Annual Report Sundaram BNP Paribas Mutual Fund

Transcription

1 Annual Report

2 Performance Track Record Assets Under Management (end of month): Rs 9,379 crore / $ 1.84 billion Assets Under Management (Average): Rs 9,267 crore / $ 1.82 billion Fund / Index Launch period One year Three year Five year Since Launch Sundaram BNP Paribas Growth Fund Apr BSE S&P CNX Sundaram BNP Paribas Select Focus Jul S&P CNX Nifty S&P CNX Sundaram BNP Paribas Select Mid Cap Jul BSE Mid Cap S&P CNX Sundaram BNP Paribas India Leadership Jul S&P CNX Nifty S&P CNX Sundaram BNP Paribas SMILE Fund Feb CNX Mid Cap S&P CNX Sundaram BNP Paribas Equity Multiplier Feb CNX Mid Cap S&P CNX Sundaram BNP Paribas Select Small Cap Feb BSE Small Cap S&P CNX Sundaram BNP Paribas Balanced Fund Jun CRISIL Balanced Fund Index S&P CNX Sundaram BNP Paribas Tax Saver Nov BSE S&P CNX Sundaram BNP Paribas Capex Opportunities Sep BSE Capital Goods S&P CNX Sundaram BNP Paribas Rural India May BSE S&P CNX Sundaram BNP Paribas Energy Opportunities Jan BSE Oil & Gas S&P CNX Sundaram BNP Paribas Financial Opportunities Jun CNX Banks 28.9 S&P CNX Sundaram BNP Paribas Entertainment Opportunities Jun CNX Media 57.5 S&P CNX Sundaram BNP Paribas Global Advantage Aug MSCI Emerging Markets Index Past performance may or may not be sustained in the future; Returns are in percentage and computed on compounded annualised basis using NAV of the Growth Option. NAV, performance & AUM as on March 31,

3 Background Sponsors: Sundaram Finance and BNP Paribas Asset Management are the Sponsors of. Sundaram BNP Paribas Asset Management Company Limited is a joint venture of Sundaram Finance Limited and BNP Paribas Asset Management. Sundaram Finance: Sundaram Finance is India s leading nonbanking finance company with a track record for more than 54 years. A strong player in the commercial vehicle and car finance segments, the Sundaram Finance Group s services range from automobile finance to home loans to mutual fund to insurance. Sundaram Finance has a nationwide network of over 165 branches and employee strength of over Sundaram Finance is one of the most trusted financial services players in India. The Sundaram Finance Group remains true to its core values of prudence, fairness, transparency and service excellence. It has an uninterrupted dividend record inception. The public deposit schemes of Sundaram Finance enjoy the highest investment grade rating from CRISIL and ICRA, signifying the degree of safety of depositors funds. Sundaram Finance s commercial paper a shortterm instrument also enjoys the highest investment grade rating from CRISIL. Sundaram Finance holds a 50.1% stake in the paidup equity of Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company. BNP Paribas Asset Management: BNP Paribas Asset Management is BNP Paribas Investment Partners. BNP Paribas Asset Management plays a fundamental role within BNP Paribas Investment Partners. BNP Paribas Asset Management holds a 49.9% stake in the paidup equity of Sundaram BNP Paribas Asset Management Company and Sundaram BNP Paribas Trustee Company. BNP Paribas Investment Partners: BNP Paribas Investment Partners brings together the full palette of asset management expertise of the BNP Paribas group. Through a unique platform that offers immediate and simplified access to a broad range of specialist Partner companies BNP Paribas Investment Partners has become a leader in the European asset management industry. At 31 March 2009, assets under management amounted to 325 billion euros*, nearly half of which was managed for institutional clients. With ca. 2,600 professionals serving clients in 72 countries, BNP Paribas Investment Partners draws on over half a century of asset management experience and has seen ten years of steady growth through acquisitions and jointventures. Through 480 client relationship managers operating in 34 countries, the network of Partners provides clients with the most advanced and dedicated expertise in asset management today, blending excellence in client service and innovative solutions. 3 : Sundaram BNP Paribas Mutual Fund was set up as a Trust on August 24, Sundaram BNP Paribas Mutual Fund was registered with SEBI on January 3, The mutual fund has Sundaram BNP Paribas Trustee Company Limited as a Trustee in accordance with the provisions of the Indian Trusts Act, 1882 and is duly registered under the Indian Registration Act, After the introduction of BNP Paribas Asset Management as the cosponsor of the Mutual Fund, the Trust Deed has been amended. The amended Trust Deed dated March 31, 2006 has been duly registered with the Sub Registrar, Chennai, under Serial No. 193 of The Trustee has entered into an Investment Management Agreement dated August 24, 1996 with Sundaram BNP Paribas Asset Management Company Limited to function as the Investment Manager for all schemes of. Sundaram BNP Paribas Trustee Company: The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the SEBI Mutual Fund Regulations and the Trust Deed. The Trustee seeks to ensure that the mutual fund and the schemes are managed by the Sundaram BNP Paribas Asset Management, The Investment Manager, in accordance with the Trust Deed, SEBI Regulations, directions and guidelines issued by SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. The Sponsors Sundaram Finance and BNP Paribas Asset Management have appointed Sundaram BNP Paribas Trustee Company Ltd as the Trustee vide an amended Trust Deed dated 31st March Sundaram BNP Paribas Asset Management Company: Sundaram BNP Paribas Asset Management, the Investment Manager for Sundaram BNP Paribas Mutual Fund, is a public limited company, incorporated under the Companies Act, The paidup capital is Rs crore. It is a jointventure between Sundaram Finance and BNP Paribas Asset Management. A focus on striving for consistent performance, adherence to transparent business practices and an unswerving commitment to investors are in a nutshell the ethos of the company at work. Sundaram BNP Paribas Asset management manages assets of and also offers customized options through Sundaram BNP Paribas Portfolio Managers. Key strengths are an investment team with a combined experience in research and fund management of more than 100 years, and counting, ensure bestinclass portfolio management expertise for investors in our fund house. Rigorous compliance and risk management enhance comfort levels for our more than 2 million investors (in terms of folios). A welldefined bouquet of products caters to a variety of risk, return and liquidity preferences of investors across equity and fixedincome asset classes. Quality customer service is also the prime focus.

