Corporate Presentation August 2017 1
PARENTAGE Sundaram Finance Sundaram Business Services Limited Outsourcing services *Not an exhaustive list Fully Owned Subsidiaries* Sundaram Asset Management Mutual Funds, Portfolio Management, AIF Royal Sundaram General Insurance JVs Sundaram BNP Paribas Home Finance Home loans Sundaram BNP Paribas Fund Services R & T Agent 2
PARENT PROFILE KEY FACTS OF SUNDARAM FINANCE Pioneer in the leasing and hire purchase business First NBFC to be listed - in 1972 607 offices; over 6,000 employees Deposits rated AAA by CRISIL and ICRA Market Cap - Rs 19,011 Crores as on 31 August 2017 Market cap has grown at CAGR of 30.4% since listing 3
SUNDARAM ASSET MANAGEMENT COMPANY EVOLUTION AND KEY FACTS Jointly promoted by Sundaram Finance and Newton Asset Management 2002 JV with BNP Paribas 2010 100% subsidiary established in Singapore for Asset Management business 1996 Sundaram Finance buys out Newton 2006 Sundaram Finance buys out BNP s stake 2012 AUM - Rs 35,584 crores as on 31 August, 2017 AUM has grown at a CAGR of 16% over last 10 years Ranked 14 th in the Asset Management Industry 4
Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Aug 2017 ASSETS UNDER MANAGEMENT - OVERALL In Rs. Crs. 40,000 35,000 AUM Growth 35,584 AUM Composition International 3% PMS 3% AIF 1% 30,000 29,579 25,000 22,346 Fixed Income 48% 20,000 20,016 15,000 10,000 13,288 12,274 12,978 15,597 Equity 45% Data as of August 2017 5
STRONG RETAIL FOOTPRINT Customers Managed over 39 lakh customer folios since inception 13,17,535 active customer folios 3,14,578 customer transactions per month through Systematic Investment Plan Geographic Footprint 89 customer care centers spread across 21 States, with offices in Singapore and Dubai Diversified customer base by customer folio and AUM EAST, 6% EAST, 10% WEST, 40% Folio NORTH, 17% SOUTH, 33% WEST, 43% AUM NORTH, 21% SOUTH, 30% Distribution footprint 34,820 empaneled distributors 11,322 distributors submit purchase transactions every month 6
CONSISTENT TRACK RECORD OF REWARDING INVESTORS Dividends Strong customer preference for dividends - 4,39,113 (34%) of customer folios in dividend option Dividends paid out in at least one of our schemes in 8 out of the last 10 years Many of the funds have returned multiple times the initial capital to investors Fund % Rs. Per unit - on NAV of Rs 10 Select Midcap Fund 418 41.80 Diversified Equity 385 38.50 Balanced Fund 232.7 23.27 Select Focus 342.5 34.25 S.M.I.L.E 225 22.50 Past performance may or may not be sustained in the future 7
Investment Philosophy, Process and Risk Management 8
INVESTMENT PHILOSOPHY Strong investment process 21 member Investment Team Equity: 4 Fund Managers, 2 Assistant Fund Managers, 8 Analysts, 2 Dealers Fixed Income: 3 Fund Managers, 2 Credit Analysts, 1 Dealer 1 Economist Equity ~400 companies under coverage ~250 companies under active coverage (quarterly management visits) Fixed Income ~350 companies covered in credit universe 9
Portfolio Construction Approval of Stocks/ Securities Idea Flow & Research INVESTMENT PROCESS Fund Mangers+ Economist RESEARCH TEAM External Research Published Information Company Visit Idea Generation Recommended List Fundamentals & Management Assessment Internal Investment Committee Norms Executive Committee APPROVED BUY LIST Fund Themes/ Fund Positioning Top-Down Approach STOCK/ SECURITY SELECTION Sector and Stock Limits/ Issuer & Security Allocation Limits Bottom-Up Stock Picking/ Asset Quality Evaluation & External Ratings Best Trade Execution Risk Management Dynamic Fund Portfolio Diversification Liquidity 10
