Union Asset Managment

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Introduction to investment managment

Investment managementis the professionalasset managementof varioussecurities(shares,bonds and other securities) and otherassets(e.g.,real estate) in order to meet specified

investment goals for the benefit of the investors. Investors may be institutions (insurancecompanies, pension funds, corporations, charities, educational establishments etc.) or privateinvestors (both directly via investment contracts and more commonly viacollective investmentschemese.g.mutual fundsorexchange-traded funds).

The term asset management is often used to refer to the investment management ofcollectiveinvestments, while the more generic fund management may refer to all forms of institutionalinvestment as well as investment management for private investors. Investment managers whospecialize in advisoryor discretionarymanagement on behalf of (normally wealthy) privateinvestors may often refer to their services asmoney managementor portfolio management oftenwithin the context of so-called "private banking".

The provision of investment management services includes elements offinancial statementanalysis, asset selection, stock selection, plan implementation and ongoing monitoring ofinvestments. Coming under the remit offinancial servicesmany of the world's largest companiesare at least in part investment managers and employ millions of staff.

Fund manager (orinvestment advisorin the United States) refers to both afirmthat providesinvestment management services and an individual who directs fund management decisions.

According to aBoston Consulting Groupstudy, the assets managed professionally for feesreached an all-time high of US$62.4 trillion in 2012, after remaining flat-lined since2007.[1]Furthermore, these industry assets under management were expected to reach US$70.2trillion at the end of 2013 as per a Cerulli Associates estimate.

The global investment management industry is highly concentrated in nature, in a universe ofabout 70,000 funds roughly 99.7% of the US fund flows in 2012 went into just 185 funds.Additionally, a majority of fund managers report that more than 50% of their inflows go to justthree funds.

Investment Management (Overview)

Purpose

The Investment Management (IM) component provides functions to support the

planning, investment, and financing processes for: Capital investments, such as the acquisition of fixed assets as the result of-house productionor purchase

Investments in research and development Projects that fall primarily under overhead, such as continuing education of employees or

establishing new markets Maintenance programs
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The term investment, therefore, is not limited only to investments you capitalize for bookkeepingor tax purposes. An investment in this context can be any measure that initially causes costs, andthat may only generate revenue or provide other benefits after a certain time period has elapsed(for example, plant maintenance projects).

The IM component contains functions for managing investments in the area offixed assets. Financial assets are managed in the Treasury component.

Implementation considerations

For information on implementing the IM component, refer to the Implementation Guide (IMG)for Investment Management. Choose SAP Customizing Implementation Guide InvestmentManagement.

Integration

The investment program and the appropriation request are objects that originate in the IMcomponent. In order to represent the measure, the IM component uses internal orders fromOverhead Cost Controlling - Overhead Orders (CO-OM-OPA) and Plant Maintenance (PM), aswell as work breakdown structure (WBS) elements from the Project System (PS).

The integration with Asset Accounting (FI-AA) enables you to easily capitalize the costs ofinternal orders and WBS elements that require capitalization to a fixed asset. Costs that do notrequire capitalization can be settled to cost accounting.You can post acquisitions to a measure in the Logistics components of the SAP System.


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Sub-Components of Investment Management and their IntegrationThe integrated planning process allows you to roll up planned values from appropriation requestsand measures on the investment program to which they are assigned. You carry out budgeting ofmeasures, on the other hand, from the top down within the investment program.You can transfer expected depreciation on all planned investments to management accounting in

the form of planned costs.FeaturesInvestment Management consists of the following components:

Component Used for

InvestmentProgram

cyclical planning and management of investment budgets for anumber of measures, throughout your whole enterprise

AppropriationRequests

management of the planning and approval phase of investmentsand other types of measures

InvestmentMeasures

parallel handling of cost accounting and financial accountingneeds for individual investments. Measures take the form of

internal orders, projects and maintenance orders.Investment Programs

Purpose

You can use investment programs as a supplement for any planning for individual measures andfor budgeting in the following areas: Planning Administration Monitoring of a global budgetInvestment programs support the annual creation of an investment plan and budget if these are to

be monitored globally.You can obtain an overview of planning and budgeting processes in complex enterprisestructures for all investments and large projects of the group, while at the same time maintainingstrict budgetary control.

