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nCASH
Greed, Fear and Fair Value


•   Markets keep gyrating between greed and fear

•   Real value lies somewhere in between

•   Markets keep passing through real-value line quite effortlessly

•   Both Greed and Fear cause paralysis

•   When Fair Value band arrives – There is little money left

•   Behavioral science suggests, people normally act in herds
So, What Do We Do ?


•   Grab the bargains

•   Ascertain the right value-line with a higher degree of accuracy, with our
    capabilities

•   Deep-dive to grab opportunities that keep arising from time to time

•   Be disciplined to nCASH the gains and move back to liquid funds for the
    next opportunity
nCASH
The Right Opportunity
nCASH


•   nCASH is a product that will make Contrary Allocations to Stocks
    Hammered due to market cycles.

•   The idea behind this allocation strategy is that investments in quality
    businesses can be made at attractive valuations by capitalising on
    opportunities to acquire mis-priced assets at distress valuations.

•   Sooner than later, beaten down stocks normally tend to revert to their
    fair values also referred to as „reversion to mean‟
Portfolio Strategy


    Focus on companies with:

•   Top 100 companies in terms of market capitalization

•   Strong and Robust businesses run by quality and superior managements

•   Adequate track record and available at reasonable valuations

•   Sudden / Sharp fall in price due to occurrence of an event
Portfolio Strategy


    The endeavor would be to identify and nCASH on Sudden / Sharp fall in
    price due to occurrence of events like

•    Disappointing results
•    Policy changes by Government
•    Sharp currency movements
•    Spike in commodity prices
•    Rise/Fall in interest rates
•    Global developments
•    Other events
Illustration
 CASE 1 : Ranbaxy

                  500
                                                                                                                                                                       Buy                                                         Sell
                  450

                  400

                  350

                  300

                  250

                  200




                                                                                                                                                                                                                                                                                                                                                                                           2-Oct-09
                                                                                                                                                                                                                                                                                                                                                                                                      4-Oct-09
                                                                                                                                                                                                                                                                                                                                                                                                                 6-Oct-09
                           3-Aug-09
                                      5-Aug-09
                                                 7-Aug-09
                                                            9-Aug-09




                                                                                                                                                                                                           2-Sep-09
                                                                                                                                                                                                                      4-Sep-09
                                                                                                                                                                                                                                 6-Sep-09
                                                                                                                                                                                                                                            8-Sep-09
                                                                                                                                                           25-Aug-09
                                                                                                                                                                       27-Aug-09




                                                                                                                                                                                                                                                                                                                               22-Sep-09
                                                                                                                                                                                                                                                                                                                                           24-Sep-09
                                                                       11-Aug-09
                                                                                   13-Aug-09
                                                                                               15-Aug-09
                                                                                                           17-Aug-09
                                                                                                                       19-Aug-09
                                                                                                                                   21-Aug-09
                                                                                                                                               23-Aug-09



                                                                                                                                                                                   29-Aug-09
                                                                                                                                                                                               31-Aug-09




                                                                                                                                                                                                                                                       10-Sep-09
                                                                                                                                                                                                                                                                   12-Sep-09
                                                                                                                                                                                                                                                                               14-Sep-09
                                                                                                                                                                                                                                                                                           16-Sep-09
                                                                                                                                                                                                                                                                                                       18-Sep-09
                                                                                                                                                                                                                                                                                                                   20-Sep-09



                                                                                                                                                                                                                                                                                                                                                       26-Sep-09
                                                                                                                                                                                                                                                                                                                                                                   28-Sep-09
                                                                                                                                                                                                                                                                                                                                                                               30-Sep-09
                                          Investment Made                                                                          Reason to Enter or Exit

