February 2014

Sundaram Asset Management

1

Quick background

Investment manager for Sundaram Mutual Fund sponsored by Sundaram

Finance & Newton Group in 1996. Newton exited in 2002

BNP Paribas Asset Management (BNPP AM) became a partner in 2006. In 2010,

as part of a global acquisition, the parent company of BNP Paribas Asset

Management has acquired the banking and financial services activities of the

Fortis Group. Hence, Sundaram Finance has fully bought-out BNP Paribas stake

and has taken 100% charge of the business.

The mutual fund is now fully sponsored by Sundaram Finance and it holds a

100% stake in the Asset Management Company and the Trustee Company

2

Vision, Mission & Philosophy

To take the least cost and most effective solution

Never ever take short cuts

Admit and share mistakes - internally

Take necessary steps to avoid repetition of work

Respect others, their needs, religion and sentiments

Be on time always

Communicate freely and maintain confidentiality

Develop and maintain trust

Work as a coherent team

To be a significant player in the Indian asset management

space and be one of the top ten asset managers

To provide people the best experience

in accessing financial markets

• Respect others, their needs and sentiments

• Develop and maintain trust

• Communicate freely and maintain confidentiality

• Be on time always

• Never ever take short cuts

• Admit and share mistakes …

3

Key strengths

Robust and transparent investment process

Process is as important as the end result

Process is meant to control emotions

Stay true to defined parameters

All actions should be explainable

A disciplined team approach

To build a group where every member understands the goals

Fund managers are expected to adhere to the investment objectives of individual funds at all times

Clearly defined products

An extensive product range for all risk/return profiles

Quality service

Emphasis on quality at all levels is the key to long-term success

4

Key strengths

Robust in-house research

Ability to

identify ideas early

zero in on the right stocks

show patience

be disciplined in selling

Rigorous risk management and compliance to contain risks without sacrificing

performance

Acclaimed track record for several products

5

Custodians

Sundaram Finance Limited

Sundaram Trustee Company Limited

Sundaram Asset Management Company Limited

Sundaram Mutual Fund

Sundaram BNP Paribas Fund Services

Standard Chartered / HDFC Bank / HSBC

Sponsor

Investment Manager Trustee

Mutual Fund Transfer Agent

Structure for mutual fund business

6

Investor

SEBI

Sundaram Finance

Sundaram Mutual Fund

Organised as a Trust

Sundaram Asset Management Company

• Investment manager for mutual fund

• Investment advisory

• Portfolio management services

Sundaram Trustee Company

Launches funds

• Safeguard interest

of investors in the

mutual fund

• Oversight of the

Investment

Manager

Role profile & ownership pattern

Ownership

7

Sponsor - Sundaram Finance

8

The group was founded by Mr. T V Sundaram Iyengar in 1911 as a bus service

Considered as one of the most respected names in Indian business

Leaders in quality management

Pioneers in employee welfare, customer satisfaction and values

Origin of Sundaram Finance TVS - a reputed & diversified business group

9

Founded to serve TVS group customers

1954

1970-1990

Established a strong presence in financing commercial vehicles

1990s-

Targeted capture of retail space in

financial services

Reliance on organic growth and

joint ventures with foreign partners

to capitalise on new opportunities

Established in 1954 as a subsidiary of

Madras Motor and General Insurance

(part of the TVS Group)

Founded by Sri T S Santhanam (1912-

2005)

IPO in 1972

Origin of Sundaram Finance TVS’ automobile business

10

Positive brand experience

Brand survey findings

Perceived as higher on all

parameters reinforcing

positive experience

Performance has always

exceeded promise

Highest level of word-of-

mouth recommendation

Customer loyalty deepens

with longer association

Service

Openness Fair play

Integrity Discipline

Relationships Prudence

11

The Sundaram Finance group

Sundaram Finance Distribution Royal Sundaram General Insurance

Sundaram Business Services

Sundaram Info Tech Solutions

LGF Services Limited

Sundaram Asset Management

Sundaram BNP Paribas Home Finance

Infreight Logistics Solutions

Sundaram Trustee Company Joint venture between Royal & Sun Alliance UK and Sundaram

