eip presentation

7/31/2019 EIP Presentation

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ENAM ASSET MANAGEMENT

Portfolio Update Emerging India Portfolio (EIP)

June-2012

This document is provided for informational purposes and is not intended as an offer to sell or solicitation of an offer to buy securities or other instruments. Our services will be rendered strictly inaccordance with the SEBI (Portfolio Managers) Regulations, 1993. Please read the Disclosure Document prior to engaging our services. The information contained herein is based on our assumptionsand can be changed without any prior intimation. This information must not alone be taken as the basis for an investment decision. Please consult your financial, legal or tax advisors. Investment insecurities is risky and there is no assurance of returns or preservation of capital. Neither the firm, nor its directors, employees, agents or representatives shall be liable for any damages whether direct orindirect, incidental, special or consequential including lost capital, lost revenue or lost profits that may arise from or in connection with the use of this information. No part of this material may be copied orduplicated or redistributed without prior written consent.


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Agenda

1

2

3

4

Fundamental Equities Platform

The India Story

Market Cycles

5

Outlook

Emerging India Portfolio


3/43


ENAM Fundamental Equities Platform


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Enam / Asset Management / India Fundamental Equities Platform / EIP / - 4 -

Opportunity Longevity Management Value Accretive Discipline

Size andattractiveness

Addressability

Quality andsustainability ofgrowth

Risk mitigation

Sustainablecompetitiveadvantages and theirlead time

Predictability,adaptability, resilience

Entry barriers

Technology andprocesses

Access to naturalresources / markets

Costs, productivity

and efficiency

Brands anddistribution network

Replicability andscalability of businessmodel

Intellect + Integrity

Alignment ofobjectives

Orientation towardsminority

Adaptability andinnovation

Ambition tempered byreality

EVA Positive,duration andmagnitude

Free cash flows

Return on incrementalcapital

Improper capitalallocation can bedestructive

Incrementalimprovements can

generatedisproportionatereturns

Focus Avoiddistractions

Volatility is not athreat, its an

opportunity !

Correcting mistakesought to be a religion

Ignorance and denialdrive averaging

Being part of a herdnever helped anybody

Differentiate betweenvalue based / eventbased and hypebased buying

ENAM Fundamental Equities PlatformINVESTMENT PHILOSOPHY

Seek to identify high-quality businesses that are structurally well-positioned, have sustainablecompetitive advantages and strong execution capability for consistent long-term growth


5/43Enam / Asset Management / India Fundamental Equities Platform / EIP / - 5 -

ENAM Fundamental Equities PlatformRESEARCH PROCESS

InvestmentUniverse

Research &

Analysis

Idea Generation

Portfolio Construction,Risk Management &Monitoring

S&P CNX 500,other select ideas

Over 250companies

40-50stocks

~25stocks

Research and investment process

Prospective Investment Universe BSE 500, CNX S&P 500

Selective coverage outside the above

Special cases, such as stocks with PIPEinvestments

Selection criteria Market cap > INR 10 Bn (~USD180 mn)

Key ratios

Qualitative aspects

Thematic views

ENAM Investment Universe Universe selection is a comprehensive and

ongoing feature of the investment process,done using sophisticated proprietary financialmodels

Over 250 companies thus selected arecovered using rigorous research process

Represents over 80% of market cap

Revised quarterly



UNIVERSEDefining the playing

field

DETAILED FINANCIALANALYSIS

In-depth Analysis

UNIVERSE SELECTION IS ACOMPREHENSIVE & ON-GOINGFEATURE OF OURINVESTMENTPROCESS:

1) Quarterly review by theInvestment team

2) Process involvescomprehensive analysisbased on variouscriteria

Market Cap Key Ratios Qualitative aspects

Thematic views

IDEA GENERATION &PORTFOLIO CONSTRUCTION

High Conviction Investments

PORTFOLIO REVIEWTracking existing

investments

WE UNDERTAKE A VERYCOMPREHENSIVE BUT ASIMPLE MODEL FORFINANCIAL ANALYSIS.THIS INVOLVES:

1) Dissecting the P&L to arriveat real profits from Operations- This goes a long way todetermine the sustainablemargins

2) Balance Sheet Analysis toevaluate efficient utilization ofcapital

3) Close monitoring of key

drivers that may impact theoperating performance

TEAM HAS EXTENSIVEKNOWLEDGE OF COMPANIESAT GRASS ROOT LEVEL

OUR PROCESS INVOLVES:

