Exchange Traded Funds September 2012 - InvestmentKit · PDF fileGS Nifty BeES - top 10...

GS BeES

Exchange Traded Funds

September 2012

Presentation flow

Indexing as a strategy

GS BeES – advantages & buy/ sell mechanism

ETF growth – international & India

GS BeES – product details

GS BeES – performance

About us

1

Index tracking – a long term winner for investments

It has been proved that it is not possible to consistently outperform the overall stock market

Index tracking is a relatively cost effective strategy to implement

Indices are dynamic, transparent and have high investor recall

Eliminates the risk of individual stocks, sectors, individual fund manager etc. i.e. all ‘unsystemic risks’ only

the ‘systemic’ or market risk remains which is common to all equity investments

2

This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or

investment advice. Please see additional disclosures.

Index funds in India

At present, there are 41 index funds, of which 191 are based on the S&P CNX Nifty Index

Total recurring expenses2 vary from 0.50% to 1.50% p.a.

Investment management fees range from 0.35% to 0.75% p.a.

Tracking error3 ranges between 0.08% to 4.67%

3

1 & 2 -Source: MFI explorer

3 – Internal calculation done on the basis of NAV data sourced from AMFI



Features of GS BeES

Simple – can be bought/ sold on the NSE like a share… in real-time

Buy/ sell the broad Indian market in one ETF unit

Can be used to equitise cash

Economical – the annual expense ratio for Index funds is low compared to equity or debt fund.

No rebalancing issue for the investor due to corporate action or index changes

Full replication strategy

4

How GS BeES work?

5

Primary market Secondary market

Seller

Cash GS BeES1

NSE

Cash GS BeES1

Buyer

Authorised

participants/

Financial

institutions

Buy/ Sell

Market making/

arbitrage

Creation

in-kind

Redemption

in-kind

Fund

1- GS BeES = Goldman Sachs Exchange Traded Funds

GS BeES Vs Open Ended Index Funds

6

Parameters Index ETFs Traditional open ended index funds

Traded throughout the

day Yes No

Low expense ratio Usually lower than open ended funds Usually higher than ETFs

Trade at any brokerage

firm Yes No

Tracking Tracks index more closely relative to an

open ended fund

Tracking errors are usually higher as

compared to ETFs

NAV Real time pricing as compared to an

open ended fund Daily end of day

Can be used for

derivatives margin Yes No

Liquidity Fund and stock market Fund

Structure Insulates long term investor from short

term trading activity

Does not insulate long term investor from

short term trading activity



ETF – Exchange Traded Fund

7

Growth of International ETFs

8

AUM in USD Billion. Source: Blackrock ETF Landscape Q2 End 2012



1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Jun-12

AUM 1 1 2 5 8 18 40 74 105 142 212 310 417 574 797 711 103 131 135 149

No. of ETFs 1 1 2 19 19 29 30 92 202 280 282 336 453 732 117 159 193 245 301 325

0

400

800

1200

1600

2000

2400

2800

3200

3600

0

200

400

600

800

1000

1200

1400

1600

No

. of E

TF

s A

UM

$ B

illio

n

9

Growth of ETFs in India

Source : Based on data collated from AMFI website i.e. www.amfiindia.com

* - Average AUM for the Quarter. (For other periods amount is Average AUM for Month)



Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Dec-08

Dec-09

Dec-10*

Dec-11*

June-12*

Avg. AUM 7 168 568 2920 7811 7142 2671 2410 4981 10852 11638

No of ETFs 1 5 6 6 6 12 16 18 26 33 34

0

5

10

15

20

25

30

35

40

0

2000

4000

6000

8000

10000

12000

No

. of E

TF

s

Av

g.

AU

M (

Rs. in

Cro

res)

http://www.amfiindia.com/

Domestic Equity ETFs

10

S&P CNX Nifty Index

India’s premier benchmark index introduced in November 1995 and was developed as a basis for

introducing index based derivatives

S&P CNX Nifty is calculated using the free float methodology1

Only companies having a high degree of liquidity defined in terms of low impact cost are included as

constituents of the index

Impact cost of the S&P CNX Nifty for June 2012 is 0.07% for a portfolio size of Rs. 50 Lakhs1

Represents about 58.74%2 of the total market capitalization of NSE as on 29th June 2012

11

1 - For criteria of S&P CNX Nifty Index and Impact cost, kindly refer the indices section of NSE website i.e. www.nseindia.com

2 - Source: www.nseindia.com / India Index Services & Products Ltd. (IISL)/ Internal

http://www.nseindia.com/


Goldman Sachs Nifty Exchange Traded Scheme (GS Nifty BeES)

12

Investment objective

The investment objective of GS Nifty BeES is to provide investment returns that, before expenses, closely

correspond to the total returns of the securities as represented by the S&P CNX Nifty Index. However, the

performance of scheme may differ from that of the underlying index due to tracking error.

Investment pattern

The above stated percentages are indicative and not absolute.

Type of scheme

Open ended index scheme, listed on the exchange in the form of an Exchange Traded Fund (ETF)

Instruments Indicative allocation %

Securities covered by S&P CNX Nifty Index Up to 100%

Money market instruments, convertible bonds & other securities

including cash at call but excluding subscription & redemption cash flow

Up to 10%

There is no guarantee that these objectives will be met.

GS Nifty BeES

Combination of a share and a mutual fund unit

Listed and traded on the capital market segment of the NSE

Tracks the S&P CNX Nifty Index and priced at 1/10th of the S&P CNX Nifty Index

Minimum lot-size for real-time in-kind creation/ redemption with the fund is 10,000 units and in multiples

thereof

Minimum lot-size to buy/ sell on NSE is 1 unit and in multiples thereof

Options: the scheme offers only growth option

Units of the scheme will be issued/ repurchased and traded compulsorily in Demat form

13

GS Nifty BeES - top 10 holdings

14

Data as on 29th June 2012

Portfolio holdings may not be representative of current or future investments. The securities discussed do not represent all of the portfolio's holdings and may represent only a small

percentage of the strategy’s portfolio holdings. Future portfolio holdings may not be profitable. Holdings and/ or Allocations are subject to change and should not be construed as research or

investment advice.

Company Industry Weightage (%)

ITC Ltd Consumer Non Durables 8.45

Reliance Industries Ltd Petroleum Products 7.50

Infosys Ltd Software 7.31

ICICI Bank Ltd Banks 6.26

HDFC Bank Ltd Banks 6.15

Housing Development Finance Corporation Ltd Finance 5.83

Larsen & Toubro Ltd Construction Project 4.55

Tata Consultancy Services Ltd Software 3.93

State Bank of India Banks 3.36

Oil & Natural Gas Corporation Ltd Oil 3.04

Total 56.38

GS Nifty BeES – industry allocation

15

Data as 29th June 2012.

Total allocation may not add to 100% due to rounding.

20.17

13.21

12.33

8.08

7.98

6.84

4.55

4.12

3.73

3.68

3.19

2.51

2.20

1.80

1.77

1.49

0.96 0.94

Banks Software Consumer Non Durables Petroleum Products

Auto Finance Construction Project Pharmaceuticals

Oil Power Ferrous Metals Cement

Telecom - Services Non - Ferrous Metals Minerals/Mining Industrial Capital Goods

Gas Construction

Industry Weightage (%)

GS Nifty BeES – scheme details

16

NSE Symbol : NIFTYBEES

BSE Code : 590103

ISIN : INF732E01011

Reuters : NBES.NS

Bloomberg : NBEES.IN

Total Expense Ratio : 0.50% p.a.1

Tracking Error : 0.11% Annualised2

Impact Cost : 0.113

Entry/ Exit Load : Nil

Data as on 29th Jun 2012

1 - Financial year to date expense ratio to average AUM

2- Tracking error calculated based on monthly rolling returns for last 12 months.

3 - Impact cost calculated for period of 6 months ending on 15th Jun 2012, Source: NSE Market Tracker, www.nseindia.com


17

GS Nifty BeES - performance

Returns for one year are absolute. Returns for more than one year are compounded annualized. Dividends are assumed to be reinvested at the prevailing

NAV. Distribution taxes are excluded while calculating the returns. Bonus declared has been adjusted. In case, the start/end date of the concerned period

is non business date (NBD), the NAV of the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on

standard investment of INR 10,000 made at the beginning of 12 month period as at the end of that period scheme performance. Past performance may or

may not be sustained in future and should not be used as a basis for comparison with other investments. Additional benchmark for equity schemes -

source : National Stock Exchange of India. Past performance does not guarantee future results, which may vary. Inception date is the allotment date

which is December 28, 2001.