4 Dear Investor We take great pleasure in presenting the Twelfth Annual Report of Sundaram BNP Paribas Mutual Fund for Performance & Outlook: A snapshot has been provided on pages 2 & 69 of this document. Background The Mutual Fund: Sundaram Mutual Fund was set up as a Trust on August 24, 1996 and registered with SEBI on January 3, After the introduction of BNP Paribas Asset Management as the cosponsor of the Mutual Fund, the Trust Deed has been amended. The amended Trust Deed dated March 31, 2006 has been duly registered with the Sub Registrar, Chennai, under Serial No. 193 of The mutual fund is now known as. The mutual fund has Sundaram BNP Paribas Trustee Company Limited as a Trustee in accordance with the provisions of the Indian Trusts Act, The Trust is duly registered under the Indian Registration Act, Sundaram BNP Paribas Asset Management Company Limited (The AMC) is the Investment Manager for all schemes of Sundaram BNP Paribas Mutual Fund. The Trustee Company has entered into an Investment Management Agreement dated August 24, 1996 with the Asset Management Company Limited providing for the latter to function as the Investment Manager for all the schemes of the Mutual Fund. Background The Trustee: The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unit holders. The Trustee has been discharging its duties and carrying out responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes are managed by Sundaram BNP Paribas Asset Management in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, Stock Exchanges, Association of Mutual Funds in India and other regulatory agencies. Investment Objective: Please refer page 6 of this document. Significant Accounting Policies: Accounting policies are in accordance with Securities Exchange Board of India (Mutual Fund) Regulations There is no deviation. Statutory Information: Sundaram Finance and BNP Paribas Asset Management, the Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution of Rs 1 lakh for setting up the Fund, and such other accretions/additions to the same. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. The Annual Report of Sundaram BNP Paribas Mutual Fund and Sundaram BNP Paribas Asset Management Company, the Statement of Additional Information & Scheme Information Document, detailed accounting policies and risk factors/disclosures/disclaimer are available at. The Trustee Report shall also be available for inspection at the Head Office of in Chennai. Present and prospective unit holders can obtain copy of the trust deed, the full Annual Report of the Fundby paying a price. The annual report of Sundaram BNP Paribas Asset Management Company will be sent on written request. Discussion on in The Directors of the Trustee Company welcome investors who joined the Sundaram BNP Paribas Mutual Fund family during This is a family that has grown rapidly in size over the past few years. now has 2 million investor folios and counting in its records. The second million was reached in in a short span of 14 months, a sharp contrast to the closetoten years span to build the base of first million. This rapid scaling up of our client base in an indicator of confidence reposed by a vast cross section of investors and is attributable to a track record of consistent performance in welldefined products tracking the largecap, midcap and thematic spaces. FY was a challenging year for the mutual fund industry in the wake of a steep correction in stock prices. The global economic crisis with its roots in the U.S had been threatening to cast a shadow since late 2006 and did so in the course of the year under review in this report. Indices tracking the largecap space shed more than 50% in 2008 while those mirroring the mid and smallcap stocks declined by more than 65%. This has left its scars on the mutual funds. At the end of March 2009, the number of schemes across the industry that sported compounded annual returns since launch of more than 20% had dwindled to less than 30 indicating the breadth and depth of loss in wealth. The equity funds of Sundaram BNP Paribas Mutual have handled the carnage with a judicious mix of cash calls and enhanced allocation to defensive stocks. Performance Snapshot: The Track Record on the accompanying page indicates how 4 The Trustee Report the performance of Products of stacks up across different time periods and since inception of each fund. Sundaram BNP Paribas Asset Management handled the challenges of 2008 for equity funds through a Combination of enhanced cash calls and defensive allocation to sectors. This helped funds such as Select Focus, Select Mid Cap and Tax Saver, to stay either ahead or close to the benchmark. The portfolio of Sundaram BNP Paribas Mutual Funds stepped in to 2008 with an aggressive stance in terms of equity exposure and allocation to sectors/stocks that usually tend to move more than proportionately as compared to the benchmark. This resulted in a sharp decline relative to benchmark in the first month of the corrective phase. Once it became clear that the credit crisis simmering for two years without affecting the equity market had started to have an impact, the fund house moved to a defensive stance. On an average during FY 2009, cash levels would have been about 20%25% touching higher levels ahead of the meltdown in October This conservative approach helped narrow the gap with the benchmark that had opened up in the first month of the corrective phase. This contained damage in a difficult environment and also helped maintain the track record across different periods in comfortable slots relative to the peer group. Despite the deep correction, three of our funds Select Focus, Select MidCap and Tax Saver were among the top 30 funds on a fiveyear and sixyear basis in comparison to all equity funds. Expertise across cap curve: Markets in India offer greater depth in terms of sectors as well as large, mid and smallcap