Financial Year

Transcription

1 Financial Year

2 Contents l Exide Life Insurance Fact Sheet 3-4 l Exide Life Insurance Investment Philosophy 5 l Risk Control 6 l Market Review & Outlook for Markets 7-11 l Risk-Return Profile of Funds 12 l Fund Fact Sheet - Exide Life Debt Fund l Fund Fact Sheet - Exide Life Secure Fund l Fund Fact Sheet - Exide Life Preserver Fund l Fund Fact Sheet - Exide Life Balanced Fund l Fund Fact Sheet - Exide Life Active Asset Allocation Fund l Fund Fact Sheet - Exide Life Growth Fund l Fund Fact Sheet - Exide Life Guaranteed Growth Fund l Fund Fact Sheet - Exide Life Prime Equity Fund l Fund Fact Sheet - Exide Life Mid Cap Fund l Fund Fact Sheet - Exide Life Equity Fund l Fund Fact Sheet - Exide Life Guaranteed NAV Fund l Fund Fact Sheet - Exide Life Debt Pension Fund l Fund Fact Sheet - Exide Life Preserver Pension Fund l Fund Fact Sheet - Exide Life Pension Equity Fund l Fund Fact Sheet - Exide Life Prime Equity Pension Fund l Fund Fact Sheet - Exide Life Pension Liquid Fund l Glossary 59 Annual Fund Review 02

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5 Exide Life Insurance Investment Philosophy Our policyholders are investing their hard earned money with specific objectives of protection and longer-term investment returns. Two of the basic expectations of our customers are thus, Safety and Returns, and we need to balance both these expectations in terms of the asset-allocation, underlying investments, and subsequent monitoring. These customer expectations are an important consideration in our investment management philosophy and strategy. The underlying investment philosophy is to ensure safety and deliver consistent, stable returns over the longer-term, for a given level of risk. This is achieved with a well-defined and disciplined investment process. There is an emphasis on compliance and robust risk-management in the investment process, both pre-investment and postinvestment. As a company and as an investment team, we focus on the long-term. Investment Team Profile Shyamsunder Bhat, Chief Investment Officer (CIO) has an experience of 23 years in fund management. He joined Exide Life Insurance in September Prior to joining Exide Life Insurance, Shyam has worked with two mutual fund companies - initially as a part of the start-up team in 1994 at Tata Asset Management Ltd. for 10 years ( ), followed by Principal PNB Asset Management, where he then worked for more than 6 years ( ). Shyam is an Electrical Engineer from VJTI (Mumbai) and a post-graduate in Management (M.M.S. Finance) from Narsee Monjee Institute of Management Studies (Mumbai). SHYAMSUNDER BHAT Chief Investment Officer(CIO) Shobit Gupta, Senior Vice President (Investments), Fixed Income, has over 19 years of experience in Fixed Income and Foreign Exchange markets. He has worked extensively in the field of Foreign exchange and Interest Rate derivatives at ABN AMRO Bank and has handled Fixed Income portfolios at Asset Management companies like Kotak Mahindra Mutual Fund and Principal Asset Management Co. He is a Graduate in Economics, Maths, Statistics, PGDBA from ICFAI Delhi and CFA from ICFAI Hyderabad and CFA Institute - USA. SHOBIT GUPTA Senior Vice President (Investments) - Fixed Income Pranav Parekh Fund Manager - Fixed Income portfolio Sumeet Hinduja Fund Managers - Equity portfolio Annual Fund Review 05

6 Risk Control Risk management is an integral part of our investment process. The company has well-defined risk policies and processes covering both portfolio and process risk. Further, the company has systems and software in place to monitor compliance of Regulations and Investments norms on a daily basis. The operating policy for each asset class defines the framework within which the investments are made in specific funds. All our current equity investments are in securities within the BSE-500/CNX500 index, and predominantly from within the BSE-200 index. The portfolio is well-diversified across companies and industries as a risk-mitigation measure. The debt portfolio of the company is mostly invested in assets of the highest credit quality i.e. Government of India securities, and AAA rated securities issued by blue-chip companies, and finally, a small exposure to AA rated securities. The key risk management policy adopted is maintaining high standards of credit quality of the portfolio and maintaining optimum duration depending on the market outlook. The exposure to stocks and duration of bonds changes over time based on an in-depth analysis of the factors affecting these markets. Finally, a reasonable level of liquidity is maintained within the respective funds so as to enable smooth redemption process on account of switches or claims, in line with the liquidity norms prescribed in our investment policy. Annual Fund Review 06

7 Macro-Economic background and Outlook a) Indian and Global Economy : Review and Outlook India s GDP growth decelerated further in FY to 6.7% yoy, lower than 7.1% and 7.9% in the prior two years; GVA fell from 7.1% to 6.5% yoy. The growth in FY was driven primarily by Government consumption, activities linked to the infrastructure sector and services. There has been a revival in the growth of fixed capital formation which improved in Q4FY18 to 14.4%, the highest in the last 7 quarters. The fiscal deficit for FY was within the revised target of 3.5% (i.e. same as in FY ), and projected to reduce to 3.3% in FY GVA and GDP growth is expected to rise in FY , also partly due to FY having been impacted by the GST implementation. On an annual basis, there was a 4.6% growth in Industrial Production in FY vs 4.3% growth in FY Consumer price inflation averaged at 3.6% in FY vs an average of 4.5% in FY Core inflation during FY stood at 4.55% down from 4.7% in FY Wholesale price inflation rose further in FY , with an annual figure of 2.9% for FY (as compared to annual 1.7% in FY ). India s trade deficit rose sharply by 43% to US $ 160 billion, primarily due to rising crude prices and a depreciating Rupee. The current account deficit rose by 238% to US$48.7bn (1.9% of GDP) in FY Our forex reserves rose by 15% to $ 425 billion during the year. Annual Fund Review 07

