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					Sundaram Asset Management
    Portfolio Managers




                            1
         Sundaram
India Secular Opportunities
          Portfolio
                                                              Product overview
Investment Strategy

 Portfolio is designed for Investors seeking a secularly advantaged, concentrated,
 high-alpha approach to growth.

 Sundaram India Secular Opportunities Portfolio typically invests across cap curves
 targeting companies those exhibit secular growth characteristics, sustainable
 competitive advantages and reasonable valuations based on our analysis of fair
 value.



Investment Objective

 The objective of the portfolio is to generate capital appreciation by investing in
 concentrated set of high conviction stocks.

     Investment Horizon

     3 to 5 years
                                                 Criteria for stock selection

   5 quantitative factors and 2 qualitative factors are used for stock selection. The
                                   Quantative factors are –

High return ratios: The higher the returns on equity and capital employed over weighted
average cost of capital (WACC) the higher is the value addition by the company to its minority
shareholders. Studies have indicated that company with superior return ratios outperform
companies with poor or lower return ratios.

            Remark: Return ratios are averaged over a 5 year period to smoothen out
            lumpiness and volatility (if any).

Minimum leverage: Investments will be made in those companies that can grow without
leveraging the balance sheet. In a high interest rate environment like the present one, interest
outgo will pinch bottom line and therefore shareholder wealth.

            Remark: Minimal debt for purpose of working capital is acceptable. Long term debt
            for the purpose of expansion, Greenfield etc is avoided.
                                            Criteria for stock selection

Domestic business: Investments will only be done in companies that generate at least
80% of their business from India. Therefore, export oriented companies will be avoided
and focus will be on domestic consumption story.

        Remark: The above filter will make the portfolio immune to currency risk, global
        slowdown etc.

Capital light: Generally companies with very high fixed asset turnover ratios are preferred.
Hence, asset heavy businesses are discarded and entry barriers in these cases are mostly
due to the company’s brands and the space it operates in

        Remark: Most companies that pass this filter will generate sufficient cash flows to
        fund their capex without external borrowings.

High operating leverage: Companies that are in a better position to absorb rise in raw
material prices and companies that are able to easily cut its cost by increasing volumes are
preferred especially in uncertain environments like the one we have at present
                                              Criteria for stock selection

Qualitative factors:


   Identifying managements that have generally kept in mind and have acted in the interest

   of minority shareholders, do not frequent capital markets (for raising funds), have been

   rational in their decisions


   Strong brands and strong market position: Brand pull will enable companies to pass on

   higher raw material costs to consumers. Brand pull will also ensure that consumers

   continue to purchase the products with their reduced purchasing power in a high

   inflationary environment
                                                                       Product Specification


Stock composition: 10 stocks                                        Consumer Goods
                                                                    Financial Services
Benchmark: S&P CNX 500
                                                                    Automobile
Investment Horizon – 3 to 5Years                                    Textile
                                                                    Chemicals




                                          Portfolio Allocation




                    Consumer Goods             Financial Services     Automobile
                    Industrial Manufacturing   Textiles               Chemicals
                    Cash
                    Model portfolio & performance
                                                 Top Holdings
                                      Page Industries
                                      Bosch
                                      CRISIL
                                      Pidilite
                                      Nestle



                                  1 Month             3 Month   6 Month   1 Year   18 Months

Sundaram Secular
India Opportunities                -1.3                 1.6     21.6      29.0      43.0
Portfolio

CNX 500                            -1.5              -12.0      -14.0     -19.2     -5.2


      Performance as on 30 Sep 2011; Returns are in %
      Returns on a period excess of 1yr are on a compounded
      annualized basis
      Past performance may or may not be
      sustained in Future
Sundaram PMS
MID CAP Theme
                                                             Product overview
Investment Strategy
   Sundaram Midcap Strategy is designed to invest
• In strong, fundamentally sound businesses and visionary managements that have the
  potential to scale up in the next 3 to 5 years
• Taking advantage of the structural changes the Indian economy offers