FeaturesThe Investment Programs component provides functions for planning and monitoring ofinvestment budgets encompassing many different measures, on a cyclical basis, of an entirecorporate group. You can benefit from the integration of this component with the InvestmentMeasures and Appropriation Requests components. Measures and appropriation requests can beassigned to investment program positions. By rolling up their plan values in the investmentprogram, these measures and appropriation requests are integrated in the comprehensive

investment planning process. At the same time, you can budget and oversee the measures usingthe investment program.Comprehensive investment programs in the SAP System offer the advantage of their directintegration with the individual measures (orders or WBS elements), in contrast to non-integratedplanning systems. By means of this integration, you are quickly made aware if yourcomprehensive budget is overrun. You can also monitor expenses for both external acquisitionsas well as internal costs (activity allocation, overhead).
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The Investment Programs component includes the following processes and functions:

Process/Function Areas Used

Structure of the Investment Program Investments listed in a hierarchy

Planning and Budgeting of

Investment Programs

- Bottom-up: Planning investments in an

investment program- Top-down: Budget distribution

Fiscal Year Change Carrying forward a current investment programinto a new approval year

Structure of the Investment Program

Use

The system displays the program structure in maintenance transactions in the form of ahorizontal tree diagram. You can assign investment measures and appropriation requests to theinvestment program positions.

Features

Creating the Program Structure and Program PositionsWhen you create or change the tree diagram, you can also directly define the correspondingprogram positions and assign them to the desired position in the hierarchy using fast entry.

The system uniquely identifies each program position based on its: Investment program name and approval year Position ID that has a maximum of 24 characters

The maximum number of hierarchy levels is 99.There are limitations on how complex the investment program can be, dueto performance considerations. Since performance is strongly dependenton your system configuration, we can only offer a figure for orientation: Ifyour investment program has more than 10,000 positions, you shouldcontact your SAP consultant.

You can make organizational assignments for each program position (such as, assignment to acompany code, business area, plant, or cost center). When you create new program positionsbelow existing positions in the hierarchy, the system automatically copies the assignments andthe general data from the higher-level position to the new lower-level position you are creating.However, if you later change the organizational assignment of a program position that hassubordinate positions in the hierarchy, the system does not automatically copy the changes tothese subordinate program positions.
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There is a report you can use to check the consistency of the organizational units in investmentprograms (refer toInheritance of Organizational Units).

Top Positions and Controlling AreaYou have to assign the top positions of a program to a controlling area. The system then

automatically copies this controlling area to all subordinate positions. In this way, it isguaranteed that a subtree of an investment program always belongs to a given controlling area.

MeasuresThe program positions that do not have any subordinate positions assigned to them in thehierarchy are called end nodes The individual measures of the investment program can beassigned to these end node positions. You can assign internal orders, maintenance orders andWBS elements to investment programs as measures (refer toConnection between Programs and Measures).You can make oneof the following specifications for an end node position:

The individual measures assigned to the end node can be budgeted separately, and the totals ofthese budgets are compared with the budget for the program position only on a periodic basis

in reports. (TheBudget dist. overall indicator is not set.) The individual measures assigned to the end node receive their budget directly from the

program position. (The Budget dist. overall indicator is set.) In this case, the subordinatemeasures can receive their annual budget, in addition to their overall budget, by direct budgetdistribution from the program position, if theBudget dist. annl. (budget distribution of annualvalues) indicator is set in the program definition. A consistency check then guarantees thatonly the amount of overall and annual budget available on the program position can bedistributed to its measures (refer to

Distributing the Budget from the Program Position to the Measures).Deletion and Reassignment of Sub-Trees

Subtrees can be deleted only if their program positions do not have any budget or plan values.When you reassign a subtree, the system automatically transfers its budget and plan values alongwith it.

Industry scope[edit]

The business of investment has several facets, the employment of professional fund managers,research (of individual assets andasset classes), dealing, settlement, marketing,internal auditing,and the preparation of reports for clients. The largest financial fund managers are firms thatexhibit all the complexity their size demands. Apart from the people who bring in the money(marketers) and the people who direct investment (the fund managers), there are compliance staff(to ensure accord with legislative and regulatory constraints), internal auditors of various kinds

(to examine internal systems and controls), financial controllers (to account for the institutions'own money and costs), computer experts, and "back office" employees (to track and recordtransactions and fund valuations for up to thousands of clients per institution).