8 Macro-Economic background and Outlook Macro-economic Indicators: The Macro Economic Indicators for the last 12 months are as shown: Economic Indicators Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Trade Deficit (US$ billion) Exports (US$ billion) Exports (YoY) (1.3) (0.4) Imports (US$ billion) Imports (YoY) Foreign Exchange Reserves (US$ billion) Rs/US$1 (period average) M1 (YoY) (2.3) (1.2) M3 (YOY) Bank Loans (Non-food credit, YOY) Deposit Growth Rate (YoY) day T-Bill Yield day T-Bill Yield yr Government Bond Yield Industrial Production (0.3) Manufacturing (% YOY) (0.7) (0.1) Consumer Goods Basic Goods (0.3) Capital Goods (4.8) (1.6) (6.1) (1.1) (5.7) Intermediate Goods (1.2) (2.8) (0.5) Consumer Price Index (YoY) Wholesale Price Index (YoY - All commodities) b) Equity markets review and outlook The Nifty-50 rallied further close to 10% during the FY , after rising 19% in FY The rally in the equity markets was aided by continuing domestic liquidity in terms of inflows into equities in general (and equity mutual funds in particular), and partly aided by some FII buying. In possibly its last full Budget before the 2019 Lok Sabha Elections, the focus of the Government was on the rural and the poor, with hikes of Minimum Support Prices in agri-commodities to 50% above costs, and the announcement of a Government-funded healthcare scheme. The Government also revised its fiscal deficit target to 3.5% for FY18 and 3.3% for FY19 respectively. In addition, changing political dynamics have created some uncertainty regarding the outcome of the next Lok Sabha elections. Higher crude prices are leading to concerns on the deficit front, and rising Consumer Price Inflation are leading to concerns on the interest rate front. On the positive side, better than expected monsoons and increasing focus of Govt on rural income has led to a revival in rural demand compared to weak demand last year, and this is further expected to strengthen in Fy Global financial markets showed remarkable improvement in its macro data, with manufacturing indices of various countries seeing traction and steady upturn. The US Federal Reserve raised interest rates thrice in CY2017, and is expected to do three or four rate hikes in CY2018. With indications of a revival in growth and inflation, central bankers globally are likely to gradually raise rates and reduce liquidity, which could negatively impact emerging market currencies. The IMF has raised global growth estimates to 3.9% from earlier 3.7% for CY2018, with estimates that India would be one of the fastest growing economies projecting it to grow at 7.4% for FY19. Inflows in domestic equity funds continued to be strong during most of the year, mainly due to a continuing shift from physical to financial assets. Domestic mutual funds were net buyers to the tune of $ 20.9 bn during FY , and have remained large buyers for last three years. Foreign Institutional Investors (FIIs) reduced their buying in FY18 to the tune of $3.8 bn compared to FY given the deteriorating macros and below expected corporate earnings in India (partly due to temporary disruptions post demonetization and GST). The Indian Rupee depreciated by approximately 0.5% during the year, after appreciating by 1% in FY Gross Foreign Direct Investment inflows hit an all-time high of $61 billion in FY , and this could partly be due to the easing of FDI limits by the Government. Annual Fund Review 08

9 Macro-Economic background and Outlook Outlook: In general, corporate earnings did not display a meaningful improvement in FY Even the results for the March 2018 quarter disappointed, due to weak earnings from corporate-oriented banks, capital goods and pharma companies. Consumption and commodity-oriented sectors, however, were the bright spots in terms of results. Signs of a pick-up in rural demand and a reasonable growth in volumes across domestic-centric sectors are visible. We do expect a better FY19 due to an improvement in the corporateoriented banks as well as a recovery in general demand. Going forward, the direction of our equity market could be influenced mainly by two factors: corporate earnings and political news flow. The extent of increase in interest rates, crude oil prices, trends in GST collections, etc. would be watched. Broad markets have witnessed a sharp correction, since January 2018, though the large-cap indices do not reflect the same. A likely resumption in institutional buying interest in good-quality midcaps, particularly ones with a good visibility of earnings growth and where there are no concerns on corporate governance would help restore investor confidence which could have been shaken by the sharp selloff. Delivery of a good earnings growth could become imperative for stocks, considering the headwinds to the sentiment from higher crude prices, higher inflation and interest rates, potential trade-tariffs disrupting global trade and the uncertainty in the outcome of the Lok Sabha elections next year. The equity market performance for various periods ending March 31st, 2018 is shown in the table below. Indices March 31, Month Change 3-Month Change 6-Month Change 1-Year Change BSE Sensex (INR) % -3.20% 5.39% 11.30% Nifty (INR) % -3.96% 3.32% 10.25% CNX Midcap (INR) % % 3.58% 9.07% MSCI Europe # % -5.27% -4.98% -3.45% MSCI World # % -2.65% 2.36% 10.47% MSCI Emerging Mkt # % 0.36% 7.48% 21.32% # Changes in the index value are based on conversion to Rupee terms Performance of various equity indices during the year is shown in the graph below: 140 Equity Indices Index Values (Rebased to 100) Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 CNX Midcap MSCI Emerging Markets MSCI World Nifty Annual Fund Review 09