First Purchase                            2% of NAV at 325                                                                                      Change in top head expected to drive growth story; worst in terms of
                                                                                                                                               earnings already in price; announcements expected regarding ANDA's
Second Purchase                           1% of NAV at 335                                                                                                                    approval
Exited                                    0.50% of NAV at 377                                                                      Sold at a profit of 16%
Exited                                    1% of NAV at 407                                                                         Sold at a profit of 25%
Exited                                    1.50% of NAV at 413                                                                      Sold at a profit of 24%
There is no assurance or guarantee that past performance may be sustained in
future. Investments in capital markets are subject to risks. Please refer Slide No.
25 for disclaimer. The above graph represents the values for the year 2009
Illustration
 CASE 2 : Sesa Goa
               320
                                                                             Buy            Sell
               270

               220

               170

               120

                 70

                 20    19-Aug-09




                       31-Aug-09




                       12-Sep-09




                       24-Sep-09
                       11-Aug-09
                       13-Aug-09
                       15-Aug-09
                       17-Aug-09

                       21-Aug-09
                       23-Aug-09
                       25-Aug-09
                       27-Aug-09
                       29-Aug-09




                       10-Sep-09

                       14-Sep-09
                       16-Sep-09
                       18-Sep-09
                       20-Sep-09
                       22-Sep-09

                       26-Sep-09
                       28-Sep-09
                       30-Sep-09
                        7-Aug-09
                        3-Aug-09
                        5-Aug-09

                        9-Aug-09




                        2-Sep-09
                        4-Sep-09
                        6-Sep-09
                        8-Sep-09




                        6-Oct-09
                        2-Oct-09
                        4-Oct-09
                                 Investment Made                  Reason to Enter or Exit

First Purchase                   4% of NAV at 225                    Concensus expected Iron ore prices expected to fall instead went up
                                                                  given strong china story; Contrarian call against market consensus of sell
Second Purchase                  1% of NAV at 219                            call; expected some acquisition and strong numbers
Exited                           2% of NAV at 267                 Sold at a profit of 19%
Exited                           2% of NAV at 263                 Sold at a profit of 17%
Exited                           1% of NAV at 267                 Sold at a profit of 22%
There is no assurance or guarantee that past performance may be sustained in
future. Investments in capital markets are subject to risks. Please refer Slide No.
25 for disclaimer. The above graph represents the values for the year 2009
Superior Performance
80.00%
                                                                70.71%
70.00%                                                                                           50.00%              Since Inception
                                                                                                           42.04%                          42.95%
60.00%
                                                                                                 40.00%
                                                         48.46%
50.00%
                                                                                  42.04%
                                                                                                 30.00%
40.00%                                                                                                                             24.66%

30.00%                                                                                           20.00%
                                        18.48%
20.00%
                                  11.42%                                                         10.00%
                9.05%                                                                                            5.42%
10.00%      5.21%                                                                     5.42%

0.00%                                                                                              0.00%
              1 month                3 month                6 month           Since Inception                 CAGR             Standard Deviation
                                         Returns


                                                                        nCASH                   Nifty

                   nCASH Performance as compared to benchmark performance i.e. Nifty (as on 30 Sep, 2009)

     Past Performance may or may not be sustained in future. The returns are
     absolute for the periods mentioned less than 1 year and in CAGR for period                             Inception Date: June 2, 2008
     more than 1 year.
NAV Movement

                                                                              nCASH Performance to Benchmark

          16
                                                           NAV Per Unit                                              Rebased Nifty
          14

          12

          10

            8

            6

            4
                              02-Jul-08




                                                                                                                                                                                    02-Jul-09
                                                                                                                                                02-Apr-09
                                                                  02-Oct-08

                                                                                 02-Nov-08

                                                                                             02-Dec-08
                                          02-Aug-08

                                                      02-Sep-08




                                                                                                                                                                                                02-Aug-09

                                                                                                                                                                                                            02-Sep-09
                  02-Jun-08




                                                                                                         02-Jan-09




                                                                                                                                                                        02-Jun-09
                                                                                                                                                            02-May-09
                                                                                                                        02-Feb-09

                                                                                                                                    02-Mar-09


There is no assurance or guarantee that past performance may be sustained
in future. The above graph represents the values for the year 2008 & 2009
Opportunities Exist



              In a rising market, we saw 5 major corrections.




