Index. Pg 1. Market Outlook. Pg 3. Fund Managers Profile. Pg 4. Fund Performance. Pg 5. Secure Fund. Pg 6. Stable Fund. Pg 7. Growth Fund.

Transcription

1 April 2014

2 Index as on 30th April 2014 Market Outlook Pg 1 Fund Managers Profile Pg 3 Fund Performance Pg 4 Secure Fund Pg 5 Stable Fund Pg 6 Growth Fund Pg 7 Growth Advantage Fund Pg 8 Money Market Fund Pg 9 Short Term Debt Fund Pg 10 Income Advantage Fund Pg 11 Gilt Fund Pg 12 Bond Fund Pg 13 Fixed Interest Fund Pg 14

3 Market Update Economy Review The macro-economic environment continues to be challenging. After a positive reading in January '14 (growth of 0.8%), industrial production contracted by 1.9% y-o-y. Manufacturing contracted by 3.7% and mining grew by 1.4%. The consumer price index (CPI) inched up to 8.3% and wholesale price index (WPI) spiked to 5.7%. Core inflation remained stable at 7.8% y-o-y. On the positive front, India's current account deficit (CAD) at the end of FY14 improved to less than 2% from a high of 5% in FY13. India posted its best ever CAD data in last 20 quarters as imports declined 8.1% to $451bn. This was due to domestic slowdown and gold import curbs. Exports growth remained positive albeit only 4% and any future upswing is dependent on a global trade recovery. India's forex reserves, augmented by recent FII flows are higher at approximately $310bn. th th The first phase of the 16 general elections began on 7 April 2014, with overall voter turnout th improving vis-à-vis the previous elections. The last phase of voting ended on 12 May and results would be announced on May 16. Along with the expectation of decisive election mandate, there is an underlying EM risk on rally which has also contributed to the recent Indian equities run-up. One of the reasons behind the strong rally in India is that it has benefitted out of the huge inflows in the Emerging Markets. In the last 2 months, India is up 9.1%, Russia 10%, Thailand 9.5%, Indonesia 9.3%, Brazil 9% and Turkey by 8.5%. We believe that if a stable government comes to power, a recovery may be expected in the cyclical sectors from the next year. Post elections, focus will shift towards domestic monsoon scenario and markets may move according to the global risk on and off environment. 1

4 Market Update Outlook for Equities Indian equities had a month of consolidation in April with benchmark indices closing flat despite hitting all time highs. FII interest continued with inflows of $1.2bn during the month of April taking the YTD buy figure to $5.3bn. Domestic institutional investors (DII) continued to be net sellers, notching up net outflows of $1.1bn in April, taking their YTD outflow figure to $3.5bn. We expect a corporate earnings growth of 12-13% in FY15 resulting in Sensex earnings per share (EPS) at over Rs At current levels, the Sensex is trading fairly at 15xFY15e earnings. However, if the country gets a decisive election mandate, the market euphoria might take the Sensex to new high as investors will start discounting FY16e earnings in the coming months BSE NSE 7000 INDEX Mar-14 % Change Nifty Sensex BSE 100 Dow Jones % % % % Nikkei % Mar-13 Apr-13 May-13 Jun -13 Jul-13 Aug -13 Sep -13 Oct -13 Nov-13 Dec-13 Jan-14 Feb -14 Mar Hang Seng Nasdaq % % Outlook for Debt Bond market saw steady buying on the G-sec market. Most of the activity was concentrated in the 10 year security. The long end of the market was bought by the insurance industry when it was issued by the RBI in the weekly auctions. There were very few issuances on the corporate bond front. As there were no primary issues, the secondary market where trading at very low spread. We expect the scenario to continue till May We expect 10 year G-sec yield to trade in the range of 8.75% to 9.10 % and corporate bond spread to remain at 65 bps in the near term. 10 Yr G-Sec Yield 5 year AAA Corporate Bond Spread percentage (%) bps Key Indices 10 year G-Sec 5 Year G-Sec 91 Day T Bill 364 day T-Bill Mar-14 % Change 8.83% 8.80% 0.34% 8.80% 8.88% -0.91% 8.83% 8.55% 3.17% 8.89% 8.70% 2.14% MIBOR 8.98% 9.89% % Call Rates 8.65% 8.03% 7.17% Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 2

