FEBRUARY 2018

CANARA ROBECO F.O.R.C.E. FUND

*Investors should consult their financial advisers if in doubt about whether the product is suitable

This product is suitable for investors who are seeking*

• Capital appreciation over long term• Investing in equity and equity related securities of companies in the Finance, Retail &Entertainment sectors

Canara Robeco F.O.R.C.E. FundFINANCIAL OPPORTUNITIES RETAIL CONSUMPTION ENTERTAINMENT

An Open Ended Equity Scheme

F.O.R.C.E.- A theme Risk-Return Matrix India Growth Story F.O.R.C.E.- Brief

Canara Robeco F.O.R.C.E. Fund Investment Strategy Portfolio Performance

Why Canara Robeco F.O.R.C.E. Fund

Product Positioning

Fund Facts

CONTENTS

RISK REWARD MATRIX

Thematic Funds have high risk as well reward opportunity in comparison to other categories

Balanced Fund

Thematic Funds

Mid & Small Cap Funds

Large Cap Fund

Index Funds

RETURN

VO

LATI

LITY

Broad gamut to operatewith and invest in stocksrelated to particular theme

higher risk and volatility ascompared to other category

LOW MEDIUM HIGH

Diversified Funds/ Multi Cap Funds/ ELSS

INDIA GROWTH STORY

Consumption

Infrastructure

Banking &

Financial Services

CREATES PLATFORM FOR SUPPLY

CREATES CONSUMPTION DEMAND

SAVINGS TO INVESTMENT

INVESTMENT FINANCE

Job Creation

INDIA CONSUMPTION STORY

FINANCIAL SERVICES RETAIL CONSUMPTION MEDIA & ENTERTAINMENT

Financial Opportunities, Retail Consumption & Entertainment F.O.R.C.E

CHANGING NEEDS OF CONSUMERS

FIRST WAS… THEN CAME… GOING FORWARD…

F.O.R.C.E

FOOD, GROCERIES,CLOTHING, HEALTHCARE

AUTOMOBILES, TELECOM,BANKING, HOUSING

FINANCIAL SERVICES, RETAIL, MEDIA & ENTERTAINMENT, LEISURE

FINANCIAL OPPORTUNITIES

FINANCIAL OPPORTUNITY

Banking Services

Brokerage & Distribution

Financing (NBFCs)

Insurance (Life & General)

Asset Management

(MFs)

Investment Banking /

Private Equity / Venture Capital

Investment Universe Expected To widen in the coming years

Likely Future Investment Avenues

India has one of the most developed and regulated financial markets in the developing world

Regulatory supervision, changing investor needs, Integration and reduction in the cost of administration are emerging trends in the financial services industry

RISING INCOME LEVELS – HUGE OPPORTUNITY

Total savings in last 3 years – ~INR 134 tn

Expected Savings in next 3 years –~INR 177 tn

Rapid Growth in Per Capita Income expected

by 203063,460

71,05079,412

86,87993,293

55,00065,00075,00085,00095,000

105,000

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Per capital net National Income at market prices (Rs.)

Currency, 12.49%

Bank deposits, 43.64%

Non-bank deposits,

2.32%

Trade Debt(Net),

0.27%

Life insurance fund, 16.94%

Provident & pension fund,

17.84%

Claims on Govt., 4.17%

Shares & debentures,

2.34%

INDIA'S FINANCIAL SAVINGS

##Source: Motilal Oswal Securities

FINANCIAL SERVICES PENETRATION

RET

AIL

• Retail lending could be a USD 1.2Tn opportunity by 2020E

• NBFCs dominating the retail finance space

• NBFCs finance more than 80% of equipment leasing and hire purchase activities in India H

OU

SIN

G F

INA

NCE

• USD 409Bn opportunity by 2020E; up from ~USD 200Bn in 2015

• Consumer debt levels in India - significantly below those seen in other emerging / developed economies, suggesting secular growth trends banking sector

• Markets still remain underpenetrated (70%+ of households have no liabilities of any sort)