Source: www.nseindia.com
Need for Speed


•   Market dynamics are rapid and changes are quick.

•   Stock and Sector rotation is the order of the day, given the global scenario.

•   Volatility could be opportunity.

•   Greed and fear swings are more protracted.

•   All markets scenarios give opportunities.
Product Features & Pricing Structure

                                                  Rs. 25,00,000/- per Individual account or as mutually agreed between
        Minimum Account Size
                                                 the Portfolio Manager and the Client.

                                                 1% for clients subscribing after Nov 1, 2007 & withdrawing the same
          Redemption Charge
                                                 within 1 year from date of investment on FIFO basis.

                                                  Investors are recommended to seek advice on taxation from their
                  Taxation                       independent financial advisors / tax consultant / accountant before
                                                 making any investments.
                              Option I -         Upfront Fees : 2.25 %
                              Fixed Fee          Annualised Fees : 2 %
                                                 Basic Fixed : 2%

   Investment                                           Portfolio Performance
                                                                                                   Portfolio Manager's Share
  Management &                                          (Annualised Returns)
                            Option II -          Upto 15%                                      NIL
    Advisory
                            Fixed Plus                                                         20% of the excess
      Fees                                       Above 15% upto 30%
                           Variable Fees                                                       over 15%

                                                                                               25% of the excess
                                                 Beyond 30%
                                                                                               over 15%

For further details please refer Disclosure Document dated March 31, 2009 & subsequent addendum if any to the Disclosure Document
Privileged Account Service

A Discretionary Portfolio Management Service, created for very
                 elite, very discerning clients
                            LIKE YOU
Privileged Account Service (PAS)

•   PAS is a highly customized portfolio management service from Birla Sun
    Life Asset Management Company Ltd. that helps HNIs like you fulfill their
    financial goals
•   With an investment philosophy that seeks consistent, long-term results by
    adopting a research-based, methodical approach to investing
•   After fully understanding your particular needs, your portfolio manager will
    put together the optimal portfolio for you, which takes into account your
    financial goals, time horizon, risk appetite and investment outlook
•   Investment excellence within the framework of transparent and rigorous risk
    control
The power behind PAS :
                Birla Sun Life Asset Management Company Ltd.

                                                               Birla Sun Life Asset
                                                            Management Company Ltd.



        One of the                                                                                             Winner of
        top 5 MF                                                                                                various
        Houses in                                                                                              awards in
          India                                                                                                   „08

                                                                                                More than a
                             Investor base                                                     100 branches
                              of more than                                Assets under          across India
                             22 Lakh (as on                               Management           and 700 plus
                                  30 Sep 09)
                                                                           in excess of           people
                                                                          Rs. 63,000 Cr
                                                                           (as on 30 Sep 09)
Past Performance is no guarantee of future results. Mutual Fund investments are
subject to market risks. Please read the Statement of Additional Information /
Scheme Information Document carefully before investing.
Why PAS

•   An institutional quality investment management
•   Long-term track record
•   No conflict of interest - neither into broking nor investment banking
•   Emphasis on proprietary research
•   Adherence to portfolio universe and disciplined investment process
•   Emphasis on risk management
•   Strict internal and external compliances
•   Outstanding responsiveness and comprehensive communication with client
How it Works

•   Investment Strategy
•   Investment Philosophy
•   Strong research process
Investment Strategy


                  Top-down Strategies

   Duration              Sector         Yield Curve




                        Quantitative
Credit Analysis                            Trading
                         Research


                  Bottom – Up Strategies
Investment Philosophy

                                           Robust
                                          Industry
                                         Dynamics                             Strong
                                                                            Management
              Reasonable
               Valuations


