The India Story - Sundaram Mutual · PDF fileand forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. ... 0 5 10 15 20

Sundaram Asset Managementwww.sundarambnpparibas.inDec 2011

Refer Disclaimer on slide: 21

SundaramGrowth Fund

- An open end equity scheme

SUNDARAM

2 Sundaram Asset Managementwww.sundarammutual.com

Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram Asset Management, its distributors and at www.sundarambnpparibas.in

All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Managemen t Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns.

Sundaram Growth Fund is only the name of the scheme and does not in any manner indicate either quality or future prospects and returns.

Disclosures

For detailed disclosures on risk factors and disclaimers refer slide 21

Sundaram Growth Fund

http://www.sundarambnpparibas.in/


Product Positioning• Positioning: Diversified large-cap fund (An index-plus fund)

• Approach: Generate index-plus return without taking excessive risks or major cash calls under normal circumstances.

• Style: Passive on sector allocation with modest deviation (+ or – three percentage points as compared to the benchmark) and aggressive on stock selection and allocation to stocks within each sector.

• Cap-curve: At least 80%-90% on an average will be invested in large-cap stocks and the rest may be invested in mid-cap stocks.

• Mid-cap limits to be used only if required.

• Definition: Large-cap stocks shall include those with the market cap of up to the 100th stock by market cap on the NSE.



• A diversified portfolio that aims to optimize returns and curtail risk as

much as possible.

• The growth option of the fund provides annualised returns of 17.1 per

cent since launch; outpaces BSE 200 by 5.4 percentage points on an

annual basis.

• Rs.10,000 invested at launch in April 1997 in Fund is now worth

Rs.1,02,291 in the growth option. That's over 10.0 times! The same

amount invested in BSE 200 would be worth Rs.50,860.

Salient FeaturesSundaram Growth Fund

Past Performance may or may not be sustained in future

5 Sundaram Asset Managementwww.sundarammutual.comPast Performance may or may not be sustained in future

Track record since launch

11.7

17.1

0 5 10 15 20

BSE 200

GrowthFund


Return/ are as of Dec 31, 2011. Returns in percentage are computed using an adjusted series of NAV for dividends declared before separate Dividend and Growth Options were introduced on a compounded annual basis..


• A monthly SIP of Rs.1000 since launch – a total investment of

Rs.1,76,000 – is now worth Rs 7.0 lakh.

• Dividend paid-out of Rs.33.75 (for every unit of Rs.10) since launch in

April 1997.

• Suitability: Investments are suitable for investors with a three- to five-

year horizon.


Past Performance may or may not be sustained in futureAll dividends are on the face value of Rs.10 per unit. After declaration of dividend the NAV will decline to the extent of the payout

Salient Features


Apr-97

Relative Performance for Rs 100 invested at launch



Growth Fund : Rs 1,020

BSE 200 : Rs 509

CNX Nifty : Rs.433

Dec 11


Performance


PeriodChang in NAV % Annual Returns (%)

Fund BSE 200 Fund BSE 200 Excess

Since Launch 922.9 408.6 17.1 11.7 5.4

Last 10 years 580.6 442.4 21.1 18.4 2.7

Last 7 years 119.6 108.8 11.9 11.1 0.8

Last 5 years 8.4 11.8 1.6 2.3 -0.6

Last 3 years 48.4 60.0 14.1 17.0 -2.9

Last 2 years -14.4 -15.1 -7.5 -7.9 0.4

Last 1 year -27.2 -27.0 -27.2 -27.0 -0.2


Returns are as of Dec 31, 2011. Returns in percentage are computed using an adjusted series of NAV for dividends declared before separate Dividend and Growth Options were introduced on a compounded annual basis. Change in NAV between different dates is in percentage.