Fund manager: Vishal Jain

17

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to

June 30, 2010 Since Inception

Absolute PTP Returns Absolute PTP Absolute PTP CAGR PTP

Returns (%) (INR) Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS Nifty BeES -5.36 9464 7.21 10721 24.50 12450 18.31 58514

S&P CNX Nifty Index (Benchmark)1 -6.53 9347 6.30 10630 23.80 12380 16.78 51063

S&P CNX Nifty Total Returns Index -5.34 9466 7.48 10748 25.31 12531 18.61 60140


1- Also represents additional benchmark

CNX Nifty Junior Index

The next rung of liquid securities after S&P CNX Nifty is the CNX Nifty Junior

S&P CNX Nifty and the CNX Nifty Junior make up the 100 most liquid stocks in India

Only companies having a high degree of liquidity defined in terms Impact Cost are included as

Constituents of the Index1

CNX Nifty Junior is calculated using the free float methodology

Impact cost of the CNX Nifty Junior Index for Jun 2012 is 0.1% for a portfolio size of Rs. 25 Lakhs1


18

1 - For criteria of CNX Nifty Junior Index and Impact cost, kindly refer the indices section of NSE website i.e. www.nseindia.com




Goldman Sachs Nifty Junior Exchange Traded Scheme (GS Junior BeES)

19


The investment objective of GS Junior BeES is to provide returns that, before expenses, closely

correspond to the returns of securities as represented by CNX Nifty Junior Index. However, the

performance of scheme may differ from that of underlying index due to tracking error.

Investment pattern

The above stated percentages are indicative and not absolute

Type of scheme



Securities covered by CNX Nifty Junior Index 90% - 100%

Money market instruments, convertible bonds & other

securities including cash at call but excluding subscription

& redemption cash flow

0% - 10%


GS Junior BeES

Tracks the CNX Nifty Junior Index and priced at 1/100th of the CNX Nifty Junior Index


Listed and traded on the capital market segment of NSE

Minimum lot-size for real-time in-kind creation/ redemption with the fund is 16,000 units and in multiples

thereof


Options: the scheme offers only growth option

Units of the scheme will be issued/ repurchased and traded compulsorily in demat form

20

GS Junior BeES - top 10 holdings

21




investment advice.


Ultratech Cement Ltd Cement 5.06

Lupin Ltd Pharmaceuticals 4.35

IndusInd Bank Ltd Banks 4.04

Titan Industries Ltd Consumer Durables 3.18

Glaxosmithkline Pharmaceuticals Ltd Pharmaceuticals 2.88

Yes Bank Ltd Banks 2.84

Bosch Ltd Auto Ancillaries 2.82

LIC Housing Finance Ltd Finance 2.78

Colgate Palmolive (India) Ltd Consumer Non Durables 2.73

Zee Entertainment Enterprises Ltd Media & Entertainment 2.71

Total 33.39

GS Junior BeES – industry allocation

22

Data as on 29th Jun 2012.


17.49

12.15

11.76

9.23 5.06

4.96

3.51

3.47

3.38

3.26

3.18

3.06

2.71

2.44

2.43

1.90

1.87

1.81

1.47

1.44 1.11 1.06 0.95

Banks Finance Pharmaceuticals Consumer Non Durables

Cement Auto Ancillaries Telecom - Services Industrial Products

Transportation Software Consumer Durables Power

Media & Entertainment Ferrous Metals Industrial Capital Goods Petroleum Products

Chemicals Trading Gas Pesticides

Auto Hotels Construction Project


23

GS Junior BeES - scheme details

NSE symbol : JUNIORBEES

BSE code : 590104

ISIN : INF732E01045

Reuters : JBES.NS

Bloomberg :JBEES:IN

Total expense ratio : 1.00% p.a.1

Tracking error : 0.21% Annualised2

Impact cost : 0.443

Entry/ exit load : Nil


1- Financial year to date expense ratio to average AUM

2 -Tracking error calculated based on monthly rolling returns for last 12 months



24

GS Junior BeES - performance


NAV. Distribution taxes are excluded while calculating the returns. Bonus declared has been adjusted. In case, the start/end date of the concerned period

is non business date (NBD), the NAV of the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on

standard investment of INR 10,000 made at the beginning of 12 month period as at the end of that period scheme performance. Additional benchmark for

equity scheme - source : National Stock Exchange of India. Past performance may or may not be sustained in future and should not be used as a basis

for comparison with other investments. Past performance does not guarantee future results, which may vary. Inception date is the allotment date which is

February 21, 2003.

Fund manager: Payal Kaipunjal

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns (%) (INR) Returns (%) Returns

(INR) Returns (%)

Returns

(INR) Returns (%)

Returns

(INR)

GS Junior BeES -9.60 9040 -0.56 9944 44.15 14415 23.65 72908

CNX Nifty Junior Index (Benchmark) -10.11 8989 -0.62 9938 45.03 14503 23.51 72155

CNX Nifty Junior Total Returns Index -9.06 9094 0.37 10037 46.47 14647 25.26 82315

S&P CNX Nifty Index (Addl. Benchmark) -6.53 9347 6.30 10630 23.80 12380 18.64 49514


CNX Bank Index

CNX Bank Index1 is a sectoral index comprising of stocks pertaining to the Banking Industry

CNX Bank Index consists of 12 key stocks of the banking sector

CNX Bank Index is calculated using the free float methodology


25

1 - For criteria of CNX Bank Index kindly refer the indices section of NSE website i.e. www.nseindia.com




Goldman Sachs Banking Index Exchange Traded Scheme (GS Bank BeES)

26


The investment objective of GS Bank BeES is to provide returns that, before expenses, closely

correspond to the total returns of the securities as represented by the CNX Bank Index. However, the

performance of scheme may differ from that of the underlying index due to tracking error.

Investment pattern


Type of scheme




Securities covered by the CNX Bank Index 90% - 100%

Money market instruments, G-Secs, bonds, debentures, preference shares

and cash at call

0% - 10%

GS Bank BeES

Tracks the CNX Bank Index

Each unit is priced at 1/10th of the CNX Bank Index



Minimum lot-size for real-time in-kind creation/ redemption with the fund is 10,000 units and in multiple of

thereof


Options: The scheme offers only growth option.


27

GS Bank BeES - top 10 holdings

28




investment advice.


ICICI Bank Ltd Banks 27.80

HDFC Bank Ltd Banks 27.30


Axis Bank Ltd Banks 7.06

Kotak Mahindra Bank Ltd Banks 5.91

Bank of Baroda Banks 3.69

IndusInd Bank Ltd Banks 3.17

Punjab National Bank Banks 2.88

Yes Bank Ltd Banks 2.23

Bank of India Banks 1.74

Total 96.70

GS Bank BeES - scheme details

NSE symbol : BANKBEES

BSE code : 590106

ISIN : INF732E01078

Reuters : BBES.NS

Bloomberg :BBEES:IN



Impact cost : 0.503


29


1 - Financial Year to date Expense Ratio to average AUM

2- Tracking Error calculated based on monthly Rolling Returns for last 12 months.


GS Bank BeES - performance


NAV. Distribution taxes are excluded while calculating the returns. In case, the start/end date of the concerned period is non business date (NBD), the

NAV of the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000

made at the beginning of 12 month period as at the end of that period scheme performance. Additional benchmark for equity scheme - source : National

Stock Exchange of India. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other

investments. Past performance does not guarantee future results, which may vary. Inception date is the allotment date which is May 27, 2004.


