I. Highlights. AIG Capital Corporation AIG India Treasury Plus Fund

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3 Sponsor Scheme Name Type Investment Objective AIG Capital Corporation AIG India Treasury Plus Fund I. Highlights An Open Ended Income Scheme. The primary investment objective of the Scheme is to seek to generate optimal returns commensurate with low risk and a high liquidity, from a portfolio constituted of debt securities and money market securities. However, there is no assurance that the objective of the Scheme will be realised and the Scheme does not assure or guarantee any returns. Purchase Price for New Rs.10/- per Unit. Fund Offer (NFO) Purchase/ Redemption Price When the Scheme goes open ended after the closure of the NFO, the price for Purchases and during Ongoing Offer Redemptions will be based on Applicable NAVs. Asset Allocation Instrument Minimum Maximum Risk Debt* Instruments including Government Securities, 50% 100% Low Corporate Debt, Other debt instruments and Money Market Instruments with average maturity less than or equal to 12 months or have put options within a period not exceeding 12 months Debt* Instruments including Government Securities, 0 % 50 % Low to Corporate Debt and other debt Instruments with Medium average maturity greater than 12 months *Debt securities may include securitized debts upto 75% of the net assets Net Asset Value Calculated on all business days. Choice of Plans Retail Institutional Super Institutional Choice of Options Growth Option Bonus Option Dividend Option Dividend Payout Option Monthly - 25 th of every month Quarterly - 25 th of every calendar quarter end Dividend Reinvestment Option Daily Weekly - Every Monday Monthly - 25 th of every month Quarterly - 25 th of every calendar quarter end In case of Monthly and Quarterly dividend options, if any of the day(s) mentioned is a non Business Day, the dividend will be declared on the next Business Day. The dividend will be declared subject to availability and adequacy of distributable surplus. Minimum Initial Application Retail: Rs Amount Institutional: Rs. 1 Cr Super Institutional: Rs. 10 Crs In the case of transactions through STP, the minimum installment amount shall be Rs. 1,000/-. The minimum amount in case of inter/ intra scheme (inter plan/inter option) switches shall be the minimum amount required in the respective transferee scheme/plan. Minimum Additional Amount Retail: Rs. 1000/- and in multiples of Re 1 thereafter Institutional: Rs 1 Lac and in multiples of Re 1 thereafter Super Institutional: Rs 10 Lac and in multiples of Re 1 thereafter Load Structure during NFO & Entry Load - Nil Ongoing Offer Period Exit Load - Nil Contingent Deferred Sales Charge - Nil Inter Scheme Switch - At the applicable loads in the respective schemes Intra Scheme Switch (Inter Plan/ Inter Option) - Nil 1

4 Liquidity Transparency Minimum Redemption Amount Expenses Applicable NAV Benchmark Index The Scheme will offer Units for Purchase and Redemption at NAV related prices on every Business Day on an ongoing basis, commencing not later than 30 days from the closure of the NFO Period. The Mutual Fund will endeavor to dispatch the Redemption proceeds within 3 Business Days but not later than 10 business days from the acceptance of the Redemption request. The AMC will calculate and disclose the first NAV(s) of the Scheme within a period of 30 days from the closure of the NFO Period. Subsequently, the NAVs will be calculated and disclosed on every Business Day. The AMC shall update the NAVs on the website of the Fund - and of the Association of Mutual Funds in India - AMFI ( The AMC will disclose details of the portfolio of the Scheme every 6 months by either sending a complete statement to all the Unit Holders or by publishing such statement, by way of advertisement, in two daily newspapers. The same shall also be displayed on the website of the fund. The minimum amount for redemption must be Rs. 1000/- or account balance whichever is less. The expenses incurred during New Fund Offer shall be borne by the AMC. For all purchase, redemption and switch transactions - For valid applications accepted: Upto 3:00 PM (cut-off time) on a Business Day - the NAV of such Business Day. After 3:00 PM (cut-off time) on Business Day, the NAV of the following Business Day. The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which ISC is located. Outstation cheques / drafts will not be accepted. CRISIL Liquid Fund Index II. Definitions and Abbreviations A. Definitions In this Offer Document the following terms will have the meanings indicated there against, unless the context suggests otherwise. AIG Capital Corporation / AIGCC Application Form / Key Information Memorandum Asset Management Company / AMC / Investment Manager Business Day Contingent Deferred Sales Charge / CDSC The Sponsor of AIG Global Investment Group Mutual Fund. A form to be used by an investor to open a folio and/ or Purchase Units in the Scheme. AIG Global Asset Management Company (India) Private Limited, an asset management company set up under the Companies Act 1956, having its registered office at FCH House, Ground Floor, Peninsula Corporate Park, G.K.Marg, Lower Parel, Mumbai and authorised by SEBI to act as the Asset Management Company / Investment Manager to the schemes of the AIG Global Investment Group Mutual Fund. A day not being: (1) A Saturday or Sunday; (2) A day when the money markets are closed / not accessible; (3) A day on which both Bombay Stock Exchange and the National Stock Exchange of India Limited are closed; (4) A day on which Purchase and Redemption of Units is suspended or a book closure period is announced by the Trustee / AMC; (5) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other events as the AMC may specify from time to time; (6) A day on which banks in Mumbai or Reserve Bank of India (RBI) is closed; or (7) A day on which there is no RBI clearing or settlement of securities. Provided that the days when the banks