ROBUST RISK MANAGEMENT PROCESS Risk Management is a core and integral part our business. Our Enterprise Risk Management (ERM) framework has risk policies, guidelines and processes which holistically facilitates optimal risk exposure across functions and ensures that effective control and governance mechanisms are in place. Organization Audit Committee of the board oversees the overall ERM framework. The Risk Management team, currently with four members, reports to the COO and functions independently. Investment Risks are monitored at the fund house level, individual fund portfolio level and at the specific investment level. Risk Management Team is actively involved in the overall Investment Process at all stages. Market Risks Market Risks are managed through absolute and active exposure norms/limits to various factors such as asset class, sector, theme, duration, market cap and style; Market Risk is monitored at both security and fund portfolio levels; Credit Risks Internal Credit Committee oversees the credit process. Credit Analyst is independent from the fund management function and is part of the risk management team. Credit risks are managed through continuous evaluation of willingness and ability of issuer to service the debt and through company level and group level credit limits Liquidity Risks Liquidity at both Security level and portfolio level is closely monitored and aligned with overall product risk profile. Portfolio liquidity is also relatively evaluated with respect to the investor and channel concentration in a particular fund. Changes in market volume and the impact costs are closely tracked. Operational Risks Internal Risk Management Committee (IRMC), which has members from all department, reviews firm wide operational and cross-functional risks. Firm wide incidents are recorded, the root causes and the impacts are analyzed and the remedial preventive and corrective actions are closely tracked by the risk management team. A Monthly Risk Review is conducted by the top management to discuss firm wide investment and operational risks. 11
Equity 12
Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Aug 2017 ASSETS UNDER MANAGEMENT EQUITY In Rs. Crs. AUM Growth AUM Composition 18,000 16,000 15,798 Thematic & Sectoral 15% Close ended 19% 14,000 12,000 12,937 10,000 8,000 9,131 7,408 8,414 8,907 6,000 4,000 5,839 5,356 Large Cap & Multi Cap 22% Mid Cap & Small Cap 44% Data as of August 2017 13
EQUITY FUNDS RISK RETURN SPECTRUM HIGH Micro Cap Series SMILE Financial Services Opportunities Infrastructure Advantage Select Small Cap Select Mid Cap Long Term Tax Advantage Diversified Equity Equity Multiplier Rural India Value Smart NIFTY 100 Equal Weight Fund Select Focus Top 100 Global Advantage World Brand Equity Plus Balanced LOW 14
Equity - Performance of Top 3 Funds 15
Sundaram Select Mid Cap Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 16
Jul-02 Feb-03 Sep-03 Apr-04 Nov-04 Jun-05 Jan-06 Aug-06 Mar-07 Oct-07 May-08 Dec-08 Jul-09 Feb-10 Sep-10 Apr-11 Nov-11 Jun-12 Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 I - SUNDARAM SELECT MIDCAP (INVESTS IN MID AND SMALL CAPS) AUM: Rs. 5,597 cr No. of folios: 3.98 lakh Dividend: 418% since launch 30 25 20 15 10 5 0 One Time Investment - Returns (%) Fund Benchmark Nifty 50 29.3 26.1 21.7 20.2 20.9 18.7 18.0 16.7 17.6 13.5 12.9 7.6 Since Inception Last 5 years Last 3 years Last 1 year CAGR Since Launch: 29.3% vis-a-vis benchmark return of 20.2%. Value of Rs. 10,000 invested at launch 5,00,000 Fund Benchmark Nifty 50 4,50,000 4,00,000 3,50,000 3,00,000 2,50,000 3.0X 2,00,000 1,50,000 1,00,000 50,000 0 An investment of Rs.10,000 at launch is now worth Rs 4,81,130. Consistently outperformed the benchmark Type of Fund: Open-ended equity scheme Returns as on August 2017; in house calculations; Benchmark: S&P BSE Midcap Index The performance details are provided for Regular Plan Growth Option Different plans shall have a different expense structure The Fund Manager, S.Krishnakumar, has been managing this fund since Nov 2012. The fund has delivered higher value of Rs. 3,20,689 as compared to the benchmark for 10,000 invested at launch Past performance may or may not be sustained in the future 17