5 Fund Managers Profile Mr. Devendra Singhvi - Head- Fixed Income Mr. Devendra Singhvi has been with BSLI since May He has over 16 years of experience in markets such as Fixed Income, Treasury, Forex and Derivatives. His previous three assignments have been with Reliance ADA Group Treasury, Prebon Yamane and Hindalco Industries Ltd. Devendra has done his graduation in Mathematics and an MBA in Finance along with a PhD. Mr. Devendra Singhvi Mr. Sameer Mistry - Fund Manager Equity Mr. Sameer Mistry joined BSLI in January He has over 14 years of experience in Equity Research and Fund Management. Prior to joining us, he worked as a Fund Manager with Reliance Capital Asset Management, Tata Mutual Fund and SBI Life Insurance. Sameer has done his BE (Electronics & Telecom) as well as an MBA in Finance. Mr. Sameer Mistry Mr. Parin S Vora - Chief Manager Investments Mr. Parin S Vora has been with BSLI since October 2007 and is primarily responsible for Fixed Income trading and Fund Management. He has 14 years of experience in Fixed Income Industry and was associated with Birla Sun Life Securities & Mata Securities. Parin has done his MBA in Finance from Welingkar s Institute of Management and DPMIR from Narsee Monjee Institute of Management studies. Mr. Parin Vora 3

6 th Fund Performance as on 30 April 2014 Group Funds Figures in percentage (%) Returns Period Secure Fund Stable Fund Growth Fund Growth Advantage Absolute Return 1 month 3 months 6 months 0.83% 0.70% 4.08% 3.84% 4.75% 4.18% 0.84% 0.59% 5.22% 4.89% 5.60% 4.59% 0.82% 0.49% 6.30% 5.95% 6.31% 4.99% 0.93% 0.41% 7.24% 6.65% 7.04% 5.25% 1 Year 5.34% 4.93% 6.58% 6.16% 7.88% 7.34% 8.89% 8.11% 2 Years 8.60% 7.74% 9.41% 8.48% 10.12% 9.18% 11.00% 9.63% 3 Years 7.04% 6.76% 6.74% 6.41% 6.22% 6.01% 6.62% 5.71% CAGR 4 Years 6.52% 6.27% 6.39% 6.06% 6.14% 5.81% 6.71% 5.61% 5 Years 8.32% 7.44% 9.77% 8.60% 11.59% 9.71% 13.26% 10.41% Since Inception 10.53% 6.81% 13.27% 8.21% 14.72% 9.76% 11.91% 6.24% Returns Period Money Market Fund Short Term Income Debt Fund Advantage Fund 1 month 0.71% 0.59% 0.72% 0.61% 0.97% 0.84% Absolute Return 3 months 6 months 2.12% 2.08% 4.38% 3.99% 2.30% 2.25% 4.33% 3.99% 2.84% 2.44% 4.62% 3.60% 1 Year 9.04% 8.24% 8.15% 7.15% 4.37% 3.25% 2 Years 9.37% 7.98% 9.49% 8.03% 8.46% 6.71% 3 Years 9.32% 8.04% 9.49% 8.08% 9.94% 7.15% CAGR 4 Years 8.92% 7.56% 8.76% 7.20% 8.83% 6.46% 5 Years 9.10% 6.59% 8.62% Since Inception 9.55% 6.93% 8.91% 6.72% 8.97% 6.57% Returns Period Gilt Fund Bond Fund Fixed Interest Fund 1 month 1.17% 0.94% 0.61% 0.99% 0.84% Absolute Return 3 months 2.88% 2.70% 2.26% 2.72% 2.44% 6 months 3.36% 4.66% 3.99% 4.01% 3.60% CAGR 1 Year 2 Years 3 Years 4 Years 5 Years Since Inception -0.24% 6.36% 6.03% 5.51% 4.83% 6.23% 6.21% 9.56% 9.63% 8.74% 8.88% 10.95% 7.30% 8.32% 8.23% 7.26% 6.43% 6.90% 5.57% 9.59% 9.62% 8.81% 9.07% 8.57% 3.25% 6.71% 7.15% 6.46% 5.79% 4.73% Fund Name Secure Stable Growth Growth Advantage Money Market Income Advantage Fixed Interest Short Term Debt Fund Bond Fund Gilt Fund Benchmark Composition BSE 100 Crisil Composite Bond Index BSE 100 Crisil Composite Bond Index BSE 100 Crisil Composite Bond Index BSE 100 Crisil Composite Bond Index Crisil Composite Bond Index - Crisil Composite Bond Index - Crisil Short Term Bond Index - CRISIL Short Term Bond Index - - Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index SFIN ULGF00212/06/01BSLGSECURE109 ULGF00312/06/01BSLGSTABLE109 ULGF00112/06/01BSLGGROWTH109 ULGF01026/11/07BSLIGGRADV109 ULGF00824/08/04BSLIGRMMKT109 ULGF01425/02/10BSLGINCADV109 ULGF00416/07/02BSLGFIXINT109 ULGF01322/09/08BSLGSHTDBT109 ULGF00530/05/03BSLIGRBOND109 ULGF00630/05/03BSLIGRGILT109 Disclaimer: This document is issued by BSLI. While all reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors of fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any investment strategy, nor does it constitute any prediction of likely future movements in NAVs. Past performance is not necessarily indicative of future performance. We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Birla Sun Life Insurance Company Limited, nor any person connected with it, accepts any liability arising from the use of this document. You are advised to make your own independent judgment with respect to any matter contained herein. The investment risk in investment portfolio is borne by the policyholder. The name of the funds do not in any way indicate their quality, future prospects or returns. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS: IRDA clarifies to public that IRDA or its officials do not involve inactivities like sale of any kind of insurance or financial products nor invest premiums. IRDA does not announce any bonus. Public receiving such phone calls are requested to lodge a police complaint along with details of phone call, number. 4

