Corporate Presentation December 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 615 offices; over 6,000 employees Deposits rated AAA by CRISIL and ICRA Market Cap - Rs 20,811 Crores as on 29 December 2017 Market cap has grown at CAGR of 30.2% 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 37,350 crores as on 29 December, 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 Dec 2017 ASSETS UNDER MANAGEMENT - OVERALL In Rs. Crs. AUM Growth AUM Composition 40,000 35,000 37,350 International 4% PMS 3% AIF 2% 30,000 29,579 25,000 Fixed Income 39% 22,346 20,000 20,016 15,000 13,288 15,597 10,000 12,274 12,978 Equity 52% Data as of December 2017 5
STRONG RETAIL FOOTPRINT Customers Managed over 56 lakh customer folios since inception 13,69,776 active customer folios 3,78,309 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 WEST, 41% Folio EAST, 8% NORTH, 17% SOUTH, 34% EAST, 6% WEST, 41% NORTH, 23% AUM SOUTH, 30% Distribution footprint 35,539 empaneled distributors 6,671 distributors submit purchase transactions every month 6
CONSISTENT TRACK RECORD OF REWARDING INVESTORS Dividends Strong customer preference for dividends - 4,77,733 (35%) of customer folios in dividend option 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 426 42.60 Diversified Equity 395 39.50 Balanced Fund 237.70 23.77 Select Focus 345 34.50 S.M.I.L.E 230 23.00 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: 3 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 Dec 2017 ASSETS UNDER MANAGEMENT EQUITY In Rs. Crs. AUM Growth AUM Composition 22,000 20,000 18,000 19,416 Thematic & Sectoral 16% Close ended 19% 16,000 14,000 12,000 12,937 10,000 8,000 6,000 4,000 9,131 7,408 5,839 5,356 8,414 8,907 Large Cap & Multi Cap 23% Mid Cap & Small Cap 42% Data as of December 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 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 I - SUNDARAM SELECT MIDCAP (INVESTS IN MID AND SMALL CAPS) AUM: Rs. 6,593 cr No. of folios: 4.18 lakh Dividend: 426% since launch One Time Investment - Returns (%) Value of Rs. 10,000 invested at launch Fund Benchmark Nifty 50 550,000 50 45 40 35 30 25 20 15 10 5 48.1 40.8 28.7 29.6 26.1 20.3 19.8 20.2 20.8 16.8 12.3 8.3 450,000 350,000 250,000 150,000 50,000 Fund Benchmark Nifty 50 3.0X 0 Last 1 year Last 3 years Last 5 years Since Inception -50,000 CAGR Since Launch: 29.6% vis-a-vis benchmark return of 20.8%. Consistently outperformed the benchmark Type of Fund: Open-ended equity scheme Returns as on December 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. An investment of Rs.10,000 at launch is now worth Rs 5,47,941. The fund has delivered higher value of Rs. 3,63,934 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 40.8 48.1 28.7 Last 3 Years 20.3 19.8 8.3 Last 5 Years 26.1 20.2 12.3 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 14,077 14,813 12,865 Last 3 Years 17,420 17,182 12,714 Last 5 Years 31,905 25,056 17,833 Since inception 29.6 20.8 16.8 Since inception 5,47,941 1,84,007 1,09,621 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 December 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 26 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 December 31, 2017 The fund manager has been managing Select Micro Cap funds Series since inception of the respective funds, Sundaram Select Small Cap Series II since Nov 2014, Diversified Equity since Apr 2015 and Sundaram Financial Services Opportunities since Dec 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on December 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 Dec-17 II - SUNDARAM S.M.I.L.E (INVESTS IN SMALL CAPS) AUM: Rs. 1,481 cr No. of folios: 1.21 lakh Dividend: 230% since launch One Time Investment - Returns (%) Value of Rs. 10,000 invested at launch 60 59.6 55.6 Fund Benchmark Nifty 50 120,000 100,000 Fund Benchmark Nifty 50 50 80,000 40 30 20 10 28.7 18.8 20.2 8.3 27.1 21.1 20.8 12.3 13.713.4 60,000 40,000 20,000 2.2x 0 Last 1 year Last 3 years Last 5 years Since Inception 0 CAGR Since Launch: 20.8% vis-a-vis benchmark return of 13.7%. An investment of Rs.10,000 at launch is now worth Rs 1,13,443. Type of Fund: Open-ended equity scheme Returns as on December 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. 61,504 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 55.6 59.6 28.7 Last 3 Years 18.8 20.2 8.3 Last 5 Years 27.1 21.1 12.3 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 15,558 15,964 12,865 Last 3 Years 16,748 17,345 12,714 Last 5 Years 33,204 26,058 17,833 Since inception 20.8 13.7 13.4 Since inception 1,13,443 51,939 50,387 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 December 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 26 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 December 31, 2017. The fund manager has been managing Select Micro Cap Series since inception of the respective funds, Sundaram Select Small Cap Series II since Nov 2014, Diversified Equity since April 2015 and and Sundaram Financial Services Opportunities since Dec 2017. 21 Past performance may or may not be sustained in the future Data Source: In house calculations as on December 2017