10 Macro-Economic background and Outlook C. Debt Market Review and Outlook The fixed income markets witnessed a very volatile year, in The initial part of the year saw consumer price inflation plunge to a low of 1.5% in June, one of the lowest in recent years, and this, coupled with large FIIi buying, resulted in the 10-year Government security yields easing from 6.68% in March 2017 to 6.51% in June. RBI cut the repo rate by 25 bps in August in light of the sharply lower inflation and stable commodity prices. The real GDP growth slowed significantly in Q1 of to 5.6%, from 6.1% and 7% in the prior two quarters. Retail CPI inflation reversed its trend and rose to a high of 5.2% in December, driven by rising food inflation. India s fiscal deficit during the course of the year appeared to be rising above targeted levels, with revenues falling short on account of the impact of GST implementation. This led to a higher Government borrowing. The yield on the 10-year G-Sec accordingly rose from 6.51% in June to 7.33% in December, on fears of a rate hike and concerns on the fiscal deficit front, and with a near-exhaustion of the upper limits for foreign institutions. The Government revised its fiscal deficit target to a higher level of Rs 5.95 lakh crore (3.5% of GDP FY18) and projected FY19 fiscal deficit at 3.3% of GDP. It proposed sharp hikes in Minimum Support Prices & a higher fiscal deficit for FY19. Retail Consumer Price Inflation fell from a high of 5.2% in December to 4.4% in February due to a decline in inflation in food and fuel. The RBI revised its CPI projections downward to % for the first half of Fy18-19, and to 4.4% for the second half of Fy18-19, though with a risk of being higher than these figures depending upon crude oil prices, higher Minimum Support Prices for agricultural commodities and the monsoon. RBI also allowed banks to spread their provisioning for mark to market (MTM) losses on investments for the quarters ended December 2017 and March 2018 over 4 quarters, commencing with the quarter in which the loss is incurred. This helped stabilize the Gsec yields, though the yields closed the year at 7.4%, higher by 72 bps for the year. The key debt market indicators are highlighted below : Key Indicators Indicator Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Inflation 1.65% 10.36% 9.68% 7.69% 5.65% 5.70% 5.25% 4.83% 3.89% 4.28% NSE MIBOR 5.02% 5.47% 9.24% 11.99% 8.98% 8.53% 8.35% 9.00% 7.37% 9.39% 91 Day Bill 4.50% 4.33% 7.31% 9.02% 8.02% 8.83% 7.94% 7.12% 5.78% 6.09% 364 Day T Bill 5.50% 5.12% 7.64% 8.40% 7.79% 8.78% 7.72% 7.06% 6.10% 6.47% 5 year G Sec 6.76% 7.50% 7.95% 8.60% 7.96% 8.86% 7.75% 7.43% 6.76% 7.40% 10 year G Sec 7.01% 7.83% 7.99% 8.54% 7.96% 8.80% 7.74% 7.46% 6.68% 7.40% 3 month CP P % 6.00% 6.00% 10.75% 9.22% 9.65% 8.76% 8.67% 6.61% 7.33% 6 month CP P % 8.80% 6.50% 6.50% 10.63% 9.27% 8.68% 8.75% 6.96% 7.78% 1 year CP P % 9.50% 7.25% 7.25% 10.88% 9.30% 8.71% 8.80% 7.24% 7.90% 1 year AAA 9.90% 7.95% 6.70% 9.55% 9.86% 8.90% 8.40% 7.85% 6.80% 7.27% 3 year AAA 9.45% 8.14% 7.90% 9.35% 9.67% 8.87% 8.34% 8.00% 7.23% 7.63% 5 year AAA 9.45% 8.51% 8.50% 9.23% 9.55% 8.83% 8.31% 8.12% 7.40% 7.80% 10year AAA 8.74% 8.80% 9.12% 9.49% 8.81% 9.60% 8.31% 8.31% 7.65% 8.00% Note: All figures are as of year ending March Annual Fund Review 10

11 Macro-Economic background and Outlook Outlook: Given the structurally monetary tightening globally, rising crude prices, higher fiscal deficit locally, fear of higher inflation on higher Minimum Support Prices & impact of HRA from States Pay Commissions and lack of demand for Gsec/Bonds from FIIs & PSU Banks, we expect the year FY19 to continue to witness huge volatility and higher yields. With the RBI repo rate at 6.25%(hiked by 25bps in June), one more rate hike could be seen by the end of the year Performance of Debt Indices during the year is shown in the graph below: Debt Indices 8.0% % Index Values(Rebased to 100) % 7.4% 7.2% 7.0% 6.8% 6.6% 6.4% 6.2% 6.0% (Yield) Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Crisil Bond Index 10 Yr Gsec Yield Annual Fund Review 11

12 Risk Return Profile of Funds Exide Life Insurance offers a wide range of fund options catering to various risk-return appetite.you can invest either in equity, or in debt or in hybrid fund and even change your investment strategy. You can choose from these funds depending on your risk appetite, age, time horizon for important life stage goals like child education planning, retirement planning, etc. The risk return chart below helps you choose the right fund for your investment needs. High Risk Exide Life Prime Equity Fund Exide Life Midcap Fund Exide Life Equity Pension Fund* Exide Life Equity Fund* Exide Life Prime Equity Pension Fund* Risk Exide Life Balance Fund Exide Life Guaranteed NAV Fund Exide Life Growth Fund Exide Life Active Asset Allocation Fund Medium Risk Exide Life Secure Fund Exide Life Liquid Pension* Exide Life Preserver Fund Exide Life Preserver Pension* Exide Life Debt Pension Fund* Exide Life Debt Fund* Low Risk Return *Available for existing customers only subject to product terms and conditions Annual Fund Review 12

13 Exide Life Debt Fund Mar 18 Fund Profile: The fund seeks to generate income through an investment mix of high quality bonds and money market instruments. SFIN No: ULIF00218/10/04DEBT114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2018: Assets Under Management (AUM): mn Equity : Debt : mn Net Current Assets : mn Fund Manager: Debt : Mr.Pranav Parekh Fund Performance Asset Allocation (As approved by IRDAI) Fund Type % Debt and Debt related Instruments 100% Rating Profile of Debt Instruments AAA: 32.87% SOVEREIGN: 67.13% Period Fund Return Benchmark* 1 Month 2.26% 2.13% 6 Months 0.48% 0.65% 1 Year 4.79% 5.11% 2 Years 8.11% 8.06% 3 Years 8.02% 8.12% Since Inception 8.11% 7.12% *Benchmark : Crisil Composite Bond Index (100%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Sector Allocation Debt Sector Allocation % Electricity gas steam and air conditioning supply Housing Civil engineering Infrastructure finance Financial & insurance Unit Price Mar Asset Allocation (As on Mar 31st, 2018) Others: 15.41% Corporate Debt: 27.81% Gsec: 56.78% Modified Duration of Debt and Money Market Instruments 4.54 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 13