Fund BSE 200

Fund -3 11 108 -21 -15 14 112 28 42 43 72 -57 73 18 -27.2BSE 200 -3 -11 89 -26 -22 16 95 16 34 40 60 -56 86 16 -27

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011


Calendar year performanceSundaram Growth Fund

Return/ are as of Dec 31, 2010. Returns in percentage are computed using an adjusted series of NAV for dividends declared before separate Dividend and Growth Options were introduced


Value of Rs 1000-a-month SIP


Period Investment Fund Benchmark Fund Returns

Rs Rs Rs %Lifetime 1,76,000 6,95,352 5,04,376 17.0Last 10 years 1,20,000 2,65,541 2,38,634 15.2Last 7 years 84,000 98,450 99,116 4.5Last 5 years 60,000 58,751 59,454 -0.8Last 3 years 36,000 34,698 34,457 -2.4

Last 2 years 24,000 19,985 19,738 0.0Last 1 year 12,000 10,065 9,982 -28.4


Investment & value are as of Dec 31, 2011. NAV for investment is computed using an adjusted series of NAV for dividends declared before separate Dividend and Growth Options were introduced.


Performance analysis

Data Source: Bloomberg Analysis: In house ; As of Dec 2011

Past performance may or may not be sustained in future

Parameter Fund Benchmark

Average Annual Mean 19.75 15.46

Standard Deviation 27.51 29.30

Beta 0.89 1.00

Sharpe Ratio 0.42 0.25

Sortino Ratio 0.61 0.37

Treynor Ratio 13.06 7.37

Benchmark: BSE 200 Index

Risk-Return Metrics are based on month end NAVs since launch and have been annualised.

The risk free rate considered for analysis is 8.0907% per annum (10 year T-Bill)

Refer slide 20 for help guide on performance analysis



Data Source: Bloomberg Analysis: In house ; As of Dec 2011Past performance may or may not be sustained in future

Benchmark: BSE 200 Index

Risk-Return Metrics are based on month end NAVs since launch and have been annualised.

The risk free rate considered for analysis is 8.0907% per annum (10 year T-Bill)

Parameter Fund

Alpha 5.08

Correlation 0.96

Tracking Error 8.65

Information Ratio 0.50

Turnover 115%

Performance analysis

Refer slide 20 for help guide on performance analysis



Portfolio Snapshot



Preferred sectors, stock bets

As on Dec 31, 2011; Source: Fact Sheet

Main Active Positions - StocksOverweight Underweight

Bharti Airtel H D F CState Bank of India HDFC BankI D F C Reliance IndustriesPower Finance Corp. Mahindra & MahindraDish TV T C S

Position status is relative to benchmark

Main Active Positions - SectorsOverweight Fund Benchmark Active

Fertilizers & Chemicals 3.5 0.9 2.6Telecom 4.8 2.9 1.9Media & Entertainment 2.1 0.6 1.5

Underweight Fund Benchmark ActiveConsumer Goods 7.7 11.5 -3.8Energy - Utilities 3.4 6.7 -3.3Financial Services 22.2 25.3 -3.1

Position status is relative to benchmark


15 Sundaram Asset Managementwww.sundarammutual.comAs on Dec 31, 2011; Source: Fact Sheet

22.2

11.5

9.17.7

7.1

6.2

5.4

20.99.9

Cash

Financial Services

Energy - Oil & Gas

IT

Consumer Goods

Ind. Manufacturing

Auto

Pharma

Others

Allocation Sundaram Growth Fund


Latest portfolio

Data Source: Fact Sheet


Company Allocation (%)ICICI Bank 5.7State Bank of India 5.1Bharti Airtel 4.8Infosys 4.6Reliance Industries 4.0ITC 3.3Larsen & Toubro 3.2O N G C 3.1I D F C 2.9Hindustan Unilever 2.8Dr Reddy's Labs 2.6Grasim 2.4

Company Allocation (%)Power Finance Corp 2.4Cummins India 2.1Dish TV 2.1Axis Bank 2.1Mahindra & Mahindra 2.1Tata Steel 2.1G A I L 2.0Chambal Fertilisers 2.0HCL Technologies 1.9Cairn India 1.8Indian Bank 1.8Petronet LNG 1.8