OTH

ER E

MER

GEN

T

• Microfinances and Fin-tech companies may emerge as the Major Players in the financial services industry

Source: Nandan Nilenkani Report; Economic Times

FINANCIAL SERVICES –OPPORTUNITY TO BANK UPON

Source: Nandan Nilenkani Report; Economic Times

INDIA RETAIL STORY

Demographic Dividend Rapid Urbanisation & Rural Expansion

Expanding E-Commerce

Constantly Improving Lifestyle

Younger India – Avg. age 29 years by 2020;

Working age population to rise to 64% by 2020 up from 49% in 2016

E-commerce industry to earn ~70Bn USD by 2020; up from 6Bn USD in 2015

Consumer expenditure to be USD3.6 Tn by 2020 vs USD1.25 Tn in 2015

Policy reforms in place to enhance growth & rural demand

Household consumption (56%) as a % GDP, better than China (36%)

Rising income & demand for quality products to boost consumer exp.

Increasing population & larger work force to help boost consumption.

India expected to be

5th Largest Consumer Market

by 2025

Source: Jubilant Foodworks Annual Report, Nandan Nilenkani Report; Industry reports

INDIAN RETAIL – CURRENT PIE

5th Largest Retail Destination Globally

Emerging as one of the largest sectors in the Indian Economy (Market Value: USD672 Bn)

Around 8,500 supermarkets by 2016 from 500 in 2006

Fuelled primarily by – Changing demographic scenario, increase in number of Working women, prevalence of Nuclear family structure, Easy Availability of Credit & High Exposure to Media & Brands

Market Share: Organized Retail – 8%. Unorganized Retail – 92%. (Huge Opportunity!) This is expected to reduce post implementation of GST

In FDI Confidence Index, Indian Retail market ranks ninth (after United States, China, Canada, Germany, UK, Japan, Australia and France)

India’s net retail sales are quite significant among emerging and developed nations; the country is ranked third (after Chinaand Brazil)

Source: www.ibef.org

ECOMMERCE SET TO GROW

Market size over the past few years (USD Bn)

Retail industry -expected to grow to

USD1.3 Tnby 2020, registering

a CAGR of 7.46%

Source: www.ibef.org

INDIAN CONSUMPTION STORY – OTHER SECTOR

With household televisions increasing from 175mn in 2015 to 181mn in 2016

India is estimated to be the second largest television market, globally in 2016

One of the largest broadcasting market in the world with 847 private satellite television channels, 243 FM radio channels and 190 operational community radio networks

Indian Animation & VFX industry expected to grow from USD797 mn in 2015 to USD909 mn in 2016; Expected to reach USD1.68 bn by the end of 2020

Exponential growth to be witness in the Indian Film Industry; expected to grow to USD3.54 bn by 2020

Overall size of the Media & Entertainment industry to increase from USD 20.5 Bn to USD 62.2 Bn.

Higher penetration and a rapidly growing young population coupled with increased usage of 3G, 4G and portable devices would augment demand

Source: Nasscom; www.ibef.org

INDIA MEDIA & ENTERTAINMENT SECTOR

Television accounts for 46.92% of revenue in 2016;expected to grow further to 48.56% by 2020

Television, print and films together are likely to account for 82.2% of market share in 2016, in value terms

With the advancement of Technology & Digitization, going ahead, Digital Advertisement is expected to be the ‘NEXT BIG THING’ in the Media sector

Source: www.ibef.org

KEY TRENDS IN MEDIA & ENTERTAINMENT

Themes Our View

Financial Services

Biggest beneficiaries of Investment cycle turning around

Stress in banking sector is expected to bottom out

Traction still remaining in NBFC space & Private Banks

Media & Entertainment

Digitization remains a strong theme as there has been a steady growth in subscribers

Increasing digitization will help increase Mobile phone and Internet penetration and thereby help

media companies grow

Economic revival would led to Advertisement revenue growth for media companies

Retail Consumption

Favourable demographics for consumption growth – High proportion of young & working

population

Over the last few years’ consumer spend has been largely driven by rural demand with rising

income levels and increasing penetration

With expected economic revival, discretionary spending would further increase

CANARA ROBECO FORCE - HIGHLIGHT

India Growth Story to benefit Designed to benefit from demographic advantage of “Young India” for the next decade and

participating in the changing consumption pattern emerging out of rising middle class and urbanization.