stocks. As an early entrant with an emphasis on research, Sundaram BNP Paribas Asset Management has proven expertise in handling the broadbased market in India. Sundaram BNP Paribas Select Focus, a pure largecap fund, and Sundaram BNP Paribas Select MidCap, a pure midcap fund, have been class leading products for different time periods since their launch in mid 2002 The investment Manager will strive to sustain the track record over the long term though this may be interspersed with periods when performance may slacken. Investors should note that the impressive sixyear track record of Select Focus & Select MidCap also encompasses lackluster short periods over the past closetoseven years. In the prevailing circumstances, investors need to adopt a longterm approach that will enable them overcome the effect of such periods and high volatility in markets. Critical Acclaim: For the fifth year in a row, the performance of Sundaram BNP Paribas Mutual Fund products received critical acclaim from independent fund intelligence outfits. We present a snapshot of key awards/ranking: Sundaram BNP Paribas Tax Saver was selected as the Winner of the first Morningstar Award in India for threeyear performance in the ELSS (taxsaving funds) category as of December Sundaram BNP Paribas Tax Saver was also awarded ICRA Seven Stars for threeyear track record as of December 2008 in the ELSS (taxsaving funds) category as of December Sundaram BNP Paribas Tax Saver was also awarded ICRA Five Stars for oneyear performance as of December 2008 in the ELSS (taxsaving funds) category as of December Sundaram BNP Paribas Select Focus was also awarded ICRA Five Star for oneyear performance as of December 2008 in the largecap funds category as of December Sundaram BNP Paribas Money Fund was one of three nominees for best Liquid Fund Award (CNBCTV18 CRISIL) for Sundaram BNP Paribas Tax Saver was one of the three nominees for best Tax Saving Fund Award (CNBCTV18 CRISIL) for Sundaram BNP Paribas Select Midcap Maintained Value Research Four Stars rating through year and continues to be the highestrated pure midcap fund in the Value Research ratings. Sundaram BNP Paribas Money Fund with CRISIL CPR~ranking (both for Super Institutional Plan) and indicating significant moves in improving performance relative to topend of the competition in the shortterm funds space. As part of the endeavour to optimize performance, Sundaram BNP Paribas Asset

5 Management has strengthened its inhouse research team by doubling the resources the research team is now 10 strong, tracking equity and credit markets. Sundaram BNP Paribas Asset Management has become the first fund house in the country to opt for the stateoftheart Bloomberg Portfolio Order Management System. This enhances the tools available to fund managers and also enables superior quality of risk management. We would continue to enhance fund management skills to ensure an enriching investment experience for our investors. A BNP Paribas Investment Partner: There has been a significant strengthening of the working relationship with BNP Paribas Asset Management. We expect more concrete benefits from this partnership for investors as well as the asset management company from FY 08 onwards. BNP Paribas has reorganized its asset management business under the umbrella of BNP Paribas Investment Partners ( with expertise in multipleassets, geography and managers. Sundaram BNP Paribas is now a member of BNP Paribas Investment Partners and this association is likely to bring benefits in the years ahead. Outlook & Expectations: We maintain a cautious stance on the outlook for the economy and stock markets over the next few months. In terms of damage to equity values, we believe a significant part is already in the price. The macro economic environment still has several challenges that may impact the equity markets. The portfolio of will be carefully managed with an eye on multiple flashpoints to navigate this period of turbulence. The results of the Lok Sabha elections have provided a verdict for governance with clarity and stability the first such in 25 years. The ministrymaking process has also seen key ministries relating to infrastructure development social, economic and human resource go to persons who inspire confidence. These two aspects have provided hope that the process of tackling the economic slowdown and pursuing socioeconomic development will get an impetus. What has been rejected negativity of any kind is also of significance. What the election result has done is to provide a solid base at a higher level to what was still in all likelihood a bearmarket rally. This has ensured that even if there are corrective phases, the lows of October 2008 have almost certainly been left behind for good. From present levels, if equity markets have to deliver returns commensurate with risk, there must be tangible evidence of government policy that supports growth. What the election result does not change in any way are the major challenges facing the government in getting its finances in order. There is no doubt that the Government of India and the Reserve Bank of India have not frittered away resources a sharp contrast to the trillions of dollars being spent by developed countries to bail out the players who created the crisis. Still, the fiscal deficit of the centre and states is in doubledigit territory. This is a cause for major concern. Going forward, we should expect a judicious balance between pursuit of growth and the need to get the fiscal deficit to more sustainable and manageable levels. Interest rates cannot head much lower with the mountain of debt, which is likely to continue unchecked for at least a year in an effort to avoid a clampdown on growth. As a fund house, we believe the longterm growth story in India is intact. What we have now is a period of consolidation in the market and a slowdown in the economy to adjust to