Key problems of running such businesses[edit]

Key problems include:
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revenue is directly linked to market valuations, so a major fall in asset prices can cause aprecipitous decline in revenues relative to costs;

above-average fund performance is difficult to sustain, and clients may not be patient duringtimes of poor performance;

successful fund managers are expensive and may be headhunted by competitors;

above-average fund performance appears to be dependent on the unique skills of the fundmanager; however, clients are loath to stake their investments on the ability of a fewindividuals- they would rather see firm-wide success, attributable to a single philosophy andinternal discipline;

analysts who generate above-average returns often become sufficiently wealthy that theyavoid corporate employment in favor of managing their personal portfolios.

Representing the owners of shares[edit]

Institutions often control huge shareholdings. In most cases they are acting as fiduciary agentsrather than principals (direct owners). The owners of shares theoretically have great power toalter the companies via the voting rights the shares carry and the consequent ability to pressure

managements, and if necessary out-vote them at annual and other meetings.In practice, the ultimate owners of shares often do not exercise the power they collectively hold(because the owners are many, each with small holdings); financial institutions (as agents)sometimes do. There is a general belief[by whom?]that shareholders in this case, the institutionsacting as agentscould and should exercise more active influence over the companies in whichthey hold shares (e.g., to hold managers to account, to ensure Boards effective functioning). Suchaction would add apressure groupto those (the regulators and the Board) overseeingmanagement.

However there is the problem of how the institution should exercise this power. One way is forthe institution to decide, the other is for the institution to poll its beneficiaries. Assuming that theinstitution polls, should it then: (i) Vote the entire holding as directed by the majority of votescast? (ii) Split the vote (where this is allowed) according to the proportions of the vote? (iii) Orrespect the abstainers and only vote the respondents' holdings?

The price signals generated by large active managers holding or not holding the stock maycontribute to management change. For example, this is the case when a large active managersells his position in a company, leading to (possibly) a decline in the stock price, but moreimportantly a loss of confidence by the markets in the management of the company, thusprecipitating changes in the management team.

Some institutions have been more vocal and active in pursuing such matters; for instance, somefirms believe that there are investment advantages to accumulating substantial minorityshareholdings (i.e. 10% or more) and putting pressure onmanagementto implement significant

changes in the business. In some cases, institutions with minority holdings work together to forcemanagement change. Perhaps more frequent is the sustained pressure that large institutions bringto bear on management teams through persuasive discourse and PR. On the other hand, some ofthe largest investment managerssuch asBlackRockandVanguardadvocate simply owningevery company, reducing the incentive to influence management teams. A reason for this laststrategy is that the investment manager prefers a closer, more open and honest relationship with acompany's management team than would exist if they exercised control; allowing them to makea better investment decision.
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The national context in which shareholder representation considerations are set is variable andimportant. The USA is a litigious society and shareholders use thelawas a lever to pressuremanagement teams. In Japan it is traditional for shareholders to be low in the 'pecking order,'which often allows management and labor to ignore the rights of the ultimate owners. WhereasUS firms generally cater to shareholders, Japanese businesses generally exhibit

astakeholdermentality, in which they seek consensus amongst all interested parties (against abackground of strongunionsand labourlegislation.

Size of the global fund management industry[edit]

Conventionalassets under managementof the global fund management industry increased by10% in 2010, to $79.3 trillion.Pensionassets accounted for $29.9 trillion of the total, with $24.7trillion invested in mutual funds and $24.6 trillion in insurance funds. Together with alternativeassets (sovereign wealth funds, hedge funds, private equity funds and exchange traded funds)and funds of wealthy individuals, assets of the global fund management industry totalled around$117 trillion. Growth in 2010 followed a 14% increase in the previous year and was due both tothe recovery in equity markets during the year and an inflow of new funds.

The US remained by far the biggest source of funds, accounting for around a half ofconventionalassets under managementor some $36 trillion. The UK was the second largestcentre in the world and by far the largest in Europe with around 8% of the global total.[2]

Philosophy, process and people[edit]

The 3-P's (Philosophy, Process and People) are often used to describe the reasons why themanager is able to produce above average results.

Philosophyrefers to the overarching beliefs of the investment organization. For example: (i)Does the manager buygrowthor value shares, or a combination of the two (and why)? (ii)

Do they believe in market timing (and on what evidence)? (iii) Do they rely on externalresearch or do they employ a team of researchers? It is helpful if any and all of suchfundamental beliefs are supported by proof-statements.