14 Exide Life Debt Fund Mar 18 Portfolio Holdings Corporate Debt-Holdings Amt (mn) % AUM 8.93 PGCIL 20Oct % 8.01% RECL 24Mar % 8.15% HDFC 27Jul % 9.15% LARSEN & TOUBRO LTD % 8.09% RECL 21Mar % 7.99 % PFC 20Dec % 8.03% PFC 02May2026 (PUT 01May2021) % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % 9.60 Exim Bank 07Feb % 7.00% Reliance Industries Limited 31Aug % Total % G-Sec Holdings Amt (mn) % AUM 7.16% GSec % 7.17% G Sec 08Jan % 6.68% GSEC 17Sept % 8.08 GOI 02Aug % 7.73% Gol Sec % 8.83% Gsec 25NOV % 8.24% GoI Sec % 7.59% GSec 20Mar % 8.53 % GSEC SDL(Assam) % 8.15 GOI Security % 8.17% G Sec 01Dec % 8.58 % GSEC SDL(Uttarkhand) % 6.57% GoI Sec % 8.13 % GOI 22Jun % Total % Money Market Amt (mn) % AUM CBLO 03APR % Kotak Liquid Growth Direct % Reliance Liquid Fund - Treasury Plan - Direct Plan - Growth Option % Aditya Birla Sun Life Cash Plus Growth Direct Plan % Total % Net Current Assets % Total Annual Fund Review 14

15 Exide Life Secure Fund Mar 18 Fund Profile: The fund seeks to achieve long term moderate capital growth through an investment mix of upto 20% equity and the balance in high quality bonds and money market instruments. SFIN No: ULIF00418/10/04SECURE114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2018: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Shyamsunder Bhat Debt : Mr.Pranav Parekh Fund Performance : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 10% to 20% Debt 0% to 90% Money Market 0% to 20% Rating Profile of Debt Instruments AAA: 29.88% SOVEREIGN: 70.12% Period Fund Return Benchmark* 1 Month 1.31% 1.26% 6 Months 0.39% 1.05% 1 Year 4.94% 5.88% 2 Years 8.47% 9.00% 3 Years 7.26% 7.80% Since Inception 8.63% 8.12% *Benchmark : Crisil Composite Bond Index (85%) and Nifty 50 (15%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Sector Allocation Equity Sector Allocation % Financial & insurance Pharmaceuticals 9.92 Computer programming consultancy and related activities 9.18 Manufacture of coke and refined petroleum products 6.03 Manufacture of other transport equipment 5.12 Civil engineering 5.00 Manufacture of motor vehicles trailers and semi trailers 4.56 Manufacture of chemicals and chemical products 4.23 Manufacture of basic metals 3.64 Manufacture of tobacco products 3.24 Others Debt Sector Allocation % Housing Electricity gas steam and air conditioning supply Water transport Civil engineering Asset Allocation (As on Mar 31st, 2018) Others: 12.06% Equity: 16.14% Corporate Debt: Gsec: 50.35% Modified Duration of Debt and Money Market Instruments 4.91 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 15

16 Exide Life Secure Fund Mar 18 Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % Housing Development Finance Corporation Ltd % Dr. Reddys Lab Ltd % Reliance Industries Ltd % Infosys Ltd % ITC Ltd % Larsen & Toubro Ltd % Maruti Suzuki India Ltd % Bharat Financial Inclusion Ltd % Bajaj Finance Limited % Hcl Technologies Ltd % ICICI Bank Ltd % State Bank of India % Tata Consultancy Services Ltd % UPL Limited % Yes Bank Ltd % Bharti Airtel Ltd % Bharat Electronics Ltd % Hero Motocorp Ltd % Sun Pharmaceutical Industries Ltd % National Aluminium Co. Ltd % Mahindra & Mahindra Ltd % Max Financial Services Ltd % Motherson Sumi Systems Ltd % Titan Company Ltd % Mahindra & Mahindra Financial Services Limited % Container Corporation of India Limited % Gail (India) Ltd % City Union Bank Ltd % Bharat Forge Ltd % Aurobindo Pharma Limited % Hindustan Petroleum Corporation Ltd % Hindustan Unilever Ltd % Voltas Ltd % Hindustan Zinc Ltd % Grasim Industries Ltd % L and T Finance Holdings Limited % Jubilant Foodworks Limited % Kotak Mahindra Bank Ltd % Shree Cements Ltd % Crompton Greaves Consumer Electricals Limited % Cyient Limited % Apollo Tyres Limited % Capacite Infraprojects Limited % Sadbhav Engineering Limited % Petronet LNG limited % Tata Steel Ltd % Strides Shasun Ltd % Indian Oil Corporation Ltd % Indusind Bank Ltd % Dishman Carbogen AMCIS Limited % CADILA HEALTHCARE LIMITED % Kajaria Ceramics Ltd % Mahindra Cie Automotive Ltd % Sterlite Technologies Ltd % TEJAS NETWORKS LIMITED % Sun Tv Network Limited % Annual Fund Review 16

