Sundaram Select Thematic Funds Rural India Fund

Transcription

1 Sundaram Select Thematic Funds Rural India Fund - An open end equity scheme Theme : Rural Prosperity A Multi-cap Portfolio For Private Circulation Only Refer Disclaimer on slide: 12 July 2011 Sundaram Asset Management

2 Disclosures Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram Asset Management, its distributors and at All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram Select Thematic Funds Rural India Fund is only the name of the scheme and does not in any manner indicate either quality or future prospects and returns. For detailed disclosures on risk factors and disclaimers refer slide 12 2 Sundaram Asset Management

3 Pointers Rural prosperity is a key pillar of the India growth story along with demographics & infrastructure. Rural prosperity is not just about farming; food processing, agriculture related sectors, communication, financial services, consumer products and infrastructure have all attracted corporate India to Rural India. Despite focussing only on the theme the fund has outpaced the broad market since launch Style integrity of the portfolio tracks the theme completely Sundaram Rural India Fund Track record of a fund house with acclaimed record for several years in a row. Suitability: A high-risk, high-return product that could boost returns of a core portfolio of large-cap funds. Past Performance may or may not be sustained in future 3 Sundaram Asset Management

4 Product Positioning Positioning: A thematic investment option Approach: Dedicated vehicle to play the key themes that will drive India growth over the next decade Rural Prosperity though consumption and investment opportunities. Style: Aggressively managed funds with sector, stock, trading and cash calls as well as a call to stay outside the theme to the extent permitted if conditions warrant Benchmark: BSE 500 Index Cap Curve: Multi-cap portfolio Enabler: Investment outside the theme shall be only in large cap stocks preferably within S&P CNX Nifty Index 4 Sundaram Asset Management

5 Performance Period Change in NAV (%) Returns (%) Fund BSE 500 Fund BSE 500 Excess Since Inception Last 5 years Last 3 years Last 2 years Last 1 year As of July 31, Returns in %. Computed on compounded annual basis based on NAV of Growth option. Past Performance may or may not be sustained in future 5 Sundaram Asset Management

6 Track-record Fund BSE YTD Returns in %;Performance as on July 31, 2011 Past Performance may or may not be sustained in future 6 Sundaram Asset Management

7 Returns since launch Fund 8.8 BSE CNX Returns in %;Performance as on July 31, 2011 Past Performance may or may not be sustained in future 7 Sundaram Asset Management

8 Portfolio Snapshot Portfolio Profile (%) Cash, 2.8 Media, 4.3 Pharma, 4.8 Telecom, 4.9 Auto, 8.1 Sector Profile(%) Others, 6.6 Cash, 2.8 Consmer goods, 34.4 Themati c, 97.2 Financial Services, 11.2 The top ten exposures now account for about 39.6% of the assets. Chemica ls, 23.0 The portfolio now has an almost-complete tilt to stocks of companies geared to rural spending. Portfolio stays spread across the cap curve. Allocation in % of AUM of Rs.192 Crore As on July 31, 2011; Source: Fact Sheet 8 Sundaram Asset Management

9 Top ten picks Company Allocation (%) Cap Curve G S F C 6.0 Small Cap Coromandel Fertilizers 5.1 Small Cap United Phosphorus 4.5 Mid Cap Punjab National Bank 3.7 Large Cap Nestle India 3.6 Large Cap McLeod Russel 3.4 Small Cap Bharti Airtel 3.4 Large Cap Hindustan Unilever 3.4 Large Cap Asian Paints 3.3 Large Cap State Bank of India 3.2 Large Cap Allocation in % of AUM As on July 31, 2011; Source: Fact Sheet 9 Sundaram Asset Management

10 Portfolio manager Experience A seven-year stint at Canara Bank was followed by a shift to the asset management industry through Canbank Mutual Fund (now Canara Robeco) J Venkatesan Fund Manager Equity Educational Background Hobbies Over two decades of tracking the financial markets Cost Accountant Post -Graduate in Commerce To read books and enjoy watching sport Funds Managed: Sundaram Growth, Sundaram India Leadership, Sundaram Rural India, Sundaram Select Thematic Fund Financial Services Opportunities and Sundaram Select Thematic Fund PSU Opportunities 10 Sundaram Asset Management