Processrefers to the way in which the overall philosophy is implemented. For example: (i)Which universe of assets is explored before particular assets are chosen as suitableinvestments? (ii) How does the manager decide what to buy and when? (iii) How does themanager decide what to sell and when? (iv) Who takes the decisions and are they taken bycommittee? (v) What controls are in place to ensure that a rogue fund (one very differentfrom others and from what is intended) cannot arise?

People refers to the staff, especially the fund managers. The questions are, Who are they?How are they selected? How old are they? Who reports to whom? How deep is the team (and

do all the members understand the philosophy and process they are supposed to be using)?And most important of all, How long has the team been working together? This last questionis vital because whatever performance record was presented at the outset of the relationshipwith the client may or may not relate to (have been produced by) a team that is still in place.If the team has changed greatly (high staff turnover or changes to the team), then arguablythe performance record is completely unrelated to the existing team (of fund managers).

Investment managers and portfolio structures[edit]
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At the heart of the investment management industry are the managers who invest and divestclient investments.

A certified company investment advisor should conduct an assessment of each client's individualneeds and risk profile. The advisor then recommends appropriate investments.

Asset allocation[edit]

The different asset class definitions are widely debated, but four common divisionsarestocks,bonds,real estateandcommodities. The exercise of allocating funds among theseassets (and among individual securities within each asset class) is what investment managementfirms are paid for. Asset classes exhibit different market dynamics, and different interactioneffects; thus, the allocation of money among asset classes will have a significant effect on theperformance of the fund. Some research suggests that allocation among asset classes has morepredictive power than the choice of individual holdings in determining portfolio return.Arguably, the skill of a successful investment manager resides in constructing the assetallocation, and separately the individual holdings, so as to outperform certain benchmarks (e.g.,the peer group of competing funds, bond and stock indices).

Long-term returns[edit]

It is important to look at the evidence on the long-term returns to different assets, and to holdingperiod returns (the returns that accrue on average over different lengths of investment). Forexample, over very long holding periods (e.g. 10+ years) in most countries, equities havegenerated higher returns than bonds, and bonds have generated higher returns than cash.According to financial theory, this is because equities are riskier (more volatile) than bondswhich are themselves more risky than cash.

Diversification[edit]

Against the background of the asset allocation, fund managers consider the degree

ofdiversificationthat makes sense for a given client (given its risk preferences) and construct alist of planned holdings accordingly. The list will indicate what percentage of the fund should beinvested in each particular stock or bond. The theory of portfolio diversification was originatedby Markowitz (and many others). Effective diversification requires management of thecorrelation between the asset returns and the liability returns, issues internal to the portfolio(individual holdings volatility), andcross-correlationsbetween the returns.

Investment styles[edit]

There are a range of differentstylesof fund management that the institution can implement. Forexample,growth, value, growth at a reasonable price (GARP),market neutral, smallcapitalisation, indexed, etc. Each of these approaches has its distinctive features, adherents and,

in any particular financial environment, distinctive risk characteristics. For example, there isevidence thatgrowthstyles (buying rapidly growing earnings) are especially effective when thecompanies able to generate such growth are scarce; conversely, when such growth is plentiful,then there is evidence that value styles tend to outperform the indices particularly successfully.

Performance measurement[edit]

Fund performance is often thought to be the acid test of fund management, and in theinstitutional context, accurate measurement is a necessity. For that purpose, institutions measure
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the performance of each fund (and usually for internal purposes components of each fund) undertheir management, and performance is also measured by external firms that specialize inperformance measurement. The leading performance measurement firms (e.g.Frank Russellinthe USA or BI-SAM[1]in Europe) compile aggregate industry data, e.g., showing how funds ingeneral performed against given indices and peer groups over various time periods.

In a typical case (let us say an equity fund), then the calculation would be made (as far as theclient is concerned) every quarter and would show a percentage change compared with the priorquarter (e.g., +4.6% total return in US dollars). This figure would be compared with other similarfunds managed within the institution (for purposes of monitoring internal controls), withperformance data for peer group funds, and with relevant indices (where available) or tailor-made performance benchmarks where appropriate. The specialist performance measurementfirms calculate quartile and decile data and close attention would be paid to the (percentile)ranking of any fund.

Generally speaking, it is probably appropriate for an investment firm to persuade its clients toassess performance over longer periods (e.g., 3 to 5 years) to smooth out very short termfluctuations in performance and the influence of the business cycle. This can be difficulthowever and, industry wide, there is a serious preoccupation with short-term numbers and theeffect on the relationship with clients (and resultant business risks for the institutions).