the reality of higher prices of oil as well as other commodities. We expect this year and much of 2010 to be marked by this phase of slower growth in the economy. The growth momentum may pick up subsequently. (For a more detailed view on the outlook for markets, visit our website: every month) Investment Approach: Investors must view difficult periods for the economy and markets as providing attractive price points for entry from a longterm perspective. It is important not to be overly pessimistic, though the prevailing environment and intense mediafocus (a new variable compared to similar phases in the economy in the past) makes the latter a more likely path to pursue in the normal course. As investors, it is important to understand risks in such phases, as this aspect plays a key role in the response to difficult times in the economy and market. Investors who have had an experience of such phases in the past will not miss the longterm opportunity in the present environment will maintain a decent spread between fixedincome investments through fixedterm plans and equity. It does not make sense to shy away completely from equity except when prices/valuation levels are outlandish. 5 As always, we wish to emphasise that realistic expectation of return aligned to longterm trends, longterm horizon and a willingness to remain invested across market phases is important for wealth creation. Investor Services: Sundaram BNP Paribas Asset Management, the investment manager has enhanced the focus on mobilizing funds through Systematic Investment Plan route. During the year, the company has also expanded its reach by adding 13 new centres taking the size of the network to 52. The company has enhanced the manpower devoted to customer service as the key thrust area. Board of Directors: The Board of Directors of the Trustee Company is vested with general power of superintendence, direction and management of the affairs of Sundaram BNP Paribas. Sundaram BNP Paribas Asset Management acts as the Investment Manager of the schemes of. The Board of Directors of the Trustee Company monitors and reviews the work of the investment Manager to ensure that functions assigned are carried out in line with the Investment Management Agreement, SEBI Mutual Fund Regulations and other laws in force. During the year under review, six meeting of the of Board of Directors of the Trustee were held. Audit Committee: The Audit committee of the Board comprises Mr. R Rajamani, Mr. K V Krishnamurthy and Mr. Francois Mouzay. Mr. R Rajamani is the Chairman of the Committee. Mr. Martial Godet participated in the meetings in the absence of Mr. Francois Mouzay. The Statutory Auditor, the Internal Auditor, the Concurrent Auditor, the Managing Director, the Compliance Officer & Secretary and the Chief Financial Officer Sundaram BNP Paribas Asset Management are invited to the meetings of the Audit Committee. During the year, the Audit Committee met four times to review the financial accounts/policies and adequacy of internal control systems; the committee interacted with the Statutory Auditors, Internal Auditors and the Systems Auditors. Besides, the Committee reviewed audit plans, unaudited/audited financial results of the Schemes, responses to the queries and followup actions initiated by the management. Tribute to Dr Raja J Chelliah: Raja Jesudoss Chelliah, a renowned economist, doyen among Indian public finance scholars and the architect of tax reforms in the country passed away on April 7, 2009 in Chennai. Dr Chelliah served as Chairman of the Sundaram Mutual Fund and the Trustee Company since its inception in 1996 till June 30, His erudition in the field of Economics in general and Public Finance in particular was available to the management at all times and his perceptions and advice were invaluable in charting the process of the fund. He guided the affairs of the fund with practical wisdom. He served the Government in a distinguished manner in various capacities. He was conferred the Padma Vibhushan Award by the Government of India and also received other prestigious awards from various Institutions. Your Directors place on record the immense contribution of Dr. Raja J Chelliah to economics, institution building and to his valuable contribution to the growth of the and Trustee Company. & Redemption: The details are available in the respective reports of each scheme. We appreciate The Trustee Company wishes to thank the Securities & Exchange Board of India, Reserve Bank of India and the Association of Mutual Funds in India for Guidance and Support. The Trustee Company also thanks the Sponsors Sundaram Finance and BNP Paribas Asset Management, Sundaram BNP Paribas Asset Management Company The Investment Manager for Sundaram BNP Paribas Mutual Fund, bankers, service providers and investors for their unstinted support. The Trustee Company places on record its appreciation of the professionalism, dedication and commitment displayed by the management and employees of the Investment Manager, Sundaram BNP Paribas Asset Management. We seek your continued support and assure you of our commitment to quality products, consistent performance in line with trends in the market and service from the. As always, we will strive to provide an investment experience that is pleasant and enriching over the long term. Place: Chennai Date: July 20, 2009 The Trustee Report For and on behalf of the Board of Directors K V Ramanathan Chairman