17 Exide Life Secure Fund Mar 18 Britannia Industries Limited % Sbi Life Insurance Co Ltd % Oil & Natural Gas Corporation Ltd % Persistent Systems Ltd % Nestle India Ltd % Amber Enterprises India Limited % Coal India Ltd % Hathway Cable & Datacom Limited % PNB Housing Finance Ltd % Tata Motors Ltd % Tech Mahindra Ltd % Wipro Ltd % Zee Entertainment Enterprises Ltd % Punjab National Bank % KEC International Limited % Godrej Consumer Products Ltd % Ashok Leyland Ltd % Axis Bank Ltd % Bandhan Bank Limited % Asian Paints Ltd % Ntpc Limited % Power Grid Corpn. Of India Ltd % Indiabulls Housing Finance Limited % Lupin Ltd % Adani Port & Sez Ltd % Bajaj Auto Ltd % Cipla Ltd % Bharat Petroleum Corporation Ltd % Bharti Infratel Ltd % Hindalco Industries Ltd % Tata Steel Ltd Rights Partly Paid % Total % Corporate Debt-Holdings Amt (mn) % AUM 8.15% HDFC 27 Jul % 9.60% GE SHIPPING % 7.99 % PFC 20 Dec % 8.01% RECL 24 Mar % 7.58% NTPC 23 Aug % 8.93 PGCIL 20 Oct % 8.95% LARSEN & TOUBRO LTD % 9.30% PGCIL 04 Sep % 9.15% LARSEN & TOUBRO LTD % 8.09% RECL 21 Mar % 9.60 Exim Bank 07 Feb % 7.00% Reliance Industries Limited 31 Aug % Total % G-Sec Holdings Amt (mn) % AUM 6.68% GSEC 17 Sept % 7.17% G Sec 08 Jan % 7.35% GoI SEC % 7.16% GSec % 8.60% GOI 02 June % 9.20 G Sec 30 Sept % 7.68 G Sec 15 Dec % 8.24% GoI Sec % 8.27% Gujarat SDL 13 Jan % 8.53 % GSEC SDL(Assam) % 8.15 GOI Security % 7.73% Gol Sec % Annual Fund Review 17

18 Exide Life Secure Fund Mar % G Sec 01 Dec % Total % Money Market Amt (mn) % AUM CBLO 03APR % Reliance Liquid Fund Treasury Plan Direct Plan Growth Option % Aditya Birla Sun Life Cash Plus Growth Direct Plan % Kotak Liquid Growth Direct % Total % Net Current Assets % Total Annual Fund Review 18

19 Exide Life Preserver Fund Mar 18 Fund Profile: The fund seeks to generate income by investing in a diversified portfolio of debt and money market instruments of varying maturities. SFIN No: ULIF01016/12/09PRESERVER114 Launch Date: January 01, 2010 Net Asset Value (NAV) as on 31 Mar. 2018: Assets Under Management (AUM): mn Equity : Debt : mn Net Current Assets : mn Fund Manager: Debt : Mr.Pranav Parekh Asset Allocation (As approved by IRDAI) Fund Type % Debt 75% to 100% Money Market 0% 25% Rating Profile of Debt Instruments AAA: 26.32% Fund Performance Period Fund Return Benchmark* 1 Month 2.19% 2.13% 6 Months 0.54% 0.65% 1 Year 4.90% 5.11% 2 Years 8.06% 8.06% 3 Years 7.82% 8.12% Since Inception 9.33% 8.04% *Benchmark : Crisil Composite Bond Index (100%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV SOVEREIGN: 73.68% Sector Allocation Debt Sector Allocation % Housing Water transport Civil engineering Infrastructure finance Financial & insurance Unit Price Mar Asset Allocation (As on Mar 31st, 2018) Others: 18.91% Corporate Debt: 21.34% Gsec: 59.75% Modified Duration of Debt and Money Market Instruments 4.66 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 19

20 Exide Life Preserver Fund Mar 18 Portfolio Holdings Corporate Debt-Holdings Amt (mn) % AUM 8.15% HDFC 27 Jul % 10.40% Reliance Ports And Terminals Limited % 8.01% RECL 24 Mar % 7.99 % PFC 20 Dec % 9.15% LARSEN & TOUBRO LTD % 8.58% HDFC 08 May % 8.03% PFC 02 May 2026 (PUT 01 May 2021) % 9.60 Exim Bank 07 Feb % 7.00% Reliance Industries Limited 31 Aug % 9.60% GE SHIPPING % 8.95% LARSEN & TOUBRO LTD % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % Total % G-Sec Holdings Amt (mn) % AUM 7.17% G Sec 08 Jan % 6.68% GSEC 17 Sept % 7.16% GSec % 8.08 GOI 02 Aug % 7.59% G Sec 20 Mar % 8.17% G Sec 01 Dec % 8.15 GOI Security % 8.24% GoI Sec % 7.88% GSec 19 Mar % 8.83% Gsec 25 NOV % 8.46% Gujarat SDL 10 Feb % 6.79% GSEC 15 May % 8.28% GOI % 8.26% GoI Sec % 6.57% GoI Sec % 9.23 GOI % 8.58 % GSEC SDL(Uttarkhand) % 7.73% Gol Sec % 8.13 % GOI 22 Jun % 8.23% Goi Sec (Food Bond) % 7.95% GoI Sec % 7.40% GoI Sec % 12.60% GoI Sec % 5.69% GoI Sec % 6.17% GoI Sec % 6.30% GoI Sec % 10.25% GoI Sec % 8.15% GoI FOOD BOND % 8.30% GOI Fert Bond % Total % Money Market Amt (mn) % AUM CBLO 03APR % Reliance Liquid Fund Treasury Plan Direct Plan Growth Option % Aditya Birla Sun Life Cash Plus Growth Direct Plan % Kotak Liquid Growth Direct % Total % Net Current Assets % Annual Fund Review 20