7 Group Secure Fund Manager: Sameer Mistry (Equity) & Parin Vora (Debt) Total Experience: 14 years & 14 years ULGF00212/06/01BSLGSECURE109 Objective: To build your capital and generate better returns at moderate level of risk, over a medium or long-term period through a balance of investment in equity and debt. Strategy: Generate better return with moderate level of risk through active management of fixed income portfolio and focus on creating long term equity portfolio which will enhance yield of composite portfolio with low level of risk appetite. Exposure to Equities has increased to % from 18.89%, exposure to G-Secs has decreased 28.85% from 30.88% while that to MMI has increased to % from 20.10% on a MOM basis. Over 88% of the debt portfolio remains invested in highest rated instruments. The fund is predominantly invested in large cap stocks and maintains a well diversified equity portfolio. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 4.23 years Benchmark: BSE 100 & Crisil Composite Bond Index & Crisil Liquid Fund Index GOVERNMENT SECURITIES: 28.85% 7.16% Government Of India % 8.83% Government Of India % 8.2% Government Of India % 8.33% Government Of India % 8.79% Government Of India % 8.13% Government Of India % 8.26% Government Of India % 8.83% Government Of India % 7.8% Government Of India % 8.32% Government Of India % Other Government Securities 6.18% CORPORATE DEBT: 26.46% 8.9% Steel Authority Of India Ltd % 9.25% PGC. Of India Ltd % 9.15% ICICI Bank Ltd % 9.95% Tata Motors Ltd % 8.58% HDFC. Ltd % 9.15% L&T Ltd % 8% MVM Limited % 9.7% Power Finance Corpn. Ltd % 5.9% HDFC Bank Ltd % 9.1% HDFC Bank Ltd % Other Corporate Debt 15.60% EQUITY: 19.38% ITC Ltd. 1.38% HDFC Bank Ltd. 1.25% Reliance Industries Ltd. 1.20% ICICI Bank Ltd. 1.14% HDFC. Ltd. 1.04% Infosys Ltd. 1.04% Tata Consultancy Services Ltd. 0.83% L&T Ltd. 0.79% State Bank Of India 0.73% Oil And Natural Gas Corpn. Ltd. 0.66% Other Equity 9.33% : 25.31% Secure 37.61% 39.22% 23.17% Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Less than 2 years 7 years & above SECTORAL ALLOCATION BANKING SOFTWARE / IT OIL AND GAS % % 19.68% 25.31% Equity FMCG 9.89% PHARMACEUTICALS AUTOMOBILE 8.24% 7.94% NCD 26.46% G-Secs 28.85% FINANCIAL SERVICES CAPITAL GOODS 6.98% 5.06% METAL TELECOMMUNICATION OTHERS 4.33% 3.30% 3.25% AAA 34.08% AA+ AA AA- 4.93% 3.94% 3.08% A+ 1.31% A % DIVERSIFIED 1.98% ALCOHOL BEVERAGES 1.80% Sovereign 51.60% MEDIA 1.64% 5