6 The Trustee Report Sundaram BNP Paribas Growth Fund Fund Type: OpenEnd Equity Scheme Investment Objective: To achieve capital appreciation by investing predominantly in equities and equityrelated instruments. Fund Manager: J Venkatesan Performance & Outlook: Sundaram BNP Paribas Growth Fund has now completed 12 years since launch. The fund has provided compounded annual returns of 16.4 % since launch in April 1997, outpacing its benchmark, the BSE 200 by 6.4 percentage points. The portfolio of the scheme is well diversified with a distinct bias towards largecap stocks. The fund strives to provide returns that are consistently in line with the broad market and seeks to achieve superior returns than the benchmark through stock selection. An investment of Rs 1,000 every month using a Systematic Investment Plan since launch was worth Rs 4.00 lakh as of March 31, Sundaram BNP Paribas Growth Fund is appropriate for investors who seek a diversified equity fund. Sundaram BNP Paribas India Leadership Fund Fund Type: OpenEnd Equity Scheme Investment Objective: To achieve capital appreciation by investing in select stocks of companies. The leaders are identified as top 2/3 companies in any sector/subsector in terms of net revenue or total income. Fund Manager: J Venkatesan Performance & Outlook: Sundaram BNP Paribas India Leadership fund was launched in July 2004 to invest in leaders and emerging leaders in any sector. The fund has provided compounded annual returns of 15.8 % since launch. An investment of Rs 1,000 every month using a Systematic Investment Plan since launch was worth Rs 0.52 lakh as of March 31, 2009.The fund has been restructured to own bluechip names in the large cap category. The positioning as a diversified largecap fund owning bluechip names coupled with active sector bets, active stock bets and cash calls will be maintained to provide investors the comfort of style integrity. Sundaram BNP Paribas Select Focus Fund Type: OpenEnd Equity Scheme Investment Objective: To achieve capital appreciation by investing in a very few select stocks. Fund Manager: Srividhya Rajesh Performance & Outlook: Sundaram BNP Paribas Select Focus is a pure, concentrated largecap fund. It owns no more than 30 stocks at any point in time in the portfolio. The fund has provided compounded annual returns of 26.4 % since launch in July 2002, outpacing its benchmark, the S&PCNX Nifty by 7.7 percentage points. Investment of Rs 1,000amonth using a Systematic Investment Plan since launch was worth Rs 1.42 lakh as of March 31, The fund had bagged ICRA 5star Award fund for a 3year track record as of 2008 maintaining its award winning streak. Sundaram BNP Paribas Select Focus is appropriate for all investors who seek a largecap fund. Sundaram BNP Paribas Select Mid Cap Fund Type: OpenEnd Equity Scheme Investment Objective: The objective of the scheme is to achieve capital appreciation by investing in diversified stocks that are generally termed as midcaps. Fund Manager: Satish Ramanathan Performance & Outlook: Sundaram BNP Paribas Select Mid Cap is a well diversified midcap fund. It was the first pure midcap fund launched in India. The fund has stayed true to its mid cap mandate at all times since launch. Sundaram BNP Paribas Select Mid Cap enjoyed a fourstar rating from Value Research as of March 31, This is a classleading rating since no other pure midcap fund has a better rating. The fund has provided compounded annual return of 29.5% since launch in July 2002 outpacing the BSE Mid Cap Index by 11.5 percentage points on an annual basis. An investment of Rs 1,000 every month using a Systematic Investment Plan since launch was worth Rs 1.48 lakh as of March 31, The fund is suitable for investors who are willing to participate in the riskiness that is inherent in the mid cap stocks. Sundaram BNP Paribas S.M.I.L.E. Fund Fund Type: OpenEnd Equity Scheme Investment Objective: To primarily achieve capital appreciation by investing in diversified stocks that are generally termed as small and midcaps and by investing in other equities. Fund Manager: S Krishnakumar Performance & Outlook: Sundaram BNP Paribas S.M.I.L.E. fund was launched in February S.M.I.L.E denotes Small and Medium Indian Leading Equities. The fund maintains its tilt towards mid and smallcap stocks with the cushion of an upto35 per cent allocation to the largecap space: an enabler to handle periods of volatility and to provide liquidity. This multicap fund has provided a compounded annualized return of 7.2 % since launch outpacing the CNX Midcap Index by 3.9 percentage points on an annual basis. The fund is appropriate for investors with a predominant investment already in largecap category. The mid and smallcap exposure is between 75% and 80 % on an average and a largecap exposure of 20%35% help reduce risk to an extent and improve liquidity. Sundaram BNP Paribas Select Small Cap Fund Type: ClosedEnd Equity Scheme Investment Objective: Seek consistent longterm returns by investing predominantly in equity/equity related instruments of companies that can be termed as "smallcaps". Fund Manager: Satish Ramanathan Performance & Outlook: Sundaram BNP Paribas Select Small Cap is a play on entrepreneurship in India as it invests in smallcap stocks that have the potential to grow. Considering the riskiness, lack of liquidity and the basic nature of the smallcap stocks, Sundaram BNP Paribas Select SmallCap was launched as a fiveyear closedend fund. The fund faired well during the year of its launch by providing a return of 52 per cent as of December It suffered in the last quarter of FY 2008, as stock prices corrected sharply and smallcap stocks took a more pronounced hit but losses were curtailed due to active cash call up to 30 percentage of and further 15% is in defensives such as consumer products and healthcare. This helped contain the damage through Sundaram BNP Paribas Equity Multiplier Fund Type: ClosedEnd Equity Scheme Investment Objective: Seek capital appreciation by investing in equity & equity related instruments. Fund Manager: Satish Ramanathan Performance & Outlook: Sundaram BNP Paribas Equity Multiplier was launched in February The fund is basically a goanywhere fund investing across market caps and sectors it adopts a concentrated strategy with flexibility to invest in a maximum of forty stocks. It is a threeyear closedend fund. The