in any location where the AMC s Investor Service Centres are located are closed due to a local holiday, such days will be treated as non Business Days at such centres for the purposes of accepting fresh subscriptions. However, if the Investor Service Centre in such locations is open on such local holidays, then redemption and switch requests will be accepted at those centres, provided it is a Business Day for the Scheme on an overall basis. Notwithstanding the above, the AMC reserves the right to change the definition of Business Day and to declare any day as a Business Day or otherwise at any or all ISCs. A charge to the Unit Holder upon exiting (by way of Redemption) based on the period of holding of Units. The Regulations provide that a CDSC may be charged only for a no-load Scheme and only for the first four years after the Purchase and caps the percentage of NAV that can be charged in each year. 2

5 Custodian Cut-off time Collection Bank(s) Designated Collection Centres Entry Load Exit Load Foreign Institutional Investors / FII Fund of Funds / FOF Fund / Mutual Fund Investment Management Agreement / IMA Investor Service Centre / ISC Net Asset Value / NAV New Fund Offer / NFO New Fund Offer Period / NFO Period Non Resident Indian / NRI Offer Document Ongoing Offer Ongoing Offer Period Person of Indian Origin Purchase / Subscription Purchase Price Registrar Redemption Citibank, N.A, Mumbai registered under the SEBI (Custodian of Securities) Regulations, 1996, or any other custodian who is approved by the Trustee. Cut off timing, in relation to an investor making an application to a mutual fund for purchase or sale of units, shall mean the outer limits of timings within a particular day as prescribed by SEBI which are relevant for determination of the NAV that is to be applied for the transaction. The bank(s) with which the AMC has entered into/may enter into an agreement, from time to time, to enable investors to deposit their applications for Units during the NFO. During the NFO: AMC ISCs and branches of Collection Bank(s) designated by the AMC where the applications shall be received. During Ongoing Offer: AMC ISCs designated by the AMC where the applications shall be received. The names and addresses of the Designated Collection Centres are mentioned in the Application Form. A Load charged to an investor on Purchase of Units based on the amount of investment or any other criteria decided by the AMC. A Load (other than CDSC) charged to the Unit Holder on exiting (by way of Redemption) based on period of holding, amount of investment or any other criteria decided by the AMC. An entity registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995 as amended from time to time. A mutual fund scheme that invests primarily in other schemes of the same mutual fund or other mutual funds. AIG Global Investment Group Mutual Fund, a Trust settled by AIG Capital Corporation and registered with SEBI under the Regulations, vide Registration No. MF/054/07/02 dated February 9, The agreement dated December 15, 2006 entered into between AIG Trustee Company (India) Private Limited and the AIG Global Asset Management Company (India) Private Limited, as amended from time to time. Official points of acceptance of transaction / service requests from investors. These will be designated by the AMC from time to time. Net Asset Value of the Units of the Scheme (including options thereunder) calculated in the manner provided in this Offer Document or as may be prescribed by the Regulations from time to time. The offer for Purchase of Units at the inception of the Scheme, available to the investors during the NFO Period. The period being September 18, 2007 to September 20, 2007 subject to extension, if any. A person resident outside India who is a citizen of India or is a person of Indian origin as per the meaning assigned to the term under the Foreign Exchange Management (Investment in Firm or Proprietary Concern in India) Regulations, This document issued by AIG Global Investment Group Mutual Fund offering Units of AIG India Treasury Plus Fund for subscription. Any modifications to the Offer Document will be made by way of an addendum which will be attached to Offer Document. On issuance of an addendum, the Offer Document will be deemed to be updated by the addendum. Offer of Units under the Scheme when it becomes open ended after the closure of the New Fund Offer Period. The period during which the Ongoing Offer for subscription to the Units of the Scheme is made. Person of Indian Origin means a citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grand parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b). Purchase of / Subscription to Units by an investor from the Fund. The price (being Applicable NAV plus Entry Load, if any) at which the Units can be purchased and calculated in the manner provided in this Offer Document. Computer Age Management Services Private Limited ( CAMS ), appointed as the registrar and transfer agent for the Scheme, or any other registrar that may be appointed by the AMC. Repurchase of Units by the Fund from a Unit Holder. 3