                                           Stock
                                                              Sustainable
                                                               Business
                                                                Model
    Sustainable                      Strong
    Competitive                     Earnings
    Advantage                        Growth




The goal is to find an outstanding business at a sensible price, not an mediocre business at a
                                         bargain price
Strong Research Process


Industry Analysis                                                             Business Analysis
                                         Management Analysis
• Demand & supply scenarios                                                    • Strategies for growth
                                         •Promoter‟s performance & track
• Raw material scenario                                                        • Productivity analysis
                                         record
• Industry cycles & seasonal                                                   • Working capital management
                                         •Performance of group companies
factors                                                                        • Capital expenditure plans
                                         •Internal control systems
• Impact of export / imports                                                   • Competitive positioning
                                         •Capabilities under stress
• Competitive advantage




Financial Analysis
                                                                              Other Issues
 • Analysis of key financial docs &      Regulatory Environment
                                                                               • Repayment track record
   accounting policies                    • Impact of govt. policies
                                                                               • Feedback from other creditors &
 • Cashflow analysis                      • Impact of changes in tax & duty
                                                                                 rating agencies
 • Sensitivity analysis                     structures
                                                                               • Contingent liabilities of the
 • CAR, ALM profile, ageing               • Import / export benefits
                                                                                 company
   analysis
                                                                               • Market share analysis
 • Payback period analysis
Tailored solutions for unique needs



                                          Products




        Equity                 Debt                  Custom                     NLD




         • Value                               We provide customized
                            Dynamic Fixed
  • High Dividend Yield                        portfolio for investment   Accelerator Series
                           Income Portfolio
        • nCASH                                     above 2.5 Cr.
        • Growth
• India Reform Portfolio
Team of Professionals at your service

Jinesh Gopani – Fund Manager (Equity)

• An MBA in Finance , he was, for last two and half years, working in USA
  based FII Voyager Investments as a Senior Research Analyst.

• Earlier, he worked with Emkay share and stockbrokers for four
  years, where he was designated as Research Analyst



Apurvi Sharma – Fund Manager (Debt)
• A CFA & CA, prior to joining Birla Sun Life she was associated with
  BenchMark Mutual Fund as AVP

• She has a total work experience of 9 years
Risk Factors & Disclaimer
Investments in securities are subject to market risks & there can be no assurance or guarantee that the objectives of the product will be achieved. The past
performance of the Portfolio Manager in any product is not indicative of the future performance in the same product or in any other product either existing or that may
be offered. There is no assurance that past performances in earlier product will be repeated. Actual results may differ materially from those suggested by the forward
looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and
political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation,
deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. Risk arising from the investment objective,
investment strategy and asset allocation: Market risk, political and geopolitical risk and risk arising from changing business dynamics, which may affect portfolio returns.
At times, portfolios of individual clients may be concentrated in certain companies/industries. The performance of the portfolios would depend on the performance of
such companies / industries / sectors of the economy.
While utmost care has been exercised, Birla Sun Life AMC Ltd. or any of its officers, employees, personnel, directors make no representation as to the accuracy,
completeness or reliability of the content and hereby disclaim any liability with regard to the same. Recipients of this material should exercise due care and read the
disclosure document (including if necessary, obtaining the advice of tax / legal / accounting / financial / other professionals) prior to taking of any decision, acting or
omitting to act. The document is solely for the information and understanding of intended recipients only. Further, the recipient shall not copy / circulate contents of this
presentation, in part or in whole, or in any other manner whatsoever without prior and explicit approval of BSLAMC.