An enduring problem is whether to measure before-tax or after-tax performance. After-taxmeasurement represents the benefit to the investor, but investors' tax positions may vary. Before-tax measurement can be misleading, especially in regimens that tax realised capital gains (andnot unrealised). It is thus possible that successful active managers (measured before tax) mayproduce miserable after-tax results. One possible solution is to report the after-tax position ofsome standard taxpayer.

Risk-adjusted performance measurement[edit]

Performance measurement should not be reduced to the evaluation of fund returns alone, butmust also integrate other fund elements that would be of interest to investors, such as themeasure of risk taken. Several other aspects are also part of performance measurement:evaluating if managers have succeeded in reaching their objective, i.e. if their return wassufficiently high to reward the risks taken; how they compare to their peers; and finally whetherthe portfolio management results were due to luck or the managers skill. The need to answer allthese questions has led to the development of more sophisticated performance measures, many ofwhich originate inmodern portfolio theory.Modern portfolio theory established the quantitativelink that exists between portfolio risk and return. The Capital Asset Pricing Model (CAPM)developed by Sharpe (1964) highlighted the notion of rewarding risk and produced the firstperformance indicators, be they risk-adjusted ratios (Sharpe ratio, information ratio) or

differential returns compared to benchmarks (alphas). The Sharpe ratio is the simplest and bestknown performance measure. It measures the return of a portfolio in excess of the risk-free rate,compared to the total risk of the portfolio. This measure is said to be absolute, as it does not referto any benchmark, avoiding drawbacks related to a poor choice of benchmark. Meanwhile, itdoes not allow the separation of the performance of the market in which the portfolio is investedfrom that of the manager. The information ratio is a more general form of the Sharpe ratio inwhich the risk-free asset is replaced by a benchmark portfolio. This measure is relative, as it
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evaluates portfolio performance in reference to a benchmark, making the result stronglydependent on this benchmark choice.

Portfolio alpha is obtained by measuring the difference between the return of the portfolio andthat of a benchmark portfolio. This measure appears to be the only reliable performance measureto evaluate active management. In fact, we have to distinguish between normal returns, provided

by the fair reward for portfolio exposure to different risks, and obtained through passivemanagement, from abnormal performance (or outperformance) due to the managers skill (orluck), whether throughmarket timing,stock picking, or good fortune. The first component isrelated to allocation and style investment choices, which may not be under the sole control of themanager, and depends on the economic context, while the second component is an evaluation ofthe success of the managers decisions. Only the latter, measured by alpha, allows the evaluationof the managers true performance (but then, only if you assume that any outperformance is due

to skill and not luck).

Portfolio return may be evaluated using factor models. The first model, proposed by Jensen(1968), relies on theCAPMand explains portfolio returns with the market index as the onlyfactor. It quickly becomes clear, however, that one factor is not enough to explain the returnsvery well and that other factors have to be considered. Multi-factor models were developed as analternative to theCAPM, allowing a better description of portfolio risks and a more accurateevaluation of a portfolio's performance. For example, Fama and French (1993) have highlightedtwo important factors that characterize a company's risk in addition to market risk. These factorsare the book-to-market ratio and the company's size as measured by its market capitalization.Fama and French therefore proposed three-factor model to describe portfolio normal returns(Fama-French three-factor model). Carhart (1997) proposed to add momentum as a fourth factorto allow the short-term persistence of returns to be taken into account. Also of interest forperformance measurement is Sharpes (1992)style analysismodel, in which factors are styleindices. This model allows a custom benchmark for each portfolio to be developed, using thelinear combination of style indices that best replicate portfolio style allocation, and leads to anaccurate evaluation of portfolio alpha.

Union Bank of India

Union Bank of India(UBI) (BSE:532477) is one of the largest government-owned banks ofIndia (the government owns 60.13% of its share capital). It is listed on theForbes 2000,and hasassets of USD 13.45 billion. All the bank's branches have been networked with its 6420 ATMs.Its online Telebanking facility are available to all its Core Banking Customers - individual aswell as corporate. It has representative offices inAbu Dhabi,United Arab Emirates,Beijing,Peoples Republic of China, London, Shanghai, and Sydney, and branches in HongKong,Dubai(Dubai International Financial Centre) and Antwerp, Belgium.