1) Financial Analysis

2) Discussions amongstinternal and external analysts

3) Management meetings

4) Understanding of internaland external levers governingthe sustainability ofperformance

5) Meeting competitors toassess competitive strengths

6) Evaluating attractive entrylevels and potential returns

7) Strict adherence to riskmanagement guidelines

PORTFOLIO MONITORINGINVOLVES:

1) Closely monitoring domesticand global macro factors

2) Actively engaged with thecompany management

3) FORECAST SHEET Actslike an investment monitoringradar screen across our investeeCos and alternate opportunities

in the market

4) Track portfolio as per riskmanagement guidelines

5) Target valuations torebalance portfolio

ENAM Fundamental Equities PlatformINVESTMENT PROCESS



Risk Management

The investment team strictly follows a well designed, dynamic and prudentrisk management policy to mitigate the inherent risk in equities

Comprehensive risk management comprises:

Flexibility to deploy the total portfolio in cash for downside protection

Diversification and liquidity management

Adherence to stringent exposure limits on sectors, business groups and individual companies

Regular monitoring to ensure compliance with risk management guidelines

No use of derivatives / leverage trades

Third party independent assurance of activities, processes and controls


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The India Story Down But Not Out



India Remains On The Economic Growth Path

Source: Bloomberg, IMF, Business Beacon, ENAM Research* 2012 Estimates

1990 2000 2010 2012

GDP USD Bn 313 461 1,380 1,750*

Average GDP Growth % 5.6 5.6 7.3 6.5*

Market Cap USD Bn 27 209 1,372 1,131

BSE Sensex Index 781 5,001 17,528 17,404

Global Trade

Import USD Bn 21 50 278 397*

Export USD Bn 17 37 176 286*

Foreign Exchange Reserves USD Bn 6 38 277 295

Population Mn 838 1,006 1,173 1,210*

Working Age Population % 58 61 64 65*

INR / USD INR 18.1 46.7 44.7 50.9

India took more than 60 years to cross a GDP of USD 1TrnBy end of this decade, Indias GDP may rise over USD 6 Trn

Data as of financial year ending 31st March, 2012



Rapid Growth Across Key Industries

0

1000

2000

3000

4000

5000

6000

FY99 FY04 FY09 FY14(e)

332 861

1981

5138

Aggregate Profits of 100 most

profitable companies (INR bn.)

30% CAGR

Airline Industry GrowthTelecom Subscriber Growth

Software Exports (INR bn.)Growth 100 Most Profitable Companies

0

500

1,000

1,500

2,000

2,500

3,000

3,500

109

3,346

(Source: AAI, DGCA)Source: ENAM Research



2000 2010 2020 (e)

1 US 9.6 US 14.6 China 23.2

2 Japan 4.7 China 5.7 US 23.0

3 Germany 1.9 Japan 5.4 Japan 6.8

4 UK 1.4 Germany 3.3 India 6.5

5 France 1.3 France 2.6 Germany 4.6

6 China 1.2 UK 2.3 Brazil 4.3

7 Italy 1.1 Italy 2.0 Russia 3.8

8 Canada 0.7 Brazil 2.0 UK 3.6

9 Brazil 0.6 Canada 1.6 France 3.6

10 Mexico 0.6 Russia 1.5 Canada 2.7

India 0.5 India 1.4

India To Emerge As One Of The Largest Economies

9.3

7.0

2.81.7 1.7 1.2 1.2

India

China

US

France

Germany

Japan

Italy

GDP of key countries (USD Trn) 2010-30 Estimated GDP growth (%)

Improvements in infrastructure, deregulation and education could allow India to grow rapidly for decades

Source: Standard Chartered, Citigroup

Source: ENAM, Bloomberg

India: Resilient to external shocks

GDP (Y-o-Y %)

(8.0)

(4.0)

0.0

4.0

8.0

12.0

16.0

Mar-98

Mar-99

Mar-00

Mar-01

Mar-02

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

M 1 2

USA GDP Brazil GDP China GDP India GDP


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PopulationMn

GDPUSD Bn

GDP / CapitaUSD (PPP)