30


Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns

(%) (INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS Bank BeES -7.06 9294 19.53 11953 29.37 12937 20.46 45139

CNX Bank Index (Benchmark) -8.04 9196 18.81 11881 28.97 12897 19.00 40879

CNX Bank Total Returns Index -6.87 9313 20.00 12000 30.52 13052 20.95 46653


CNX PSU Bank Index

CNX PSU Bank Index1 is a sectoral index comprising of stocks pertaining to the PSU Bank Sector

CNX PSU Bank Index consists of 12 key PSU Banking Stocks

CNX PSU Bank Index is a free float methodology based weighted index

CNX PSU Bank Index Constituents represent about 4.96%2 of the total market capitalization of NSE as

on 29th Jun 2012

31

1 - For criteria of CNX PSU Bank Index kindly refer the indices section of NSE website i.e. www.nseindia.com




Goldman Sachs PSU Bank Exchange Traded Scheme (GS PSU Bank BeES)

32


The investment objective of GS PSU Bank BeES is to provide returns that, before expenses, closely

correspond to the total returns of the securities as represented by the CNX PSU Bank Index. However,

the performance of scheme may differ from that of the underlying index due to tracking error.

Investment pattern


Type of scheme



Securities covered by the CNX PSU Bank Index 90% - 100%

Money market instruments, G-Secs, bonds, debentures

and cash at call

0% - 10%


GS PSU Bank BeES

Tracks the CNX PSU Bank Index

Each unit is priced at 1/10th of the CNX PSU Bank Index



Minimum lot-size for real-time in-kind creation/ redemption with the fund is 10,000 units and in multiple of

thereof


Options: The scheme offers only growth option


33

GS PSU Bank BeES - top 10 holdings

34




investment advice.



Bank of Baroda Banks 12.04

Punjab National Bank Banks 9.40

Bank of India Banks 5.66

Canara Bank Banks 5.16

Union Bank of India Banks 4.12

IDBI Bank Ltd Banks 3.08

Oriental Bank of Commerce Banks 2.71

Allahabad bank Banks 2.62

Andhra Bank Banks 2.43

Total 95.88

GS PSU Bank BeES - scheme details

NSE symbol : PSUBNKBEES

BSE code : 590108

ISIN : INF732E01110

Reuters : PSUB.NS

Bloomberg :PSUBBE:IN EQUITY



Impact cost : 1.633


35



2- Tracking error calculated based on monthly rolling returns for last 12 months.

3- Impact cost calculated for period of 6 months ending on 15th Jun 2012, Source: NSE Market Tracker, www.nseindia.com

GS PSU Bank BeES - performance


NAV. Distribution taxes are excluded while calculating the returns. In case, the start/end date of the concerned period is non business date (NBD), the

NAV of the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000

made at the beginning of 12 month period as at the end of that period scheme performance. Additional benchmark for equity scheme - source : National

Stock Exchange of India. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other

investments. Past performance does not guarantee future results, which may vary. Inception date is the allotment date which is October 25, 2007.


36

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns

(%) (INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS PSU Bank BeES -15.12 8488 9.76 10976 36.85 13685 6.02 13147

CNX PSU Bank Index (Benchmark) -16.79 8321 8.75 10875 36.38 13638 4.70 12400

CNX PSU Bank Total Returns Index -14.90 8510 10.46 11046 38.78 13878 6.92 13677

S&P CNX Nifty Index (Addl. Benchmark) -6.53 9347 6.30 10630 23.80 12380 -1.14 9479


S&P CNX Nifty Shariah Index

Constituents of the S&P CNX Nifty index are screened for Shariah compliance

Companies that are Shariah compliant form the S&P CNX Nifty Shariah Index1

The index is calculated using a base-weighted aggregate methodology

At present the S&P CNX Nifty Shariah Index comprises of 26 constituents2 as at 29th Jun 2012

S&P CNX Nifty Shariah Index constituents represent about 32.94%3 of the total market capitalisation of

the NSE as at 29th Jun 2012

37

1 - For criteria of S&P CNX Nifty Shariah Index kindly refer the indices section of NSE website i.e. www.nseindia.com

2 - Source: India Index Services & Products Ltd. (IISL)




Shariah Index – framework providers

Index constituents of the underlying index are screened for Shariah compliance and then included in the

index

Standard & Poor’s has contracted with Ratings Intelligence Partners (RI) to provide the Shariah screens

to filter the stocks based on these screens

Ratings Intelligence Partners is a London/Kuwait based consulting company specializing in solutions for

the global Islamic investment market

RI’s team consists of qualified Islamic researchers who work directly with a Shariah Supervisory Board

The Shariah Supervisory Board is a board of Islamic scholars serving to interpret business issues and

recommend actions related to business decisions for the indices.

38

Shariah screening process

Two main criteria based on which the stocks are screened include:

Sector based screens

Accounting based screens

39


Sector based screens

Business activities related to the following are excluded-:

Pork

Alcohol

Gambling

Financials

Advertising and Media (newspapers are allowed, sub-industries are analyzed individually)

Pornography

Tobacco

Trading of gold and silver as cash on deferred basis

During the selection process, each company’s audited annual report is reviewed to ensure that the

company is not involved in any non-Shariah compliant activities

Companies that are found to be non-compliant are screened out

40



Companies left after passing through sector based screen are then examined for compliance in financial

ratios as certain ratios may violate compliance measurements

The three areas of focus are : leverage, cash and the share of revenues derived from non-compliant

activities. All of these are subject to evaluation on an ongoing basis

Leverage compliance

For inclusion in the S&P CNX Nifty Shariah Index compliance is measured as: :

Debt / Market value of equity (12 month average) < 33 %;

Cash compliance

For inclusion in the S&P CNX Nifty Shariah Index compliances with reference to cash holdings.

These are :

Accounts receivables / Market value of equity (12 month average) < 49 %;

(Cash + Interest bearing securities) / Market value of equity (12 month average) <33%;

41



Revenue share from non-compliant activities

For inclusion in the S&P CNX Nifty Shariah Index, in certain cases, revenues from non-compliant activities

are permissible, if they comply with the following threshold:

(Non-permissible income other than interest income) / revenue < 5%

42

Goldman Sachs S&P CNX Nifty Shariah Index

Exchange Traded Scheme (GS S&P Shariah BeES)

43


The investment objective of the GS S&P Shariah BeES is to provide returns that, before expenses,

closely correspond to the total returns of the securities as represented by the S&P CNX Nifty Shariah

Index by investing in securities which are constituents of the S&P CNX Nifty Shariah Index in the same

proportion as the Index. However, the performance of the scheme may differ from that of the underlying

index due to tracking error. Investors to note that GS S&P Shariah BeES is not a Shariah compliant

scheme.

Investment pattern


Type of scheme



Securities covered by the S&P CNX Nifty Shariah Index 90% - 100%

Cash 0% - 10%


GS S&P Shariah BeES

Each unit is priced at 1/10th of S&P CNX Nifty Shariah Index



Minimum lot-size for real-time in kind creation/ redemption with the fund is 10,000 units and in multiple of

thereof

Minimum lot-size to buy/ sell on the NSE is 1 unit and in multiples thereof

Options: The scheme offers only growth option.

Units of the scheme will be issued/repurchased and traded compulsorily in demat form

44

GS S&P Shariah BeES - top 10 holdings

45




investment advice.


Reliance Industries Ltd Petroleum Products 16.93

Infosys Ltd Software 16.51

Tata Consultancy Services Ltd Software 8.87

Oil & Natural Gas Corporation Ltd Oil 6.88

Hindustan Unilever Ltd Consumer Non Durables 6.36

Sun Pharmaceutical Industries Ltd Pharmaceuticals 3.26

Coal India Ltd Minerals/Mining 2.99

Bajaj Auto Ltd Auto 2.88

Dr Reddy's Laboratories Ltd Pharmaceuticals 2.83

Wipro Ltd Software 2.81

Total 70.32

GS S&P Shariah BeES – industry allocation

46



29.82

16.93

9.31

8.78

8.43

7.80

5.70

4.01

3.35 3.19 2.16

Software Petroleum Products Pharmaceuticals Consumer Non Durables

Oil Auto Cement Minerals/Mining

Industrial Capital Goods Ferrous Metals Gas


GS S&P Shariah BeES - scheme details

NSE symbol : SHARIABEES

BSE code : 590109

ISIN : INF732E01128

Reuters : SBET.NS

Bloomberg :SBEES IN Equity



Impact cost : 6.763


47



2 - Tracking error calculated based on monthly rolling returns for last 12 months.


