusts (UITs)
ETFs, 142.4
• Closed-end funds (CEFs)
• Variable annuities (VAs)
• Mutual funds
• Separately managed accounts (SMAs) • Collective investment
funds for 401(k) accounts • Structured investments ETFs UITs CEFs VAs SMAs Other^
distribution**
* First Trust Advisors L.P. serves as supervisor for unit investment trusts sponsored by First Trust Portfolios L.P. ETFs include Domestic, European and Canadian ETFs.
**First Trust Portfolios L.P. acts as a distribution agent for structured investments issued by unaffiliated financial institutions.
^Includes U.S. Mutual Funds, Collective Trust Funds and UCITS Open-Ended Funds.
Note: Not all products and services of First Trust or it’s affiliates are offered outside of the United States.
22
 First Trust – Team Overview

CO-HEADS OF ALTERNATIVES TEAM FOCUSED ON DISCIPLINED, OUTCOME-ORIENTED

• Rob Guttschow, CFA STRATEGIES GROUNDED IN:
• John Gambla, CFA, FRM, PRM • Statistical research
• Risk analysis
• Mathematical portfolio construction
CLIENT PORTFOLIO MANAGER
• Brad Seberhagen EXTENSIVE EXPERIENCE MANAGING OPTIMIZED
PORTFOLIOS:
ANALYST • Increased Diversification*
• Charlie Reese, CM • Lower Volatility
• Reduce Drawdowns

*Combined 80 years of industry experience

*Diversification does not guarantee a profit or protect against a loss.

23
Summary

Global investing is important for diversification

But most of Global portfolios are biased towards Tech Companies or US Companies

Metal and energy strategy provides exposure to Global companies and diversification to companies which are
engaged in Oil and Gold business

Massive monetary and fiscal stimulus measures provided by global countries may result in economic activity
picking up and higher inflation.

Above mentioned factors are conducive for Gold and Oil to perform

May reduce the impact of fluctuation in Indian economy, as the country’s major imports are Oil and Gold.

Valuation reasonable for Oil and Gold companies

24
 ICICI Prudential Strategic Metal and Energy Equity Fund of Fund –
NFO DETAILS

Type of the Scheme An Open ended fund of fund scheme investing in Units/shares of First Trust Strategic Metal and Energy Equity UCITS Fund

Benchmark NYSE Arca Gold Miners Index and the S&P Oil & Gas Exploration & Production Select Industry Index

Minimum DURING NEW FUND OFFER PERIOD / DURING ONGOING OFFER PERIOD/ Additional Application amount:
Application Rs. 1000/- (plus in multiple of Re. 1) Minimum application amount for switch ins - Rs. 1000/- and Any amount thereafter
Amount
DURING NEW FUND OFFER PERIOD / DURING ONGOING OFFER PERIOD:
• Daily, Weekly, Fortnightly, Monthly SIP$: Rs. 100/- (plus in multiple of Re. 1/-) Minimum installments: 6
SIP
• Quarterly SIP$: Rs. 5,000/- (plus in multiple of Re. 1/-) Minimum installments – 4
$The applicability of the minimum amount of installment mentioned is at the time of registration only.

Plans ICICI Prudential Strategic Metal and Energy Equity Fund of Fund – Regular Plan and ICICI Prudential Strategic Metal and Energy Equity Fund of Fund –
Direct Plan
Growth Option and Income Distribution cum capital withdrawal option (IDCW) with Payout of Income Distribution cum capital withdrawal (IDCW Payout)
Options sub-option and Reinvestment of Income Distribution cum capital withdrawal (IDCW Reinvestment) sub-options
Default Option: Growth option

If the amount sought to be redeemed or switched out up to 1 Year from allotment: 1.00% of applicable NAV. If the amount
Exit Load
sought to be redeemed or switched out more than 1 Year from allotment: Nil.

Taxation Other than equity taxation

Fund Manager Ms. Priyanka Khandewal

25
 Disclaimers & Disclosures

NO SHARES OR INTERESTS IN ANY FIRST TRUST INVESTMENT PRODUCTS ARE REGISTERED AND/OR APPROVED BY THE SECURITIES AND EXCHANGE BOARD OF INDIA, THE RESERVE
BANK OF INDIA OR ANY OTHER GOVERNMENTAL/REGULATORY AUTHORITY IN INDIA.

This document is neither a prospectus nor an invitation to subscribe to shares or interests in any First Trust investment product. Prospective investors should carefully
review the underlying constituent documents of any fund before making a decision to invest. In general, investment in the shares of a fund will involve significant
risks. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a
solicitation for any product or services. The use of any information set out in this document is entirely at the recipient’s own risk. Investors are advised to seek inde-
pendent professional advice to understand all attendant risks attached to an investment in any funds advised or sponsored by First Trust. All investors should have
the financial ability and willingness to accept the risks and lack of liquidity, which are characteristics of any investment described herein. In making an investment deci-
sion, investors must rely on their own examination of the documents and the terms of the offering to be set out in detail in a separate document, including the merits
and risks involved.