8 Group Stable Fund Manager: Sameer Mistry (Equity) & Parin Vora (Debt) Total Experience: 14 years & 14 years ULGF00312/06/01BSLGSTABLE109 Objective: Helps you to grow your capital through enhanced returns over a medium to long term period through investments in equity and debt instruments, thereby providing a good balance between risk and return. Strategy: To earn capital appreciation by maintaining diversified equity portfolio and seek to earn regular return on fixed income portfolio by active management resulting in wealth creation for policyholders. Over 95% of the debt portfolio remains invested in highest rated instruments. The fund is predominantly invested in large cap stocks and maintains a well diversified equity portfolio. Top 4 equity sectors remain same as the previous month. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 4.38 years Benchmark: BSE 100 & Crisil Composite Bond Index & Crisil Liquid Fund Index GOVERNMENT SECURITIES: 28.21% 8.79% Government Of India % 8.83% Government Of India % 8.33% Government Of India % 8.08% Government Of India % 8.3% Government Of India % 8.28% Government Of India % 7.16% Government Of India % 7.8% Government Of India % 8.26% Government Of India % 7.61% Government Of India % Other Government Securities 3.17% CORPORATE DEBT: 20.45% 8.65% REC Ltd % 10.1% PGC. Of India Ltd % 9.25% LIC Housing Finance Ltd % 8.6% Power Finance Corpn. Ltd % 9.6% HDFC Ltd % 9.4% NABARD % 10.85% REC. Ltd % 9.61% Power Finance Corpn. Ltd % 9.33% NABARD % 10.15% Kotak Mahindra Prime Ltd % Other Corporate Debt 4.47% EQUITY: 34.01% ITC Ltd. 2.40% HDFC Bank Ltd. 2.21% Reliance Industries Ltd. 2.11% ICICI Bank Ltd. 1.98% HDFC. Ltd. 1.84% Infosys Ltd. 1.83% Tata Consultancy Services Ltd. 1.46% L&T Ltd. 1.39% State Bank Of India 1.23% Oil And Natural Gas Corpn. Ltd. 1.14% Other Equity 16.41% : 17.33% Stable 45.32% 32.31% 22.38% Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Less than 2 years 7 years & above SECTORAL ALLOCATION BANKING SOFTWARE / IT 13.50% 19.56% NCD 20.45% 17.33% OIL AND GAS 12.60% FMCG 9.86% PHARMACEUTICALS AUTOMOBILE 8.25% 7.92% G-Secs 28.21% Equities 34.01% FINANCIAL SERVICES CAPITAL GOODS 6.84% 5.12% METAL OTHERS TELECOMMUNICATION 4.41% 3.41% 3.20% AAA 36.61% AA+ AA 3.56% 1.70% AA- 0.16% DIVERSIFIED 1.90% ALCOHOL BEVERAGES MEDIA 1.79% 1.65% Sovereign 57.97% 6