portfolio had a largecap tilt in , though the fund can invest across the cap curve. The fund is actively managed and a combination of cash calls and allocation to defensive sectors and stocks helped contain the damage during the sharp decline in equity prices in The fund has managed to stay ahead of its benchmark and the endeavour is to deliver value over the long term. Sundaram BNP Paribas Tax Saver Fund Type: OpenEnd Equity Scheme Investment Objective: To achieve capital appreciation by investing predominantly in equities and equityrelated instruments. A lockin period of 3 years is applicable. Fund Manager: Satish Ramanathan Performance & Outlook: Sundaram BNP Paribas Tax Saver is an ELSS (EquityLinked Savings Scheme) with a threeyear lock in period. In its overnine years of existence, the fund sports attractive compounded annual returns of 17.5 per cent since launch in November 1999 outpacing its benchmark, BSE 200 by 8.5 percentage points. The fund qualifies as an eligible investment for the Rs 1 lakhlimit under Section 80C of the Income Tax Act. An investment of Rs 1,000amonth using a Systematic Investment Plan since launch was worth Rs 3.2 lakh as of March 31, The fund had bagged ICRA 5Star Awards for 1year track record as of 2008 and also 7Star Award for threeyear performance. The fund was selected as the Winner of the Morningstar Fund Award (India) in the ELSS category. 6 Sundaram BNP Paribas Balanced Fund Fund Type: OpenEnd Equity Scheme Investment Objective: To generate capital appreciation and current income, through a judicious mix of investments in equities and fixedincome securities. Fund Manager: Satish Ramanathan & Rahul Pal Performance & Outlook: Sundaram BNP Paribas Balanced fund is a fund suitable in all market phases. When there is a sudden burst of volatility, the fund ensures bit of capital appreciation and steady income stream as it invests in both the equity and the fixed income market. The fund will invest at least 65 per cent of the funds in equity portfolio and it is usually only large cap names. A focused approach in the fixed income portfolio will also optimise returns. The fund will be suitable for investors who want to have a clear allocation between the equity and fixed income. The fund has now completed 8.9 years. The fund has delivered compounded annual returns of 11.4 % since launch in April Sundaram BNP Paribas Select Thematic Funds CAPEX Opportunities Fund Fund Type: OpenEnd Equity Scheme Investment Objective: The primary investment objective of the scheme is to generate consistent longterm returns by investing predominantly in equity/equityrelated instruments of companies in the capital goods sector. Fund Manager: Srividhya Rajesh Performance & Outlook: Sundaram BNP Paribas Capex Opportunities is a Select Thematic Fund focusing on the robust capital spending by India Inc. and the thrust on infrastructure. The unique feature is that, the fund focuses on the suppliers goods and services to the capex & infrastructure spenders. The fund invests across marketcap categories with a largecap tilt at the top end of the portfolio. The fund might under perform its benchmark BSE Capital Goods Index; the benchmark is heavily influenced by five stocks that account for about 80 % of the index market cap. A more relevant comparison will be with a broad market index such as the S & P CNX 500 Index. The fund has separate portfolios for Dividend Option and Growth Option. The theme is uniquely positioned to capitalise on the investment story in India. Sundaram BNP Paribas Select Thematic Funds Energy Opportunities Fund Type: ClosedEnd Equity Scheme Investment Objective: Seek long term capital appreciation by investing primarily in the equity and equity related instruments of companies in the domestic market that predominantly focus on or benefit from, directly or indirectly, the opportunities and developments in the energy sector. Fund Manager: S Krishnakumar Performance & Outlook: Sundaram BNP Paribas Energy Opportunities is a Select Thematic Fund that was launched in the last quarter of 2007 and allotted on January 1, The fund focuses on the emerging energy landscape in India. The fund is closedend for three years. The portfolio is adequately biased towards largecap stocks while maintaining a reasonable exposure to mid and smallcap stocks. Investment is spread across resources, enablers, providers of capital goods/services and likely beneficiaries. The benchmark BSE Oil and Gas Index is also skewed and hence performance should be compared with a broad market index such as the S & P CNX 500 Index to get a superior perspective. This is also appropriate since the fund will across the cap curve with a bias towards largecap stocks in the resources category. The fund house remains positive on the longterm prospects of the energy theme. Sundaram BNP Paribas Select Thematic Funds Rural India Fund Fund Type: OpenEnd Equity Scheme Investment Objective: The primary investment objective of the scheme is to generate consistent longterm returns by investing predominantly in equity/equityrelated instruments of Companies that are focussing on Rural India. Fund Manager: J Venkatesan Performance & Outlook: Sundaram BNP Paribas Rural India Fund is a Select Thematic Fund focusing on prospects emerging from rising rural prosperity in India. The fund s focus is not just confined to agriculture but covers a range of sectors that could benefit from the rural transformation story in India. The fund has a well diversified portfolio with investment across marketcap category and sectors. In its first full year of existence in 2007, the fund was one of the three nominees for the Best Emerging Fund Award of CNBC TV18CRISIL. The agritheme holds promise and the portfolio seeks to play the theme in a dedicated manner. The rural theme has become more robust over the past few years with increase in agricommodity prices. Sundaram BNP Paribas