Market CapUSD Bn

MKT / GDP

Developed

US 311 14,587 48,387 11,661 0.8

Canada 34 1,577 40,541 1,894 1.2

UK 62 2,249 36,090 3,034 1.3

Germany 82 3,281 37,897 1,239 0.4

France 66 2,560 35,156 1,412 0.6

Japan 128 5,459 34,740 3,502 0.6

Italy 61 2,051 30,464 460 0.2

Brazil 191 2,088 11,769 1,195 0.6

China 1,341 5,927 8,382 3,131 0.5

India* 1,210 1,750** 3,694** 1,131 0.7

Market Capitalization Will Reflect The Size And Growth

Source: Bloomberg, IMF, EAMC, as on 31 Dec 2011India Data as of 31 Mar 2012** 2012 Estimates

Market cap could grow

over USD 4 Trn by 2020


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Consumption J-Curve: Indiasalready sizeable domesticconsumption will take off in ~2015-20 as demographics result in thefigure of 50:40 for dependency :working pop, as it did for the US inthe 60s & China in the 90s

Savings: Favourable demographics,rising urbanization and higher incomelevels are likely to boost Indias

savings pool to ~USD 1.4 Trn by2020 (~todays GDP), of whichfinancial savings corpus is likely to be~USD 540 Bn

This will form the bulwark ofdiscretionary consumption and alsofund infra creation

A bulk of Indias savings come fromhouseholds rather than corporates,making it a stable source of funds

Infra & Capex: India is putting up amassive across-the board CoreInfra backbone with an overallinvestment of ~USD 1 Trn over thenext five years

Power, roads, ports, airports etc willbe the key segments that will

witness explosive growth

CONSUMPTIONSAVINGS

INFRASTRUCTURE

In sharp contrast to major economies which have long term issues to be addressed,Indias issues are more immediate term, with structural pillars in place

India - Long-term Pillars Of Growth


14/43


Indian Households Are Wealthy

Source: ENAM Research

(USD/troy ounce)

0

300

600

900

1200

1500

1800

2100

Jan-0

1

Jan-0

2

Jan-0

3

Jan-0

4

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

c

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

(USD trn)

Source: RBI

Source: Bloomberg, ENAM Research

Gold: 19,000 tons (approx.) = ~ $1 trn

GDP growth, savings and investment rate Urban housing stock ~$ 5 trn

Indians holding ~$ 1 trn in Deposits

Indian citizens have witnessed a generational wealth effect

C i


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ConsumptionMULTIPLE SECTORS SET FOR HIGH GROWTH

712

17

26 2932 39 41

48

8086 93

0

25

50

75

100

In

dia

Ch

ina

Thailand

Ko

rea

Malaysia

Singap

ore

Taiwan

HK

Germ

any

U

SA

UK

Denm

ark

(%)


Industry Units 2010 2020(e) CAGR(%)

Organized Retail US$ bn 24 266 27

Home Mortgage US$ bn 91 646 22

Air Conditioners mn p.a. 3 18 20

Digital Pay TV mn subs 24 116 17

Refrigerators mn p.a. 6 25 16

Packed Foods US$ bn 22 89 15

Two-Wheelers mn p.a. 9 35 14

HPC Products US$ bn 10 34 13

2010: Low penetration (mortgages as a % of GDP) Consumption boom across categories

Consistent economic growth to be followed by consumption boom


16/43


Infrastructure Opportunity Is Equally Large

Unique opportunity to own annuity assets in a reflating economy

India is visibly under-invested in infrastructure

USD 1 Trn investment required by 2017 of which over 50% expected from private sector

Infrastructure spend is barely 5% of GDP (incl. Energy, Telecom, Power, Transport) vs. approx. 12% inChina

Government plans to increase infrastructure spend to 11% of GDP in FY17

Sectoral Funding Break-Up

11th Plan 12th Plan

TotalUSD Bn

% of totalinvt.

TotalUSD Bn

% of totalinvt.