GS S&P Shariah BeES - performance

Returns for one year are absolute. Returns for more than one year are compounded annualized. Distribution taxes are excluded while calculating the

returns. In case, the start/ end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of

returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000 made at the beginning of 12 month period as at the end of that

period scheme performance. Additional benchmark for equity scheme - source : National Stock Exchange of India. Past performance may or may not be

sustained in future and should not be used as a basis for comparison with other investments. Past performance does not guarantee future results, which

may vary. Inception date is the allotment date which is March 18, 2009.


48

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns

(%) (INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS S&P Shariah BeES -5.67 9433 0.15 10015 20.13 12013 19.17 17789

S&P CNX Nifty Shariah Index (Benchmark) -6.26 9374 -0.48 9952 19.86 11986 18.45 17438

S&P CNX Nifty Shariah Total Returns Index -4.81 9519 0.85 10085 21.31 12131 19.99 18198



CNX Infrastructure Index

Includes companies belonging to telecom, power, port, air, roads, railways, shipping and other utility

service providers

CNX Infrastructure Index1 is calculated using the free float methodology

Base value and base date of index are 1000 and Jan 01, 2004 respectively

49

1 - For criteria of CNX Infrastructure Index kindly refer the indices section of NSE website i.e. www.nseindia.com

Goldman Sachs Infrastructure Exchange Traded Scheme (GS Infra BeES)

50


The investment objective of the GS Infra BeES is to provide returns that, before expenses, closely

correspond to the total returns of the securities as represented by the CNX Infrastructure Index by

investing in the securities in the same proportion as in the Index. However, the performance of scheme

may differ from that of underlying index due to tracking error.

Investment pattern


Type of scheme



Securities covered by the CNX Infrastructure Index 95% - 100%

Money market instruments, G-Secs, bonds, debentures

and cash at call

0% - 5%


GS Infra BeES



Tracks the CNX Infrastructure Index and priced at 1/ 10th of the CNX Infrastructure Index

Minimum lot-size for real-time in-kind creation / redemption with the Fund is 10,000 units and in multiples

thereof




51

GS Infra BeES - top 10 holdings

52




investment advice.


Larsen & Toubro Ltd Construction Project 29.45

Bharti Airtel Ltd Telecom - Services 14.29

NTPC Ltd Power 7.98

Bharat Heavy Electricals Ltd Industrial Capital Goods 7.19

Tata Power Co Ltd Power 6.64

Power Grid Corporation of India Ltd Power 6.30

Jaiprakash Associates Ltd Construction 3.25

Reliance Infrastructure Ltd Power 2.96

Siemens Ltd Industrial Capital Goods 2.45

Idea Cellular Ltd Telecom - Services 2.37

Total 82.88

GS Infra BeES – industry allocation

53



32.28

28.20

18.93

13.69

3.56 3.25

Construction Project Power Telecom - Services Industrial Capital Goods Transportation Construction


GS Infra BeES - scheme details

NSE symbol : INFRABEES

ISIN : INF732E01268

Reuters : IFRB.NS

Bloomberg :IBEES IN Equity



Impact cost : 2.753

Entry / exit Load : Nil

54



2 - Tracking Error calculated based on monthly Rolling Returns for last 12 months.


GS Infra BeES - performance






may vary. Inception date is the allotment date which is September 29, 2010.


55

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns

(%) (INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS Infra BeES -22.49 7751 -- -- -- -- -22.19 6445

CNX Infrastructure Index (Benchmark) -22.50 7750 -- -- -- -- -21.83 6497

CNX Infrastructure Total Returns Index -21.76 7824 -- -- -- -- -21.28 6578

S&P CNX Nifty Index (Addl. Benchmark) -6.53 9347 -- -- -- -- -6.98 8811


ETF investing in Overseas Securities

56

Hang Seng Index

The Hang Seng Index (“HSI”) was launched on Nov 24, 1969 and is one of the earliest stock market

indices in Hong Kong

The Hang Seng Indexes Company Ltd. compiles and publishes the HSI

The index is widely recognized as the barometer of the Hong Kong Stock market

The HSI measures the performance of the largest and most liquid companies listed in Hong Kong

The HSI adopts free float-adjusted market capitalization weighted methodology with a 15% cap on each

constituent weightage

The HSI currently comprises of 49 stocks1 which are representative of the Hong Kong stock market

The index represents about 62.40% of the total market capitalization of Hong Kong’s stock exchange2 as

on 29th June 2012

57

1 - As on 29th June 2012. For criteria of Hang Seng Index kindly visit http://www.hsi.com.hk

2 - The universe comprises all main board primary listings.

Goldman Sachs Hang Seng Exchange Traded Scheme (GS Hang Seng BeES)

58


The investment objective of the Goldman Sachs Hang Seng Exchange Traded Scheme (GS Hang Seng

BeES) is to provide returns that, before expenses, closely correspond to the total returns of securities as

represented by Hang Seng Index of Hang Seng Data Services Limited, by investing in the securities in

the same proportion as in the index. However, the performance of scheme may differ from that of

underlying index due to tracking error.

Investment pattern


Type of scheme

Open ended index scheme, listed on the exchange in the form of an ETF investing in overseas Securities


Securities constituting Hang Seng Index 90% - 100%

Money market instruments, G-Secs, bonds, debt instruments,

cash at call and mutual fund schemes/ overseas exchange

traded funds based on the Hang Seng Index

0% - 10%


GS Hang Seng BeES



Tracks Hang Seng Index and each unit is priced at 1/ 100th of the value of the Hang Seng Index on a

currency adjusted basis

Minimum lot-size for real-time in-kind creation / redemption with the Fund is 10,000 units and in multiples

thereof




59

GS Hang Seng BeES - top 10 holdings

60




investment advice.


HSBC Holdings plc Financials 15.72

China Mobile Ltd Telecommunications 8.40

China Construction Bank Corporation Financials 7.33

Industrial & Commercial Bank of China Ltd Financials 4.60

CNOOC Ltd Energy 4.53

AIA Group Ltd Financials 4.47

Tencent Holdings Ltd Information Technology 4.11

PetroChina Co. Ltd Energy 3.46

Bank of China Ltd Financials 3.44

China Life Insurance Co. Ltd Financials 2.44

Total 58.50

GS Hang Seng BeES – industry allocation

61



46.00

11.81

9.16

8.24

5.63

5.37

5.19

4.11 2.55 0.21

Financials Energy Telecommunications Properties & Construction

Conglomerates Consumer Goods Utilities Information Technology

Services Materials


GS Hang Seng BeES – industry allocation (cont.)

62


12

7

6 6

5 5

4

2

1 1

0

2

4

6

8

10

12

14

No. of companies

GS Hang Seng BeES - scheme details

NSE symbol : HNGSNGBEES

BSE code : 590113

ISIN : INF732E01227

Reuters : HNGS.NS

Bloomberg :HSBEES IN Equity

Total expense ratio : 1.00 % p.a.1


Impact cost : 1.563

Entry / exit load : Nil

63


1 - Financial Year to date Expense Ratio to average AUM months.



GS Hang Seng BeES - performance






may vary. Inception date is the allotment date which is March 09, 2010.

Fund managers: Vishal Jain (For foreign securities) and Payal Kaipunjal (For debt securities)

64

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns

(%) (INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS Hang Seng BeES 11.56 11156 8.98 10898 -- -- 8.18 11992

Hang Seng Index (Benchmark) -13.20 8680 11.27 11127 -- -- -3.69 9167

Hang Seng Total Returns Index 12.61 11261 10.18 11018 -- -- 8.92 12181

S&P CNX Nifty Index (Addl. Benchmark) -6.53 9347 6.30 10630 -- -- 1.49 10348


Indices – facts

65

Index Full Market Cap. (Rs. Crs.) P/E P/B Dividend Yield (%)

S&P CNX Nifty 3,539,863.32 17.51 3.02 1.51

CNX Nifty Junior 717,361.42 15.50 2.19 1.46

CNX Bank Index 602,144.89 14.13 2.43 1.24

CNX PSU Bank Index 298,640.56 7.85 1.51 2.15

S&P CNX Nifty Shariah Index 1,985,071.52 17.52 3.38 1.68

CNX Infrastructure Index 707,954.78 18.32 2.03 1.21

Source: www.nseindia.com

Index Full Market Cap. (Rs. Crs.) P/E Dividend Yield (%)

Hang Seng Index 8,090,933.38 9.30 3.72

Source: Hang Seng Indexes Company Limited

P/E – Price to Earning ratio

P/B – Price to Book ratio


Gold ETF

66

67

Goldman Sachs Gold Exchange Traded Scheme (GS Gold

BeES)


The investment objective of GS Gold BeES is to provide returns that, before expenses, closely

correspond to the returns provided by the domestic price of gold through physical gold.