Latest portfolio



Company Allocation (%)Tata Motors (Class A) 1.7Cipla 1.6Hindalco 1.6United Phosphorus 1.6T C S 1.4Tata Motors 1.4R E C 1.3Punjab National Bank 1.2Sun Pharma 1.2MphasiS BFL 1.2Sterlite Industries 1.1Hero Honda 1.0Bank of Baroda 1.0

Company Allocation (%)

TRF 0.9

Alstom Power 0.9

B P C L 0.8

Trent 0.8

Shopper's Stop 0.7

Gujarat Petronet 0.1

EQUITY (%) 90.1

CASH & CALL 8.5

NCA 1.4

Avg AUM for Jan 2012 Rs.153 crore


J Venkatesan has been with Sundaram Asset Management as fund manager for more than four years now. Though the latest to join the equity team, he has more than two decades experience in tracking financial markets in India. He manages the following Sundaram Funds: Growth, India Leadership, Rural India, Financial Services Opportunities & PSU Opportunities

He is a Cost Accountant and a Post-Graduate in Commerce. A seven-year stint at Canara Bank was followed by a shift to the asset management industry through Canbank Mutual Fund (now Canara Robeco). With a rich experience of close to ten years in fund management, he joined Sundaram Asset Management in January 2006.

Portfolio managerSundaram Growth Fund


Allotment Date April 1997NAV (Jan 31, 2012) Growth: Rs 83.9489 Dividend: Rs 11.3452Objective Primary objective is to seek capital appreciation by investing in equity and

equity related instruments. Secondary objective is income generation.

Asset allocation Equity and Equity Linked Instruments:: up to 95% ;Debt instruments including securitised Debt :: up to 35% ;Money market instruments:: up to 25%. Exposure in derivative :: up to 25%. Investment in overseas securities :: up to 35%. Dedicated Fund Manager for investment in overseas securities: S Bharat

Plans Regular & Institutional

OptionsGrowth, Dividend (Pay Out, Reinvestment & Sweep)

Default Option Growth

Default Sub-Option Dividend Sweep

Load Structure

Terms Of Offer NAV

Exit Load Redeemed within 12 months: 1 % Redeemed after 12 months: NILMinimum

Subscription Amount

Regular & Institutional Plan First Investment: Rs 5000 Subsequent Purchase: Rs 500

SIP Rs 1000 per week Rs 250 per month Rs 750 per quarter Weekly SIP will be processed on Wednesdays

Fund FactsSundaram Growth Fund



Sundaram Select Mid CapHelp Guide for Performance analysis

NAV-based returns have been used in calculating all the numbers in ‘Performance Analysis’ table.Average Annual Mean: This is the average of monthly returns since launch.Standard Deviation: This indicator tells how the monthly/weekly returns as the case may be are deviating from the mean returns of the fund and is calculated for the same period as mean returns. This gives an indication of the volatility in the returns of the fund. This indicator hence should be read in conjunction with Mean returns and not to be used alone.Beta: This measure is also calculated basing on the monthly returns. It considers the benchmark returns and finds out the extent to which fund moved in relation to benchmark. For example, a figure of 0.9, means that if index falls by 1%, this fund’s NAV should decline by 0.9%Sharpe: This ratio is a measure of the fund’s risk-adjusted returns per unit of risk (risk measure used is standard deviation). It is calculated by deducting the risk-free rate of return from the average monthly returns and dividing the result by the standard deviation. In general, higher the Sharpe ratio, the better it is as an indicator of risk-adjusted returns.Sortino: This ratio is a measure of the fund’s risk-adjusted returns per unit of down-side risk (down-side risk measure used is standard deviation of falls in excess of risk-free return). Sortino ratio is calculated by deducting the risk-free rate of return from the average monthly returns and dividing the result by the down-side risk. In general, higher the Sortino ratio, the better it is as an indicator of risk-adjusted returns.Treynor Ratio: This ratio is a measure of the fund’s risk-adjusted returns per unit of market risk (risk measure used is beta). It is calculated by deducting the risk-free rate of return from the average monthly return and dividing the result by the beta of the fund.Alpha: It is the excess return generated by the fund above its expected rate of return. The expected rate or return is the return of the index multiplied by the beta.Correlation: This number shows the relationship between the returns of the fund and benchmark. If the ratio is 0, it means there is no relationship between them and if it is 1, it means the two move in tandem. This ratio is also calculated for the same period as of mean returns.Tracking error: This is a measure of how closely a portfolio follows the index to which it is benchmarked. It measures the standard deviation of the difference between the portfolio and benchmark returns. Tracking error (also called active risk) is a measure of the deviation from the benchmark. An actively managed portfolio would normally have a higher tracking error. If tracking error is measured historically, it is called 'realised' or 'ex post' tracking error. If a model is used to predict tracking error, it is called 'ex ante' tracking error. The former is more useful for reporting performance, whereas ex ante is generally used by portfolio managers to control riskInformation Ratio: This is a measure the excess return of the fund over the benchmark by the amount of risk the manager takes relative to a benchmark. Risk measure to compute information ratio is tracking error.Turnover: This ratio measures churn or portfolio turnover. This is calculate by dividing the lower of purchases or sales by the average daily assets for the chosen period.


DisclosuresMutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing.Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram Asset Management, its distributors and at www.sundarambnpparibas.in. Fund Type: Open-end equity scheme; Investment Objective: Seek capital appreciation. Asset Allocation: Equity and equity-related instruments: up to 95% • Debt instruments including securitised Debt: up to 35% • Money market instruments up to 25 Exposure in derivative shall not exceed 25% of the portfolio. Equity Investments may also include overseas securities, up to a maximum of 35% of the net assets. Minimum amount: Rs 5,000. Term of Offer: NAV. Exit Load: 1% if redeemed within 12 months from date of allotment for Regular Plan & Institutional Plan. There is no exit load for bonus units and dividend re-investment. NAV publication/sale/redemption will be done on all business days. Scheme-Specific Risk Factors: Change in Government policy in general and changes in tax benefits applicable to mutual funds may impact the returns to Investors. Tax-free status for long- term capital gains and dividend will depend on the fund investing at least 65% in equity to qualify in accordance with provisions of the Income-Tax Act. If and to the extent, the portfolio includes overseas stocks, investors will be exposed to country risk, currency risk, geo-political risk, legal restrictions and regulation changes in geography other than India. General Risk Factors: All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. The name of the scheme does not in any manner indicate either quality or future prospects and returns. General Disclaimer: This document is issued by Sundaram Asset Management Company Ltd. an investment manager registered with the Securities and Exchange Board of India. 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 judgement by any recipient. The content is subject to change without notice and is not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. This document is not a solicitation to sell and/or investment advice. This document shall not form the basis of or be relied upon in connection with any contract or commitment whatsoever. The information and opinion contained in this communication have been obtained from sources that Sundaram Asset Management Company Ltd 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 Company Ltd 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 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 above-mentioned limitations. This communication is for general information only without regard to specific objectives, financial situations and needs of any particular person who may receive Sundaram Asset Management Company Ltd is not soliciting any action based on this document. Sundaram Asset Management Company Ltd., in the discharge of its functions, may use any of the data presented in this document for its decision-making purpose and is not bound to disclose the same. Data and computation used to prepare this document have not been independently verified or audited. Please read the offer document / Scheme Information Document (available online at www.sundarambnpparibas.in) carefully before investing and also take professional advice before making an investment decision Statutory: Mutual Fund: Sundaram Mutual Fund is a trust under Indian Trusts Act, 1882 Sponsors. The liability for the sponsors is limited to Rs 1 lakh. Sponsors: Sundaram Finance Ltd & BNP Paribas Asset Management. Investment Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram Trustee Company Ltd.





Contact us

Call: 044 28578700

Toll Free: 1800 425 1000

www.sundarammutual.com

SMS: SFUND to 56767

E-mail [email protected]

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The India Story - Sundaram Mutual · PDF fileand forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. ... 0 5 10 15 20