REGULATORY DISCLOSURES Performance Returns (%) Fund (%) Benchmark (%) Additional Benchmark (%) Last 1 Year 18.0 17.6 12.9 Last 3 Years 21.7 18.7 7.6 Last 5 Years 26.1 20.9 13.5 Since inception 29.3 20.2 16.7 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 11,795 11,757 11,288 Last 3 Years 18,017 16,711 12,469 Last 5 Years 31,892 25,878 18,861 Since inception 4,81,130 1,60,441 1,03,242 Different plans shall have a different expense structure. The returns are calculated on CAGR basis since inception of the scheme and for periods above one year as on August 31, 2017 and on an absolute basis for one-year period for Regular Plan - Growth Option. The fund manager has been managing this fund since November 2012. Benchmark: S&P BSE Midcap Index; Additional Benchmark: Nifty 50 Performance details for other schemes managed by Mr. S. Krishnakumar Fund Manager individually manages 17 funds of the Mutual Fund. Performance data of Top 3 and bottom 3 funds managed by the fund manager is provided herein. Different plans shall have a different expense structure. The performance details are provided for Regular Plan Growth Option. Performance data is as of August 31, 2017 The fund manager has been managing S.M.I.L.E Fund since Dec 2006, Select Micro Cap funds Series I- IV since inception of the respective funds and Diversified Equity since April 2015. Past performance may or may not be sustained in the future Data Source: In house calculations as on August 2017 18
Sundaram S.M.I.L.E Fund Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 19
Feb-05 Sep-05 Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12 Apr-13 Nov-13 Jun-14 Jan-15 Aug-15 Mar-16 Oct-16 May-17 II - SUNDARAM S.M.I.L.E (INVESTS IN SMALL CAPS) AUM: Rs. 1,242 cr No. of folios: 1.10 lakh Dividend: 225% since launch 30 25 20 15 10 5 0 One Time Investment - Returns (%) Fund Benchmark Nifty 50 26.4 26.4 19.7 20.1 21.3 21.5 15.9 12.4 13.2 13.5 12.9 7.6 Since Inception Last 5 years Last 3 years Last 1 year Value of Rs. 10,000 invested at launch 1,00,000 90,000 Fund Benchmark Nifty 50 80,000 70,000 60,000 2.21x 50,000 40,000 30,000 20,000 10,000 0 CAGR Since Launch: 19.7% vis-a-vis benchmark return of 12.4%. An investment of Rs.10,000 at launch is now worth Rs 95,245. Type of Fund: Open-ended equity scheme Returns as on August 2017; in house calculations; Benchmark: S&P BSE Smallcap Index The performance details are provided for Regular Plan Growth Option Different plans shall have a different expense structure The Fund Manager, S.Krishnakumar, has been managing this fund since Dec 2006. The fund has delivered higher value of Rs. 52,055 as compared to the benchmark for 10,000 invested at launch Past performance may or may not be sustained in the future 20
REGULATORY DISCLOSURES Performance Returns (%) Fund (%) Benchmark (%) Additional Benchmark (%) Last 1 Year 21.5 26.4 12.9 Last 3 Years 21.3 15.9 7.6 Last 5 Years 26.4 20.1 13.5 Since inception 19.7 12.4 13.2 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 12,152 12,643 11,288 Last 3 Years 17,876 15,580 12,469 Last 5 Years 32,313 25,006 18,861 Since inception 95,245 43,190 47,455 Different plans shall have a different expense structure. The returns are calculated on CAGR basis since inception of the scheme and for periods above one year as on August 31, 2017 and on an absolute basis for one-year period for Regular Plan - Growth Option. The fund manager has been managing this fund since Dec 2006. Benchmark: S&P BSE Smallcap Index; Additional Benchmark: Nifty 50 Performance details for other schemes managed by Mr. S. Krishnakumar Fund Manager individually manages 17 funds of the Mutual Fund. Performance data of Top 3 and bottom 3 funds managed by the fund manager is provided herein. Different plans shall have a different expense structure. The performance details are provided for Regular Plan Growth Option. Performance data is as of August 31, 2017. The fund manager has been managing Select Micro Cap Series since inception of the respective funds, Select Mid Cap since Nov 2012 and Diversified Equity since Apr 2015. Past performance may or may not be sustained in the future Data Source: In house calculations as on August 2017 21
Sundaram Diversified Equity Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 22