Investment pattern

1- Investments in securitized debts can be made by the scheme up to 5% of the net assets.

Type of scheme

An open ended scheme, listed on the exchange in the form of an ETF investing in physical gold


Physical gold 90% to 100%

Money market instruments, securitized debts1, bonds including

cash at call

0% to 10%


GS Gold BeES

One unit represents approximately one gram of gold


Quotes on the NSE would vary, taking into consideration various aspects such as international market

movements, demand, supply, exchange rate fluctuations, etc

No securities transaction tax

68

GS Gold BeES

Minimum lot-size for real-time in kind creation/ redemption with the fund is 1000 units and in multiples

thereof

Minimum lot-size to buy/ sell on NSE is one unit and in multiples thereof



Benchmark for the scheme: Domestic price of gold

69

GS Gold BeES - scheme details

NSE symbol : GOLDBEES

BSE code : 590095

ISIN : INF732E01102

Reuters : GBES.NS

Bloomberg :GBEES IN EQUITY


Tracking error : 0.47% annualised2

Impact cost : 0.033


70




3 - Impact cost calculated for period of 6 months ending on 15th Jun 2012, Source: NSE Market Tracker, www.nseindia.com.

GS Gold BeES - performance


returns. In case, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of


period scheme performance. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other

investments. Past performance does not guarantee future results, which may vary. Inception date is the allotment date which is March 08, 2007.


71

Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to



Returns

(%) (INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

Returns

(%)

Returns

(INR)

GS Gold BeES 32.84 13284 15.18 11518 28.61 12861 22.91 29934

Domestic Price of Gold (Benchmark) 34.83 13483 16.36 11636 29.49 12949 24.16 31585


Money Market ETF

72

Goldman Sachs Liquid Exchange Traded Scheme (GS Liquid BeES)

73


The investment objective of the GS Liquid BeES is to seek to provide current income, commensurate

with relatively low risk while providing a high level of liquidity, primarily through a portfolio of treasury bills,

government securities, call money, collateralised lending and borrowing obligation (CBLO)/ similar

instruments, repos and reverse repos and other money market Instruments.

Investment pattern

Type of scheme

An open ended liquid scheme, listed on the exchange in the form of an ETF, with daily Dividend and

compulsory reinvestment of Dividend


Instruments Indicative allocation (% of Net Assets)

Maximum Minimum

Treasury bills and government securities Up to 100% 65%

Call money, CBLOs, repos and reverse repos

Other money market instruments Up to 35% 0%

What is GS Liquid BeES?

Mainly suited for capital market investors who wish to park idle cash in most convenient way

The face value of each unit of GS Liquid BeES is Rs. 1000 and the fund endeavors to keep the daily NAV

at Rs. 1000

The returns accrue to the investors in the form of a daily dividend, which is compulsorily reinvested into

the scheme

The units arising out of a dividend reinvestment are credited to the beneficiary (demat) account of the

investor at least once in 30 days

Units of GS Liquid BeES are uploaded up to 4 decimal points

74

GS Liquid BeES – an ideal investment tool

GS Liquid BeES is an extremely efficient and convenient solution for utilizing the cash balance between

trades in the equity market (NSE)

When an investor sells his shares on NSE, he can instruct the broker to purchase GS Liquid BeES of

equal amount

This will ensure that from the date of settlement (T+2) the investor will start earning dividends

Investors do not have to go through the inconvenience of receiving and depositing a cheque into their

bank account, and then waiting for the cheque to clear before they can invest in a liquid fund

75

GS Liquid BeES – an ideal investment tool (contd.)

GS Liquid BeES is designed to negate the need for involving a bank in the transaction process, thus

simplifying the process. Normally, money is transferred between a trader and a broker via a cheque or

electronic mode, which involves processing through a bank. In the case of GS Liquid BeES, once a sale

order is executed, the broker buys the equivalent amount of GS Liquid BeES and ‘parks’ the money rather

than sending a cheque/ electronic transfer to the client.

The only thing an investor needs to do is to instruct a broker to buy shares and sell equivalent amount of

the GS Liquid BeES fund

The only effort required is send a security transfer instruction to the Depository Participant (DP) relating to

GS Liquid BeES (Investor can avoid this if he is using speed-e facility or has given power of attorney to

Broker / DP)

76

GS Liquid BeES


Constant quotes for any size at 999.99 to INR 1000.01on the NSE

No Securities Transaction Tax (STT)

Can be used as cash equivalent margin for derivatives segment with a 10% hair cut

Minimum creation size (directly with the Fund) of 2500 units and in multiple of 1 unit thereafter


Custodian & transaction charges have been waived by NSDL & CDSL


Investors can subscribe/ redeem through the mutual fund trading platform viz. BSE StAR MF of BSE and

the Mutual Fund Service System (MFSS) of the NSE. For subscriptions, the minimum amount of Rs.1 and

in multiples thereof. For redemption, the minimum is of 0.001 units and in multiples thereof

Benchmark for the scheme: CRISIL Liquid Fund Index

77

GS Liquid BeES – scheme details

NSE symbol : LIQUIDBEES

BSE code : 590096

ISIN : INF732E01037

Reuters : LBES.NS

Bloomberg :LBEES IN


Impact cost : 0.012


78



2- Impact cost calculated for period of 6 months ending on 15th Jun 2012, Source: NSE Market Tracker, www.nseindia.com.

GS Liquid BeES - performance

Returns are based on Gross Dividend per unit declared by the Fund for the respective period of the performance shown above. Actual dividend in the

hands of each investor will vary based on category and rate of dividend distribution tax applicable thereon. Returns for less than one year are simple

annualized. Returns for one year are absolute. Returns for more than one year are compounded annualized. Dividends are assumed to be reinvested at

the prevailing NAV. Distribution taxes are excluded while calculating the returns. In case, the start/end date of the concerned period is non business date

(NBD), the NAV of the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR

10,000 made at the beginning of above mentioned period as at the end of that period scheme performance. Additional benchmark for Liquid scheme –

source : Crisil. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Past

performance does not guarantee future results, which may vary. Inception date is the allotment date which is July 08, 2003.


79


Scheme Name

7 Days 15 Days 1 Month June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to

June 30, 2010

Since

Inception

Simple

Annualis

ed (%)

PTP

Returns

(INR)

Simple

Annualis

ed (%)

PTP

Returns

(INR)

Simple

Annualis

ed (%)

PTP

Return

s (INR)

Absolute

Returns

(%)

PTP

Returns

(INR)

Absolute

Returns

(%)

PTP

Return

s (INR)

Absolute

Returns

(%)

PTP

Return

s (INR)

CAGR

Return

s (%)

PTP

Retur

ns

(INR)

GS Liquid BeES 7.20 10720 7.06 10706 7.10 10710 7.46 10746 7.02 10702 3.46 10346 4.92 15401

Crisil Liquid Fund Index

(Benchmark) 7.27 10727 7.58 10758 7.92 10792 8.68 10868 7.18 10718 3.29 10329 6.14 17079

Crisil 1 Year T-Bill Index

(Addl. Benchmark) 4.01 10401 1.13 10113 6.99 10699 7.73 10773 4.43 10443 1.97 10197 5.15 15702

Impact cost represents the cost of executing a transaction in a given stock, for a specific predefined order size, at

any given point of time.

Impact cost is a practical and realistic measure of market liquidity; it is closer to the true cost of execution faced by

a trader in comparison to the bid-ask spread.

It should however be emphasised that :

(a) impact cost is separately computed for buy and sell

(b) impact cost may vary for different transaction sizes

(c) impact cost is dynamic and depends on the outstanding orders

(d) where a stock is not sufficiently liquid, a penal impact cost is applied

In mathematical terms it is the percentage mark up observed while buying/ selling the desired quantity of a stock

with reference to its ideal price (best buy + best sell)/ 2.