11 Allotment Date May 2006 Source: Scheme Information Document / Fact Sheet Fund facts NAV (July 31, 2011) Growth: Rs Dividend: Rs Plans / Options Regular & Institutional / Growth, Dividend Payout & Re-investment Minimum Subscription Amount Regular Plan First Investment: Rs 5000 Subsequent Purchase: Rs 500 Institutional Plan First Investment: Rs 5000 Subsequent Purchase: Rs 500 SIP Rs.1000 per week Rs 250 per month Rs 750 per quarter Asset allocation Equity & equity-related securities of companies that are focusing on Rural India (including investment in derivatives): 70%- 100% Other equities (including investment in derivatives): 0%-30% Money market instruments 0%-15%. Exposure in derivatives shall not exceed 50% of the net assets of the scheme. The Scheme may invest up to 35% of the net assets in overseas securities. Objective Seek to generate consistent long-term returns by investing predominantly in equity/equity-related instruments of Companies that are focusing on Rural India Entry Load Nil Load Structure Sundaram Rural India Fund Exit Load Redeemed within 12 months: 1 % Redeemed after 12 months: NIL 11 Sundaram Asset Management

12 Disclosures Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram Asset Management, its distributors and at Fund Facts: Name: Sundaram Select Thematic Funds Rural India Fund; Type: Open-end equity scheme; Investment Objective: The primary investment objective of the scheme is to generate consistent long-term returns by investing predominantly in equity/equity-related instruments of Companies that are focusing on Rural India. Asset Allocation: Equity & equity related securities of companies that are focusing on Rural India (including investment in derivatives): 70%-100% Other equities (including investment in derivatives): 0%-30% Money market instruments 0%-15% Exposure in derivative shall not exceed 50% of the net assets of the scheme The Scheme may invest up to 35%of the net assets in overseas securities. The fund may also invest in equity and equity-related instruments listed in overseas markets as well as overseas funds/etfs that invest in or track agri commodity stocks. The scheme will not invest in funds/etfs that have direct exposure to commodities. Benchmark: BSE 500 Index. Terms of Offer: NAV. Plans: Regular & Institutional; Options: Dividend Payout, Dividend Reinvestment, Dividend Sweep & Growth. Minimum Investment Amount: Rs 5,000 and multiples of Rs 1 and for additional purchase. SIP: The minimum amount is Rs 1000 (Weekly Option), Rs 250 (Monthly Option) and Rs 750 (Quarterly Option). Available dates for monthly and quarterly option for SIP are 1, 7, 14, 20 and 25. Weekly SIP will be on Wednesday of every week. If it is not a business day the investment will be processed on the next business day. Exit Load: 1 % if redeemed / switched out within 12 months from the date of allotment for Regular Plan and Institutional Plan. There is no exit load for bonus units and dividend re-investment. Scheme-Specific Risk Factors: Vagaries of nature such as erratic monsoon, failure of crop & drought, to name a few; cyclical / seasonal factors.change in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to Investors. Tax-free status for long-term capital gains and dividend will depend on the fund investing 65% and above in equity to qualify in accordance with provisions of the Income-Tax Act. As the scheme uses derivative instruments for the purpose of hedging and portfolio balancing & trading, it will expose the scheme to certain risk such as model risk, market liquidity risk and basis risk. If and to the extent, the portfolio includes overseas stocks, investors will be exposed to country risk, currency risk, geo-political risk, legal restrictions and regulation changes in geography other than India. General Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram Select Thematic Rural India Fund is only the name of the schemes and does not in any manner indicate either quality or future prospects and returns. Statutory: Mutual Fund: Sundaram Mutual Fund is a trust under Indian Trusts Act, Sponsor: Sundaram Finance Ltd. Liability for sponsor is limited to Rs 1 lakh. Investment Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram Trustee Company Ltd. 12 Sundaram Asset Management

13 Contact us SMS: SFUND to Toll Free: Thank You Call: Sundaram Asset Management