Nov-99 Jul-00 Mar-01 Nov-01 Jul-02 Mar-03 Nov-03 Jul-04 Mar-05 Nov-05 Jul-06 Mar-07 Nov-07 Jul-08 Mar-09 Nov-09 Jul-10 Mar-11 Nov-11 Jul-12 Mar-13 Nov-13 Jul-14 Mar-15 Nov-15 Jul-16 Mar-17 III - SUNDARAM DIVERSIFIED EQUITY (MULTI CAP FUND) AUM: Rs. 2,024 cr No. of folios: 2.51 lakh Dividend: 385% since launch 20 18 16 14 12 10 8 6 4 2 0 One Time Investment - Returns (%) Fund Benchmark Nifty 50 18.2 18.7 17.4 15.3 15.7 15.0 13.5 12.8 11.8 12.9 10.3 7.6 Since Inception Last 5 years Last 3 years Last 1 year CAGR Since Launch: 18.2% vis-a-vis benchmark return of 12.8%. Value of Rs. 10,000 invested at launch 2,20,000 2,00,000 Fund BSE 200 Index Nifty 50 1,80,000 1,60,000 1,40,000 1,20,000 2.3x 1,00,000 80,000 60,000 40,000 20,000 0 An investment of Rs.10,000 at launch is now worth Rs.1,96,747. Consistently outperformed the benchmark Type of Fund: Open-end Equity-Linked Savings Scheme (ELSS) with a 3 year lock-in period Returns as on August 2017; in house calculations The performance details are provided for Regular Plan Growth Option Different plans shall have a different expense structure The Fund Manager, S.Krishnakumar, has been managing this fund since April 2015. The fund has delivered higher value of Rs.1,11,877 as compared to the benchmark for 10,000 invested at launch Past performance may or may not be sustained in the future 23
REGULATORY DISCLOSURES Performance Returns (%) Rs.10,000 invested Fund (%) Benchmark (%) Additional Benchmark (%) Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 17.4 15.0 12.9 Last 1 Year 11,743 11,502 11,288 Last 3 Years 15.7 10.3 7.6 Last 3 Years 15,490 13,405 12,469 Last 5 Years 18.7 15.3 13.5 Last 5 Years 23,569 20,407 18,861 Since inception 18.2 12.8 11.8 Since inception 1,96,747 84,870 72,117 Different plans shall have a different expense structure. The returns are calculated on CAGR basis since inception of the scheme and for periods above one year as on August 31, 2017 and on an absolute basis for one-year period for Regular Plan - Growth Option. The fund manager has been managing this fund since April 2015. Benchmark: S&P BSE 200 Index Additional Benchmark: Nifty 50 Performance details for other schemes managed by Mr. S. Krishnakumar Fund Manager individually manages 17 funds of the Mutual Fund. Performance data of Top 3 and bottom 3 funds managed by the fund manager is provided herein. Different plans shall have a different expense structure. The performance details are provided for Regular Plan Growth Option. Performance data is as of August 31, 2017. The fund manager is managing S.M.I.L.E Fund since Dec 2006, Select Micro Cap Series since inception of the respective funds and Select Mid Cap since Nov 2012. Past performance may or may not be sustained in the future Data Source: In house calculations as on August 2017 24
Fixed Income 25
Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Aug 2017 ASSETS UNDER MANAGEMENT In Rs. Crs. 20,000 18,000 16,000 14,000 AUM Growth 14,501 17,181 Short term 17% AUM Composition Medium & Long term 4% Close ended 16% 12,000 10,000 9,852 10,453 11,820 8,000 6,000 6,929 4,000 4,254 2,000 0 3,904 Ultra Short-Term 20% Money 43% Data as of August 2017 26
Return RISK-RETURN SPECTRUM MIPs Capro GILT Fund Hybrid Flexible Fund Flexible Income Plan Bond Saver Select Debt Short Term Asset Plan Income Plus Banking & PSU Debt FTP Ultra Short term Fund Money Fund Low Return to High Return Low Risk to High Risk Risk 27
EMPHASIS ON CREDIT QUALITY A+/A/A- 0.5% Cash Equivalents 11.3% G-Secs 12.0% AA+/AA/AA- 6.1% AAA (medium term) 24.9% A1+ (short term) 45.2% Data as of August 2017 28
Fixed Income - Performance of Top 3 Funds 29
Sundaram Money Fund Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 30
I - SUNDARAM MONEY FUND AUM: Rs.7,454 cr Dividend: No. of 390% folios: since 1.04 lakh launch 9 8 7 7.84 7.44 6.41 Long-term Returns (%) Fund Benchmark CRISIL 91D Tbill 8.33 8.21 7.87 7.77 7.74 7.44 6.75 6.76 6.39 Term Deposits, 2.9% Rating Profile Cash & Others, Reverse 0.2% Repo/CBLO, 4.3% Sovereign, 16.6% 6 5 4 3 2 1 0 Since Inception Last 5 years Last 3 years Last 1 year Highest Investment Grade, 76.0% CAGR Since Launch: 7.84% vis-a-vis benchmark return of 7.44%. Consistently outperformed the benchmark Type of Fund: Open-ended liquid scheme Returns as on August 2017; in house calculations The performance details are provided for Regular Plan Growth Option Different plans shall have a different expense structure The Fund Managers, Dwijendra Srivastava and Siddharth Chaudhary, have been managing this fund since July 2010 and Sep 2010 respectively. Ranked 2 by CRISIL 3 stars by Value Research Ratings Past performance may or may not be sustained in the future 31