6 Redemption Price Repo/ reverse Repo Scheme SEBI Regulations / Regulations Sponsor Switch Systematic Transfer Plan/ STP Systematic Withdrawal Plan / SWP Transaction Slip The price (being Applicable NAV minus Exit Load / CDSC, if any ) at which the Units can be redeemed and calculated in the manner provided in this Offer Document. Sale/ Purchase of securities with a simultaneous agreement to repurchase/ sell them at a later date AIG India Treasury Plus Fund, an open ended Income scheme (including as the context permits, the options thereunder). Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 as amended from time to time, including by way of circulars or notifications issued by SEBI and the Government of India. AIGCC, being the Settlor of AIG Global Investment Group Mutual Fund. Sale of a unit in one Scheme/ Plan/ Option against purchase of a unit in another Scheme/ Plan/ Option A plan enabling Unit Holders to transfer sums on a weekly/ fortnightly / monthly basis from the Scheme to other schemes launched by the Fund from time to time by giving a single instruction. A plan enabling Unit Holders to withdraw amounts from the Scheme on a monthly or quarterly basis by giving a single instruction. A form meant to be used by Unit Holders seeking additional Purchase or Redemption of Units in the Scheme, change in bank account details, switch-in or switch-out and such other facilities offered by the AMC and mentioned in Transaction Slips. Trustee / Trustee Company AIG Trustee Company (India) Private Limited, a company set up under the Companies Act 1956, to act as the Trustee to AIG Global Investment Group Mutual Fund. Trust Deed Trust Fund Unit Unit Holder Valuation Day The Trust Deed dated December 15, 2006 executed by and between the Sponsor and the Trustee establishing the AIG Global Investment Group Mutual Fund, as amended from time to time. Amounts settled / contributed by the Sponsor towards the corpus of AIG Global Investment Group Mutual Fund and additions / accretions thereto. The interest of an investor, which consists of one undivided share in the net assets of the Scheme. A person holding Units of the Scheme of AIG Global Investment Group Mutual Fund offered under this Offer Document. Business Day 4

7 B. Abbreviations In this Offer Document the following abbreviations have been used. ADR American Depository Receipt AIGCC AIG Capital Corporation, the Sponsor of AIG Global Investment Group Mutual Fund AIGCI AMC AMFI AOP BOI BSE CBLO CDSC ECS EFT ETF FII FOF GDR HUF IMA ISC NAV NFO NRI NSE PIO POA RBI AIG Capital India Private Limited Asset Management Company Association of Mutual Funds in India Association of Persons Body of Individuals Bombay Stock Exchange Limited Collateralised Borrowing and Lending Obligation Contingent Deferred Sales Charge Electronic Clearing System Electronic Funds Transfer Exchange Traded Fund Foreign Institutional Investor Fund of Funds Global Depository Receipt Hindu Undivided Family Investment Management Agreement Investor Service Centre Net Asset Value New Fund Offer Non-Resident Indian National Stock Exchange of India Limited Persons of Indian Origin Power of Attorney Reserve Bank of India RTGS Real Time Gross Settlement SEBI Securities and Exchange Board of India established under the SEBI Act, 1992 SEBI Act Securities and Exchange Board of India Act, 1992 SEFT SI STP SWP Special Electronic Funds Transfer Standing Instructions Systematic Transfer Plan Systematic Withdrawal Plan C. Interpretation For all purposes of this Offer Document, except as otherwise expressly provided or unless the context otherwise requires: The terms defined in this Offer Document include the plural as well as the singular. Pronouns having a masculine or feminine gender shall be deemed to include the other. All references to US$ refer to United States Dollars and Rs. refer to Indian Rupees. A Crore means ten million and a Lakh means a hundred thousand. References to times of day (i.e. a.m. or p.m.) are to Mumbai (India) times and references to a day are to a Calendar day including non Business Day. III. Risk Factors and Special Considerations A. Standard Risk Factors Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme s objectives will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting the securities market. Past performance of the Sponsor or mutual funds managed by the Sponsor does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. The scheme does not guarantee or assure any dividend and also does not guarantee or assure that it will make any dividend distribution, though it has every intention to make the same. All dividend distributions are subject to the investment performance of the Scheme. AIG India Treasury Plus Fund is the name of the Scheme, and this does not in any manner indicate the quality of the Scheme, its future prospects or returns. Scheme Specific Risk Factors The Scheme and individual Plan(s) with a separate portfolio, if any, under the Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). However, if such a situation arises during the NFO of the Scheme, in accordance with the SEBI Regulations, the Scheme will endeavour to ensure that within a three months time period or the end of the succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions failing which the provisions of Regulation 39 (2) (c) of the Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme / Plan(s) shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI.SEBI has provided further clarifications with respect to determining the breach of the 25% limit by an investor - The average net assets of the scheme would be calculated daily and any breach of the 25% holding limit by an investor would be determined. At the end of the quarter, the average of daily holding by each such investor will be computed to determine whether that investor has breached the 25 % limit over the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Fund on the applicable Net Asset Value on the 15th day of the notice period. The Scheme shall adhere to the requirements prescribed by SEBI from time to time in this regard. 5

