Post on 21-Mar-2020
Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
A Dynamically Managed Large-Cap Fund
March 2009
Sundaram BNP Paribas Select Focus
2Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management2www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Significance of the awards
High quality research available on large-cap stocks
Companies share extensive information
High liquidity
Large sums can be deployed in a easy manner
No restrictions a la Test cricket
Level playing ground for all funds
Consistent & significant outperformance is rare
High quality fund management expertise sets Select Focus apart
Select Focus
Past Performance may or may be sustained in future
3Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management3www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Fund features
Portfolio of large-cap stocks
Invests in no more than 30 stocks
Emphasis on three preferred themes
Top-down approach to pick the themes
Bottom-up approach for picking up stocks
Weighted average market-cap of about Rs.40,000 crore
Median market-cap of about Rs 35,000 crore
Fund is benchmarked to S&P CNX Nifty
Select Focus
Past Performance may or may be sustained in future
Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Third-party ratings and rankings
Select Focus Peer Comparison
ICRA Five-Star Fund
Three-year track record for 2008
Four Stars Rating Value Research
CRISIL ~ CPR 2
Please refer disclaimer in slide 42 & 43Past Performance may or may not result in future results
ET Rating: Platinum
5Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management5www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Five Years
Q1 Q2 Q3 Q4
Three Years
Two Years
One Year
Source: Ranking of funds from Value Research; Computation: In-house
Select Focus & peers
Top quartile presence among peers
Select Focus & all equity funds
Ranking as on March 31, 2009
Five Years
Q1 Q2 Q3 Q4
Three Years
Two Years
One Year
Select Focus
Past Performance may or may not be sustained in future
6Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management6www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.inData source : Value Research; As of March 31, 2009
A class-leading fund in the large-cap category
Past Performance may or may not be sustained in future8.8-12.5-19.3-41.3Morgan Stanley Growth
--10.7-16.2-38.0SBI Bluechip--3.7-10.7-35.3Principal Large Cap
14.2-3.1-9.0-30.8Franklin India Bluechip13.2-7.8-13.7-40.2ING Core Equity14.5-3.8-12.2-38.0Mangum Equity
4.0-10.0-13.2-35.6LICMF Equity
15.80.7-8.5-32.8Birla Sun Life Frontline Equity
13.2-2.7-6.8-34.8Templeton India Growth16.0-0.3-4.3-32.5DWS Alpha Equity18.92.7-2.8-26.4DSP BlackRock Top 100 Equity
-0.8-2.2-25.5IDFC Imperial Equity17.1-2.3-7.7-35.2Kotak 30
--3.1-9.9-32.1Quantum Long Term Equity16.4-3.9-8.6-33.4Tata Pure Equity
-8.7Two Years
-2.5Three Years
15.9Five Years
-37.0One Year
Sundaram BNP Paribas Select FocusFund
Select Focus
7Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management7www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
A class-leading fund in the large-cap category
Average
9.5-7.6-14.6-40.0S&P CNX 5009.4-7.9-15.7-42.8BSE 500
12.0-21.0-29.2-58.6BSE Small Cap5.0-12.2-20.6-45.6CNX Nifty Junior9.5-10.7-16.2-45.4CNX Mid Cap7.3-17.9-25.9-54.0BSE Mid Cap
14.0-3.9-9.6-34.3Large Cap Funds12.3-8.4-14.2-36.9All Equity Funds
11.3-3.9-11.1-36.2S&P CNX Nifty11.7-4.9-13.8-37.9BSE Sensex10.4-5.1-12.5-37.6CNX 100
-8.7Two Years
-2.5Three Years
15.9Five Years
-37.0One Year
Sundaram BNP Paribas Select FocusFund
Select Focus
Past Performance may or may not be sustained in futureData source : Value Research; As of March 31, 2009
Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Bullish Phase 2007: significant outperformance
Corrective Phase 2008: contained damage
Effect: superior wealth creation
Select Focus Handling the recent bullish and bearish phases
9Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management9www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