The bank is in the process of upgrading its representative offices in London and Sydney tobranches. UBI is active in promoting financial inclusion policy and is a member of theAlliancefor Financial Inclusion (AFI).
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History[edit]

Union Bank of India (UBI) was registered on 11 November 1919 as a limited companyinMumbaiand was inaugurated byMahatma Gandhi. At the time of India's Independence in1947, UBI only had four branches - three in Mumbai and one inSaurashtra,all concentrated inkey trade centres. After Independence UBI accelerated its growth and by the time the

government nationalised it in 1969, it had grown to 240 branches in 28 states. Shortly afternationalisation, UBI merged in Belgaum Bank, a private sector bank established in 1930 thathad itself merged in a bank in 1964, the Shri Jadeya Shankarling Bank. Then in 1985 UBImerged in Miraj State Bank, which had been established in 1929. In 1999 theReserve Bank ofIndiarequested that UBI acquire Sikkim Bankin a rescue after extensive irregularities had beendiscovered at the non-scheduled bank. Sikkim Bank had eight branches located in the North-east,which was attractive to UBI.

UBI began its international expansion in 2007 with the opening of representative offices in AbuDhabi, United Arab Emirates, and Shanghai, Peoples Republic of China. The next year, UBIestablished a branch in Hong Kong, its first branch outside India. In 2009, UBI opened arepresentative office in Sydney, Australia.

At present, the offshore banking operations of Union Bank of India are led by its branches inHong Kong and newly opened branch in Dubai at Dubai International Financial Centre.

Established in 1995, as the 8th indigenous Bank, Union Bank is positioned to be the preferredBank for the Small and Medium Enterprises and Retail sectors in Sri Lanka. As one of SriLanka's fastest growing Banks, Union Bank offers its preferred customer segments a range ofcomprehensive financial solutions to support the development and growth of these sectors.Known for its strong shareholder strength which includes high caliber local and foreigninvestors, financial stability, innovative range of technology-driven products, supported by

superior service delivery enables Union Bank to forge ahead as a key player in the Bankingindustry in Sri Lanka.

In order to deliver the Bank's unique value proposition to customers, Union Bank continues toexpand its reach rapidly in Sri Lanka through its growing branch network which also includes 7branches in the Northern and Eastern provinces in the country. A number of new branches areexpected to open in several new areas in the coming year and beyond, which is specially focusedand geared to grow Union Bank's SME portfolio.

Listed in the Colombo Stock Exchange in March 2011, the Bank's Initial Public Offering (IPO)received overwhelming response making the IPO one of the highest oversubscribed in Sri Lankaand globally further highlighting public confidence in Union Bank as a rapidly progressing and

potential business entity.

The Bank's expansion also includes the Bank actively pursuing opportunities for relateddiversifications in the Finance Industry and as such acquired 51% stake in National AssetManagement Limited, Sri Lanka's premier Asset Management Company in February 2011 andsubsequently in November 2011, acquired 98% of voting shares with a strategic foreign investorShorecap in The Finance and Guarantee Company Limited, one of Sri Lanka's oldest financecompanies established in 1961.
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August 2014, UBC announced it has entered into an investment agreement with CultureFinancial Holdings Ltd. an affiliate of TPG, a leading global private investment firm with over$59Bn of capital under management. The investments is one of the largest foreign directinvestments into Sri Lanka in recent years and places Union Bank amongst the top 5 banks in SriLanka. Under the agreement, TPG will invest up to approximately US$117 million ( or LKR

15Bn) in UBC through a combination of primary and secondary shares, representing up to 70%of the issued share capital.

Union bank Asset Management Group

Union Banks Asset Management Group offers you a complete range of financial planning,investment and estate servicesall from the same source you already rely on for your personaland business banking. Regardless of the current value of your savings, portfolio or estate, Union

Banks experienced advisors are happy to work with you to develop a plan and identify strategiesthat will help you manage your money and assets to meet your goals.

Our wide range of expertise includes:

Investment Managementfrom advisory to fully managed accounts Personal Trustswith the fiduciary services you expect Retirement Strategiestailored to your lifestyle Estate Servicescovering both planning and settlement Commercial Client Servicesincluding escrow, investment management and custodial

accounts

Investment Management

All of our clients are unique. That's why from the very first moment we meet with you, we listen.We believe listening is the basic ingredient of all good relationships. What we learn from youforms the basis for our recommendations. Understanding your present need is crucial to layingthe foundation for your investments and for your familys future. Add a strong local presence toour experience, and the result is excellent service, insight and care that you can count on overtime. We believe you deserve that!