• Try to identify stocks in the mid cap segment that have been overlooked by the
  markets

• Suitable for investors who would like to invest with a long term view on wealth
  creation

Investment Objective

  Maximum long-term capital appreciation with investments in mid cap companies that
  operate in niche and upcoming sectors that can provide uncorrelated returns
  compared to the market

      Investment Horizon

      3 to 5 years
Sundaram PMS - Midcap Portfolio Specs

        Asset Allocation                    Market capitalisation Range

•Equity – 0 to 100%                        • Market cap of 51st Stock in
                                           NSE to a minimum market cap
•Cash    - 0 to 100%
                                           of Rs 100 cr



                       Stocks in the Portfolio

                       •20 to 30 Stocks
                       •Not more than 10% of AUM
                       to be invested in a particular
                       stock

                           Sector Allocation

 Sector weights allocated based on the current micro and macro factors
                                                         Current Portfolio Specification
                   Top Holdings                                Top Sectors
        Astral
                                                                Financial Services
        Gujarat Gas
                                                                Industrial Manufacturing
        Petronet LNG
                                                                Energy
        YES bank                                                Consumer goods
        BATA                                                    Automobile
        ING Vysa
                                                                Stock composition: 24 stocks
        Lupin
                                                                Benchmark: CNX Mid cap
        Page Industries
                                                                Investment Horizon: 3 to 5Years
        AKZO Noble
                                                                Risk Profile: Medium
        Dish TV
                                            1 Month          3 Month         6 Month           1 Year


        Midcap Strategy                        -1.6            0.3             16.1             2.9


        CNX Midcap                             -2.8           -11.0            -11.8           -22.6
Performance as on 30 Sep 2011; Returns are in %
Returns on a period excess of 1yr are on a compounded
annualized basis
Past performance may or may not be sustained in Future
 Sundaram PMS
MULTI CAP Theme
                                                             Product overview
Investment Strategy

   Sundaram Multicap Strategy is designed for investors
• To invest in a combination of strong businesses with a potential for high growth and
  mature businesses that offer stability to the portfolio
• Suitable for investors who would like to invest with a long term view on wealth
  creation




Investment Objective

  Maximum long-term capital appreciation with minimum long-term risk to principal
  with a fair balance between growth, safety and returns

      Investment Horizon

      3 to 5 years
Sundaram PMS - Multicap Portfolio Specs

         Asset Allocation
                                           Market capitalisation criteria
 •Equity – 0 to 100%
                                         • Market cap of Minimum Rs 100 cr
 •Cash    - 0 to 100%



                        Stocks in the Portfolio

                     •20 to 30 stocks

                     • Not more than 10% of AUM
                     to be invested in a particular
                     stock

                            Sector Allocation

  Sector weights allocated based on the current micro and macro factors
                                                         Current Portfolio Specification
                    Top Holdings                                   Top Sectors
          Page Industries
                                                                     Financial Services
          Asian Paints
                                                                     Consumer Goods
          CRISIL
                                                                     Industrial Manufacturing
          HDFC                                                       Textiles
          HDFC Bank                                                  IT
          Glaxosmithkline Consumer
                                                                     Stock composition: 22 stocks
          AXIS Bank
                                                                     Benchmark: CNX Nifty
          AKZO Noble
                                                                     Investment Horizon: 3 to 5Years
          Infosys
                                                                     Risk Profile: Low
          Astral Polytech
                                                            6
                               1 Month      3 Month               1 Year   18 Months       2 Year      3Year
                                                          Month

        Multicap Strategy        0.0          -3.9         3.0    -11.0         2.0         3.7         7.7

        Nifty                    -1.2         -12.5       -15.3   -18.0         -3.9        -1.4        8.0
Performance as on 30 sEP 2011; Returns are in %
Returns on a period excess of 1yr are on a compounded
annualized basis
Past performance may or may not be sustained in Future
 Sundaram PMS
SMALL CAP Theme
                                                              Product overview
Investment Strategy