2007: outpacing peers, all equity funds & markets comfortably
79.2
60.6 55.8 54.847.1
62.5
0
10
20
30
40
50
60
70
80
90
Select Focus Peer GroupAverage
All EquityFunds
Average
Nifty Sensex S & P CNX 500
Leading Nifty by 25 percentage points
Leading average of all equity funds by 24
percentage points
Select Focus
Past Performance may or may not be sustained in futureReturns in per cent; Returns as on December 31, 2007
10Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management10www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
2008: trails all equity funds average & benchmark marginally
-52.4-51.4
-52.2 -51.8-52.4
-57.1-58
-57
-56
-55
-54-53
-52
-51
-50-49
-48
Select FocusPeer Group
Average
All EquityFunds
Average Nifty Sensex S & P CNX 500
Returns in per cent; Returns as on December 31, 2008Past Performance may or may not be sustained in future
Trails Nifty by 0.6 percentage points
Trails average of all equity funds by 0.2 percentage points
Select Focus
12Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management12www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Broad portfolio strategy
Portfolio
Less than 30 stocks
Top-down approach for sectors
Bottom-up approach for stocks
Bias towardsGrowth
Bluechip names
Select Focus
13Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management13www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Preferred sectors & top picks
Weight in %. As on March 31, 2009; Source: Latest Fact Sheet
Select Focus
InfosysReliance Infrastructure
Bharti AirtelH P C L
Reliance Industries
Shree RenukaSugars
O N G CTata Power
N T P CP N BUnderweightOverweight
Main Active Positions
Position status is relative to benchmark
24.0
9.4 7.65.3
16.114.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Energy FinancialServices
Consumer Engineering Telecom Others
Fund Benchmark
14Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management14www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Select Focus
2.0H P C L2.0Shree Renuka Surgars2.5Reliance Infrastructure2.5B H E L2.5Cairn India2.6L & T
3.4O N G C3.1ICICI Bank3.0HDFC Bank2.9Hindustan Unilever
4.0T C S3.7Reliance Communication3.6P N B3.4Tata Power
7.9Reliance Industries5.0State Bank of India4.4ITC
Weight %Company
1.0Reliance Power
1.0Maruti1.0S A I L1.0Hindalco
1.5Sun Pharma1.5Tata Steel
1.9B P C L
1.3Jaiprakash Associates
1.3Position in Derivatives23.0Cash & Equivalents77.0Equity
1.5Sterlite Industries
1.6Bharti Airtel1.5Ambuja Cement
1.8N T P C1.7Sun TV
Weight %Company
Portfolio
Source: Latest Fact Sheet
15Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management15www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Srividhya Rajesh is the portfolio manager for Sundaram BNP Paribas Select
Focus (CRISIL CPR~2). She has been with Sundaram BNP Paribas for ten years.
She brings rich experience to fund management having tracked markets through
several bullish and bearish phases. She is also the fund manager for Capex
Opportunities. With a sizeable part of her fund portfolio oriented towards large-cap
stocks, she keeps a close tab on macro-economic and sector trends. This is
especially important for Select Focus, as its portfolio is heavy on three themes at
any point.
She follows a combination of top-down and bottom-up approaches based on the
fund specification. Once the sectors are identified, the emphasis shifts to the
bottom-up approach, even though the fund is focused in the large-cap space and
invests in stocks that are extensively researched. This style has enabled her to
zero on in themes and stocks that have helped the fund outpace the Nifty by a
comfortable margin. A two-year stint at the broking arm Kotak Mahindra opened a
window to the equity markets before she joined Sundaram BNP Paribas in 1996.
Srividhya Rajesh is a CFA Charter Holder and
a management graduate from BITS Pilani. She has also done specialized courses in equity research & financial applications from ICFAI.
Traveling, trekking and gardening are her interests away from the world of stocks.