Our investment strategy balances your risk with careful diversification to reduce your overallexposure.

We offer:

Advisory accountsfor investors who like a hands-on approach to their investments,but whom also want to work with an expert.
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Custodial accountsincludes safekeeping of securities and record keeping. A custodialaccount can also be a retirement account managed for eligible employees by a custodian.

Fully managed accountscompletely managed personalized asset management andinvestment portfolios tailored to your specific needs.

Personal Trusts

Protecting your assets just makes sense, and to do that well you need the counsel of a trustworthyfinancial advisor. Union Banks expert staff, long history and solid reputation ensure you that the

guidance and service you receive will help establish your financial security.

One of the most effective means of guarding your estate is setting up a trust. The trust caninclude a variety of assetsmoney, real estate, furniture, etc. The trust itself is a financial

agreement used to benefit either a person (child, spouse or whomever) or group of people (acharity, other non-profit or cause, etc.).

Living trusts" provide for the control and use of your assets during your lifetime and are

distributed when you die as directed by the trust. The probate process is avoided for assets putinto the trust.

Testamentary trusts" take effect when you die and are tied to a will. A testamentary trust canhelp distribute your assets to those you wish to inherit at a future date.

A Union Bank Asset Management advisor can offer you the financial services and management

required to deliver on your wishes, including:

A revocable trust is in place as long as the grantor is still living; at any time, the grantorcan revoke the trust.

An irrevocable trust cannot be changed. A charitable trust is an irrevocable trust set up to benefit a charitable organization. A supplemental needs trust is for someone who has special needs or requirements.

Retirement Strategies

It is never too early to consider your retirement. A Union Bank Asset Management advisor cancreate a multifaceted plan for your retirement that matches your goals and dreams. We selectamong traditional and non-traditional investment vehicles based on your income, assets andlifestyle so that your hard work pays off. We also keep an eye to how your retirement


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investments should be structured given the stage of life you are in. Long-term vision and sensiblebalancing of your portfolio can make all the difference.

Retirement services we offer include:

Traditional IRAs Roth IRAs Rollovers Investment Management

Estate Services

Estate Planning & Settlement

The best way to ensure that your beneficiaries receive what you wish them to is to have a clear,well-thought-out, documented plan of action, with due consideration given to taxes and otherissues. Union Bank Asset Management advisor will give you the guidance you need to ensurethat your wishes are followed and that those you care for are the recipients.

As executor of your estate, we will relieve family members from the daunting tasks of satisfying

debts, settling taxes and distributing assets following the passing of a loved one. Most of all,we'll afford you the piece of mind knowing that your matters will be dealt with in the mostprofessional of manners.

Commercial Client Services

Union Bank's Asset Management Group offers escrow, investment management and custodialservices to commercial clients.

Escrow Investment management Custodial services


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Union KBC Mutual Fund

Union KBC Asset Management Company Private Limited (the AMC) offers approvedinvestment funds, open-ended equity funds and other structured products, so as to bridge the gapof investor's financial needs.The AMC will leverage on KBC Asset Management's expertise in the global fund markets andKBC Asset Management's Joint Support Model with Union Bank of Indias unrivalled brandvalue, knowledge of their customers and extensive network, which will represent the perfectblend of ingredients to create a strong asset management business in India.

Sponsor: Union Bank of India and KBC Participations RentaTrustee: Union KBC Trustee Company Private Limited

Investment Manager: Union KBC Asset Management Company Private LimitedStatutory Details: Union KBC Mutual Fund has been set up as a Trust under the Indian TrustsAct, 1882

PHILOSOPHY / VISION & MISSION STATEMENT

Vision

"Be the bridge of opportunity for investors to achieve sustainable prosperity through responsibleinvesting in the capital markets"

Mission"We want to be recognized as the mutual fund that provides the right product to the right client atthe right time. We want to be known for our knowledge-based customized approach that helps usoffer the right financial solutions to our customers by understanding their needs better. We wantour employees to work towards and help us create an industry role model. We want to promotean investment culture that believes in long term, systematic wealth creation. We want to reachout to the ever growing number of aspiring investors through our strong distribution network."