Finance

Sundaram BNP Paribas Fund Services

Joint venture between Sundaram Finance and BNP Paribas Group

Joint venture between Sundaram Finance and BNP Paribas Group

12

Fundamentals &

Management

Assessment

Equity Investment process

Fund Mangers+

Economist RESEARCH TEAM

External Research

Published Information

Company Visit

Recommended

List

Internal Investment

Committee

Final Fund Portfolio

APPROVED BUY LIST

Executive

Committee

STOCK

SELECTION Top-Down

Approach

Fund Themes

Sector and Stock Limits

Bottom-Up

Stock Picking

Po

rtfo

lio

Co

nstr

ucti

on

Idea F

low

&

Re

se

arc

h

Ap

pro

val

of

Sto

ck

s

Best Trade Execution

Risk Management

Norms

Idea

Generation

Diversification

Liquidity

An active fundamental approach

13

Fundamentals &

Management

Assessment

Fixed-Income Investment process

Fund Mangers+

Economist RESEARCH TEAM

External Research

Published Information

Company Visit

Recommended

List

Internal Investment

Committee

Dynamic Fund Portfolio

APPROVED BUY LIST

Executive

Committee of the

Board

SECURITY

SELECTION Top-Down

Approach

Fund Positioning

Issuer & Security Allocation

Limits

Asset Quality

Evaluation & External

Ratings

Po

rtfo

lio

Co

nstr

ucti

on

Ide

a F

low

&

Researc

h

Ap

pro

val

of

Secu

riti

es

Best Trade Execution

Risk Management

Norms

Idea

Generation

Diversification

Liquidity

An active fundamental approach

14

Risk management as an independent function ensures effective risk control

Risk management is a complement to the investment process

The objective of the risk management process is to monitor and measure the risks of

portfolio construction, diversification and holdings and their contribution to the overall risk

profile of each fund with clear definitions of process and procedures

Investment risk:

Market risk: Identification, measurement and control of market risks

Credit risk: Maintenance and control of target limits & risk measurement

Valuation risk: Mark-to-market & definition of processes and methodology

Support to investment team in performance analysis

Risk control parameters for new products & risk disclosures in Scheme Information

Document

To perform risk analysis, third-party as well as proprietary tools are used

Risk management A vital part of the process

15

Establish risk policy Evaluate performance Review major risk factors Confirm risk action plan

Risk Team

Monitor internal risk budget Measure performance Analyze funds’ risk Review of new products risk

Risk Committee Compliance Officer

Govern internal control Compliance monitoring Review legal documents New product filings

• Regular meeting with the Risk Committee of the Board Discuss investment strategy & performance and review risk

A clear risk organisation

Managing Director

Monthly Meeting

Risk management

16

Disclaimer

17

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Copies of the Statement of Additional

Information, Scheme Information Document and application form with Key Information Memorandum may be obtained from the offices / Investor Service

Centres of Sundaram Mutual or its authorized distributors or downloaded from www.sundarammutual.com. Past performance is no guarantee of future

result. General Risk Factors: There can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on

the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of

investments may be impaired. There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management

Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. General

Disclaimer: This document is issued by Sundaram Asset Management, an Investment Manager registered with the Securities and Exchange Board of

India in India and is produced for information purposes only. It is not a prospectus or Offer Document or Scheme Information Document or an offer or

solicitation to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient

only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change

without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to

sell nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The

information and opinions contained in this communication have been obtained from sources that Sundaram Asset Management believes to be reliable; no

representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Sundaram

Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This

communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use

or reproduction of this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to

be bound by the foregoing limitations. This communication is for general information only without regard to specific objectives, financial situations and

needs of any particular person who may receive it and Sundaram Asset Management is not soliciting any action based on this document. Sundaram Asset

Management in the discharge of its functions, may use any of the data presented in this document for its decision-making purpose and is not bound to

disclose the same. For scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects please refer the Statement of

Additional Information and Scheme Information Document available online and at branches/Investor Service Centres. Statutory: Mutual Fund: Sundaram

Mutual Fund is a trust under Indian Trusts Act, 1882 Liability for sponsor is limited to Rs. 1 lakh. Sponsor: Sundaram Finance Ltd. Investment

Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram Trustee Company Ltd.