8

1

Impact cost - definition


81

Impact cost - definition

Example:

Order book snapshot

Buy quantity Buy price Sell quantity Sell price

1000 98 1000 99

2000 97 1500 100

1000 96 1000 101

To buy 1500 shares

Ideal price = =

Actual buy price = =

IMPACT COST (For 1500 shares) = =

99 + 98

2 98.5

(1000 x 99) + (500 x 100)

1500 99.33

99.33 – 98.50 x 100

98.50 0.84%


82

Funds managed by Fund Managers

Returns for one year are absolute. Returns for more than one year are compounded annualized. Dividends are assumed to be reinvested at the prevailing NAV. Distribution taxes are

excluded while calculating the returns. Bonus declared has been adjusted. Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is

considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000 made at the beginning of 12 month period as at the end of that

period scheme performance. Additional benchmark for equity schemes - source : National Stock Exchange of India. Past performance may or may not be sustained in future and should not

be used as a basis for comparison with other investments. Past performance does not guarantee future results, which may vary.


Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to


Allotment

Date Absolute PTP Returns Absolute PTP Absolute PTP CAGR PTP

Returns (%) (INR) Returns (%) Returns (INR) Returns (%) Returns (INR) Returns (%) Returns (INR)

GS Nifty BeES -5.36 9464 7.21 10721 24.50 12450 18.31 58514 28-Dec-01

S&P CNX Nifty Index (Benchmark) -6.53 9347 6.30 10630 23.80 12380 16.78 51063

S&P CNX Nifty Total Returns Index -5.34 9466 7.48 10748 25.31 12531 18.61 60140

GS Bank BeES -7.06 9294 19.53 11953 29.37 12937 20.46 45139 27-May-04

CNX Bank Index (Benchmark) -8.04 9196 18.81 11881 28.97 12897 19.00 40879

CNX Bank Total Returns Index -6.87 9313 20.00 12000 30.52 13052 20.95 46653


GS Gold BeES 32.84 13284 15.18 11518 28.61 12861 22.91 29934 8-Mar-07

Domestic Price of Gold (Benchmark) 34.83 13483 16.36 11636 29.49 12949 24.16 31585

GSEDOF - Growth 7.46 10746 7.19 10719 3.13 10313 6.31 13307 31-Oct-07

Crisil Balance Fund Index -0.99 9901 6.04 10604 17.34 11734 1.76 10847


GS S&P CNX 500 Fund - Growth -7.84 9216 2.00 10200 24.42 12442 17.78 17673 6-Jan-09

S&P CNX 500 Index (Benchmark) -7.79 9221 2.31 10231 27.41 12741 16.78 17154

S&P CNX 500 Total Returns Index -6.71 9329 3.46 10346 28.90 12890 18.13 17857


83


Returns for one year are absolute. Returns for more than one year are compounded annualized. Dividends are assumed to be reinvested at the prevailing NAV. Distribution taxes are

excluded while calculating the returns. Bonus declared has been adjusted. Incase, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is

considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000 made at the beginning of 12 month period as at the end of that

period scheme performance. Additional benchmark for equity schemes - source : National Stock Exchange of India. Past performance may or may not be sustained in future and should not

be used as a basis for comparison with other investments. Past performance does not guarantee future results, which may vary.


Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to


Allotment



GS S&P Shariah BeES -5.67 9433 0.15 10015 20.13 12013 19.17 17789 18-Mar-09

S&P CNX Nifty Shariah Index -6.26 9374 -0.48 9952 19.86 11986 18.45 17438

(Benchmark)

S&P CNX Nifty Shariah -4.81 9519 0.85 10085 21.31 12131 19.99 18198

Total Returns Index


GS Hang Seng BeES 11.56 11156 8.98 10898 -- -- 8.18 11992 9-Mar-10




GS Infra BeES -22.49 7751 -- -- -- -- -22.19 6445 29-Sep-10

CNX Infrastructure Index (Benchmark) -22.50 7750 -- -- -- -- -21.83 6497

CNX Infrastructure Total Returns Index -21.76 7824 -- -- -- -- -21.28 6578

S&P CNX Nifty Index (Addl. Benchmark) -6.53 9347 -- -- -- -- -6.98 8811

84


Returns for one year and less than one year are absolute. Returns for more than one year are compounded annualized. Dividends are assumed to be reinvested at the prevailing NAV.

Distribution taxes are excluded while calculating the returns. Bonus declared has been adjusted. Incase, the start/end date of the concerned period is non business date (NBD), the NAV of

the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of INR 10,000 made at the beginning of 12 month period as at

the end of that period scheme performance. Additional benchmark for equity schemes - source : National Stock Exchange of India. Additional benchmark for Debt scheme - source : Crisil.

Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Past performance does not guarantee future results, which

may vary.


Scheme Name

June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to


Allotment



GS Junior BeES -9.60 9040 -0.56 9944 44.15 14415 23.65 72908 21-Feb-03

CNX Nifty Junior Index (Benchmark) -10.11 8989 -0.62 9938 45.03 14503 23.51 72155

CNX Nifty Junior Total Returns Index -9.06 9094 0.37 10037 46.47 14647 25.26 82315


GS PSU Bank BeES -15.12 8488 9.76 10976 36.85 13685 6.02 13147 25-Oct-07

CNX PSU Bank Index (Benchmark) -16.79 8321 8.75 10875 36.38 13638 4.70 12400

CNX PSU Bank Total Returns Index -14.90 8510 10.46 11046 38.78 13878 6.92 13677


GS Hang Seng BeES 11.56 11156 8.98 10898 -- -- 8.18 11992 9-Mar-10




GSSTF - Growth 7.56 10756 -- -- -- -- 6.63 11301 4-Aug-10

Crisil Liquid Fund Index 8.68 10868 -- -- -- -- 8.06 11590

Crisil 10 Year Gilt Index (Addl. Benchmark) 7.10 10710 -- -- -- -- 5.32 11037

85

Scheme Name

7 Days 15 Days 1 Month June 30, 2011 to

June 30, 2012

June 30, 2010 to

June 30, 2011

June 30, 2009 to


Allotment

Date

Simple

Annualis

ed (%)

PTP

Returns

(INR)

Simple

Annualised

(%)

PTP

Returns

(INR)

Simple

Annualised

(%)

PTP

Returns

(INR)

Absolute

Returns

(%)

PTP

Returns

(INR)

Absolute

Returns

(%)

PTP

Returns

(INR)

Absolute

Returns

(%)

PTP

Returns

(INR)

CAGR

Returns

(%)

PTP

Returns

(INR)

GS Liquid BeES 7.20 10720 7.06 10706 7.10 10710 7.46 10746 7.02 10702 3.46 10346 4.92 15401 8-Jul-03

Crisil Liquid Fund Index

(Benchmark) 7.27 10727 7.58 10758 7.92 10792 8.68 10868 7.18 10718 3.29 10329 6.14 17079

Crisil 1 Year T-Bill Index

(Addl. Benchmark) 4.01 10401 1.13 10113 6.99 10699 7.73 10773 4.43 10443 1.97 10197 5.15 15702


Returns are based on Gross Dividend per unit declared by the Fund for the respective period of the performance shown above. Actual dividend in the hands of each investor will vary based

on category and rate of dividend distribution tax applicable thereon. Returns for less than one year are simple annualized. Returns for one year are absolute. Returns for more than one year

are compounded annualized. Dividends are assumed to be reinvested at the prevailing NAV. Distribution taxes are excluded while calculating the returns. In case, the start/end date of the

concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. Point to Point (PTP) returns in INR is based on standard investment of

INR 10,000 made at the beginning of above mentioned period as at the end of that period scheme performance. Additional benchmark for Liquid scheme – source : Crisil. Past performance

may or may not be sustained in future and should not be used as a basis for comparison with other investments. Past performance does not guarantee future results, which may vary.


Scheme details

Goldman Sachs S&P CNX 500 Fund

Fund name and classification: Goldman Sachs S&P CNX 500 Fund, an open ended index scheme. Investment objective: The investment objective of the scheme is

to generate capital appreciation through equity investments by investing in securities which are constituents of S&P CNX 500 Index in the same proportion as in the index.