Select Thematic Funds Financial Services Opportunities Fund Type: OpenEnd Equity Scheme Investment Objective: The investment objective of the scheme is to seek longterm capital appreciation by investing predominantely in equity and equity related securities of Indian companies engaged in the banking and financial services. Fund Manager: J Venkatesan Performance & Outlook: Sundaram BNP Paribas Financial Services Opportunities Fund, is a Select Thematic Fund focusing on opportunities in the banking and financial services. The fund may invest outside the theme: up to 35%; Investment outside the theme. This is a highrisk, high return product appropriate for investors with a time horizon of threetofive years. Sundaram BNP Paribas Financial Services Opportunities Fund has just completed a year in June 2009 and it has so far outpaced the broad based Index by a comfortable margin. The fund also paid a dividend of 10% in 2009 despite the weak markets in The cautious approach to deploying the money and stock selection has helped performance. Sundaram BNP Paribas Select Thematic Funds Entertainment Opportunities Fund Type: OpenEnd Equity Scheme Investment Objective: The objective of the Scheme would be to achieve long term capital appreciation by investing primarily in the equity and equity related instruments of companies that focus on opportunities in the entertainment business. Fund Manager: Satish Ramanathan Performance & Outlook: Sundaram BNP Paribas Entertainment Opportunities Fund, is a Select Thematic Fund focusing on opportunities in the entertainment business. The portfolio is intended to be largely centred on the entertainment opportunities theme, but it now has an allocation outside the theme within the permitted limits of up to 35%.This is a highrisk, high return product appropriate for investors with a time horizon of threetofive years. Sundaram BNP Paribas Entertainment Opportunities Fund has just completed a year in June 2009 and it has so far outpaced the broad based Index by a comfortable margin. The fund also paid a dividend of 10% in 2009 despite the weak markets in The cautious approach to deploying the money and stock selection has helped performance. Sundaram BNP Paribas Global Advantage Fund Type: OpenEnd Fund of Funds Scheme Investment Objective: To achieve capital appreciation by investing in units of overseas mutual funds and exchangetraded funds, domestic money market instruments. Income generation may only be a secondary objective. Fund Manager: J Venkatesan Performance & Outlook: Sundaram BNPParibas GlobalAdvantage, launched in September 2007, is a fundoffunds investing in emerging markets, real estate and commodities; it invests in asset classes such as real estate and commodity through funds that own stocks of real estate and commodity companies and it does not invest directly in real estate or commodities. In the emerging markets category, the fund invests in Asia, Europe and Latin America. The allocation is decided based on the outlook of different markets by the fund advisor, FundQuest, a part of the BNPParibas Investment Partners. This fund is appropriate as a vehicle of diversification for investors who already have a sizeable equity portfolio in India. Sundaram BNP Paribas Global Advantage has completed a year and it has so far outpaced its benchmark by a comfortable margin.

7 Sundaram BNP Paribas Money Fund Fund Type: Openend liquid scheme Investment Objective: The main objective is to provide a level of income consistent with the preservation of capital, liquidity and lower level of risk, through investments made primarily in money market and debt securities as specified in the guidelines issued by SEBI in this regard. The aim is to optimize returns while providing liquidity. Fund Manager: Rahul Pal Performance & Outlook: Sundaram BNP Paribas Money Fund is an appropriate investment avenue to deploy surplus funds for shortterm. The investment objective is to offer steady returns, preservation of capital, liquidity and lower level of risk. The portfolio will comprise largely of moneymarket instruments and shortterm papers. The portfolio is tailored to capture the prevailing interest rates and hence it will invest only in shortterm papers with duration of maximum of 91 days. The fund invests around 5070 per cent in commercial deposits and Certificate of Deposits, hence the liquidity for is also very high. The fund is also rated AAAf Rating by CRISIL. Performance Period Annual Return (%) Fund CRISIL Liquid Fund Index Regular Last 1 month Last 15 days Institutional Last 1 month Last 15 days Super Institutional Last 1 month Last 15 days Sundaram BNP Paribas Ultra ShortTerm Fund Fund Type: Openend income scheme Investment Objective: To provide a level of income consistent with liquidity through investments made primarily in money market and debt securities. Fund Manager: K Ramkumar & Rahul Pal Performance & Outlook: Sundaram BNP Paribas Ultra Short Term Fund has been rechristened due to changes in the regulatory framework. It was earlier known as Sundaram BNP Paribas Liquid Plus Fund. The fund aims to capture the yield based on prevailing interest rate as a substantial part of the portfolio is in securities with maturity less than 370 days. Portfolio is structured in a manner that it provides basis points more than a liquid fund. The entire portfolio of a liquid fund is invested in securities with a maturity period of less than a year. Asset base has risen morethansix fold since launch in April 2007 on the back of superior performance. The fund is an appropriate vehicle for corporate players and institutions to park short term funds with a time horizon of 15 days to up to six months. Performance Period Annual Return (%) Fund CRISIL Liquid Fund Index Regular Since Inception Last 1 year Last 1 Month Institutional Since Inception Last 1 year Last 1 Month Super Institutional Since Inception Last 1 year