Risks associated with investment in Equity and equity related instruments:
Equity and Equity related securities by nature are volatile and prone to price fluctuations on a daily basis due to both macro and micro factors. In respect of investments
in equity and equity-related instruments, there may be risks associated with trading volumes, settlement periods and transfer procedures that may restrict liquidity of
investments in equity and equity-related securities. In the event of inordinately large number of redemptions or of a restructuring of the Product's investment portfolio,
there may be delays in the redemption of units. The value of the Product's investments, may be affected generally by factors affecting securities markets, such as price
and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate
authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector
or all sectors including equity and debt markets. Consequently, the value of the portfolio may fluctuate and can go up or down. The Portfolio Manager may choose to
invest in unlisted securities that offer attractive yields. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger
amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. This may however
increase the risk of the portfolio. Investors may note that Portfolio Manager's investment decisions may not always be profitable, as actual market movements may be at
variance with anticipated trends.

Risk Associated with Investments in Fixed Income and Money Market Instruments:
Some of the common risks associated with investments in fixed income and money market securities are mentioned below. These risks include but are not restricted to:
Interest Rate Risk: As with all debt securities, changes in interest rates will affect the valuation of the Portfolios, as the prices of securities generally increase as interest
rates decline and generally decrease as interest rates rise. Prices of longer-term securities generally fluctuate more in response to interest rate changes than do
shorter-term securities. Interest rate movements in the Indian debt markets can be volatile leading to the possibility of large price movements up or down in debt and
money market securities and thereby to possibly large movements in the valuation of Portfolios
Liquidity or Marketability Risk: This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is the spread
between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed income market.
Credit Risk: Credit risk or default risk refers to the risk, which may arise due to default on the part of the issuer of the fixed income security (i.e. risk that the issuer will
be unable to make timely principal and interest payments on the security). Because of this risk debentures are sold at a yield spread above those offered on Treasury
securities, which are sovereign obligations and generally considered to be free of credit risk. Normally, the value of a fixed income security will fluctuate depending upon
the actual changes in the perceived level of credit risk as well as the actual event of default.
Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities under a particular Portfolio are reinvested. The additional
income from reinvestment is the “interest on interest” component. The risk refers to the fall in the rate for reinvestment of interim cashflows.
Thank You