8 In case Scheme fails to assemble minimum 20 investors at the time of allotment, the Scheme shall be wound up, by following the guidelines prescribed by SEBI and the investor's application money would be refunded. Further, at the time of allotment, no single investor should account for more than 25% of the corpus of such Scheme (i.e. at the portfolio level), accordingly Fund is constrained to reject the application by a single unitholder having exposure of more than 25% at the time of allotment, hence such unitholder could be allotted limited units to such extent. In addition to the factors that affect the values of securities, the NAV of Units of the Scheme will fluctuate with the movement in the broader fixed income, money market and derivatives market and may be influenced by factors influencing such markets in general including but not limited to economic conditions, changes in interest rates, price and volume volatility in the bond markets, changes in taxation, currency exchange rates, foreign investments, political, economic or other developments and closure of the stock exchanges. Investments in different types of securities are subject to different levels and kinds of risk. Accordingly, the Schemes risk may increase or decrease depending upon its investment pattern. For example, investments in corporate bonds carry a higher level of risk than investments in Government securities. Further, even among corporate bonds, bonds which have a higher rating are comparatively less risky than bonds which have a lower rating. Risk Factors Associated with Fixed Income and Money Market Instruments The performance of the Scheme may be affected by changes in Government policies, general levels of interest rates and risks associated with trading volumes, liquidity and settlement systems. Interest rate risk: As with all debt securities, changes in interest rates may affect the NAV of the Scheme since the price of a fixed income instrument falls when the interest rates move up and vice a versa. The effect is more prominent when the duration of the instrument is higher. Hence the NAV movement of the Scheme consisting of predominantly fixed income securities is likely to have inverse correlation with the movement in interest rates. In case of a floating rate instrument, this risk is lower as a result of periodic reset of the coupon. Spread risk: Though the sovereign yield curve might remain constant, investments in corporate bonds are exposed to the risk of spread widening between corporate bonds and gilts. Typically, if this spread widens, the prices of the corporate bonds tend to fall and so could the NAV of the Scheme. Similar risk prevails for the investments in the floating rate bonds, where the benchmark might remain unchanged, but the spread over the benchmark might vary. In such an event, if the spread widens, the price and the NAV could fall. Credit risk or default risk: This refers to inability of the issuer of the debt security to make timely payments of principal and / or interest due. It is reflected in the credit rating of the issuer. Hence if the credit rating of the issuer is downgraded, the price of the security will suffer a loss and the NAV will fall. Credit risk factors pertaining to lower rated securities also apply to lower rated zero coupon and deferred interest kind bonds. Lower rated zero coupon and deferred interest kind bonds carry an additional risk in that, unlike bonds that pay interest through the period of maturity, the Scheme by investing in these bonds will realize no cash till the cash payment date and if the issuer defaults, the Scheme may obtain no return on its investment. Separately, underlying assets in securitised debt may assume different forms and the general types of receivables include auto finance, credit cards, home loans or any such receipts. Credit risks relating to such receivables depend upon various factors, including macro-economic factors of these industries and economies. Specific factors like nature and adequacy of property mortgaged against these borrowings, nature of loan agreement / mortgage deed in case of home loans, adequacy of documentation in case of auto finance and home loans, capacity of a borrower to meet his obligations on borrowings in case of credit cards and intentions of the borrower influence the risks relating to asset borrowings underlying securitised debt. Liquidity risk: This represents the possibility that the realised price from selling the security might be lesser than the valuation price as a result of illiquid market. If a large outflow from the Scheme is funded by selling some of the illiquid securities, the NAV could fall even if there is no change in interest rates. Illiquid securities are typically quoted at a higher yield than the liquid securities and have higher bid offer spreads. Investment in illiquid securities results in higher current yield for the portfolio. Liquidity risk is a characteristic of the Indian fixed income market today. In addition, money market securities, while fairly liquid, lack a well-developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incurring losses till the security is finally sold. Reinvestment risk: This is associated with the fact that the intermediate cash flows (coupons, prepayment of principal in case of securitised transactions or principal payment in case a security gets called or repurchased) may not be reinvested at the same yield as assumed in the original calculations. In case of securitised debt, changes in market interest rates and pre- payments may not change the absolute amount of receivables for the investors but may have an impact on the re-investment of the periodic cash flows that an investor receives on securitised papers. Settlement risk: Different segments of Indian financial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. Delays or other problems in settlement of transactions could result in temporary periods when the assets of the Scheme are uninvested and no return is earned thereon. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Schemes portfolio, due to the absence of a well developed and liquid secondary market for debt securities, may result at times in potential losses to the Scheme in the event of a subsequent decline in the value of securities held in the Scheme s portfolio. 6