   Sundaram Smallcap Strategy is designed for investors
• To invest small business with visionary management who have the potential to scale
  up and grow exponentially over a 3 to 5 year period
• The fund will seek to invest in stocks to seek appreciation primarily due to earnings
  growth only

• P/E re rating (if any) would be incidental in nature and may add to returns once the
  company grows in size and moves up the market curve




Investment Objective
  Company will be chosen on the basis of their ability to grow at least 1.5x the nominal
  GDP growth, high return ratios, zero or minimal leverage and strong management

      Investment Horizon

      3 to 5 years
Sundaram PMS – Small cap Portfolio Specs

          Asset Allocation                   Market capitalisation criteria

  •Equity – 0 to 50%                       • Market cap of 100th Stock in NSE to
                                           a minimum market cap of Rs 100 cr
  •Cash    - 50 to 100%



                          Stocks in the Portfolio

                       •10 stocks

                       • Not more than 10% of AUM
                       to be invested in a particular
                       stock

                              Sector Allocation

   Sector weights allocated based on the current micro and macro factors
                                                          Current Portfolio Specification
                                                                           Top Sectors

                                                                           Automobile

                                                                           Consumer Goods
                    Top Holdings
                                                                           Fertiliser and Pesticides
         Astral Polytech
                                                                           Pharma
         Insectides
                                                                           Industrial Manufacturing
         Berger Paints
         V Guard                                                           Stock composition: 11 stocks

         Shilpa Medicare                                                   Benchmark: BSE 500

                                                                           Investment Horizon: 3 to 5Years

                                                                           Risk Profile: High


                                           1 Month            3 Month         6 Month      1 Year      18 Months


         Smallcap Strategy                    -0.3                 -4.5         -0.3        -10.8         -0.2


         BSE 500                              -1.6                 -12.1        -14.1       -20.0         -5.2

Performance as on 30 Sep 2011; Returns are in %
Returns on a period excess of 1yr are on a compounded annualized
basis
Past performance may or may not be sustained in Future
                                                                                                                    Disclaimer

General Disclaimer: This document is issued by Sundaram Asset Management Portfolio Managers registered with the Securities and
Exchange Board of India in India. This document is produced for information purposes only. It does not constitute a prospectus or offer
document or an offer or solicitation to buy any securities or other investment. Information and opinion contained in this document are
published for the assistance of the recipient only; they are not to be relied upon as authoritative or taken as a substitution for exercise of
judgment by any recipient. They are subject to change without any notice and not intended to provide the sole basis of any evaluation of the
instrument discussed or offer to buy. It is neither a solicitation to sell nor shall it form the basis of or be relied upon in connection with any
contract or commitment whatsoever or be taken as investment advice. The information and opinions contained in this communication have
been obtained from sources that Sundaram Asset Management Portfolio Managers 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 Portfolio Managers 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
Portfolio Managers is not soliciting any action based on this document. In the discharge of its functions, Sundaram Asset Management may
use any of the data presented in this document for its decision-making purpose and is not bound to disclose the same. Copies of the Disclosure
Document may be obtained from the offices of Sundaram AMC Ltd. and its authorized distributors or downloaded from
www.sundarammutual.com. For details about the Portfolio Management Services and performance, please refer the Disclosure Document
available online and at the offices of the AMC.
Securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the portfolios will be
achieved. As with any securities investment, the value of the portfolio can go up or down depending on the factors and forces affecting the
capital markets. Past performance of the portfolio Manager may not be indicative of the performance in the future. Sundaram Asset
Management Company is not responsible or liable for losses resulting form the operations of the portfolios. The value of the portfolios offered
in this document may be affected by changes in the general market conditions, factors and forces affecting capital markets in particular, level
of interest rates, various market related factors and trading volumes, settlement periods and transfer procedures. The liquidity of the portfolio
investments are inherently restricted by trading volumes in the securities in which it invests. Investors in the portfolios are not being offered
any guaranteed returns.

				
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posted:12/3/2011
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