Profile of portfolio managerSelect Focus
16Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management16www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Reasons to own Select Focus
Portfolio of blue-chips with high liquidity & S & P CNX Nifty as benchmark
A high alpha product in the large-cap space indicating the quality of stock picking
Optimum vehicle to play the expanding large-cap universe and emerging mega-cap stocks
Aggressive style that focuses on few themes & less than 30 stocks that has led to an impressive track record
Consistently proven ability to zero in on value enhancing themes
Select Focus
Past Performance may or may not be sustained in future
17Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management17www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Reasons to own Select Focus
Annual returns of 26 per cent over more than six years since launch outpaces Nifty by 8 percentage points
An investment of Rs 10,000 in July 2002 is now worth Rs 47,829;Rs 1000-a-month SIP since launch is worth Rs 1.42 lakh
A must-own component for the core of any equity portfolio, especially for first-time investors
The fund has an asset base (Rs 801 crore as of March 31,2009) that is scalable without impacting performance
Srividhya Rajesh has managed this fund since launch, ensuring stability and consistency in fund management style
Select Focus
Past Performance may or may not be sustained in future
19Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management19www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Attractive, Nifty–leading returns
Returns in per cent; Computed using NAVs of Growth Option, Returns as on March 31, 2009Past Performance may or may not be sustained in future
-36.2-37.0-36.2-37.0Last 1 year-11.1-8.7-20.9-16.6Last 2 years-3.9-2.5-11.2-7.4Last 3 years10.414.648.472.6Last 4 years11.315.970.5108.8Last 5 years18.726.4214.5378.3Since Inception
FundBenchmark BenchmarkFundAnnual Return (%)% change inPeriod
Select Focus
20Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management20www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Consistent outperformer
924
4979
-8
14 11 2
-52
108
45
-52
3655
7240
2002 2003 2004 2005 2006 2007 2008 2009
Fund Nifty
Select Focus
Returns in per cent; Returns as on March 31, 2009Past Performance may or may not be sustained in future
21Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management21www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Value of early investment & SIP
Returns in per cent; Returns as on March 31, 2009Past Performance may or may not be sustained in future
Value of Rs10000 invested in July 2002
Select Focus: Rs 47,829
Nifty: Rs 31,544
68,92060,000Five years
9,39427,768
1,41,991…its value now
One YearThree years
Lifetime
12,000
80,000
36,000
Amount Invested…Value of Rs 1000 a month SIP
Select Focus
22Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management22www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Effect of STP and SIP in Select Focus
Data Source: Bloomberg; Computation: In-house; Returns as on March 31, 2009
80000
1,61,5151,41,991
020000400006000080000
100000120000140000160000180000
AmountInvested
SIP in SelectFocus
STP to MoneyFund
Rs
• Rs 1000-a-month invested in Sundaram BNP Paribas Select Focus is now worth to 1,41,991
• Investment of Rs 80,000 in Money Fund at launch and Systematic Transfer Plan of Rs 1000-a-month to Select Focus is now worth Rs 1,61,515
• The additional profit from investment in Money Fund is now worth Rs 19,524
Select Focus
Past Performance may or may not be sustained in future
24Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management24www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Contact us
Call: 044 28578700
Toll Free: 1800-425-1000
www.sundarambnpparibas.in
SMS: SFUND to 56767
E-mail:service@sundarambnpparibas.in
Select Focus
Thank
You
Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Additional Information
Select FocusPortfolio Insights
26Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management26www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Investment process
Fundamentals &ManagementAssessment
Fund Managers Economist RESEARCH TEAM
External ResearchPublished InformationCompany Visit
Recommended List
Internal InvestmentCommittee
Final Fund Portfolio
APPROVED BUY LIST
ExecutiveCommittee
STOCK SELECTIONTop-Down
Approach
Fund Themes Sector and Stock Limits
Bottom-Up Stock Picking
Port
folio
C
onst
ruct
ion
Idea
Flo
w &
R
esea
rch
App
rova
l of
Sto
cks