Last 1 Month Sundaram BNP Paribas Bond Saver Fund Type: Openend fixed income scheme Investment Objective: The investment objective of this Scheme would be to earn regular income by investing primarily in fixedincome securities, which may be paid as dividend or reinvested at the option of the investor. A secondary objective is to attempt to keep the value of its units reasonably stable. Fund Manager: K Ramkumar Performance & Outlook: Sundaram BNP Paribas Bond Saver is a focused fund that invests in fixed income portfolio that is designed to optimize returns through exposure to fixed income securities. Investments are made only in high quality investment grade papers to ensure that credit risk is managed as much as possible. The fund launched was launched in December 1997 and provided annualised returns of 8.9 per cent. The fund is suitable for investors who have a medium to longterm holding period and wants to overcome the effects of fluctuations in interest rates. Performance Period Annual Return (%) Fund Since Inception 8.9 Last 9 years 7.7 Last 7 years Last 5 year Last 3 years Last 2 years Last 1 year CRISIL Composite Bond Fund Index Scheme & Performance Sundaram BNP Paribas Monthly Income Plan Fund Type: OpenEnd Income Scheme Investment Objective: The primary objective of the scheme is to generate regular income through investment in fixedincome securities. The secondary objective is to generate long term capital appreciation by investing a portion of the Schemes assets in equity and equityrelated instruments. This is not an assured income scheme. Fund Manager: K Ramkumar & Satish Ramanathan Performance & Outlook: Sundaram BNP Paribas Monthly Income Plan will offer steady income and pep returns over the long term by adding a dash of equity. The equity component of the portfolio will be only large caps and the exposure will be restricted to maximum of 20 per cent. The fund since launch in January 2004 has provided an annualised return of 5.3 per cent. There is only a marginal allocation to equity component during FY considering the view of the market conditions. The fund will be suitable for investors who have an investment horizon of at least three to five years and seek a fixed income option with a potential of higher returns from a small equity component. Performance Period Annual Return (%) Fund CRISIL MIP Blended Index Since Inception Last 5 years Last 3 years Last 2 years Last 1 year Sundaram BNP Paribas Flexible Fund Fund Type: ShortTerm Plan: Openend income scheme; Flexible Income Plan: Openend fixed income Investment Objective: To generate reasonable returns by creating a portfolio comprising substantially of fixed income instruments and money market instruments by keeping the interest rate risk of the fund low. Fund Manager: K Ramkumar & Rahul Pal Performance & Outlook: Sundaram BNP Paribas Flexible Fund was earlier christened as Floating Rate Fund. The longterm plan as Flexible Income Plan which will be a dynamic goanywhere bond fund without sacrificing on portfolio quality and shortterm plan will be repositioned from liquid fund in to an income fund with a shortterm orientation. The portfolio is being restructured to align with mandate the fund. Shortterm plan would be suitable for investors who seek shortterm investment horizons of 23 months while investing in this fund. Flexible Income plan would be suitable for investors who want to stay invested for at least 6 months investment horizon and preferably 12 months and at the same time need to be protected from interest rate fluctuations. Performance Period Annual Return (%) Fund Benchmark ShortTerm Plan (Benchmark: CRISIL Short Term Bond Fund Index) Regular From March 23, Institutional From March 23, Performance as Floating Rate FundShort Term (from allotment date till March 22, 2009) Regular Institutional Flexible Income Plan (Benchmark: CRISIL Composite Bond Fund Index) Regular From March 23, Institutional From March 23, Performance as Floating Rate FundLong Term (from allotment date till March 20, 2009) Regular Institutional Sundaram BNP Paribas Capital Protection Oriented Fund Fund Type: A closeend capital protection oriented hybrid debt scheme Investment Objective: To seek income and minimise risk of capital loss by investing in a portfolio of fixedincome securities. The scheme may invest a part of the assets in equity to seek capital appreciation. There can be no assurance that the investment objective of the Scheme will be achieved. The scheme does not guarantee/ indicate any returns. There is no guarantee of capital or return for this scheme from the mutual fund or the sponsors. Fund Manager: S. Krishnakumar & Rahul Pal Performance & Outlook: Sundaram BNP Paribas Capital Protection is a fund designed to combine safety of the principal and a participation in the equity market performance. Part of the portfolio will be invested in the fixed income securities to ensure that there is a protection of the principal. Participation in the equity market ensures few percentage points higher that the fixed income returns. For even a very conservative investors and risk averse investors, the fund will be a good entry point as the time horizon is for a period of three years & five years & over such period the equity as an asset class beat all others. The fund is also rated by AAA (So) by CRISIL and it indicates high degree of safety. Performance Period Annual Return (%) Fund Capital Protection Orientation (3 years) (Benchmark: CRISIL MIP BlendedIndex) Since Inception Last 1 year Capital Protection Orientation (5 years) (Benchmark: CRISIL MIP BlendedIndex) Since Inception Last 1 year Benchmark Past performance may or may not be sustained in the future; Returns are in percentage and computed on compounded annualised / absolute* basis based on NAV of the Growth Option as on March 31, 2009 and on the scheme maturity date respectively. (*For schemes less than one year) 7