Benchmark index: S&P CNX 500 Index. Investment pattern: Type of instruments – A) Securities constituting S&P CNX 500, Derivatives on the Securities constituting

S&P CNX 500, 90 – 100%. B) Money Market Instruments, Government Securities, bonds, debentures and cash at call, 0-10%. (The notional exposure of scheme in

derivative instruments shall be restricted to 10% of the net assets of the scheme). Option: A) Growth B) Dividend (1.Dividend Payout 2. Dividend Reinvestment) Load:

Entry Load- Nil, Exit Load: Nil if redeemed after 1 year from date of allotment and 1.50% if redeemed within 1 year from date of allotment. Minimum application amount:

For initial purchase: Rs. 10,000/- (Rupees ten thousands) and in multiple of Re. 1/- thereafter and for subsequent Purchase: Rs. 1,000/- (Rupees One Thousand only) and

in multiples of Re. 1/- thereafter. Systematic investment plan (SIP) in an option of the scheme: The minimum amount for each installment is Rs. 1,000/- and in

multiple of Re. 1/- thereafter and minimum number of installment for SIP will be 12. When the SIP is started, the date of the first cheque shall be the same as the date of

the application while the remaining payment instructions (minimum 11 additional payment instructions mentioned in the application form) shall be either for the 1st or 15th

of a month provided there is a minimum period of 30 days after the first payment instruction. Please refer to SIP enrolment form for term & conditions before enrolment.

For Value Averaging Investment Plan (VIP) in an option of the scheme : Nominal investment amount - This is the amount which the investor will invest at the time of

enrolment for a VIP. The nominal amount is used to calculate the target portfolio amount. In the circumstances when the market rises in a straight line, giving the target

return, this amount would be the actual amount to be invested. The minimum nominal amount is Rs. 2,000/- and in multiples of Re.1/- thereafter and there is no maximum

cap on this amount. Minimum investment amount per month - 0 (Zero). Maximum monthly debit amount - This amount is the maximum amount which the investor would

allow the fund to debit from their account. There is no upper limit for this amount but the amount shall be higher than the nominal amount. The rate of return to be

considered for a VIP is 15% per annum based on which the monthly installments of investments to be invested by the Investor would be calculated. Investor benefits

and general services: Investors can also subscribe to the units through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE)

and Mutual Fund Service System (MFSS) of NSE. Investors can subscribe units either in physical or demat form. The asset management company will calculate and

disclose the NAV of the scheme at the close of every business day.

86

Goldman Sachs Equity & Derivatives Opportunities Fund (GSEDOF)

Fund name and classification: Goldman Sachs Equity & Derivatives Opportunities Fund, an open ended equity scheme. Investment objective: The investment

objective of the scheme is to provide absolute returns by taking advantage of opportunities in the underlying cash and Derivative markets, and through deployment of

surplus cash in fixed income Securities. The Scheme is designed for Investors seeking long term capital appreciation primarily through investment in a diversified portfolio

of strategies. Benchmark index: CRISIL Balanced Fund Index. Investment pattern: Type of instruments – A) Equities & equity related Derivative instruments (The

exposure to Derivatives shown is the exposure taken against the underlying equity investments and should not be considered for calculating the total asset allocation. The

idea is not to take additional asset allocation with the use of Derivatives), 65% – 100% B) Money Market Instruments, Debt Instruments and cash at call, 0% - 35%

Option: A) Growth B) Dividend (1.Dividend Payout 2. Dividend Reinvestment). Load: Entry Load- Nil, Exit Load: Nil if redeemed after 1 year from date of allotment and

1.50% if redeemed within 1 year from date of allotment. Minimum application amount: For initial purchase: Rs. 10,000/- (Rupees Ten Thousand only) and in multiples of

Re. 1/- thereafter and for subsequent Purchase: Rs. 1,000/- (Rupees One Thousand only) and in multiples of Re. 1/- thereafter. Systematic Investment Plan (SIP) in an

option of the scheme: The minimum amount for every installment is Rs. 1,000/- and in multiple of Re. 1/- thereafter and minimum number of installment for SIP will be

12. When the SIP is started, the date of the first cheque shall be the same as the date of the application while the remaining payment instructions (minimum 11 additional

payment instructions mentioned in the application form) shall be either for the 1st or 15th of a month provided there is a minimum period of 30 days after the first payment

instruction. Please refer to SIP Enrolment Form for term & conditions before enrolment. Systematic Transfer Plan (STP) in an option of the scheme: The minimum

amount for each transfer shall be Rs. 1,000/- and in multiples of Re. 1/- thereafter and minimum number of installment for STP will be 12. Unit holder can transfer the

amount on a monthly basis on 1st or 15th of each month. In case the STP date specified is a non-business day, the transaction will be processed on the immediately

succeeding business day. Please refer to STP/VTP Enrolment Form for term & conditions before enrolment. Value Averaging Transfer Plan (VTP) in an option of the

scheme: The minimum nominal amount of Rs. 2,000/- for monthly frequency and in multiples of Re.1/- with a minimum of 12 installments in an option of the scheme with

no maximum cap on this amount. The amount for this VTP would be calculated as per the formula of value averaging investment plan of Goldman Sachs S&P CNX 500

Fund. Unit holder can transfer the amount on a monthly basis on 1st or 15th of each month. In case the VTP date specified is a non-business day, the transaction will be

processed on the immediately succeeding business day. Please refer to STP/VTP Enrolment Form for term & conditions before enrolment. Investor benefits and

general services: Investors can also subscribe to the units through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited (BSE) and

Mutual Fund Service System (MFSS) of NSE. Investors can subscribe units either in physical or demat form. The asset management company will calculate and disclose

the NAV of the scheme at the close of every business day.

87

Scheme details

Goldman Sachs Short Term Fund (GSSTF)

Fund name and classification: Goldman Sachs Short Term Fund, an open ended debt scheme. Investment Objective: The investment objective of the scheme is to

enhance returns with minimum risk by investing in a portfolio of money market and debt instruments while maintaining the safety and liquidity. Benchmark Index: Crisil

Liquid Fund Index Investment Pattern: Type of instruments – A) Debt Instruments having residual maturity up to 1 year, 0%-100% B) Debt Instruments having a residual

maturity between 1 year and 3 years, 0%-50% (Debt instruments may include securitised debts up to 50% of the net assets.) The combined exposure of debt and money

market instruments (excluding CBLO/Repo) and gross notional exposure of derivative instruments shall not exceed 100% of the net assets of the scheme. Option: A)

Growth B) Dividend ( Dividend reinvestment with daily and weekly frequency). Load: Entry Load – Nil; Exit Load – Nil. Minimum Application Amount: Rs. 10,000/-

(Rupees Ten Thousand only) and in multiples of Re.1/- thereafter in an Option of the Scheme. Additional investment would be Rs. 1000 (One Thousand Only) and in

multiples of Re. 1/- thereafter. Systematic Investment Plan (SIP) in an option of the scheme: The minimum amount for every installment is Rs. 1,000/- and in multiple

of Re. 1/- thereafter and minimum number of installment for SIP will be 12. When the SIP is started, the date of the first cheque shall be the same as the date of the

application while the remaining payment instructions (minimum 11 additional payment instructions mentioned in the application form) shall be either for the 1st or 15th of a

month provided there is a minimum period of 30 days after the first payment instruction. Please refer to SIP Enrolment Form for term & conditions before enrolment.

Systematic Transfer Plan (STP) in an option of the scheme: The minimum amount for each transfer shall be Rs. 1,000/- and in multiples of Re. 1/- thereafter. There is

no upper limit for individual Installments/ aggregate investments made under STP. The fund offers transfer under STP facility on a monthly basis on 1st or 15th of each

month. In case the STP date specified is a non-business day, the transaction will be processed on the immediately succeeding business day. Please refer to STP/ VTP

Enrolment Form for term & conditions before enrolment. Value Averaging Transfer Plan (VTP) in an option of the scheme: The minimum nominal amount of Rs.

2,000/- for monthly frequency and in multiples of Re.1/- with a minimum of 12 installments in an option of the scheme with no maximum cap on this amount. The amount

for this VTP would be calculated as per the formula of value averaging investment plan of Goldman Sachs S&P CNX 500 Fund. Unit holder can transfer the amount on a

monthly basis on 1st or 15th of each month. In case the VTP date specified is a non-business day, the transaction will be processed on the immediately succeeding

business day. Please refer to STP/VTP Enrolment Form for term & conditions before enrolment.