First Trust Advisors L.P., First Trust Global Funds plc, and First Trust Global Portfolios Management Limited (collectively, “First Trust”) make no representation or
warranty, express or implied, regarding the advisability of investment in ICICI Prudential Strategic Metal and Energy Equity Fund of Fund (the (“Fund”) nor the
services provided by ICICI Prudential Asset Management Company Limited (“ICICI”) or any other service provider to the Fund. First Trust does not provide any
services to the Fund. First Trust has no obligation, involvement or liability in connection with the selection or trading of any securities in the Fund. First Trust is not
responsible for any investment decisions, damages or other losses in the Fund or any information provided with respect to the Fund. First Trust makes no express or
implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use, with respect to the Fund or any portion of it.
First Trust is not making an investment recommendation or providing any investment, tax or other advice to any person or entity with respect to the Fund.

The First Trust marks are registered trademarks of First Trust Portfolios L.P. and have been licensed for use by ICICI Prudential Asset Management Company Limited.
Neither First Trust Portfolios L.P., First Trust Advisors L.P., nor their affiliates make any representation or warranty regarding ICICI Prudential Asset Management
Company Limited or any products or services provided by ICICI Prudential Asset Management Company Limited or any other party who licenses such trademarks.

26
 Riskometer and Disclaimer

This scheme is suitable for investors who are seeking*:

-
• Long term wealth creation solution

• An open ended fund of funds scheme investing in Units/shares of First Trust

Strategic Metal and Energy Equity UCITS Fund

*Investors should consult their financial advisers if in doubt about whether the product is
suitable for them

#Investors may please note that they will be bearing the recurring expenses of the relevant fund of funds scheme in addition to the expenses of the underlying schemes in which the
fund of funds scheme makes investment.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: All figures and data given in the document are dated unless stated otherwise. In the preparation of the material contained in this document, 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 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.

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.
27
 Appendix

JOHN GAMBLA
Senior Vice President I Senior Portfolio Manager

John is a Senior Portfolio Manager and Co-Head of the First Trust Alternatives Investment Team. John has over 26 years of investment experience
spanning multiple asset classes and investment styles. John currently manages the First Trust Long/Short Equity ETF, the First Trust Global Tactical
Commodity Strategy ETF, the First Trust Alternative Absolute Return Strategy ETF, the First Trust Managed Futures ETF, as well as various risk-
managed and option-based strategies and overlays.

Prior to joining First Trust in 2011, John was Co-Chief Investment Officer at Nuveen HydePark Group LLC and was responsible for investment
activities, research systems and infrastructure development. John also held a variety of positions at Nuveen Investments. John has extensive
experience in portfolio management, derivatives, risk management and quantitative data analysis. John began his career in Finance at Abbott
Laboratories.

John graduated Phi Beta Kappa with a Bachelor of Science in Genetics and Developmental Biology and a Bachelor of Arts in Finance from the
University of Illinois at Urbana/Champaign and earned an MBA from the University of Chicago’s Booth School of Business. He is a CFA Charter
Holder and holds FRM and PRM designations.

28
 Appendix

ROB GUTTSCHOW
Senior Portfolio Manager

Rob is a Senior Portfolio Manager and Co-Head of the First Trust Alternatives Investment Team. Rob has over 25 years of investment experience
spanning multiple asset classes and investment styles. Rob currently manages the First Trust Long/Short Equity ETF, the First Trust Global Tactical
Commodity Strategy ETF, the First Trust Alternative Absolute Return Strategy ETF, the First Trust Managed Futures ETF, as well as various risk-
managed and option-based strategies and overlays.

Prior to joining First Trust in 2011, Rob was Co-Chief Investment Officer at Nuveen HydePark Group LLC and was responsible for trading, portfolio
management, performance attribution, and research. Previously, Rob was a Senior Portfolio Manager at Nuveen Asset Management, where he
developed Nuveen’s buy-side derivative desk for fixed-income and equity-portfolio hedging.

Rob started his career at Lotsoff Capital Management where, at the time of his departure, he was a Partner and Managing Director. At Lotsoff Capital
Management, he managed approximately $1.5 billion in a various fixed-income and equity-based strategies.

Rob received a BS in Materials Engineering (Ceramics) and an MBA from the University of Illinois at Champaign/Urbana in 1991 and 1993,
respectively. Rob holds the Chartered Financial Analysis designation and is a member of the CFA Institute and the CFA Society of Chicago.

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Thank You
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