REGULATORY DISCLOSURES Performance Returns (%) Rs.10,000 invested Fund (%) Benchmark (%) Additional Benchmark (%) Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 6.75 6.76 6.39 Last 1 Year 10,675 10,676 10,639 Last 3 Years 7.77 7.74 7.44 Last 3 Years 12,520 12,508 12,403 Last 5 Years 8.33 8.21 7.87 Last 5 Years 14,922 14,838 14,611 Since inception 7.84 7.44 6.41 Since inception 24,241 23,188 20,715 Different plans shall have a different expense structure. The returns are calculated on CAGR basis since inception of the scheme and for periods above one year as on August 31, 2017 and on an absolute basis for one-year period for Regular Plan - Growth Option. The fund manager has been managing this fund since July 2010. Benchmark: CRISIL Liquid Fund Index Additional Benchmark: CRISIL 91 D TBill Performance details for other schemes managed by Mr. S. Krishnakumar Fund Manager jointly manages 9 funds of the Mutual Fund. Performance data of Top 3 and bottom 3 funds managed by the fund manager is provided herein. Different plans shall have a different expense structure. The performance details are provided for Regular Plan Growth Option. Performance data is as of August 31, 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on August 2017 32
Sundaram Ultra Short-Term Fund Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 33
II - SUNDARAM ULTRA SHORT-TERM FUND AUM: Rs. 3,017 cr Dividend: No. of 390% folios: since 21,931 launch Long-term Returns (%) Rating Profile 9 8 7 8.32 7.56 6.55 Fund Benchmark CRISIL 91D Tbill 8.56 8.21 7.87 7.96 7.74 7.44 7.05 6.76 6.39 Reverse Repo, 15.6% Cash & Others, 3.0% 6 5 4 3 2 Highest Investment Grade, 81.4% 1 0 Since Inception Last 5 years Last 3 years Last 1 year CAGR Since Launch: 8.32% vis-a-vis benchmark return of 7.56%. Consistently outperformed the benchmark Type of Fund: Open-ended income scheme Returns as on August 2017; in house calculations The performance details are provided for Regular Plan Growth Option Different plans shall have a different expense structure The Fund Managers, Dwijendra Srivastava and Siddharth Chaudhary, have been managing this fund since July 2010 and Sep 2010 respectively. Ranked 3 by CRISIL 2 stars by Value Research Ratings Past performance may or may not be sustained in the future 34
REGULATORY DISCLOSURES Performance Returns (%) Rs.10,000 invested Fund (%) Benchmark (%) Additional Benchmark (%) Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 7.05 6.76 6.39 Last 1 Year 10,705 10,676 10,639 Last 3 Years 7.96 7.74 7.44 Last 3 Years 12,584 12,508 12,403 Last 5 Years 8.56 8.21 7.87 Last 5 Years 15,084 14,838 14,611 Since inception 8.32 7.56 6.55 Since inception 22,900 21,274 19,299 Different plans shall have a different expense structure. The returns are calculated on CAGR basis since inception of the scheme and for periods above one year as on August 31, 2017 and on an absolute basis for one-year period for Regular Plan - Growth Option. The fund manager has been managing this fund since July 2010. Benchmark: CRISIL Liquid Fund Index Additional Benchmark: CRISIL 91 D TBill Performance details for other schemes managed by Mr. S. Krishnakumar Fund Manager jointly manages 9 funds of the Mutual Fund. Performance data of Top 3 and bottom 3 funds managed by the fund manager is provided herein. Different plans shall have a different expense structure. The performance details are provided for Regular Plan Growth Option. Performance data is as of August 31, 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on August 2017 35
Sundaram Banking & PSU Debt Fund Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 36
III SUNDARAM BANKING & PSU DEBT FUND AUM: Rs. 1,317 cr Dividend: No. of 390% folios: since 1,610 launch Long-term Returns (%) Fund Benchmark CRISIL 1Yr Tbill Rating Profile 10 9 8 7 6 8.33 8.12 6.29 9.04 9.13 8.58 8.37 7.30 7.50 8.04 8.16 6.24 Cash & Others Reverse 3.6% Repo/CBLO 4.1% Sovereign 18.5% 5 4 3 2 1 0 Since Inception Last 5 years Last 3 years Last 1 year CAGR Since Launch: 8.33% vis-a-vis benchmark return of 8.12%. Highest Investment Grade 73.8% Type of Fund: Open-ended income scheme Returns as on August 2017; in house calculations The performance details are provided for Regular Plan Growth Option Different plans shall have a different expense structure The Fund Managers, Dwijendra Srivastava and Siddharth Chaudhary, have been managing this fund since July 2010 and Sep 2010 respectively. Past performance may or may not be sustained in the future 37