9 Group Growth Fund Manager: Sameer Mistry (Equity) & Parin Vora (Debt) Total Experience: 14 years & 14 years ULGF00112/06/01BSLGGROWTH109 Objective: To achieve optimum balance between growth and stability to provide long-term capital appreciation with balanced level of risk by investing in fixed income securities and high quality equity security. Strategy: To ensure capital appreciation by simultaneously investing into fixed income securities and maintaining diversified equity portfolio. Active fund management is carried out to enhance policy holder s wealth in long run. Over 94% of the debt portfolio remains invested in highest rated instruments. The fund is predominantly invested in large cap stocks and maintains a well diversified equity portfolio. Top 4 equity sectors remain same as the previous month. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 4.35 years Benchmark: BSE 100 & Crisil Composite Bond Index & Crisil Liquid Fund Index GOVERNMENT SECURITIES: 21.40% 8.33% Government Of India % 8.79% Government Of India % 8.2% Government Of India % 7.16% Government Of India % 7.95% Government Of India % 9.23% Government Of India % 7.8% Government Of India % 8.08% Government Of India % 8.83% Government Of India % 8.3% Government Of India % Other Government Securities 1.33% CORPORATE DEBT: 17.06% 8.7% Power Finance Corpn. Ltd % 10.15% Kotak Mahindra Prime Ltd % 5.9% HDFC Bank Ltd % NABARD % 8.95% Power Finance Corpn. Ltd % 7.6% HDFC. Ltd % 9.655% NABARD % 11.25% Power Finance Corpn. Ltd % 9.05% State Bank Of India % 8.2% Ashok Leyland Ltd % Other Corporate Debt 4.22% EQUITY: 48.40% ITC Ltd. 3.43% HDFC Bank Ltd. 3.19% Reliance Industries Ltd. 3.01% ICICI Bank Ltd. 2.89% HDFC. Ltd. 2.63% Infosys Ltd. 2.61% Tata Consultancy Services Ltd. 2.09% L&T Ltd. 1.98% State Bank Of India 1.77% Oil And Natural Gas Corpn. Ltd. 1.63% Other Equity 23.16% : 13.14% Gr. Growth 42.65% 34.59% 22.76% Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Less than 2 years 7 years & above SECTORAL ALLOCATION BANKING SOFTWARE / IT % % NCD 17.06% 13.14% OIL AND GAS % FMCG PHARMACEUTICALS AUTOMOBILE 8.29% 7.94% 9.84% G-Secs 21.40% Equities 48.40% FINANCIAL SERVICES CAPITAL GOODS 5.14% 6.86% METAL OTHERS 4.36% 3.25% AAA 35.42% AA+ 4.98% A+ 2.92% AA 1.04% TELECOMMUNICATION 3.05% DIVERSIFIED ALCOHOL BEVERAGES MEDIA 1.92% 1.80% 1.65% Sovereign 55.64% 7

10 Group Growth Advantage Fund Manager: Sameer Mistry (Equity) & Parin Vora (Debt) Total Experience: 14 years & 14 years ULGF01026/11/07BSLIGGRADV109 Objective: The Objective of the fund is to provide blend of fixed return by investing in debt & money market instruments and capital appreciation by predominantly investing in equities of fundamentally strong and large blue chip companies. Strategy: The Strategy of the fund is to build and actively manage a welldiversified equity portfolio of value & growth driven stocks by following a research-focused investment approach. While appreciating the high risk associated with equities, the fund would attempt to maximize the riskreturn pay-off for the long-term advantage of the policyholders. The nonequity portion of the fund will be invested in high rated debt and money market instruments and fixed deposits. Over 100% of the debt portfolio remains invested in highest rated instruments. The fund is predominantly invested in large cap stocks and maintains a well diversified equity portfolio. Top 4 equity sectors remain same as the previous month. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 5.91 years Benchmark: BSE 100 & Crisil Composite Bond Index & Crisil Liquid Fund Index GOVERNMENT SECURITIES: 21.76% 8.33% Government Of India % 7.8% Government Of India % 9.23% Government Of India % 8.2% Government Of India % 7.49% Government Of India % 8.15% Government Of India % 8.79% Government Of India % 7.46% Government Of India % 8.08% Government Of India % 7.99% Government Of India % CORPORATE DEBT: 9.96% 8.83% Export Import Bank Of India % 7.6% Power Finance Corpn. Ltd % 8.95% HDFC Bank Ltd % 8.7% Power Finance Corpn. Ltd % 11.95% HDFC. Ltd % EQUITY: 58.26% ITC Ltd. 4.12% HDFC Bank Ltd. 3.78% Reliance Industries Ltd. 3.62% ICICI Bank Ltd. 3.41% HDFC. Ltd. 3.16% Infosys Ltd. 3.15% Tata Consultancy Services Ltd. 2.51% L&T Ltd. 2.38% State Bank Of India 2.12% Oil And Natural Gas Corpn. Ltd. 1.96% Other Equity 28.06% : 10.01% Gr. Advantage 56.23% 28.27% 15.49% Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Less than 2 years 7 years & above SECTORAL ALLOCATION BANKING SOFTWARE / IT % % G-Secs 21.76% 10.01% NCD 9.96% OIL AND GAS % FMCG % PHARMACEUTICALS AUTOMOBILE 8.26% 7.92% Equities 58.26% FINANCIAL SERVICES 6.84% CAPITAL GOODS 5.13% METAL 4.38% OTHERS TELECOMMUNICATION 3.29% 3.11% AAA 31.39% DIVERSIFIED 1.90% ALCOHOL BEVERAGES 1.79% MEDIA 1.65% Sovereign 68.61% 8