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 Nov-17 III - SUNDARAM DIVERSIFIED EQUITY (MULTI CAP FUND) AUM: Rs. 2,563 cr No. of folios: 2.58 lakh Dividend: 395% since launch One Time Investment - Returns (%) Value of Rs. 10,000 invested at launch 40 35 30 25 20 15 10 5 0 Fund Benchmark Nifty 50 38.4 33.3 28.7 17.7 18.5 15.1 10.9 14.1 12.3 13.0 11.9 8.3 Last 1 year Last 3 years Last 5 years Since Inception CAGR Since Launch: 18.5% vis-a-vis benchmark return of 13.0%. 220,000 Fund BSE 200 Index Nifty 50 200,000 180,000 160,000 140,000 120,000 2.4x 100,000 80,000 60,000 40,000 20,000 0 An investment of Rs.10,000 at launch is now worth Rs.2,15,640. Consistently outperformed the benchmark Type of Fund: Open-end Equity-Linked Savings Scheme (ELSS) with a 3 year lock-in period Returns as on December 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.1,24,029 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 (%) Fund (%) Benchmark (%) Additional Benchmark (%) Last 1 Year 38.4 33.3 28.7 Last 3 Years 15.1 10.9 8.3 Last 5 Years 17.7 14.1 12.3 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 13,844 13,326 12,865 Last 3 Years 15,252 13,649 12,714 Last 5 Years 22,533 19,299 17,833 Since inception 18.5 13.0 11.9 Since inception 2,15,640 91,611 76,573 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 December 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 26 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 December 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 Small Cap Series II since Nov 2014 and Financial Services Opportunities fund since Dec 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on December 2017 24
Fixed Income 25
Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Dec 2017 ASSETS UNDER MANAGEMENT In Rs. Crs. 16,000 14,000 12,000 AUM Growth 14,501 14,459 11,820 Short term 14% AUM Composition Medium & Long term 5% Close ended 19% 10,000 9,852 10,453 8,000 6,000 6,929 4,000 2,000 3,904 4,254 Ultra Short-Term 21% 0 Money 41% Data as of December 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 AA+/AA/AA- 8.0% Cash Equivalents 4.6% A+/A/A- 0.7% G-Secs 4.4% AAA (medium term) 26.6% A1+ (short term) 55.8% Data as of December 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.5,988 cr Dividend: No. of 390% folios: since 1.05 lakh launch Long-term Returns (%) Rating Profile 9 8 7 7.81 7.41 6.40 Fund Benchmark CRISIL 91D Tbill 8.17 8.12 7.74 7.50 7.45 7.12 6.62 6.66 6.35 Reverse Repo/CBLO, 0.8% Cash & Others, 0.4% Sovereign, 0.6% 6 5 4 3 2 Highest/High Investment Grade, 98.2% 1 0 Since Inception Last 5 years Last 3 years Last 1 year CAGR Since Launch: 7.81% vis-a-vis benchmark return of 7.41%. Consistently outperformed the benchmark Type of Fund: Open-ended liquid scheme Returns as on December 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 (%) Fund (%) Benchmark (%) Additional Benchmark (%) Last 1 Year 6.62 6.66 6.35 Last 3 Years 7.50 7.45 7.12 Last 5 Years 8.17 8.12 7.74 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 10,662 10,666 10,635 Last 3 Years 12,427 12,410 12,294 Last 5 Years 14,813 14,777 14,521 Since inception 7.81 7.41 6.40 Since inception 24,755 23,681 21,139 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 December 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. Dwijendra Srivastava 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 Direct Plan Growth Option. Performance data is as of December 31, 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on December 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. 2,586 cr Dividend: No. of 390% folios: since 22,172 launch Long-term Returns (%) Rating Profile 9 8 7 6 Fund Benchmark CRISIL 91D Tbill 8.23 8.32 8.12 7.52 7.74 7.57 7.46 7.12 6.54 6.55 6.62 6.31 Cash & Others, Reverse Repo, 0.9% 2.6% Sovereign, 2.7% 5 4 3 2 1 0 Since Inception Last 5 years Last 3 years Last 1 year Highest/High Investment Grade, 93.9% CAGR Since Launch: 8.23% vis-a-vis benchmark return of 7.52%. Consistently outperformed the benchmark Type of Fund: Open-ended income scheme Returns as on December 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 (%) Fund (%) Benchmark (%) Additional Benchmark (%) Last 1 Year 6.55 6.62 6.31 Last 3 Years 7.57 7.46 7.12 Last 5 Years 8.32 8.12 7.74 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 10,655 10,666 10,635 Last 3 Years 12,443 12,410 12,294 Last 5 Years 14,908 14,777 14,521 Since inception 8.23 7.52 6.54 Since inception 23,306 21,727 19,695 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 December 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. Dwijendra Srivastava 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 Direct Plan Growth Option. Performance data is as of December 31, 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on December 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. 