REGULATORY DISCLOSURES Performance Returns (%) Rs.10,000 invested Fund (%) Benchmark (%) Additional Benchmark (%) Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 8.04 8.16 6.24 Last 1 Year 10,804 10,816 10,624 Last 3 Years 8.37 9.13 7.50 Last 3 Years 12,731 13,000 12,426 Last 5 Years 8.58 9.04 7.30 Last 5 Years 15,095 15,418 14,229 Since inception 8.33 8.12 6.29 Since inception 19,657 19,330 16,735 Different plans shall have a different expense structure. The returns are calculated on CAGR basis since inception of the scheme and for periods above one year as on August 31, 2017 and on an absolute basis for one-year period for Regular Plan - Growth Option. The fund manager has been managing this fund since July 2010. Benchmark: CRISIL Liquid Fund Index Additional Benchmark: CRISIL 91 D TBill Performance details for other schemes managed by Mr. S. Krishnakumar Fund Manager jointly manages 9 funds of the Mutual Fund. Performance data of Top 3 and bottom 3 funds managed by the fund manager is provided herein. Different plans shall have a different expense structure. The performance details are provided for Regular Plan Growth Option. Performance data is as of August 31, 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on August 2017 38
Portfolio Management 39
Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Aug 2017 ASSETS UNDER MANAGEMENT - PORTFOLIO MANAGEMENT In Rs. Crs. 1,600 AUM Growth AUM Composition 1,400 1,200 1,280 1,359 1,198 Other Strategies 40% Advisory 19% 1,000 975 800 600 400 200 120 130 210 390 SISOP Concentrated set of high 17% conviction stocks 0 Mid cap strategy 16% PACE 8% A Core and a Satellite approach, balancing Value & Growth Data as of August 2017 Sundaram India Secular Opportunities Portfolio (SISOP) Portfolio of Attractive Company s Equity (PACE) 40
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 PERFORMANCE OF TOP STRATEGIES Value of Rs.1 Lakh invested in Model Portfolio Sundaram India Secular Opportunities Portfolio (SISOP) Sundaram Portfolio of Attractive Companies Equity (PACE) 700000 320000 600000 5.9x 500000 270000 2.6x 400000 220000 300000 170000 1.9x 200000 2.1x 100000 120000 0 70000 Investing in a concentrated set of high conviction stocks that exhibit secular growth characteristic Strategy Benchmark Sundaram Mid cap Strategy 400000 350000 300000 250000 200000 150000 100000 50000 Follows a Core and a Satellite approach, balancing between value and growth 3.8x 2.3x Data as of August 2017 Investing in midcap stocks that are in early stages of their business cycle 41
Alternative Investment Fund (AIF) 42
FUNDS LAUNCHED Under Category III Sundaram Alternative Opportunities Fund Nano Cap Series I and II Total commitments received Rs. 732 Crores Salient Features Nano cap stocks are typically Under Invested and Under Researched falling between VC and Small caps thereby offering potential for outsized returns in a patient long term investing style Opportunity to leverage on Sundaram s Research - Identify companies with potential for strong growth that can expand into higher valuations Fund invests in stocks predominantly with a market cap of Rs 1,500 crores and below at the time of initial investment Absolute Target Return Fund - Focused Portfolio of 15-25 companies, averaging around 20 4 year close ended fund with exit window 43
KEY PERSONNEL Name Designation Designation Since Overall Experience Experience at SAMC Harsha Viji Managing Director July 2012 16 years 6 years Sunil Subramaniam CEO July 2015 31 years 12 years S.Krishnakumar CIO, Equity April 2015 26 years 13 years Dwijendra Srivastava CIO, Fixed Income April 2014 19 years 7 years Bharath S Kumaran Chandrasekaran Fund Manager, PMS and AIF (Category III) January 2016 15 years 13 years Fund Manager, AIF (Category II) May 2017 12 years 3 months 44