9 Market risk: Lower rated or unrated securities are more likely to react to developments affecting the market and the credit risk than the highly rated securities which react primarily to movements in the general level of interest rates. Lower rated or unrated securities also tend to be more sensitive to economic conditions than higher rated securities. Pre-payment risk: Asset securitization is a process whereby commercial or consumer credits are packaged and sold in the form of financial instruments. In the event of pre-payment of the underlying debt, investors may be exposed to changes in tenor and yield. B. Risk Factors Associated with Derivatives Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. As and when the Scheme trades in derivative products, there are risk factors and issues concerning the use of derivatives that investors should understand. Derivatives require the maintenance of adequate controls to monitor the transactions and the embedded market risks that a derivative adds to the portfolio. Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives. Other risks in using derivatives include but are not limited to: (a) Credit Risk this occurs when a counterparty defaults on a transaction before settlement and therefore, the Scheme is compelled to negotiate with another counter party, at the then prevailing (possibly unfavorable) market price, in order to maintain the validity of the hedge. For exchange traded derivatives, the risk is mitigated as the exchange provides a guaranteed settlement but one takes the performance risk on the exchange. (b) Market Liquidity risk where the derivatives cannot be sold (unwound) at prices that reflect the underlying assets, rates and indices. (c) Model Risk, the risk of mis pricing or improper valuation of derivatives. Trading in derivatives carry a high degree of risk although they are traded at a relatively small amount of margin which provides the possibility of great profit or loss in comparison with the principal investment amount. The Scheme may find it difficult or impossible to execute derivative transactions in certain circumstances. For example, when there are insufficient bids or suspension of trading due to price limit or circuit breakers, the Scheme may face a liquidity issue. The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indexes or other financial or economic factors in establishing derivative positions for the Scheme. The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility in the values. Interest Rate Swaps (IRS) are highly specialized instruments that require investment technique and risk analysis different from those associated with equity shares and other traditional securities. The use of a IRS requires not only an understanding of the referenced asset, reference rate, or index but also of the swap itself, without the benefit of observing the performance of the swap under all possible market conditions. Swap agreements are also subject to liquidity risk, which exists when a particular swap is difficult to purchase or sell. Swap agreements may be subject to pricing risk, which exists when a particular swap becomes extraordinarily expensive (or cheap) relative to historical prices or the prices of corresponding cash market instruments. IRS agreements are also subject to counterparty risk on account of insolvency or bankruptcy or failure of the counterparty to make required payments or otherwise comply with the terms of the agreement. C. Risk Factors Associated with Scrip Lending The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, in this case the approved intermediary, to comply with the terms of agreement entered into between the lender of securities i.e. the Scheme and the approved intermediary. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The Mutual Fund may not be able to sell such lent securities and this can lead to temporary illiquidity. D. Risk Factors Associated with Overseas Investment Subject to necessary approvals and within the investment objectives of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances. It is the AMC s belief that investment in foreign securities offer new investment and portfolio diversification opportunities into multi-market and multi-currency products. However, such investments also entail additional risks. Such investment opportunities may be pursued by the AMC provided they are considered appropriate in terms of the overall investment objectives of the Scheme. Since the Scheme may invest only partially in overseas securities, there may not be readily available and widely accepted benchmarks to measure performance of the Scheme. To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management including hedging and in accordance with conditions as may be stipulated under the Regulations or by the RBI from time to time. 7

10 Overseas investments will be made subject to any/all approvals, conditions thereof as may be stipulated under the Regulations or by RBI and provided such investments do not result in expenses to the Fund in excess of the ceiling on expenses prescribed by and consistent with costs and expenses attendant to international investing. The Fund may, where necessary, appoint other intermediaries of repute as advisors, custodian/subcustodians etc. for managing and administering such investments. The appointment of such intermediaries shall be in accordance with the applicable requirements of SEBI and within the permissible ceilings of expenses. The fees and expenses would illustratively include, besides the investment management fees, custody fees and costs, fees of appointed advisors and sub-managers, transaction costs and overseas regulatory costs. To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment. E. Special Considerations The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme beyond the initial contribution of an amount of Rs.1,00,000 (Rupees One Lakh) collectively made by it towards setting up the Fund or such other accretions and additions to the initial corpus set up by the Sponsor. Neither this Offer Document nor the Units have been registered in any jurisdiction. The distribution of this Offer Document in certain jurisdictions may be restricted or totally prohibited and accordingly, persons who come into possession of this Offer Document are required to inform themselves about, and to observe, any such restrictions. No person receiving a copy of this Offer Document or any