1,180 cr Dividend: No. of 390% folios: since 1,465 launch Long-term Returns (%) Fund Benchmark CRISIL 1Yr Tbill Rating Profile 10 9 8 7 6 8.64 8.08 7.92 8.09 6.27 8.17 7.53 7.15 7.11 6.23 6.01 5.81 Reverse Repo/CBLO 19.8% Cash & Others 1.7% Sovereign 20.3% 5 4 3 2 1 0 Since Inception Last 5 years Last 3 years Last 1 year CAGR Since Launch: 8.08% vis-a-vis benchmark return of 7.92%. Type of Fund: Open-ended income scheme Returns as on December 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. Highest Investment Grade 58.2% Past performance may or may not be sustained in the future 37
REGULATORY DISCLOSURES Performance Returns (%) Fund (%) Benchmark (%) Additional Benchmark (%) Last 1 Year 6.23 6.01 5.81 Last 3 Years 7.53 8.17 7.11 Last 5 Years 8.09 8.64 7.15 Rs.10,000 invested Fund (Rs.) Benchmark (Rs.) Additional Benchmark (Rs.) Last 1 Year 10,623 10,601 10,581 Last 3 Years 12,431 12,653 12,286 Last 5 Years 14,751 15,134 14,120 Since inception 8.08 7.92 6.27 Since inception 19,771 19,519 17,045 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 December 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. Dwijendra Srivastava 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 Direct Plan Growth Option. Performance data is as of December 31, 2017. Past performance may or may not be sustained in the future Data Source: In house calculations as on December 2017 38
Portfolio Management 39
Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Dec 2017 ASSETS UNDER MANAGEMENT - PORTFOLIO MANAGEMENT In Rs. Crs. 1,600 AUM Growth AUM Composition 1,400 1,200 1,280 1,359 1,353 Other Strategies 32% Advisory 21% 1,000 975 800 600 SISOP 15% Concentrated set of high conviction stocks 400 390 200 120 130 0 Data as of December 2017 210 Micro cap strategy 8% A Core and a Satellite approach, balancing Value & Growth PACE 8% Mid cap strategy 16% Sundaram India Secular Opportunities Portfolio (SISOP) Portfolio of Attractive Company s Equity (PACE) 40
Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-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 Sep-17 Dec-17 PERFORMANCE OF TOP STRATEGIES Sundaram India Secular Opportunities Portfolio (SISOP) 18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 Value of Rs.25 Lakh invested in Model Portfolio 160.1 lakhs 58.0 lakhs Sundaram Portfolio of Attractive Companies Equity (PACE) 8070000 7070000 6070000 5070000 4070000 3070000 2070000 1070000 70000 71.9 lakhs 52.0 lakhs Investing in a concentrated set of high conviction stocks that exhibit secular growth characteristic Strategy Benchmark Sundaram Mid cap Strategy 12050000 10050000 8050000 6050000 4050000 2050000 50000 Follows a Core and a Satellite approach, balancing between value and growth 113.3 lakhs 65.3 lakhs Data as of December 2017 Investing in midcap stocks that are in early stages of their business cycle 41
Alternative Investment Fund (AIF) 42
FUNDS LAUNCHED - 1 Under Category III Sundaram Alternative Opportunities Fund Nano Cap Series I and II Total commitments received Rs. 736 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
FUNDS LAUNCHED - 2 Under Category II Sundaram Alternative Opportunities Series High Yield Secured Debt Fund Total commitments received Rs. 223.65 Crores Salient Features Fund invests predominantly in high yielding corporate credit opportunities via debentures and other credit instruments including mezzanine securities issued by Indian Real Estate developers that are fully secured by monetizable real estate assets in addition to other assets/cash flows The Fund investments will primarily focus on residential real estate projects in the South Indian cities such as Chennai, Bangalore, Coimbatore, Hyderabad and in other select cities of Andhra Pradesh and opportunistic investments in Mumbai and Pune Absolute Target Return Fund - Concentrated Portfolio of 15-30 companies or securities. Each investment of the Fund is expected to be in the range of INR 30 INR 50 crores 4 year close ended fund without exit window 44
KEY PERSONNEL Name Designation Designation Since Overall Experience Experience at SAMC Harsha Viji Managing Director July 2012 17 years 7 years Sunil Subramaniam CEO July 2015 31 years 12 years S.Krishnakumar CIO, Equity April 2015 26 years 14 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 7 months 45
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 46
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. 47
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