DISCLAIMER GENERAL General Disclaimer: This document is issued by Sundaram Asset Management; an investment manager registered with the Securities and Exchange Board of India in India and is produced for information purposes only. It is not a prospectus, scheme information document, offer document, offer and solicitation, to name a few, to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The information and opinions contained in this communication have been obtained from sources that Sundaram Asset Management believes to be reliable; no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Sundaram Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use or reproduction of this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to be bound by the foregoing limitations. This communication is for general information only without regard to specific objectives, financial situations and needs of any particular person who may receive it and Sundaram Asset Management is not soliciting any action based on this document. Sundaram Asset Management in the discharge of its functions, may use any of the data presented in this document for its decisionmaking purpose and is not bound to disclose the same. Copies of the Statement of Additional Information, Scheme Information Document and application form with key information memorandum may be obtained from the offices of Sundaram Mutual offices and its authorized distributors or downloaded from www.sundarammutual.com For scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects please refer scheme information documents available online and at branches/investor Service Centres; also at www.sundarammutual.com Statutory: Mutual Fund: Sundaram Mutual Fund is a trust under Indian Trusts Act, 1882 Sponsors. Liability for sponsors is limited to Rs 1 lakh. Sponsors: Sundaram Finance Ltd. Investment Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram Trustee Company Ltd. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully 45
DISCLAIMER PORTFOLIO MANAGEMENT AND AIF General Disclaimer: This document is issued by Sundaram Asset Management for your exclusive and confidential reference. This document is produced for information purposes only. It does not constitute a prospectus or offer document or an offer or solicitation to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The information and opinions contained in this communication have been obtained from sources that Sundaram Asset Management believes to be reliable; no representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Sundaram Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s). Any other distribution, use or reproduction of this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to be bound by the foregoing limitations. This communication is for general information only without regard to specific objectives, financial situations and needs of any particular person who may receive it and Sundaram Asset Management is not soliciting any action based on this document. In the discharge of its functions, Sundaram Asset Management may use any of the data presented in this document for its decision-making purpose and is not bound to disclose the same. For details about fund management services and performance, please refer to the Disclosure Documents available at the offices of the AMC. Securities investments are subject to market risks and there is no assurance or guarantee that the objectives of portfolios will be achieved. As with any securities investment, the value of a portfolio can go up or down depending on the factors and forces affecting the capital markets. Past performance of the Fund Manager or AMC may not be indicative of the performance in the future. Sundaram Asset Management is not responsible or liable for losses resulting form the operations of any portfolio. The value of any portfolio illustrated in this document may be affected by changes in the general market conditions, factors and forces affecting capital markets in particular, level of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures. The liquidity of investments are inherently restricted by trading volumes in the securities in which it invests. Investors in portfolios are not offered any guaranteed returns. 46
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