11 Group Money Market Fund Manager: Devendra Singhvi Total Experience: 16 years ULGF00824/08/04BSLIGRMMKT109 Objective: The primary objective of this BSLI Fund Option is to provide reasonable returns, at a high level of safety and liquidity for capital conservation for the Policyholder 100% of the fund is invested in highest rated instruments. The fund continues to maintain very low maturity profile. Strategy: The strategy of this BSLI Fund Option is to make judicious investments in high quality debt and money market instruments to protect capital of the Policyholder with very low level of risk. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 0.48 years Benchmark: CRISIL Liquid Fund Index : % % MM Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Less than 2 years % A % 9

12 Group Short Term Debt Fund Manager: Devendra Singhvi Total Experience: 16 years ULGF01322/09/08BSLGSHTDBT109 Objective: The objective of the fund is to provide capital preservation at a high level of safety & liquidity through judicious investments in high quality short term debt instruments. Strategy: To actively manage the fund by building a portfolio of fixed income instruments with short term duration. The fund will invest in government securities, high rated corporate bonds, good quality money market instruments and other fixed income securities. The quality & duration of the assets purchased would aim to minimize the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity. Exposure to Corporate Debt has decreased to 28.82% from 29.25% while that to MMI has increased to 71.18% from 70.75% on a MOM basis. Over 78% of the fund is invested in highest rated instruments. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 1.01 years Benchmark: CRISIL Short Term Bond Index CORPORATE DEBT: 28.82% : 71.18% 9.75% HDFC. Ltd % 10.12% Aditya Birla Finance Ltd % 9.95% L&T Finance Ltd % 8.97% EID-Parry (India) Ltd % 10.18% LIC Housing Finance Ltd % 8.95% L&T Shipbuilding Ltd % 10.1% HDB Financial Services Ltd % 10.05% Can Fin Homes Ltd % 8.8% HDB Financial Services Ltd % Tata Motors Finance Ltd % Other Corporate Debt 2.74% Jan-11 Apr-11 Short Term Debt Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 AAA 26.18% AA % AA- 4.97% AA 3.00% NCD 28.82% A % 71.18% 75.62% 24.38% Less than 2 years 10

13 Group Income Advantage Fund Manager: Devendra Singhvi Total Experience: 16 years ULGF01425/02/10BSLGINCADV109 Objective: To provide capital preservation and regular income, at a high level of safety over a medium term horizon by investing in high quality debt instruments. 84% of the fund remains invested in highest rated instruments. Strategy: To actively manage the fund by building a portfolio of fixed income instruments with medium term duration. The fund will invest in government securities, high rated corporate bonds, high quality money market instruments and other fixed income securities. The quality of the assets purchased would aim to minimize the credit risk and liquidity risk of the portfolio. The fund will maintain reasonable level of liquidity. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 5.01 years Benchmark: Crisil Composite Bond index & Crisil Liquid Fund Index GOVERNMENT SECURITIES: 39.17% CORPORATE DEBT: 44.15% : 16.69% 8.33% Government Of India % 8.2% Government Of India % 8.32% Government Of India % 7.5% Government Of India % 8.79% Government Of India % 8.83% Government Of India % 8.08% Government Of India % 7.8% Government Of India % 9.2% Government Of India % 10.05% Can Fin Homes Ltd % 9.97% HDB Financial Services Ltd % 9.74% Tata Sons Ltd % 10.3% Tata Motors Ltd % 9.15% Export Import Bank Of India % 9.02% REC. Ltd % 9.25% PGC. Of India Ltd % 9.9% HDFC. Ltd % 9.15% ICICI Bank Ltd % Oct-11 Jan-12 Gr. Inc Adv Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 AAA 32.51% AA % A % G-Secs 16.69% 39.17% Sovereign 43.10% NCD 44.15% 56.83% 28.70% 14.47% Less than 2 years 7 years & above 11