Best Trade Execution
Risk Guidelines
Norms
Idea Generation
Diversification
Liquidity
Select Focus
27Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management27www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Common derivative positions & limitsSelect Focus
Up to 25%; Stock: 10%.SellStock Options – Put
Stock: 10%BuyStock Options – Put
Sell
Buy
Sell
Buy
Buy / Sell
Buy / Sell
Buy / Sell
Action
Stock: 10%Stock Options – Call
Up to 25%; Stock: 10%.Stock Options – Call
Stock: 10%Stock Futures
Up to 25%Index Options – Put
Up to 25%; Stock: 10%Stock Futures
Up to 25%Index Options – Call
Up to 25%Index Futures
Portfolio LimitDerivatives
Past Performance may or may not be sustained in future
28Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management28www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Pure large-cap orientation
0
20000
40000
60000
80000
100000
120000
Dec/06 Jun/07 Dec/07 Jun/08 Dec/08
Mar
ket C
ap
0
1000
2000
3000
4000
5000
6000
7000
Nift
y
Weighted Average Market Cap Nifty Average
Data Source: Bloomberg & In house; Analysis: In house
Weighted average market cap has consistently been higher than Rs 40,000 crore
Select Focus
29Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management29www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.inData Source: Bloomberg & In house; Analysis: In house
Median market cap
0
10000
20000
30000
40000
50000
60000
70000
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
Mar
ket C
ap
0
1000
2000
3000
4000
5000
6000
7000
Nift
y
Median Market Cap Nifty Average
Select Focus Pure large-cap orientation
30Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management30www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Data Source: Bloomberg & In house; Analysis: In house
0
10
20
30
40
50
60
70
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
Stoc
k O
verla
p %
Stock Overlap Average
Select Focus Low stock overlap, source of alpha
31Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management31www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Data Source: Bloomberg & In house; Analysis: In house
0
10
20
30
40
50
60
70
80
90
Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
Sect
or O
verla
p %
Sector Overlap Average
Select Focus Source of alpha from sector overlap
32Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management32www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Preferred themes
Source: Fact Sheet
CashAutoITNov
ITPharmaCashSep
MetalsAutoITDec
AutoITCashOct
Aug BanksConsumerIT
2002Most preferred ideas: # of months during the year the theme figured in the top three ideas
1Consumer1Pharma
1Banks
3Auto
1Metals
3Cash
IT 512 out of 15
Select Focus
33Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management33www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
EngineeringITMetalsDec
BanksAutoMetalsOct
PharmaEnergyITAug
ConstructionMetalsBanksJune
AutoCashBanksApr
CashEngineeringBanksFeb
ITMetalsAutoNov
BanksAutoMetalsSep
CashAutoMetalsJuly
EngineeringCashBanksMay
PharmaCashBanksMar
Jan AutoCashBanks
1Energy1Construction
2Pharma3IT
6Cash
6Metals
3Engineering
6Auto
Banks 826 out of 36
Most preferred ideas: # of months during the year the theme figured in the top three ideas
2003
Preferred themesSelect Focus
Source: Fact Sheet
34Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management34www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
MetalsAutoBanksDec
EnergyMetalsITOct
ConsumerChemicalsITAug
AutoITCashJune
CashAutoBanksApr
MetalsAutoCashFeb
MetalsBanksAutoNov
ITChemicalsMetalsSep
AutoChemicalsITJuly
AutoITCashMay
AutoChemicalsCashMar
Jan ITCashAuto
6Cash
1Energy1Consumer
4Chemicals
7IT
3Banks
5Metals
Auto 9
2004Most preferred ideas: # of months during the year the theme figured in the top three ideas
27 out of 36
Preferred themesSelect Focus
Source: Fact Sheet
35Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management35www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Energy ITEngineeringDec
EnergyEngineeringCashOct
ConsumerBanksEngineeringAug
EngineeringEnergyBanksJune
CementBanksCashApr
EnergyBanksMetalsFeb
ITEnergyEngineeringNov
BanksEngineeringCashSep
EnergyEngineeringBanksJuly
EnergyBanksMetalsMay
MetalsCementBanksMar
Jan MetalsAutoBanks
3Cash
1Consumer1Auto2Cement
4Metals
7Energy
2IT
7Engineering
Banks 9
2005Most preferred ideas: # of months during the year the theme figured in the top three ideas
27 out of 36
Preferred themesSelect Focus
Source: Fact Sheet
36Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management36www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
EngineeringEnergyITDec
EnergyEngineeringITOct
CashITEngineeringAug
EnergyEngineeringCashJune
EnergyCementEngineeringApr
AutoEnergyEngineeringFeb
BanksEngineeringITNov
EnergyITEngineeringSep
ITEngineeringCashJuly
EnergyEngineeringCashMay
ConsumerITEngineeringMar
Jan EnergyConsumerEngineering
4Cash
1Cement1Auto
2Consumer
8Energy
1Banks
7IT
Engineering 12
2006Most preferred ideas: # of months during the year the theme figured in the top three ideas
31 out of 36
Preferred themesSelect Focus
Source: Fact Sheet
37Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management37www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Financial ServicesEnergyMetalsDec
Financial ServicesEnergyMetalsOct
MetalsEngineeringEnergyAug
ITFinancial ServicesEnergyJune
EngineeringITEnergyApr
EngineeringCashITFeb
Financial ServicesEnergyMetalsNov
Financial ServicesMetalsEnergySep
EngineeringFinancial ServicesEnergyJuly
Financial ServicesEngineeringEnergyMay
EngineeringEnergyCashMar
Jan EnergyEngineeringIT
2Cash
5Metals
7Engineering
4IT
7Financial Services
Energy 11
2007Most preferred ideas: # of months during the year the theme figured in the top three ideas
30 out of 36
Preferred themesSelect Focus
Source: Fact Sheet
38Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management38www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
EnergyCashFinancial ServicesDec
EnergyFinancial ServicesCashNov
EnergyFinancial ServicesCashOct
Financial ServicesEnergyCashSep
Financial ServicesEnergyCashAug
TelecomEnergyCashJuly
ITEnergyCashJune
CashFinancial ServicesEnergyApr
CashFinancial ServicesEnergyFeb
ITCashEnergyMay
Financial ServicesEnergyCashMar
Jan MetalsCashEnergy2008
Most preferred ideas: # of months during the year the theme figured in the top three ideas
12Cash
1Telecom
2IT1Metals
8Financial Services
Energy 1234 out of 36
Preferred themesSelect Focus
Source: Fact Sheet
39Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management39www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
2009Most preferred ideas: # of months during the year the theme figured in the top three ideas
3Cash3Financial Services
Energy 39 out of
9
Preferred themesSelect Focus
Source: Fact Sheet
Financial ServicesEnergyCashFeb
Financial ServicesCashEnergyMar
Jan Financial ServicesEnergyCash
40Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management40www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Big Bets
Few Themes
Large caps
Risk grid
• Core option for large-cap portfolio
• For investors starting a fund portfolio
• Investors who have a mid- cap bias in the portfolio
• Seek the comfort of blue chip names in the portfolio
• Have an investment horizon of three-to-five years
Risk & SuitabilitySelect Focus
41Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management41www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Risk Measures
Data source : Bloomberg; Computation: In-house ; As on March 31, 2009
Select Focus
343Turnover0.92CorrelationTracking ErrorSharpe RatioBetaMean Monthly Returns
3.250.280.942.31
0.162.460.658.13
Information RatioTreynor RatioAlphaStandard Deviation
Past Performance may or may not be sustained in future
42Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management42www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
NILRedemption after 12 months from the date of investment
< Rs 2 crore: 2.25% = > Rs 2 crore: Nil
1 %Investment Amount: < Rs 2 crore, redeemed after six months & within 12 months
1 %Redemption within 6 months from the date of investment
Exit Load
Entry Load
First Investment: Rs 5000 Subsequent Purchase: Rs 500Regular Plan
Minimum Subscription Amount
Growth, Dividend Payout & Re-investmentOptions
2.25% per transactionSIP Entry Load
Growth: Rs 51.72 Dividend: Rs 7.93NAV as of March 31,2009
First Investment: Rs 5 crore Subsequent Purchase: Rs 5 lakhsInstitutional PlanRs 250 per month Rs 750 per quarter SIP
Entry Load
July 30 2002Allotment Date
Source: Latest Factsheet
Fund facts
Source: Fact Sheet
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43Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management43www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
108.7
51.747.8
60.7
40.7
22.610.9
28.0
0
20
40
60
80
100
120
'02 '03 '04 '05 '06 '07 '08 '09
The length of the line indicates the range of NAV movement during the period and a bar drops to show the closing value
NAV over the yearsSelect Focus