Theme to Bank upon Macro-economic fundamentals are nearly stable; Banks & Financial Sector are poised perfectly for a multi fold jump &

any improvement in economic fundamentals is likely to benefit this sector.

The Government is believed to be committed towards boosting growth. This will help to increase Financial Savings ofindividuals & thereby help to increase Consumer Spending, thereby, benefitting both Financials & Consumption sector

Fund predominantly invests in 3 sectors benefitting from the demographic dividend

Fund also looks for opportunity to invest in few other companies which benefit from this theme

Sector Allocation Range (%)

Financial Services 40 – 65

Retail Consumption 10 – 25

Media & Entertainment 15 – 35

PORTFOLIO SNAPSHOT

Asset Allocation

Top 5 Sector break up (% to NAV)Top 10 Holdings Industry Classification % of Net Assets

HDFC Bank Ltd Banks 7.99%

ICICI Bank Ltd Banks 7.16%

Zee Entertainment Enterprises Ltd

Media & Entertainment 6.67%

Housing Development Finance Corporation Ltd

Finance 5.56%

Kotak Mahindra Bank Ltd Banks 4.43%

Avenue Supermarts Ltd Retailing 4.32%

Jubilant Foodworks Ltd Consumer Non Durables 3.97%

Bajaj Finserv Ltd Finance 3.97%

Hindustan Unilever Ltd Consumer Non Durables 3.95%

ITC Ltd Consumer Non Durables 3.74%

A concentrated portfolio with 30 stocks Top 3 sectors: 62.82% Top 5 Sectors: 83.71% Top 10 Stocks: 51.76%

Data as on 28th Feb’18

0% 10% 20% 30%

Retailing | 5.77%

Media & Entertainment | 15.12%

Finance | 16.38%

Consumer Non Durables | 23.13%

Banks | 23.31%

Equities I 94.8%

Money MarketInstruments I6.12%

Others I -0.92%

PORTFOLIO SNAPSHOT

Market Capitalisation (%)

Data as on 28th Feb’18

Investment Style

Quantitative Information

Criteria Values

Standard Deviation 16.18

Portfolio Beta 1.05

Portfolio Turnover Ratio 0.39 times

R-Squared 0.79

Sharpe Ratio 0.32

Key Highlights

Emphasis on tactical ideas to benefit from market developments

Fund invests in companies which have potential for growth

73.18%

19.48%

2.20%5.14% Large Cap

Mid Cap

Small Cap

Debt, Cash &Others

Growth Blend Value

Large Cap Mid Cap Small Cap

Diversified Thematic Sector

PERFORMANCE AT A GLANCE

Canara Robeco FORCE Fund: Rs.35,920 on an investment of Rs.10,000 since inception

The past performance may or may not be sustained in the future. Returns are based on growth NAV and are calculated on compounded annualized basis for a period of more than (orequal to) a year and absolute basis for a period less than a year. Inception Date: September 14, 2009. Different plans have a different expense structure. The performance detailsprovided herein are of Regular Plan. The current fund manager Mr. Ravi Gopalakrishnan is managing the scheme since 01-Oct-17. Performance as on 28th Feb'18.