Electricity 165 32% 310 30%

Roads & Bridges 70 14% 170 17%

Telecom 88 17% 138 13%

Railways 50 10% 108 11%

Irrigation 63 12% 108 11%

Water Supply & Sanitation 28 5% 113 11%

Ports 10 2% 45 4%

Airports 10 2% 23 2%

Storage 3 0.4% 10 1%

Oil & Gas Pipeline 33 6% 5 1%Total Infra Investment 513 100% 1,025 100%

155 178 203 230 260

9.9%

10.3%

10.7%

9.0% 9.5%

0

50

100

150

200

250

300

2012-13 2013-14 2014-15 2015-16 2016-17

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

Total Infra Investment (USD Bn)Infra Investment as % of GDP


17/43


Indians & Corporates Are OK But Not The Government

Household Savings: $230bn

Low leverage

Wealth effect:

Property

Stocks

Gold

Corporate profits ~$80bn

High RoE

Competitiveness

Low leverage

Earnings slowing, but not at

precipice unlike developed

world

On B/S:

Interest: $60 bn

Subsidies: ~$35bn

Gross Dom savings = $340bn Corporates Fiscal Def = ~$100bn

Households Steady India Inc. Resilient Government Under Stress

Telecom: Spectrum auction

Coal auctions

Disinvestment of PSUs

Land bank unlocking (ie land etc) Railways, LIC etc

Higher Tax/ GDP collections GST, DTC

NELP VIII/ KG Basin Gas profit share

Asset sales & Collections

WAY OUT

The deficit of the government can be funded with proactive asset sales


18/43


Governments hidden weapons in a fight for liquidity


Iron Ore - Reserves % Disinvestment from PSU (USD Bn)

Government Debt as % of GDP

But Government Is Not Bankrupt

Government Has a Large Asset Bank which can be Unlocked

Prime Land in CitiesAbundant Natural Resources: Coal (fourth-largest reserves in the world), Iron ore,

Manganese, Mica, Bauxite, Titanium ore, Chromite, Natural gas, Diamonds,

Petroleum, Limestone and Thorium (world's largest along Kerala's shores)

Investments in Public Sector Companies and Undertakings Disinvestments

Official Gold Reserves 615 Tonnes ~ $36Bn

Indias tax incidence is the lowest among its EM peers Increase leads to

additional revenue


19/43


Outlook


20/43


Positives Building Up

Inflation Cooling Off Will Lead to Further Interest Rate Cuts

Source: Bloomberg

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

May-0

6

Aug-0

6

Nov-0

6

Feb-0

7

May-0

7

Aug-0

7

Nov-0

7

Feb-0

8

May-0

8

Aug-0

8

Nov-0

8

Feb-0

9

May-0

9

Aug-0

9

Nov-0

9

Feb-1

0

May-1

0

Aug-1

0

Nov-1

0

Feb-1

1

May-1

1

Aug-1

1

Nov-1

1

Feb-1

2

May-1

2

India WPI (RHS) Repo Rate


21/43



CAD, ex-Gold is Not Worrisome

o/w Oil imports 132 146 159

o/w Non oil imports 389 389 389

Trade balance/GDP (%) (9) (10) (10)

o/w Software 52 54 58

o/w Remittances 68 70 72

FDI 20 23 25

FII 12 12 14

Banking capital 12 15 16

NRI deposits 5 8 8

ECBs+supplier's credit etc 24 23 21

Rupee debt service (1) (1) (1)

Other capital account items 5 6 6

% of GDP 4 4 4

CAD Likely to Shrink in FY 13

INR depreciation is a positive for exports

Reduction of gold imports by ~25% YoY, can shave off ~USD 12 bn

from the import bill (at current gold prices)

USD 10/bbl correction in oil prices will shave off ~USD 14 bn from

the import bill

Crude oil + Gold account for ~44% of total imports. Any correction in the quantum of these could reduce thestrain on CAD significantly



22/43


250

300

350

400

450

500

550

600

May-06

Aug-06

Nov-06

Feb-07

May-07

Aug-07

Nov-07

Feb-08

May-08

Aug-08

Nov-08

Feb-09

May-09

Aug-09

Nov-09

Feb-10

May-10

Aug-10

Nov-10

Feb-11

May-11

Aug-11

Nov-11

Feb-12

May-12

CRB Comm Index


Commodities Showing Signs of Softening

Source: Bloomberg

World Oil Demand (mbpd)

Global slowdown leads to softening of commodity prices

46.3

42.5

46.4

44.5

45.5

43.2

40

41

42

43

44

45

46

47

OECD Non-OECD

Mar-11

Feb-12

Mar-12

34.8

51

37.4

51

37.5

51

0

10

20

30

40

50

60

OPEC Non-OPEC

Mar-11

Feb-12

Mar-12

World Oil Supply (mbpd)

Valuations At Multi Year Lows


23/43


Valuations At Multi-Year LowsOFFERS GOLDEN OPPORTUNITY TO PARTICIPATE IN THE INDIASTORY