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N Cash Presentation

  • 2. Greed, Fear and Fair Value • Markets keep gyrating between greed and fear • Real value lies somewhere in between • Markets keep passing through real-value line quite effortlessly • Both Greed and Fear cause paralysis • When Fair Value band arrives – There is little money left • Behavioral science suggests, people normally act in herds
  • 3. So, What Do We Do ? • Grab the bargains • Ascertain the right value-line with a higher degree of accuracy, with our capabilities • Deep-dive to grab opportunities that keep arising from time to time • Be disciplined to nCASH the gains and move back to liquid funds for the next opportunity
  • 5. nCASH • nCASH is a product that will make Contrary Allocations to Stocks Hammered due to market cycles. • The idea behind this allocation strategy is that investments in quality businesses can be made at attractive valuations by capitalising on opportunities to acquire mis-priced assets at distress valuations. • Sooner than later, beaten down stocks normally tend to revert to their fair values also referred to as „reversion to mean‟
  • 6. Portfolio Strategy Focus on companies with: • Top 100 companies in terms of market capitalization • Strong and Robust businesses run by quality and superior managements • Adequate track record and available at reasonable valuations • Sudden / Sharp fall in price due to occurrence of an event
  • 7. Portfolio Strategy The endeavor would be to identify and nCASH on Sudden / Sharp fall in price due to occurrence of events like • Disappointing results • Policy changes by Government • Sharp currency movements • Spike in commodity prices • Rise/Fall in interest rates • Global developments • Other events
  • 8. Illustration CASE 1 : Ranbaxy 500 Buy Sell 450 400 350 300 250 200 2-Oct-09 4-Oct-09 6-Oct-09 3-Aug-09 5-Aug-09 7-Aug-09 9-Aug-09 2-Sep-09 4-Sep-09 6-Sep-09 8-Sep-09 25-Aug-09 27-Aug-09 22-Sep-09 24-Sep-09 11-Aug-09 13-Aug-09 15-Aug-09 17-Aug-09 19-Aug-09 21-Aug-09 23-Aug-09 29-Aug-09 31-Aug-09 10-Sep-09 12-Sep-09 14-Sep-09 16-Sep-09 18-Sep-09 20-Sep-09 26-Sep-09 28-Sep-09 30-Sep-09 Investment Made Reason to Enter or Exit First Purchase 2% of NAV at 325 Change in top head expected to drive growth story; worst in terms of earnings already in price; announcements expected regarding ANDA's Second Purchase 1% of NAV at 335 approval Exited 0.50% of NAV at 377 Sold at a profit of 16% Exited 1% of NAV at 407 Sold at a profit of 25% Exited 1.50% of NAV at 413 Sold at a profit of 24% There is no assurance or guarantee that past performance may be sustained in future. Investments in capital markets are subject to risks. Please refer Slide No. 25 for disclaimer. The above graph represents the values for the year 2009
  • 9. Illustration CASE 2 : Sesa Goa 320 Buy Sell 270 220 170 120 70 20 19-Aug-09 31-Aug-09 12-Sep-09 24-Sep-09 11-Aug-09 13-Aug-09 15-Aug-09 17-Aug-09 21-Aug-09 23-Aug-09 25-Aug-09 27-Aug-09 29-Aug-09 10-Sep-09 14-Sep-09 16-Sep-09 18-Sep-09 20-Sep-09 22-Sep-09 26-Sep-09 28-Sep-09 30-Sep-09 7-Aug-09 3-Aug-09 5-Aug-09 9-Aug-09 2-Sep-09 4-Sep-09 6-Sep-09 8-Sep-09 6-Oct-09 2-Oct-09 4-Oct-09 Investment Made Reason to Enter or Exit First Purchase 4% of NAV at 225 Concensus expected Iron ore prices expected to fall instead went up given strong china story; Contrarian call against market consensus of sell Second Purchase 1% of NAV at 219 call; expected some acquisition and strong numbers Exited 2% of NAV at 267 Sold at a profit of 19% Exited 2% of NAV at 263 Sold at a profit of 17% Exited 1% of NAV at 267 Sold at a profit of 22% There is no assurance or guarantee that past performance may be sustained in future. Investments in capital markets are subject to risks. Please refer Slide No. 25 for disclaimer. The above graph represents the values for the year 2009
  • 10. Superior Performance 80.00% 70.71% 70.00% 50.00% Since Inception 42.04% 42.95% 60.00% 40.00% 48.46% 50.00% 42.04% 30.00% 40.00% 24.66% 30.00% 20.00% 18.48% 20.00% 11.42% 10.00% 9.05% 5.42% 10.00% 5.21% 5.42% 0.00% 0.00% 1 month 3 month 6 month Since Inception CAGR Standard Deviation Returns nCASH Nifty nCASH Performance as compared to benchmark performance i.e. Nifty (as on 30 Sep, 2009) Past Performance may or may not be sustained in future. The returns are absolute for the periods mentioned less than 1 year and in CAGR for period Inception Date: June 2, 2008 more than 1 year.
  • 11. NAV Movement nCASH Performance to Benchmark 16 NAV Per Unit Rebased Nifty 14 12 10 8 6 4 02-Jul-08 02-Jul-09 02-Apr-09 02-Oct-08 02-Nov-08 02-Dec-08 02-Aug-08 02-Sep-08 02-Aug-09 02-Sep-09 02-Jun-08 02-Jan-09 02-Jun-09 02-May-09 02-Feb-09 02-Mar-09 There is no assurance or guarantee that past performance may be sustained in future. The above graph represents the values for the year 2008 & 2009
  • 12. Opportunities Exist In a rising market, we saw 5 major corrections. Source: www.nseindia.com