21 Exide Life Preserver Fund Mar 18 Total Annual Fund Review 21

22 Exide Life Balanced Fund Mar 18 Fund Profile: The fund seeks to achieve long term capital growth through an investment mix of upto 40% equity and the balance in high quality bonds and money market instruments. SFIN No: ULIF00118/10/04BALANCE114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2018: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Shyamsunder Bhat Debt : Mr.Pranav Parekh : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 20% 40% Debt 0% 80% Money Market 0% 20% Rating Profile of Debt Instruments AAA: 26.33% Fund Performance SOVEREIGN: 73.67% Period Fund Return Benchmark* 1 Month 0.53% 0.40% 6 Months 0.91% 1.45% 1 Year 5.71% 6.65% 2 Years 9.58% 9.94% 3 Years 6.94% 7.48% Since Inception 9.16% 9.12% *Benchmark : Crisil Composite Bond Index(70%) and Nifty 50 (30%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities 9.59 Pharmaceuticals 6.23 Manufacture of coke and refined petroleum products 6.22 Manufacture of other transport equipment 5.31 Civil engineering 5.26 Manufacture of motor vehicles trailers and semi trailers 4.84 Manufacture of chemicals and chemical products 4.48 Manufacture of basic metals 3.80 Manufacture of tobacco products 3.51 Others Debt Sector Allocation % Housing Electricity gas steam and air conditioning supply Financial & insurance 2.58 Asset Allocation (As on Mar 31st, 2018) Others: 6.54% Equity: 31.05% Gsec: 45.98% Corporate Debt: 16.43% Modified Duration of Debt and Money Market Instruments 5.03 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 22

23 Exide Life Balanced Fund Mar 18 Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % Housing Development Finance Corporation Ltd % Reliance Industries Ltd % ITC Ltd % Larsen & Toubro Ltd % Infosys Ltd % Maruti Suzuki India Ltd % Bharat Financial Inclusion Ltd % Hcl Technologies Ltd % ICICI Bank Ltd % Bajaj Finance Limited % UPL Limited % State Bank of India % Tata Consultancy Services Ltd % Bharat Electronics Ltd % Hero Motocorp Ltd % Yes Bank Ltd % Sun Pharmaceutical Industries Ltd % National Aluminium Co. Ltd % Mahindra & Mahindra Ltd % Bharti Airtel Ltd % Titan Company Ltd % Max Financial Services Ltd % Motherson Sumi Systems Ltd % Mahindra & Mahindra Financial Services Limited % Container Corporation of India Limited % Bharat Forge Ltd % City Union Bank Ltd % Gail (India) Ltd % Voltas Ltd % Hindustan Unilever Ltd % Hindustan Zinc Ltd % Aurobindo Pharma Limited % L and T Finance Holdings Limited % Hindustan Petroleum Corporation Ltd % Kotak Mahindra Bank Ltd % Grasim Industries Ltd % Cyient Limited % Jubilant Foodworks Limited % Sadbhav Engineering Limited % Petronet LNG limited % Crompton Greaves Consumer Electricals Limited % Apollo Tyres Limited % Tata Steel Ltd % Shree Cements Ltd % Capacite Infraprojects Limited % Dishman Carbogen AMCIS Limited % CADILA HEALTHCARE LIMITED % Strides Shasun Ltd % Indusind Bank Ltd % Mahindra Cie Automotive Ltd % Indian Oil Corporation Ltd % Sterlite Technologies Ltd % TEJAS NETWORKS LIMITED % Kajaria Ceramics Ltd % Sbi Life Insurance Co Ltd % Dr. Reddys Lab Ltd % Annual Fund Review 23

24 Exide Life Balanced Fund Mar 18 Britannia Industries Limited % Sun Tv Network Limited % Oil & Natural Gas Corporation Ltd % Amber Enterprises India Limited % Hathway Cable & Datacom Limited % Nestle India Ltd % Persistent Systems Ltd % Coal India Ltd % Tata Motors Ltd % PNB Housing Finance Ltd % Tech Mahindra Ltd % Wipro Ltd % Zee Entertainment Enterprises Ltd % Godrej Consumer Products Ltd % Ashok Leyland Ltd % Bandhan Bank Limited % Axis Bank Ltd % Punjab National Bank % KEC International Limited % Indiabulls Housing Finance Limited % Power Grid Corpn. Of India Ltd % Ntpc Limited % Bajaj Auto Ltd % Asian Paints Ltd % Bharat Petroleum Corporation Ltd % Tata Steel Ltd Rights Partly Paid % Bharti Infratel Ltd % Cipla Ltd % Adani Port & Sez Ltd % Hindalco Industries Ltd % Lupin Ltd % Total % Corporate Debt-Holdings Amt (mn) % AUM 8.15% HDFC 27Jul % 7.58% NTPC 23Aug % 7.99 % PFC 20Dec % 9.30% PGCIL 04Sep % 8.01% RECL 24Mar % 8.09% RECL 21Mar % 9.60 Exim Bank 07Feb % 7.00% Reliance Industries Limited 31Aug % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % Total % G-Sec Holdings Amt (mn) % AUM 7.17% G Sec 08Jan % 6.68% GSEC 17Sept % 7.35% GoI SEC % 9.20 G Sec 30 Sept % 7.68 GSec 15Dec % 8.27% Gujarat SDL 13Jan % 7.16% GSec % 8.24% GoI Sec % 364 Days T Bill 17Jan % 7.73% Gol Sec % 8.15 GOI Security % 6.79% GSEC 15May % 8.17% G Sec 01Dec % Total % Annual Fund Review 24

25 Exide Life Balanced Fund Mar 18 Money Market Amt (mn) % AUM Reliance Liquid Fund - Treasury Plan - Direct Plan - Growth Option % Aditya Birla Sun Life Cash Plus Growth Direct Plan % Kotak Liquid Growth Direct % Total % Net Current Assets % Total Annual Fund Review 25