Markets at Attractive Levels Long Term Story of India is Intact

Source: Bloomberg

P/E 17:@ 41,508(26.9% CAGR)

P/E 15:@ 36,625(23.0% CAGR)

P/E 13:@ 31,685(18.6% CAGR)

SensexFY16E


24/43


Disparity Across Sectors

Wide Disparity across sectorsSeveral sectors at historic lows

May 2012P/E 11.80

Industry

FY-13

Fwd. P/E

FMCG 26

Food Beverage & Tobacco 22

Pharma & Bio-Technology 19

Software Services 15

Telecommunication 12

Capital Goods 11

Automobiles & Components 9

Energy 9

Value Investing


25/43


Value InvestingDIFFERENT PHASES OF A MARKET CYCLE

Source: Marc Faber, ENAM

Leading stocks fall sharply, followedby pull back as Left outers jump in& earnings still growing

Leadership narrows Profits OK, but P/E falls Sharp, swift, short-lived no-reason

rallies

Easy & cheap Liquidity

Value buying

Catalysts: Regulatory,

Commodities

Asset & Cost inflation

Capex/ IPO/ Credit cycle

revives

Boom spreads, initially

earnings driven (phase 2),

later multiples-driven (ph 3)

P/E expansion, Easy credit

New Themes and Valuation Paradigms

Virility Symbols (Towers, diversification/ M&A)

Capex > near-future requirements Retail & IPO euphoria

Shock/ Leaders in trouble

Earnings crack

Tight money

demand & EPS fall Easy credit to

revive growth

Value OutperformsGrowth

Growth OutperformsValue

Value and Growth onpar

Value OutperformsGrowth

We are here

Value and Growth Investment styles change leadership during different phases of market cycles


26/43


Investor Psychology Cycle

Source: ENAM

Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time

of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.

Sir John Templeton

CONVICTION

REINFORCEMENT

OPTIMISM

EUPHORIA

PANIC

FATIGUEDEXIT

HOPE

FEAR

DENIAL

DESPAIR


27/43


Challenges remain

Political uncertainty and regional differences

Governance and Corruption

Fiscal situation

High Interest rates

Crude oil prices

Shortage of skilled manpower (NREGA)

Uncertainty in EU & Reversal of Globalisation

Geopolitical Risk


28/43


Key Reforms - Not Now But Not Never

A positive surprise on Reforms could spur growth, inward flows , currency & markets

UID

Size of Govt. staff

Subsidy reforms:

Fuel & Fertilizers

Land Acquisition Act

SEB reforms

GST

Education

Energy

Mining

Organized Retail

Infrastructure

Curbing Expenditure EfficiencyAttracting Foreign

Investment in

Reforms


29/43


India still remains one of the fastest growing economies in the world and a very

favourable long-term investment destination

Indias problems are more internal than external

Inflation should ease due to softening of commodity prices

Interest rates are still high but expect RBI to steadily reduce the same

While urban India is witnessing some challenges, rural India continues to boom

There could be positive surprises on the political front

Market valuations witnessing huge disparity across sectors which offer immense

opportunity

With a few favourable changes market could cross its previous peak by March 2013

ENAM OUTLOOK : 2012-13


30/43


Market Cycles


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The First Market Cycle Of Our Generation: 88 - 91

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Apr-88 Apr-89 Apr-90 Apr-91

Source: Bloomberg; ENAM Research

4 PMs in 4 years!, India forced to liberalize in 91

BoP crisis as CAD rose to ~3%. India forced to pledge gold. INR depreciated by 11% pa from 88 to 91

to reach Rs 20

High teen Primary & Fuel inflation

Thus, market interest rates at >20%

The bull market of 1991-92 was against the backdrop of the Gulf war, liberalisation (incl. INR devaluation

from Rs 20 to 29), culminating in the market scam

S I R ll 1996 99


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Sensex In Rollercoaster: 1996 - 99


2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

Apr-96 Apr-97 Apr-98


Coalition politics at its worst: 3 PMs in 3 yrs SE Asian crisis & Russian debt default vitiate global flows

Depreciates sharply from Rs 36 to 42 as international sanctions imposed post Indias

Subdued (4-5%)

Thus, PLR fell from 16.5% in 96 to 13% by 99

: Jumps sharply from ~4% in 96 to >6% of GDP by 99

S Th SADIM* T h 2000 03


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Sensex: The SADIM* Touch: 2000 - 03

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Jan-00 Jan-01 Jan-02 Jan-03


Finally, a stable govt!