  • 13. Need for Speed • Market dynamics are rapid and changes are quick. • Stock and Sector rotation is the order of the day, given the global scenario. • Volatility could be opportunity. • Greed and fear swings are more protracted. • All markets scenarios give opportunities.
  • 14. Product Features & Pricing Structure Rs. 25,00,000/- per Individual account or as mutually agreed between Minimum Account Size the Portfolio Manager and the Client. 1% for clients subscribing after Nov 1, 2007 & withdrawing the same Redemption Charge within 1 year from date of investment on FIFO basis. Investors are recommended to seek advice on taxation from their Taxation independent financial advisors / tax consultant / accountant before making any investments. Option I - Upfront Fees : 2.25 % Fixed Fee Annualised Fees : 2 % Basic Fixed : 2% Investment Portfolio Performance Portfolio Manager's Share Management & (Annualised Returns) Option II - Upto 15% NIL Advisory Fixed Plus 20% of the excess Fees Above 15% upto 30% Variable Fees over 15% 25% of the excess Beyond 30% over 15% For further details please refer Disclosure Document dated March 31, 2009 & subsequent addendum if any to the Disclosure Document
  • 15. Privileged Account Service A Discretionary Portfolio Management Service, created for very elite, very discerning clients LIKE YOU
  • 16. Privileged Account Service (PAS) • PAS is a highly customized portfolio management service from Birla Sun Life Asset Management Company Ltd. that helps HNIs like you fulfill their financial goals • With an investment philosophy that seeks consistent, long-term results by adopting a research-based, methodical approach to investing • After fully understanding your particular needs, your portfolio manager will put together the optimal portfolio for you, which takes into account your financial goals, time horizon, risk appetite and investment outlook • Investment excellence within the framework of transparent and rigorous risk control
  • 17. The power behind PAS : Birla Sun Life Asset Management Company Ltd. Birla Sun Life Asset Management Company Ltd. One of the Winner of top 5 MF various Houses in awards in India „08 More than a Investor base 100 branches of more than Assets under across India 22 Lakh (as on Management and 700 plus 30 Sep 09) in excess of people Rs. 63,000 Cr (as on 30 Sep 09) Past Performance is no guarantee of future results. Mutual Fund investments are subject to market risks. Please read the Statement of Additional Information / Scheme Information Document carefully before investing.
  • 18. Why PAS • An institutional quality investment management • Long-term track record • No conflict of interest - neither into broking nor investment banking • Emphasis on proprietary research • Adherence to portfolio universe and disciplined investment process • Emphasis on risk management • Strict internal and external compliances • Outstanding responsiveness and comprehensive communication with client
  • 19. How it Works • Investment Strategy • Investment Philosophy • Strong research process
  • 20. Investment Strategy Top-down Strategies Duration Sector Yield Curve Quantitative Credit Analysis Trading Research Bottom – Up Strategies
  • 21. Investment Philosophy Robust Industry Dynamics Strong Management Reasonable Valuations Stock Sustainable Business Model Sustainable Strong Competitive Earnings Advantage Growth The goal is to find an outstanding business at a sensible price, not an mediocre business at a bargain price
  • 22. Strong Research Process Industry Analysis Business Analysis Management Analysis • Demand & supply scenarios • Strategies for growth •Promoter‟s performance & track • Raw material scenario • Productivity analysis record • Industry cycles & seasonal • Working capital management •Performance of group companies factors • Capital expenditure plans •Internal control systems • Impact of export / imports • Competitive positioning •Capabilities under stress • Competitive advantage Financial Analysis Other Issues • Analysis of key financial docs & Regulatory Environment • Repayment track record accounting policies • Impact of govt. policies • Feedback from other creditors & • Cashflow analysis • Impact of changes in tax & duty rating agencies • Sensitivity analysis structures • Contingent liabilities of the • CAR, ALM profile, ageing • Import / export benefits company analysis • Market share analysis • Payback period analysis
  • 23. Tailored solutions for unique needs Products Equity Debt Custom NLD • Value We provide customized Dynamic Fixed • High Dividend Yield portfolio for investment Accelerator Series Income Portfolio • nCASH above 2.5 Cr. • Growth • India Reform Portfolio
  • 24. Team of Professionals at your service Jinesh Gopani – Fund Manager (Equity) • An MBA in Finance , he was, for last two and half years, working in USA based FII Voyager Investments as a Senior Research Analyst. • Earlier, he worked with Emkay share and stockbrokers for four years, where he was designated as Research Analyst Apurvi Sharma – Fund Manager (Debt) • A CFA & CA, prior to joining Birla Sun Life she was associated with BenchMark Mutual Fund as AVP • She has a total work experience of 9 years