NAV of Growth Option as on March 31, 2009Past Performance may or may not be sustained in future
44Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management44www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Disclosures & disclaimerThe disclosures, disclaimer and risk factors highlighted on this page are also available at www.sundarambnpparibas.in. A reference to this disclosures & disclaimer page may also be appended as a hyper-link to e-mails sent on behalf of Sundaram BNP Paribas Asset Management and this page can be accessed online by clicking on the hyperlink appended to such e-mails. If you reach this page at www.sundarambnpparibas.in through a hyperlink contained in a communication issued by Sundaram BNP Paribas Asset Management, this page must be treated an integral part of that communication. Please note his page contains important information that you must read.Past performance may or may not be sustained in future. Past performance is no guarantee of future result. Mutual Fund Investments are subject to market risks. Please read the offer document carefully before investing. For more details on fund-specific features, detailed risk factors and information on Sundaram BNP Paribas Asset Management, please read the Offer Document and/or visit www.sundarambnpparibas.in. Copy of the offer document, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram BNP Paribas Asset Management, its distributors and online.
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. For any overseas investments: country risk, currency risk and geopolitical risk, to name a few; Higher volatility due to a concentrated portfolio.
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 names of the schemes do not in any manner indicate either quality or future prospects and returns. Statutory: Mutual Fund: Sundaram BNP Paribas Mutual Fund is a trust under Indian Trusts Act, 1882 Sponsors (Liability is limited to Rs 1 lakh): Sundaram Finance Ltd & BNP Paribas Asset Management. Investment Manager: Sundaram BNP Paribas Asset Management Company Ltd. Trustee: Sundaram BNP Paribas Trustee Company Ltd.
ICRA Mutual Fund Award: ICRA ONLINE Mutual Fund Rankings seek to inform investors and mutual fund intermediaries of the category-wise relative performance of mutual fund schemes. The rankings, covering the two time horizons of one and three years as of December 2008, have been arrived at following an in-depth analysis of critical parameters, including: risk adjusted performance; portfolio concentration characteristics; liquidity; corpus size; average maturity; and portfolio turnover. The number of schemes considered in Diversified Equity Schemes – Defensive category is 55 for three years. The ranks assigned by ICRA/ICRA Online are based on an objective analysis of information obtained from the entities concerned as also other sources considered reliable by ICRA/ICRA Online. However, the ranks must be construed solely as statements of opinion and ICRA/ICRA Online shall not be liable for any losses incurred by any user from any use of the ranks. Also, the ranks are neither a certificate of any statutory compliance nor any guarantee on the future performance of the ranked entities/schemes. Sundaram BNP Paribas Select Focus: A Five Star Fund for three-year performance in the Diversified Equity – Defensive category. ICRA 5-Star Fund: The fund falls in the top 10% of the category on performance. ICRA Ranking: Open-end diversified equity – defensive: (period ending December 31, 2008) The ranking methodology did not take into account entry and exitloads imposed by the Fund. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of the funds. Past performance is no guarantee of future result. Ranking Source & Publisher: ICRA Online Limited.
CRISIL CPR Rankings: For equity funds, he criteria used in computing the CRISIL Composite Performance Rank are Superior Return Score, based on NAVs over the two-year period as on December 31, 2008, Concentration and Liquidity of the scheme. The methodology does not take into account the entry and exit loads levied by the scheme. In the case of liquid funds, NAV performance over one year is considered apart from other portfolio parameters. The CRISIL CPR is no indication of the performance that can be expected from the scheme in future. CRISILCPR~2 - The composite performance of Sundaram BNP Paribas Select Focus - Growth is “Good" in the Open-End Large-Cap Oriented Equity Schemes Category, and ranks within the top 30% of the 26 schemes ranked in this category.