14 Group Gilt Fund Manager: Devendra Singhvi Total Experience: 16 years ULGF00630/05/03BSLIGRGILT109 Objective: The fund aims to deliver safe and consistent returns over along-term period by investing in Government Securities. Strategy: Active fund management at very low level of risk by having entire exposure to government securities & money market instruments, maintaining medium term duration of the portfolio to achieve capital conservation. Exposure to G-Secs has decreased to 90.82% from 91.36% while that to MMI has increased to 9.18% from 8.64% on a MOM basis. Assets held as on 30th April 2014: ` 6.37 cr NAV as on 30th April 2014: ` Modified Duration: 7.00 years GOVERNMENT SECURITIES: 90.82% : 9.18% 8.35% Government Of India % 8.28% Government Of India % 9.15% Government Of India % 8.33% Government Of India % 8.79% Government Of India % 9.2% Government Of India % 8.15% Government Of India % 8.28% Government Of India % 8.83% Government Of India % 7.5% Government Of India % Other Government Securities 0.15% 6.69% 0.15% 93.16% Less than 2 years 7 years & above Sovereign % 9.18% G-Secs 90.82% 12

15 Group Bond Fund Manager: Devendra Singhvi Total Experience: 16 years ULGF00530/05/03BSLIGRBOND109 Objective: The fund aims to achieve capital preservation along with stable returns by investing in corporate bonds over medium-term period. Strategy: The fund follows a strategy to invest in high credit rated corporate bonds, maintaining a short-term duration of the portfolio at a medium level of risk to achieve capital conservation. Exposure to Corporate Debt has decreased to 67.78% from 69.19% while that to MMI has increased to 32.22% from 30.81% on a MOM basis. Over 81% of the fund remainsinvested in highest rated instruments. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 3.27 years Benchmark: CRISIL Short Term Bond Index CORPORATE DEBT: 67.78% : 32.22% 9.74% Tata Sons Ltd % 8.54% NPC. Of India Ltd % 9.15% ICICI Bank Ltd % 9.55% Hindalco Industries Ltd % 10.18% LIC Housing Finance Ltd % 9.18% HDFC. Ltd % 9.97% HDB Financial Services Ltd % 10.05% Can Fin Homes Ltd % 10.05% Can Fin Homes Ltd % 10.05% Bajaj Finance Ltd % Other Corporate Debt 37.71% 28.36% 42.91% 28.73% Less than 2 years 7 years & above AA % AA- 4.59% A1+ AA 3.94% 1.20% 32.22% AAA 77.56% NCD 67.78% 13

16 Group Fixed Interest Fund Manager: Devendra Singhvi Total Experience: 16 years ULGF00416/07/02BSLGFIXINT109 Objective: The Fixed Interest Fund, with full exposure in debt market instrument, aims to achieve value creation at low risk over a long-term horizon by investing into high quality fixed interest securities. Strategy: The strategy is to actively manage the fund at a medium level of risk by having entire exposure to government securities, corporate bonds maintaining medium to long-term duration of the portfolio to achieve capital conservation. Exposure to Corporate Debt has slightly increased to 34.37% from 34.18%, to G-Secs it has increased to 41.78% from 39.42% and to MMI, it has decreased to 23.85% from 26.39% on a MOM basis. Over 87% of the fund remains invested in highest rated instruments. Assets held as on 30th April 2014: ` cr NAV as on 30th April 2014: ` Modified Duration: 4.74 years Benchmark: Crisil Composite Bond index & Crisil Liquid Fund Index GOVERNMENT SECURITIES: 41.78% 8.33% Government Of India % 8.83% Government Of India % 7.8% Government Of India % 7.16% Government Of India % 8.28% Government Of India % 8.32% Government Of India % 8.2% Government Of India % 8.3% Government Of India % 9.2% Government Of India % 6.05% Government Of India % Other Government Securities 3.69% : 23.85% FIF Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 CORPORATE DEBT: 34.37% 9.95% State Bank Of India % 9.64% PGC. Of India Ltd % 9.4% Export Import Bank Of India % 9.55% Hindalco Industries Ltd % 9.35% PGC. Of India Ltd % 8.7% Power Finance Corpn. Ltd % 8.95% Power Finance Corpn. Ltd % Tata Motors Finance Ltd % 10.6% IRFC. Ltd % 9.9% Tata Sons Ltd % Other Corporate Debt 17.84% 21.60% Less than 2 years 26.10% 52.30% 7 years & above AAA 31.27% AA+ 8.68% A1+ AA 3.30% 2.77% AA- 0.93% 23.85% Sovereign 53.05% NCD 34.37% G-Secs 41.78% 14