EQUITY SCHEMES

Equity schemes of a mutual fund invest predominantly in equity shares of companies (Equityshares are share in the capital of a company. A shareholder receive dividend from the profitsmade by the company) and equity-related investments like convertible debentures. Theseschemes offer long term appreciation of the capital subject to the movement of the equitymarkets over the term that the capital is invested. Equity Funds are also subject to volatilechanges in the value. The level of equity funds can differ depending upon the investmentstrategies adopted by the fund manager managing the respective scheme; however equity fundscan be considered to be medium to high risk investments


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UNION KBC EQUITY FUND

The Scheme has the following Plans across a common portfolio:

Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Schemedirectly with Union KBC Mutual Fund and is not available for investors who route their

investments through a Distributor. Investors who purchase/ subscribe Units in the Scheme through a Distributor will be

allotted units under the Scheme but not under the Direct Plan. The Direct Plan shall have a

lower expense ratio to the extent of distribution expenses, commission, etc and no

commission for distribution of Units will be paid / charged under the Direct Plan.

The Direct Plan shall have a lower expense ratio to the extent of distribution expenses,commission, etc and no commission for distribution of Units will be paid / charged under theDirect Plan.

UNION KBC TAX SAVER SCHEME

The Scheme has the following Plans across a common portfolio:

Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Schemedirectly with Union KBC Mutual Fund and is not available for investors who route theirinvestments through a Distributor.

Investors who purchase/ subscribe Units in the Scheme through a Distributor will be





DEBT SCHEMES

Liquid schemes of a mutual fund are primarily used as a cash management tool.Liquid funds

basically invest in short term debt and money market securities. The maturity of such securitiesis less than or equal to 91 days, for example commercial papers, CODs, treasury bills. The mainsource of income in such a short term security is interest, because in such a short tenure pricefluctuation is less and hence risk of NAV fluctuation is also low. The return with such a fund islow as compared to the others because of the higher safety of principal and liquidity. They arepredominantly used by those investors who want to invest their excess funds for a short tenure.

UNION KBC DYNAMIC BOND FUND


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PlansThe Scheme has the following Plans across a common portfolio:

Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Schemedirectly with Union KBC Mutual Fund and is not available for investors who route their

investments through a Distributor. Investors who purchase/ subscribe Units in the Scheme through a Distributor will be





OptionsThe Scheme has the following Options across a common portfolio:

Growth Option:This option is suitable for investors who are not looking for current income butwho invest only with the intention of capital appreciation.

Dividend Option:This option is suitable for investors seeking income through dividend declaredby the Scheme. Under this Option, the Scheme will endeavour to declare dividends from time totime. The dividend shall be dependent on the availability of distributable surplus.The Dividend option has the following facilities:

Reinvestment Payout Sweep

In cases where the investor fails to opt for a particular Option at the time of investment, thedefault Option will be Growth. If the investor chooses Dividend Option and fails to mentionfacility then the default facility will be Reinvestment.

HYBRID / CAPITAL PROTECTION SCHEMES

Hybrid Schemes of a mutual fund invest in various asset classes and gives the investors a higher

return.

UNION KBC ASSET ALLOCATION FUND - CONSERVATIVE PLAN

PlansThe Scheme has the following Plans across a common portfolio:


18/18

Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in the Schemedirectly with Union KBC Mutual Fund and is not available for investors who route theirinvestments through a Distributor.

Investors who purchase/ subscribe Units in the Scheme through a Distributor will be


lower expense ratio to the extent of distribution expenses, commission, etc and nocommission for distribution of Units will be paid / charged under the Direct Plan.


Options

The Scheme has the following Options across a common portfolio: Growth Option:This option is suitable for investors who are not seeking dividend but who invest

only with the intention of capital appreciation. Dividend Option:This option is suitable for investors seeking income through dividend declared

by the Scheme. Under this Option, the Scheme will endeavour to declare dividends from time totime. The dividend shall be dependent on the availability of distributable surplus.

The Dividend option has the following facilities:

Dividend Reinvestment Facility Dividend Pay-out Facility Dividend Sweep Facility

In cases where the investor fails to opt for a particular Option at the time of investment, the

default Option will be Growth Option. If the investor chooses Dividend Option and fails tomention Facility then the default Facility will be Dividend Re-investment Facility.

If the dividend payable under the Dividend Sweep Option is equal to or less than Rs. 500 thenthe dividend would be compulsorily reinvested in the existing option of the Scheme.If an investor opts for Dividend Sweep Option, the investor must meet the minimum balancecriterion in the target scheme and in the same folio; else the dividend will be compulsorily re-invested in the source scheme.

Documents

Union Asset Managment