Sundaram BNP Paribas Portfolio Management Services - An Overview

Portfolio Management Services at Sundaram BNP Paribas Asset Management Company

Sundaram BNP Paribas Asset Management Co.,
PMS offering comes from a house which has outstanding track record in the investment management

Sundaram BNP Paribas Mutual Fund

Sundaram BNP Paribas

Portfolio Management Services

SEBI licensed investment vehicle

Evolution and growth of the PMS business at Sundaram BNP Paribas AMC
PMS at Sundaram BNP Paribas commenced in 2007. - PMS vehicle activated to cater the offshore investments. - Turbulent markets in 2008 and early 2009 kept us away from domestic business. - Started focusing on domestic business from April09.

Assets under management: Rs 174.44 Crores. Clients under management: 48

*Aum as of 30 Sep 2010

Economy: India Vs World

Clear political mandate paves way for growth focus

Political Political Scenario Scenario

Positive

Negative to neutral

Neutral to positive

Key drivers Key drivers

Global recovery is slow and painful.

External External Economic Economic environment environment

Domestic Domestic economic economic environment environment

Strong and vibrant domestic story

4

Indian business and the economy On a strong footing

Source: IIFL

Indian equity valuations: Far from the peak though not cheaper

Source: IIFL

Indian Economy and Equities Ideal blend in the longer run

Indias economic growth coupled with the equity performance growth have been outstanding when compared with the peer group. Growth projections even more outstanding over the next several decades.

7 Source: Credit Suisse

Why Portfolio Management Services?

PMS Huge business opportunity

Indian HNWI population has grown at a breakneck speed in the recent times and recorded the highest growth in the world in 2007. Markets in 2008/09 taught us they are no longer on a secular uptrend; equities are getting tougher and unpredictable which warrant specialized services. Investment management is getting more and more macro driven, specialized vehicle like PMS can help investors manage such dynamics. Financial services in India has witnessed major changes in terms of the scope of innovative products, which needs specialized platform like the PMS.

Indian HNI wealth Robust growth compared to global peers

10

Source: Cap gemini Merrill Lynch World wealth report

Globaltrendinwealth/adult Wealth/adultovertimeinIndia

11

PMS No longer just an investment symbol, but also a lifestyle symbol

Emergence of the Indian economy and the percolation of the growth benefits led to creation of a huge HNI population, for who PMS is not just an investment symbol, but also an lifestyle symbol.

12

PMS platform has its own advantages

Offer solutions based on the needs

Unpredictable Unpredictable Financial Financial markets markets

PMS vehicle offers a flexible platform in in a dynamic world

Need based Need based approach approach

Winners rotate Winners rotate InIn markets markets

For large investors PMS offers customization

Why PMS? Why PMS?

Ideal platform to spot ever changing winners

Customization Customization

Flexible platform Flexible platform toto spot spot opportunities opportunities

Flexibility to be spot themes in the early stages of the life cycle (PSU)
13

Flexibility to be in cash, a huge opportunity in times of needs.

Cash factor Cash factor

Key differentiator - Cash calls , a cutting edge advantage through PMS

Cash calls, a clear investment tool in PMS. Simply put, the fund manager has the discretion of either investing fully or partially in the markets at any given point of time giving him a flexibility to be 0% - 100% either in cash or in stocks. Very effective tool in the following scenarios: 1. When valuations turn unattractive. 2. When markets are extremely volatile. 3. When profit booking deems fit.
Cash calls were effectively employed by our team during the global crisis and in particular during the last quarter of 2008 when the portfolios were moved to cash thereby protecting the downside risks for the investors.
14

Fund Management in PMS

Fund management in PMS

What we offer the individual clients

Discretionary Choice, timing and execution of ideas with PMS.

Advisory Choice, timing and execution of ideas with investor.

15

Why Sundaram BNP Paribas PMS? Robust Investment Process

16

Disclaimer
General Disclaimer: This document is issued by Sundaram BNP Paribas Asset Management, Portfolio Manager registered with the Securities and Exchange Board of India in 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 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 Disclosure Document may be obtained from the offices of Sundaram BNP Paribas AMC Ltd. and its authorized distributors or downloaded from www.sundarambnpparibas.in. For details about the Portfolio Management Services and performance, please refer the Disclosure Document available online and at the offices of the AMC.

17