accompanying application form in such jurisdiction may treat this Offer Document or such application form as constituting an invitation to them to subscribe for Units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance of any registration or other legal requirements. Prospective investors should review / study this Offer Document carefully and in its entirety and shall not construe the contents hereof or regard the summaries contained herein as advice relating to legal, taxation, or financial / investment matters and are advised to consult their own professional advisor(s) as to the legal, tax, financial or any other requirements or restrictions relating to the subscription, gifting, acquisition, holding, disposal (by way of sale, switch or Redemption or conversion into money) of Units and to the treatment of income (if any), capitalisation, capital gains, any distribution, and other tax consequences relevant to their subscription, acquisition, holding, capitalisation, disposal (by way of sale, transfer, switch or conversion into money) 8 of Units within their jurisdiction of nationality, residence, incorporation, domicile etc. or under the laws of any jurisdiction to which they or any managed funds to be used to Purchase / gift Units are subject and also to determine possible legal, tax, financial or other consequences of subscribing / gifting, purchasing or holding Units before making an application for Units. AIG Global Investment Group Mutual Fund / the AMC have not authorised any person to give any information or make any representations, either oral or written, not stated in this Offer Document in connection with issue of Units under the Scheme. Prospective investors are advised not to rely upon any information or representations not incorporated in this Offer Document as the same have not been authorised by the Fund or the AMC. Any subscription, Purchase or sale made by any person on the basis of statements or representations which are not contained in this Offer Document or which are inconsistent with the information contained herein shall be solely at the risk of the investor. From time to time and subject to the Regulations, funds managed by the affiliates / associates of the Sponsor may invest either directly or indirectly in the Scheme. The funds managed by these affiliates/associates may acquire a substantial portion of the Scheme s Units and collectively constitute a major investment in the Scheme. Accordingly, Redemption of Units held by such funds may have an adverse impact on the value of the Units of the Scheme because of the timing of any such Redemption and may affect the ability of other Unit Holders to redeem their respective Units. As the liquidity of the Scheme s investments may sometimes be restricted by trading volumes, settlement periods and transfer procedures, the time taken by the Scheme for Redemption of Units may be significant in the event of an inordinately large number of Redemption requests or of a restructuring of the Scheme s portfolio. In view of this, the Trustee has the right, in its sole discretion, to limit redemptions (including suspend redemptions) under certain circumstances - please refer to the paragraph Right to Limit Redemptions in Chapter VII. Anti Money Laundering and Know Your Customer (KYC): In terms of the Prevention of Money Laundering Act, 2002 ("PMLA") the rules issued there under and the guidelines / circulars issued by SEBI regarding the Anti Money Laundering (AML) Laws, all intermediaries, including Mutual Funds, are required to formulate and implement a client identification programme, and to verify and maintain the record of identity and address(es) of investors. Know Your Client (KYC) The need to "Know Your Customer" is vital for the prevention of money laundering. The AMC may seek information or obtain and retain documentation used to establish identity either on its own or through another agency. It may re-verify identity and obtain any missing or additional information for this purpose. The AMC, under powers delegated by the Trustee, shall have absolute discretion to reject any application, prevent further transactions by a Unit Holder, delay in processing redemption as per applicable laws or regulations if

11 (i) after due diligence, the investor / Unit Holder / a person making the payment on behalf of the investor does not fulfill the requirements of the "Know Your Customer" or the AMC believes that the transaction is suspicious in nature as regards money laundering. In this behalf the AMC reserves the right to reject any application and effect a mandatory Redemption of Units allotted at any time prior to the expiry of 30 Business Days from the date of the application. (ii) The AMC determines in its sole discretion that the application does not or will not comply with any applicable laws or regulations. If the payment for Purchase of Units are made by a third party (e.g. a power of attorney holder, a financing agency, a relative, etc.), the Unit Holder may be required to give such details of such transaction so as to satisfy the AMC of the source and/or consideration underlying the transaction. The Mutual Fund Industry is currently in discussions with an independent agency, CDSL Ventures Limited (to be known as 'Central Agency) inorder to entrust them with the responsibility of collection of documents relating to identity and address and record keeping. As a token of having verified the identity and address and for efficient retrieval of records, the Central Agency will issue an acknowledgement to each investor who submits an application and the prescribed documents to the Central Agency. Investors who have obtained an acknowledgement can invest in the schemes of the mutual fund by referring to /submitting the acknowledgement in lieu of submitting information and documents required under AML Laws. Investors who wish to obtain an acknowledgement have to submit a completed Application Form ('the Form') along with all the prescribed