Value Research Rating: Value Research Fund Ratings are a composite measure of historical risk-adjusted returns. In the case of equity funds this rating is based on the weighted-average monthly returns for the past three- and five-year periods. These ratings do not take into consideration any entry or exit load. Four stars indicate that a fund is in the next 22.5 per cent of its category. The number of schemes in EquityDiversified category is 142. These fund ratings are as on March 31, 2009 Value Research Ratings are published in Monthly Mutual Fund Performance Report and Mutual Fund Insight. The Ratings are subject to change every month. The Rating is based on primary data provided by respective funds. Value Research does not guarantee the accuracy. Past performance is no guarantee of future result. Source: Value Research.
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45Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management45www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in
Disclosures & disclaimerET Quarterly MF Tracker: lists MF (mutual fund) schemes on the basis of their risk-adjusted performance, based on a detailed number crunching exercise carried out by ET Intelligence Group. Research has been done in-house , while data was sourced from ICRAOnline. The Sortino ratio, a superior risk-adjusted measure, was used to assess the fund performance. We take three years’ performance as the yardstick. The return score is arrived at by allotting 60% weight to the past three year’s absolute return and 40% weight to the past one-year return. These weighted returns are compared vis-à-vis the average return for the category under consideration to arrive at the return score for each scheme. To measure risk, we look at the downside risk. Downside risk is any return below the minimum acceptable rate of return (MAR). Average category returns have been taken as MAR. We looked at the monthly returns for the past three years. The monthly returns were analysed vis-à-vis the average fund returns for that particular month for each of the categories under consideration. The standard deviation of all underperformances for each scheme is then arrived at and compared with the average underperformance of the respective category to arrive at the risk score for each scheme. The return score is then divided by the risk score to arrive at the Sortino ratio for each of the categories. Higher the Sortino ratio, the better is the fund’s performance. The top 10% funds in each category are then classified as ‘Platinum’ funds.
Direct Investment: There will be no entry load for direct applications received by the asset management company. Applications submitted to asset Management Company or collection centres/investor service centres that are not routed through any distributor/agent/broker will qualify for this purpose. An investor while making the applications shall write in the space provided in the application form/or tick in the box provided against the mode of investment as ‘Direct’ and strike off the broker code. No entry and exit load will be applicable on dividend reinvestment and for bonus units.
Comparison with all equity funds’ returns: The returns for all equity diversified funds comprise all funds classified in Equity Diversified and Tax-Planning categories by Value Research. The funds in the two categories have been considered together and there has been no separate sub-classification by Sundaram BNP Paribas Asset Management. The number of schemes covered for different periods are 341 for one year 266 for two years, 223 for three years and 132 for five years. Comparison with Large-cap funds: The returns for the large-cap funds is based on the average of returns of a sub-category created by Sundaram BNP Paribas Asset Management from the broad category of funds classified as equity diversified by Value Research. This sub-category includes funds that consistently invest at least 85%-90% in large-cap stocks. The funds have been chosen in good faith based on the allocation to the top 50 stocks by market cap and the consistency in maintaining such a profile. The number of schemes in the large-cap category are 16 for one year, 16 for two years, 16 for three years and 12 for five years. This comparison does not reflect the effect of objectives, style, asset allocation, entry load, exit load and fess & expenses. This is not intended for ranking purposes and does not also constitute ranking. This is only meant for comparison purposes. The average of returns for the combined universe of the two Value Research categories has been sourced from the Value Research Daily Performance Report. The average returns are as on March 31, 2009 and is based on compounded annual returns (computed using NAV of the Growth Option and/or NAV adjusted dividend reinvestment) for more than one year. Past performance is no guarantee of future result.General Disclaimer: This document in the is issued by Sundaram BNP Paribas 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 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 BNP Paribas 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 BNP Paribas 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 BNP Paribas Asset Management is not soliciting any action based on this document. Sundaram BNP Paribas Asset Management 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. Copies of the offer document and application form with key information memorandum may be obtained from the offices of Sundaram BNP Paribas Mutual offices and its authorized distributors or downloaded from www.sundarambnpparibas.in . For scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects please refer offer documents available online and at branches/Investor Service Centres.
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