88

Scheme details

About Goldman Sachs Asset Management (India) Pvt. Ltd.

89

About us

Goldman Sachs Asset Management has a history of providing investment solutions to diverse set of

investors. We pride ourselves on having pioneered many practices and techniques that have since become

standard in the industry.

Our in-depth understanding of local economies, industries and cultures helps us provide a wide range of

investment opportunities with rigorous risk management practices.

Our culture emphasises the value of teamwork while encouraging individual creativity and our professionals

have a clear and unwavering commitment to leadership in asset management.

Average Assets under Management 1of Goldman Sachs Mutual Fund for the month of June 2012 is

approximately Rs. 4312.67 crores

90

1 – Source: AMFI

Contact us

Customer Care:

Toll free number: 1800-266-1220

E mail id: [email protected]

Mumbai (Corporate Office):

951-A, Rational House, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025

Tel No. : 91 22 6616 9000(B)

Fax No : 91 22 6627 9245

91

92

Our website – www.gsam.in

Track real-time NAV on your mobile at www.gsam.in/mobile

http://www.gsam.in/

http://www.gsam.in/mobile

Disclaimers

RISK FACTORS

• “S&P®” and “Standard and Poor’s®” are trademarks of the McGraw-hill Companies, Inc. (“S&P”), and have been licensed for use by India Index Services &

Products Limited in connection with the S&P CNX Nifty and S&P CNX Nifty Shariah Index. GS Nifty BeES and GS S&P Shariah BeES are not sponsored,

endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P").

Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of GS Nifty BeES and GS S&P Shariah BeES or any member of

the public regarding the advisability of investing in securities generally or in GS Nifty BeES and GS S&P Shariah BeES. Please read the full Disclaimers in

relation to the S&P CNX Nifty Index and S&P CNX Nifty Shariah Index in the Scheme Information Document before investing. • The Products on CNX Nifty

Junior Index, CNX Bank Index, CNX PSU Bank Index and CNX Infrastructure Index are not sponsored, endorsed, sold or promoted by India Index Services &

Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of

merchantability or fitness for particular purpose or use) regarding the advisability of investing in the products linked to CNX Nifty Junior Index, CNX Bank

Index, CNX PSU Bank Index and CNX Infrastructure Index or particularly in the ability of the CNX Nifty Junior Index, CNX Bank Index, CNX PSU Bank Index

and CNX Infrastructure Index to track general stock market performance in India.

The Hang Seng Index (the “Index”) is published and compiled by Hang Seng Indexes Company Limited pursuant to a license from Hang Seng Data Services

Limited. The mark and name Hang Seng Index are proprietary to Hang Seng Data Services Limited. Hang Seng Indexes Company Limited and Hang Seng

Data Services Limited have agreed to the use of, and reference to, the index by Goldman Sachs Asset Management (India) Pvt. Ltd. in connection with

Goldman Sachs Hang Seng Exchange Traded Scheme (GS Hang Seng BeES) (the “Product”), but neither Hang Seng Indexes Company Limited nor Hang

Seng Data Services Limited warrants or represents or guarantees to any broker or holder of the product or any other person (i) the accuracy or completeness

of the index and its computation or any information related thereto; or (ii) the fitness or suitability for any purpose of the index or any component or data

comprised in it; or (iii) the results which may be obtained by any person from the use of the index or any component or data comprised in it for any purpose,

and no warranty or representation or guarantee of any kind whatsoever relating to the index is given or may be implied. The process and basis of

computation and compilation of the index and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by

Hang Seng Indexes Company Limited without notice. To the extent permitted by applicable law, no responsibility or liability is accepted by Hang Seng

Indexes Company Limited or Hang Seng Data Services Limited (i) In respect of the use of and/ or reference to the index by Goldman Sachs Asset

Management (India) Pvt. Ltd. in connection with the product; or (ii) for any inaccuracies, omissions, mistakes or errors of Hang Seng Indexes Company

Limited in the computation of the index; or (iii) for any inaccuracies, omissions, mistakes, errors or incompleteness of any information used in connection

with the computation of the index which is supplied by any other person; or (iv) for any economic or other loss which may be directly or indirectly sustained

by any broker or holder of the product or any other person dealing with the product as a result of any of the aforesaid, and no claims, actions or legal

proceedings may be brought against Hang Seng Indexes Company Limited and/ or Hang Seng Data Services Limited in connection with the product in any

manner whatsoever by any broker, holder or other person dealing with the product. Any broker, holder or other person dealing with the product does so

therefore in full knowledge of this disclaimer and can place no reliance whatsoever on Hang Seng Indexes Company Limited and Hang Seng Data Services

Limited.

93

For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and

Hang Seng Indexes Company Limited and/ or Hang Seng Data Services Limited and must not be construed to have created such relationship. • Please read

the Scheme Information Documents (SID) and Statement of Additional Information (SAI) carefully before investing. • For schemes specific risk factors, please

refer SID.

Risk factors pertaining to VIP (This is applicable only for Goldman Sachs S&P CNX 500 Fund):

• As the monthly investment amount is variable, it would be difficult for the investors to manage their cash flows. • If the market moves in one direction i.e.

either up or down, VIP may generate less return compared to SIP. • If the NAV of the Goldman Sachs S&P CNX 500 Fund continuously decreases, the absolute

loss to the investor would be more than what the investor would have incurred by investing in SIP.

For more details please refer the SID, SAI, Key Information Memorandum and Application Form which are available at the office of the AMC or can be

downloaded from www.gsam.in

NSE Disclaimer : It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme

Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme

Information Document . The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE

Information gathered & material used in this document is believed to be from reliable sources. However, Goldman Sachs Asset Management (India) Private

Limited does not warrant the accuracy, reasonableness and/or completeness of any information.

Confidentiality

No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person

that is not an employee, officer, director, or authorized agent of the recipient.

94

Disclaimers (contd.)

Mutual Fund Investments are subject to market risks,

read all scheme related documents carefully.

http://www.gsam.in/

http://www.gsam.in/

http://www.gsam.in/

http://www.gsam.in/

http://www.gsam.in/

Appendix

THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE

UNAUTHORIZED OR UNLAWFUL TO DO SO.

Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. We have relied upon

and assumed without independent verification, the accuracy and completeness of all information available from public sources.

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by GSAM to buy, sell, or hold any security. Views and

opinions are current as of the date of this presentation and may be subject to change, they should not be construed as investment advice.

The website links provided are for your convenience only and are not an endorsement or recommendation by GSAM of any of these websites or the products or services

offered. GSAM is not responsible for the accuracy and validity of the content of these websites.

Index Benchmarks

Indices are unmanaged. The figures for the index reflect the reinvestment of all income or dividends, as applicable, but do not reflect the deduction of any fees or

expenses which would reduce returns. Investors cannot invest directly in indices.

The indices referenced herein have been selected because they are well known, easily recognized by investors, and reflect those indices that the Investment Manager

believes, in part based on industry practice, provide a suitable benchmark against which to evaluate the investment or broader market described herein. The exclusion of

“failed” or closed hedge funds may mean that each index overstates the performance of hedge funds generally.

This material is issued in or from India by Goldman Sachs Asset Management (India) Private Limited (GSAM India)

95

References to indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only and do not

imply that the portfolio will achieve similar results. The index composition may not reflect the manner in which a portfolio is constructed. While an adviser seeks to design

a portfolio which reflects appropriate risk and return features, portfolio characteristics may deviate from those of the benchmark.

Past performance does not guarantee future results, which may vary. The value of investments and the income derived from investments will fluctuate and can go down

as well as up. A loss of principal may occur.

This material has been prepared by GSAM and is not a product of Goldman Sachs Global Investment Research. The views and opinions expressed may differ from

those of Goldman Sachs Global Investment Research or other departments or divisions of Goldman Sachs and its affiliates. Investors are urged to consult with their

financial advisors before buying or selling any securities. This information may not be current and GSAM has no obligation to provide any updates or changes.

© 2012 Goldman Sachs. All rights reserved.

81435.OSF.TMPL/9/2012

96

Appendix

Thank you

97

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