documents listed in the Form, at any of the Point of Service ('POS'). The Form is available at our website ( and AMFI website ( POS are the designated centers appointed by the Central Agency for receiving the Forms, processing data and providing the acknowledgement. List of and location of POS are available at On submission of application, documents and information to the satisfaction of the POS, the investor will be given an acknowledgement across the counter. Subsequently, the Central Agency will scrutinize the information and documents submitted by the investor. In case of any deficiency in the document / information, the form will be rejected. PERMANENT ACCOUNT NUMBER (PAN) As per the Securities and Exchange Board of India (SEBI) circular dated April 27, 2007, with effect from July 02, 2007, Permanent Account Number (PAN) issued by the Income Tax Authorities has been made the sole identification number for all participants transacting in the securities market including mutual funds, irrespective of the amount of transaction. SEBI has further clarified vide letter dated June 25, 2007, that existing and potential investors, who do not have PAN should apply for PAN immediately and applications for investment should be accompanied with the evidence of having applied for PAN until December 31, Thus, with effect from July 02, 2007 until December 31, 2007: 1. All fresh investment applications (irrespective of the amount) have to be enclosed with a certified copy of the PAN card. The certification can be done by any of the following: a. The distributor/broker through whom transaction is done or b. The office of AIG Global Investment Group Mutual Fund or c. Investor Service Centers of CAMS (Registrar) or d. Bank Manager attestation or e. Notary Please note that the original PAN card should be furnished to any of the above for certification. 2. Investment applications without a certified copy of PAN should enclose: a. For amount less than Rs. 50,000 - A copy of the evidence of having applied for PAN (acknowledged copy of Form 49A) until PAN is received. b. For amount Rs. 50,000 or more - A copy of the evidence of having applied for PAN (acknowledged copy of Form 49A) and a completed Form 60/Form 61 along with address proof, until PAN is received Applications which do not comply with any of the above requirements are liable to be rejected. Further, with effect January 01, 2008, submitting a copy of the evidence of having applied for PAN / Form 60/Form 61 will not be valid and it will be mandatory for all investors to provide a certified copy (as aforesaid) of the PAN card for all investments in the schemes of AIG Global Investment Group Mutual Fund. Suspicious Transaction Reporting: If after due diligence, the AMC believes that the transaction is suspicious in nature as regards money laundering, the AMC shall report any suspicious transactions to competent authorities under the PMLA and rules / guidelines issued there under by SEBI and RBI, furnish any such information in connection therewith to such authorities and take any other actions as may be required for the purposes of fulfilling its obligations under the PMLA without obtaining the prior approval of the investor / Unit Holder / a person making the payment on behalf of the investor. Investor Protection: As the Scheme is a short term income scheme, it is designed to offer investors liquidity and the Fund anticipates that investors will come in and out of the Scheme frequently. Such frequent purchases and redemptions by investors can reduce the returns to long term investors by increasing expenses of the Scheme and can also disrupt portfolio management strategies. Therefore, the Scheme is proposed to be managed with these risks in mind. 9

12 Though the Scheme has no limit on the number of purchases and redemptions by any investor, the AMC reserves the right, under powers delegated by the Trustee, to reject any application, prevent further transactions by a Unit Holder, or redeem the Units held by the Unit Holder at any time prior to the expiry of 30 Business Days from the date of submission of the application if, in the AMC's opinion, a Unit Holder has been indulging in excessively frequent trading or if his trading has been or may be disruptive for the Scheme. Investors are urged to study the terms of the Offer carefully before investing in the Scheme and to retain this Offer Document for future reference. DUE DILIGENCE CERTIFICATE It is confirmed that: 1. The draft Offer Document forwarded to SEBI is in accordance with the SEBI (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. 2. All legal requirements connected with the launching of the Scheme and also the guidelines, instructions, etc. issued by the Government of India and any other competent authority in this behalf, have been duly complied with. 3. The disclosures made in the Offer Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the proposed Scheme. 4. All the intermediaries named in the Offer Document are registered with SEBI and till date such registration is valid. For AIG Global Asset Management Company (India) Private Limited Date : May 31, 2007 Signature : Sd/- Place : Mumbai Name : Sonal Barot Designation : Head - Compliance & Company Secretary Note: The aforesaid Due Diligence Certificate dated May 31, 2007 was submitted to Securities and Exchange Board of India on June 1, IV. Constitution of the Fund A. The Fund The AIG Global Investment Group Mutual Fund has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) vide a Trust Deed dated December 15, The Fund was registered with SEBI vide registration number MF/054/07/02 dated February 9, The office of the Mutual Fund is at FCH House, Ground Floor, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai , India. The objective of the Fund is to raise monies through the sale of units to the public or a section of the public under one or more schemes for investing in securities. B. The Sponsor The sponsor of the AIG Global Investment Group