Orderly depreciation from ~44 to 47 through 2003

Remained ~6% despite two in 2001-03. Fuel prices jumped 20% as

global oil prices nearly doubled to $28/ bbl

PLRs dropped to of ~10% as policy rates fell,

(except PSUs & HDFC gp)

S Th MIDAS T h 2004 07


34/43


Sensex: The MIDAS Touch: 2004 - 07

1,000

6,000

11,000

16,000

21,000

Apr-04 Apr-05 Apr-06 Apr-07

Source: Bloomberg; ENAM Research;

PM: Dr. Manmohan Singh

Surprise victory of Congress

Cheap Liquidity and housing bubble in Western Economies

Strengthening of rupee from 44 to 39.80

Dropped below ~5%. Global oil prices nearly doubled to $80/ bbl

Jan-08

S Fi i l C i i 2008 12


35/43


Sensex: Financial Crisis: 2008 - 12

1,000

6,000

11,000

16,000

21,000

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12


PM: Dr. Manmohan Singh

Congress retains the house in the second term with a coalitiongovernment

Lehman Crisis, American Housing bubble crash, EU Crisis

Global uncertainty and strengthening of US $ pulled INR down to 55 from 44

Double digit inflation and high interest rates



36/43


Portfolio Strategy

This document is provided for informational purposes and is not intended as an offer to sell or solicitation of an offer to buy securities or other instruments. The information contained herein is based onour assumptions and can be changed without any prior intimation. This information must not alone be taken as the basis for an investment decision. Please consult your financial, legal or tax advisors. Investment in securities is risky and there is no assurance of returns or preservation of capital. Neither the firm, nor its directors, employees, agents or representatives shall be liable for any damageswhether direct or indirect, incidental, special or consequential including lost capital, lost revenue or lost profits that may arise from or in connection with the use of this information. No part of this materialmay be copied or duplicated or redistributed without prior written consent.

Our Investment Strategy


37/43


Our Investment Strategy

Adopt a conservative approach

Focus on risk adjusted returns

Invest in businesses driven by Free Cash Flows, Secular growth, Consumption and

increasing Globalisation

Long-term profit trend-line is very important

Conservative promoters with sound business models

Identify stocks with a high probability of re-rating

Monitor macro dynamics, respond quickly to the new environment and fine tune the

investment strategy accordingly

2012 - 2013

Portfolio Positioning


38/43


EMERGING INDIA PORTFOLIO (EIP)

Portfolio Breakdown (%)

38.6

31.7

21.7

2.82.6

2.5

Consumption

Global

Secular Growth

Infrastructure

Diversified& Others

Cash

Portfolio Summary


39/43


Portfolio Summary

2012 2013

Domestic macro issues, more than global issues, are impacting our markets

We now see signs of the economy bottoming out

Our investment strategy has been designed to reduce volatility in the portfolio

The focus of our strategy is to minimize earnings cyclicality with a greater focus on

risk-adjusted returns to improve the overall performance of the portfolio

Current portfolio positions include growth and value stocks across sectors, offering

superior returns

All portfolio positions undergo a strict evaluation process and constant monitoring

Objective is to deliver superior returns on a risk adjusted basis


40/43

Portfolio performance


41/43


06 Oct-10 31 May-12Portfolio Value- Unit NAV (Representative) 100.0 84.1*

Portfolio: EIP

CAGR: Portfolio return (9.8)

Index: S&P CNX 500 5,091.1 3,913.1CAGR Index return (14.6)

Index: BSE Midcap 8,426.5 5,907.9CAGR Index return (19.2)

Alpha vs. S&P CNX 500CAGR 4.8

Alpha vs. BSE MidcapCAGR 9.3

Portfolio performance

* Source: Anand Rathi PWM

Portfolio performance since inception


42/43


Portfolio performance since inception

99.8

96.1 96.6

89.6

84.1

97.1

90.9

86.9

82.8

76.9

92.6

81.6

82.1

74.7

70.1

60

65

70

75

80

85

90

95

100

105

EIP Aggr NAV CNX500 BSE Midcap

Emerging India Portfolio

(Performance Since Inception)



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Thank You

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