26 Exide Life Active Asset Allocation Fund Mar 18 Fund Profile: The fund seeks provide long term capital appreciation in a risk controlled manner by making clear and dynamic asset allocation choices as between Equities and Bonds. SFIN No: ULIF01527/12/10ACTASSET114 Launch Date: January 18, 2011 Net Asset Value (NAV) as on 31 Mar. 2018: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Shyamsunder Bhat Debt : Mr.Pranav Parekh : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 20% 100% Debt 0% 80% Money Market 0% 80% Rating Profile of Debt Instruments AAA: 26.41% Fund Performance SOVEREIGN: 73.59% Period Fund Return Benchmark* 1 Month 1.24% 0.74% 6 Months 2.12% 1.99% 1 Year 7.68% 7.68% 2 Years 12.23% 11.19% 3 Years 5.93% 7.06% Since Inception 8.62% 8.39% *Benchmark : Crisil Composite Bond Index (50%) and Nifty 50 (50%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities 9.01 Pharmaceuticals 6.25 Manufacture of coke and refined petroleum products 6.21 Manufacture of other transport equipment 5.23 Civil engineering 5.19 Manufacture of motor vehicles trailers and semi trailers 4.84 Manufacture of chemicals and chemical products 4.42 Manufacture of basic metals 3.79 Manufacture of tobacco products 3.42 Others Debt Sector Allocation % Electricity gas steam and air conditioning supply Housing Water transport Asset Allocation (As on Mar 31st, 2018) Others: 5.68% Gsec: 20.26% Corporate Debt: 7.27% Equity: 66.79% Modified Duration of Debt and Money Market Instruments 4.9 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 26

27 Exide Life Active Asset Allocation Fund Mar 18 Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % Housing Development Finance Corporation Ltd % Reliance Industries Ltd % ITC Ltd % Larsen & Toubro Ltd % Infosys Ltd % Bharat Financial Inclusion Ltd % Maruti Suzuki India Ltd % Hcl Technologies Ltd % ICICI Bank Ltd % Bajaj Finance Limited % UPL Limited % State Bank of India % Tata Consultancy Services Ltd % National Aluminium Co. Ltd % Hero Motocorp Ltd % Sun Pharmaceutical Industries Ltd % Bharti Airtel Ltd % Yes Bank Ltd % Voltas Ltd % Titan Company Ltd % Bharat Electronics Ltd % Max Financial Services Ltd % Mahindra & Mahindra Ltd % Motherson Sumi Systems Ltd % Mahindra & Mahindra Financial Services Limited % Container Corporation of India Limited % City Union Bank Ltd % Bharat Forge Ltd % Gail (India) Ltd % L and T Finance Holdings Limited % Hindustan Petroleum Corporation Ltd % Kotak Mahindra Bank Ltd % Hindustan Unilever Ltd % Shree Cements Ltd % Jubilant Foodworks Limited % Grasim Industries Ltd % Dishman Carbogen AMCIS Limited % Aurobindo Pharma Limited % Cyient Limited % Hindustan Zinc Ltd % Sadbhav Engineering Limited % Indusind Bank Ltd % Crompton Greaves Consumer Electricals Limited % Petronet LNG limited % Tata Steel Ltd % Apollo Tyres Limited % Indian Oil Corporation Ltd % Capacite Infraprojects Limited % CADILA HEALTHCARE LIMITED % Strides Shasun Ltd % Kajaria Ceramics Ltd % Mahindra Cie Automotive Ltd % Nestle India Ltd % TEJAS NETWORKS LIMITED % Britannia Industries Limited % Sbi Life Insurance Co Ltd % Sun Tv Network Limited % Annual Fund Review 27

28 Exide Life Active Asset Allocation Fund Mar 18 Sterlite Technologies Ltd % Reliance ETF Bank BeES % Dr. Reddys Lab Ltd % Oil & Natural Gas Corporation Ltd % PNB Housing Finance Ltd % Power Grid Corpn. Of India Ltd % Amber Enterprises India Limited % Coal India Ltd % Tata Motors Ltd % Persistent Systems Ltd % Ntpc Limited % Tech Mahindra Ltd % Punjab National Bank % Ashok Leyland Ltd % Godrej Consumer Products Ltd % Bandhan Bank Limited % KEC International Limited % Hindalco Industries Ltd % Tata Steel Ltd Rights Partly Paid % Total % Corporate Debt-Holdings Amt (mn) % AUM 8.15% HDFC 27 Jul % 7.58% NTPC 23 Aug % 9.30% PGCIL 04 Sep % 8.20% NABARD 16 Mar % 7.99 % PFC 20 Dec % 10.40% Reliance Ports And Terminals Limited % 8.01% RECL 24 Mar % 9.60 Exim Bank 07 Feb % 7.00% Reliance Industries Limited 31 Aug % Total % G-Sec Holdings Amt (mn) % AUM 7.88% GSec 19 Mar % 7.17% G Sec 08 Jan % 7.35% GoI SEC % 7.68 G Sec 15 Dec % 6.68% GSEC 17 Sept % 9.20 G Sec 30 Sept % 7.16% GSec % 7.73% Gol Sec % 6.79% GSEC 15 May % 8.83% Gsec 25 NOV % 8.27% Gujarat SDL 13 Jan % 8.15 GOI Security % Total % Money Market Amt (mn) % AUM Kotak Liquid Growth Direct % Aditya Birla Sun Life Cash Plus Growth Direct Plan % CBLO 03APR % Total % Net Current Assets % Total Annual Fund Review 28