Mutual Fund is AIG Capital Corporation (AIGCC), a company incorporated under the laws of Delaware, United States of America, having its registered office at Corporation Services Center, 2711 Centerville Road, Suite 400, Wilmington Delaware, USA and its principal office at 70 Pine Street, 17th Floor, New York, New York, USA AIGCC is 100% owned by American International Group, Inc. ("AIG"), which was also incorporated in the State of Delaware, on June 9, 1967, as a successor to a business that was initially started in 1919 in Shanghai, China. AIG is a holding company which, through its subsidiaries, is engaged in a broad range of insurance and insurance-related activities in the United States and abroad. AIG's primary activities include both general insurance and life insurance and retirement services operations. Other significant activities include financial services and asset management. AIG's common stock is listed in the U.S. on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo. AIGCC was incorporated mainly to consolidate all the noninsurance financial services businesses of AIG under one company. Many of AIGCC's direct and indirect subsidiaries are companies engaged in asset management, consumer finance and other non-banking finance activities. These companies are located in the United States and around the world, including the United Kingdom, Ireland, Japan, Hong Kong, Thailand, Brazil and Canada, among other locations. The financial statements of the direct and indirect subsidiaries of AIGCC are consolidated in the audited consolidated financial statements of AIG. AIG Investments and the Sponsor. AIG Investments comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. AIG Investments is headquartered in New York and has a total of 44 investment offices employing over 2,000 employees as of 30 June Each of its member companies has the capability to provide investment services to clients worldwide. Additionally, the extensive network and resources of the AIG companies, which operate in 130 countries and jurisdictions, complement AIG Investments network. AIG Investments offers a wide range of investment capabilities divided into five major groups - Equity, Fixed Income, Real Estate, Private Equity, Hedge funds and Other Alternate asset classes. AIG Investments managed approximately USD 711 billion in assets as of 30 June There are 44 offices operating in regional centers in North America, Europe, South America, Africa and Asia and employing over 1,900 persons. 10

13 Given below is a brief summary of the Sponsor's (AIG Capital Corporation) unaudited financial information: (Amount in US $) Description December 31, 2006 December 31, 2005 December 31, 2004 Total Revenue 6,340,947,389 5,310,449,043 4,273,468,908 Profit Before Tax 1,443,568,223 1,338,988,162 1,064,206,129 a Profit After Tax 1,154,060, ,244, ,456,424 a Free Reserves 6,372,035,079 5,751,618,693 4,849,187,815 Net Worth 5,580,997,280 5,159,686,714 4,300,388,754 Earnings per Share 45,103 54,223 52,766 b Book Value per Share 637, , ,920 Dividend (%) Paid Up Capital (Equity) 2,666,402,330 2,393,943,066 1,928,900,306 Share Capital Suspense c Paid Up Capital (Preference) 5,000 5,000 5,000 a This amount represents income before equity in earnings(loss) of affiliated companies and minority interest. (Amount in US $) December 31, 2006 December 31, 2005 December 31, 2004 Profit Before Tax 1,443,568,223 1,338,988,162 1,064,206,129 Taxes 289,508, ,743, ,749,705 Profit After Taxes 1,154,060, ,244, ,456,424 Equity in Earnings (loss) of Affiliated Companies 86,622,942 28,012,158 87,699,575 Minority Interest 789,649, ,022, ,496,344 Net Income 451,033, ,234, ,659,655 b Earnings per Share is calculated as follows: Net Income divided by Number of Shares - Common Stock. All common stock is owned by AIG, Inc. c. There is no additional amount subscribed but not issued. As such subscribed capital and issued capital are the same. Definitions of Financial Terms used above under US Generally Accepted Accounting Principles: Free Reserves is Retained Earnings plus Additional Paid in Capital ("APIC") for Common Stock excluding amounts paid above par for Preferred Stock. Net worth is Common Stock plus APIC plus Retained Earnings less any Deferred Expenses and Intangible Asset, excluding Preferred Stock. Book Value per Share is the sum of Common Stock at par and Free Reserves divided by the number of shares of Common Stock, excluding Preferred Stock. Dividends are required only for Common Stock. Paid Up Capital (Equity) is Common Stock plus APIC. Share Capital Suspense is the additional amount subscribed but not issued if subscribed capital and issued capital are not the same. 11 Paid Up Capital (Preference) is Preferred Stock at par plus the amount paid above par value for Preferred Stock. Value of Preferred Stock is the amount paid at par plus the amount paid above par value for Preferred Stock. Surplus in the Profit and Loss Account is Retained Earnings. C. The Trustee Company (The Trustee) AIG Trustee Company (India) Private Limited (the "Trustee"), a company incorporated under the Companies Act, 1956 on October 30, 2006 vide registration number U MH 2006 PTC , has been appointed as the Trustee to the AIG Global Investment Group Mutual Fund vide Trust Deed dated December 15, The Registered Office of the Trustee is situated at FCH House, Ground Floor, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai I. Directors of the Trustee The directors of the Trustee are: Names, addresses and occupations of the directors Other Directorships of the directors *Mr. Sunil Mehta 1. Tata AIG Life Insurance Company Limited Sorrento, Flat No. 6, Mount Pleasant Road, 2. Tata AIG General Insurance Company Limited Malabar Hill, Mumbai , India, 3. AIG Systems Solutions Private Limited 4. AIG Capital India Private Limited Occupation: Service 5. Kendall Holdings Limited 6. RMZ Properties Private Limited 7. Vivek Hire Purchase and Leasing Limited 8. Mellennia Infrastructure Private Limited