  • 25. Risk Factors & Disclaimer Investments in securities are subject to market risks & there can be no assurance or guarantee that the objectives of the product will be achieved. The past performance of the Portfolio Manager in any product is not indicative of the future performance in the same product or in any other product either existing or that may be offered. There is no assurance that past performances in earlier product will be repeated. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. Risk arising from the investment objective, investment strategy and asset allocation: Market risk, political and geopolitical risk and risk arising from changing business dynamics, which may affect portfolio returns. At times, portfolios of individual clients may be concentrated in certain companies/industries. The performance of the portfolios would depend on the performance of such companies / industries / sectors of the economy. While utmost care has been exercised, Birla Sun Life AMC Ltd. or any of its officers, employees, personnel, directors make no representation as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same. Recipients of this material should exercise due care and read the disclosure document (including if necessary, obtaining the advice of tax / legal / accounting / financial / other professionals) prior to taking of any decision, acting or omitting to act. The document is solely for the information and understanding of intended recipients only. Further, the recipient shall not copy / circulate contents of this presentation, in part or in whole, or in any other manner whatsoever without prior and explicit approval of BSLAMC. Risks associated with investment in Equity and equity related instruments: Equity and Equity related securities by nature are volatile and prone to price fluctuations on a daily basis due to both macro and micro factors. In respect of investments in equity and equity-related instruments, there may be risks associated with trading volumes, settlement periods and transfer procedures that may restrict liquidity of investments in equity and equity-related securities. In the event of inordinately large number of redemptions or of a restructuring of the Product's investment portfolio, there may be delays in the redemption of units. The value of the Product's investments, may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates, currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets. Consequently, the value of the portfolio may fluctuate and can go up or down. The Portfolio Manager may choose to invest in unlisted securities that offer attractive yields. Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the exchanges or offer other exit options to the investor, including a put option. This may however increase the risk of the portfolio. Investors may note that Portfolio Manager's investment decisions may not always be profitable, as actual market movements may be at variance with anticipated trends. Risk Associated with Investments in Fixed Income and Money Market Instruments: Some of the common risks associated with investments in fixed income and money market securities are mentioned below. These risks include but are not restricted to: Interest Rate Risk: As with all debt securities, changes in interest rates will affect the valuation of the Portfolios, as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. Prices of longer-term securities generally fluctuate more in response to interest rate changes than do shorter-term securities. Interest rate movements in the Indian debt markets can be volatile leading to the possibility of large price movements up or down in debt and money market securities and thereby to possibly large movements in the valuation of Portfolios Liquidity or Marketability Risk: This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed income market. Credit Risk: Credit risk or default risk refers to the risk, which may arise due to default on the part of the issuer of the fixed income security (i.e. risk that the issuer will be unable to make timely principal and interest payments on the security). Because of this risk debentures are sold at a yield spread above those offered on Treasury securities, which are sovereign obligations and generally considered to be free of credit risk. Normally, the value of a fixed income security will fluctuate depending upon the actual changes in the perceived level of credit risk as well as the actual event of default. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities under a particular Portfolio are reinvested. The additional income from reinvestment is the “interest on interest” component. The risk refers to the fall in the rate for reinvestment of interim cashflows.