29 Exide Life Growth Fund Mar 18 Fund Profile: The fund seeks to achieve long term accelerated capital growth through an investment mix of upto 60% equity and the balance in high quality bonds and money market instruments. SFIN No: ULIF00318/10/04GROWTH114 Launch Date: November 02, 2004 Net Asset Value (NAV) as on 31 Mar. 2018: Assets Under Management (AUM): mn Equity Debt Net Current Assets Fund Manager: Equity : Mr.Sumeet Hinduja Debt : Mr.Pranav Parekh : mn : mn : mn Asset Allocation (As approved by IRDAI) Fund Type % Equity 40% 60% Debt 0% 60% Money Market 0% 20% Rating Profile of Debt Instruments AA+: 1.97% SOVEREIGN: 51.97% AAA: 46.06% Fund Performance Period Fund Return Benchmark* 1 Month 0.49% 0.74% 6 Months 2.35% 1.99% 1 Year 7.66% 7.68% 2 Years 11.36% 11.19% 3 Years 6.79% 7.06% Since Inception 10.19% 10.45% *Benchmark : Crisil Composite Bond Index(50%) and Nifty 50 (50%).Returns over one year are compounded annualised and fund returns are net of charges. Movement of NAV Unit Price Mar Asset Allocation (As on Mar 31st, 2018) Sector Allocation Equity Sector Allocation % Financial & insurance Computer programming consultancy and related activities Manufacture of coke and refined petroleum products 6.89 Manufacture of motor vehicles trailers and semi trailers 6.08 Manufacture of chemicals and chemical products 6.08 Manufacture of tobacco products 4.89 Manufacture of other transport equipment 4.81 Pharmaceuticals 3.78 Civil engineering 3.13 Manufacture of basic metals 3.01 Others Debt Sector Allocation % Financial & insurance Water transport Housing Infrastructure finance Electricity gas steam and air conditioning supply Civil engineering 6.84 Manufacture of coke and refined petroleum products 1.32 Gsec: 22.05% Others: 3.69% Equity: 53.89% Corporate Debt: 20.37% Modified Duration of Debt and Money Market Instruments 4.6 Years Others include Money Market Instruments and Net Current Assets Annual Fund Review 29

30 Exide Life Growth Fund Mar 18 Portfolio Holdings Equity-Holdings Amt (mn) % AUM HDFC Bank Ltd % Reliance Industries Ltd % Housing Development Finance Corporation Ltd % ITC Ltd % Infosys Ltd % Maruti Suzuki India Ltd % ICICI Bank Ltd % Tata Consultancy Services Ltd % Larsen & Toubro Ltd % Indusind Bank Ltd % Kotak Mahindra Bank Ltd % Hindustan Unilever Ltd % Hcl Technologies Ltd % Hero Motocorp Ltd % Sun Pharmaceutical Industries Ltd % Tech Mahindra Ltd % State Bank of India % Bajaj Finance Limited % Bharti Airtel Ltd % Jubilant Foodworks Limited % Titan Company Ltd % Tata Steel Ltd % Mahindra & Mahindra Ltd % Cyient Limited % UPL Limited % Eicher Motors Limited % Tata Motors Ltd % Nestle India Ltd % Bharat Forge Ltd % Voltas Ltd % Amber Enterprises India Limited % Godrej Consumer Products Ltd % TEJAS NETWORKS LIMITED % Oil & Natural Gas Corporation Ltd % Asian Paints Ltd % Zee Entertainment Enterprises Ltd % Bharat Electronics Ltd % Hathway Cable & Datacom Limited % Reliance Nippon CPSE Exchange Traded Fund % Indraprastha Gas Ltd % Ultratech Cement Ltd % Hindustan Petroleum Corporation Ltd % Sun Tv Network Limited % National Aluminium Co. Ltd % Divis Laboratories Limited % Gail (India) Ltd % Sbi Life Insurance Co Ltd % Yes Bank Ltd % Kajaria Ceramics Ltd % DISH TV India Limited % City Union Bank Ltd % Apollo Tyres Limited % Motherson Sumi Systems Ltd % Ntpc Limited % Shree Cements Ltd % Max Financial Services Ltd % Grasim Industries Ltd % Icici Lombard General Insurance Co Ltd % Annual Fund Review 30

31 Exide Life Growth Fund Mar 18 Ashok Leyland Ltd % Capacite Infraprojects Limited % V Guard Industries Ltd % Britannia Industries Limited % Strides Shasun Ltd % Jubilant Life Sciences Limited % Hindalco Industries Ltd % Escorts Ltd % Container Corporation of India Limited % Aurobindo Pharma Limited % Mahindra Cie Automotive Ltd % Jindal Steel & Power Ltd % Axis Bank Ltd % Persistent Systems Ltd % PNB Housing Finance Ltd % Tata Communications Ltd % Dishman Carbogen AMCIS Limited % Punjab National Bank % Bandhan Bank Limited % Tata Steel Ltd Rights Partly Paid % Total % Corporate Debt-Holdings Amt (mn) % AUM 10.40% Reliance Ports And Terminals Limited % 9.60% GE SHIPPING % 8.15% HDFC 27 Jul % 7.99 % PFC 20 Dec % 9.95% State Bank of India 16 Mar 2026 (Call 16 Mar 2021) % 9.85% Sundaram Finance Ltd % 9.20% State Bank of Hyderabad Perpetual Bond % 9.20 Bank of Baroda Perpetual Bond % 9.05% State Bank of India(Perpetual Bond) (Call 27 Jan 2020) % 9.15% IL & FS % 8.93 PGCIL 20 Oct % 8.06% RECL 27 Mar % 9.70% IL & FS 22 Feb % 9.15% LARSEN & TOUBRO LTD % 8.20% NABARD 16 Mar % 9.75% ICICI HOME FINANCE CO. LTD % 9.47% PGCIL % 0.00% NATIONAL HOUSING BANK ZCB UL % 9.30% PGCIL 04 Sep % 10.60% IRFC % 8.95% LARSEN & TOUBRO LTD % 9.30% LIC HOUSING FINANCE LTD % 9.60 Exim Bank 07 Feb % 7.00% Reliance Industries Limited 31 Aug % 8.09% RECL 21 Mar % 8.01% RECL 24 Mar % 9.19% GE SHIPPING % 8.03% PFC 02 May 2026 (PUT 01 May 2021) % 11.00% IOC % 10.85% REC % 8.58% HDFC 08 May % 9.50 % State Bank of India 2025 ( Call 04 Nov 2020) % 9.18% TATA SONS LTD % Total % G-Sec Holdings Amt (mn) % AUM 7.17% G Sec 08 Jan % 6.68% GSEC 17 Sept % Annual Fund Review 31