Period

Returns (%) Current Value of Standard Investment of

Rs.10,000 in the

SchemeNifty 50 TRI

# S&P BSE Sensex

TRI ## Scheme Nifty 50 TRI #

S&P BSE Sensex TRI ##

Last 1 Year 21.15% 19.75% 20.46% 12,115 11,975 12,046

Last 3 Years 11.54% 7.21% 6.85% 13,885 12,327 12,204

Last 5 Years 19.12% 14.41% 14.28% 23,995 19,609 19,496

Since Inception (CAGR) 16.31% 10.15% 13.90% 35,920 29,860 30,080

#Scheme Benchmark , ##Additional Benchmark . Load is not taken into consideration for computation of returns. Returns of dividend option under the scheme for the investor would be net of distributiontax as applicable. The performance of other funds managed by fund manager of Canara Robeco FORCE Fund is on the slide number 26

PERFORMANCE AT A GLANCE - SIP

Investment date is taken to be 1st of the month or subsequent day if 1st is a holiday and investment of Rs.10,000 is taken. Returns are as on 28th Feb’18 and are CAGR. The calculations are based on theregular growth plan NAVs. Past performance may or may not be sustained in the future. Scheme Benchmark# , Additional benchmark##. Inception Date: September 14, 2009

Canara Robeco FORCE Fund has outperformed the benchmark & S&P BSE SENSEX TRI over long term

Canara Robeco FORCE Fund 1 year 3 years 5 years Since Inception

Total Amt invested (INR) 1,20,000 3,60,000 6,00,000 10,20,000

Market Value (INR) 1,26,902 4,60,101 9,58,133 21,43,738

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1 Year 3 Years 5 Years Since InceptionCanara Robeco F.O.R.C.E. Fund Nifty 50 TRI # S&P BSE Sensex TRI ##

PRODUCT POSITIONING

CR Emerging Equities

CR Infrastructure

CR Equity TaxSaver

Large Cap

Diversified

Mid & Small Cap

Thematic Fund

ELSS

SATE

LITE

PO

RTF

OLI

OCO

RE

PO

RTF

OLI

O

CR Equity Diversified

CR Large Cap +

CR FORCE

NEE

D B

ASE

D

Above positioning is for illustration purpose only

WHY INVEST

Fund being a thematic fund, invests in the niche space and follows a Growth style of investing

Expected turnaround in the economic cycle leading to increase in employment which may boost thediscretionary consumption and benefit the sectors that fund invests in

Banks & Financial Sector are poised perfectly for a multi fold growth and as the fund has maximumallocation to Banking and Financial Services, it could benefit from the opportunity lying ahead in the sector

FUND FACTS

Data as on 28th Feb’18

Fund Category Open Ended Equity Scheme

Investment ObjectiveTo provide long-term capital appreciation by primarily investing in equity and equity related securities of companies in the Finance, Retail & Entertainment sectors.

Inception Date 14-Sep-09

Asset Allocation

Equity related companies in Finance, Retail & Entertainment: 65-100% (Risk Profile - High) Other Equity & related instruments: 0-35% (Risk Profile - High) Domestic Debt & MMI (Including securitised debt up to 10% of net assets): 0-35% (Risk Profile - Low)

Plans/OptionsRegular & Direct Plan:

Options: Growth / Dividend with payout & Reinvestment

Facilities SIP/ SWP/ STP/ Dividend Transfer Facility

Fund Size Rs. 177.94 Crs (Month End AuM)

Load Structure1% - if redeemed/switched out within 1 year from the date of allotment.Nil – if redeemed / switched out after 1 year from the date of allotment.

Benchmark Nifty 50 TRI

Fund Manager Mr. Ravi Gopalakrishnan

Performance of Fund Manager

Data as on 28th Feb’18

The information used towards formulating the outlook have been obtained from sources published by third parties. While suchpublications are believed to be reliable, however, neither the AMC, its officers, the trustees, the Fund nor any of their affiliates orrepresentatives assume any responsibility for the accuracy of such information. CRMF, its sponsors, its trustees, CRAMC, itsemployees, officer, directors, etc assume no financial liability whatsoever to the user of this document. Mutual FundInvestments are subject to market risk. Investors are requested to read the Scheme related documents carefully beforeinvesting.

Mutual Fund investments are subject to market risks, read all Scheme related documents carefully.

DISCLAIMER