Corporate Presentation · III - SUNDARAM TAX SAVER (MULTI CAP FUND) 18 One Time Investment - Returns (%) Value of Rs. 10,000 invested at launch CAGR Since Launch: 17.4% vis-a-vis

1

Corporate Presentation

December 2016

2

PARENTAGE

Sundaram Finance

Fully owned Subsidiaries

JVs

Sundaram Business Services

Outsourcing services

Sundaram Infotech Solutions IT services

Sundaram Asset Management

Mutual Funds, Portfolio Management

Royal Sundaram General Insurance

Sundaram BNP Paribas Home

Finance Home loans

Sundaram BNP Paribas Fund

Services R & T Agent

PARENT PROFILE – KEY FACTS OF SUNDARAM FINANCE

3

Pioneer in the leasing and hire purchase

business

First NBFC to be listed - in 1972

Market Cap - Rs 13,036 Crores as on 30

December 2016

586 offices; over 6,000 employees

Market cap has grown at CAGR of 30.4%

since listing

Rated AAA by CRISIL and ICRA

4

SUNDARAM ASSET MANAGEMENT COMPANY – EVOLUTION AND KEY FACTS

AUM - Rs 27,825 crores as on

30 December, 2016

Ranked 14th in the Asset Management

Industry

Jointly promoted by Sundaram Finance and

Newton Asset Management

Sundaram Finance buys out Newton

JV with BNP Paribas

Sundaram Finance buys out BNP’s stake

1996

2002

2006

2010

2012

100% subsidiary established in Singapore

for Asset Management business

AUM has grown at a CAGR of 22%

over last 10 years

ASSETS UNDER MANAGEMENT - OVERALL

5

Data as of December 2016

AUM Composition In Rs. Crs. AUM Growth

13,288

12,274 12,978

15,597

19,842

22,006

27,267

10,000

15,000

20,000

25,000

30,000

Mar

20

11

Mar

20

12

Mar

20

13

Mar

20

14

Mar

20

15

Mar

20

16

Dec

20

16

Fixed Income 56%

Equity 39%

PMS 5%

6

STRONG RETAIL FOOTPRINT

Customers

Managed over 38 lakh customer folios since inception

12,03,110 active customer folios

2,72,695 customer transactions per month through Systematic Investment Plan

Geographic Footprint

93 customer care centers spread across 21 States, with offices in Singapore and Dubai

Diversified customer base – by customer folio and AUM

Distribution footprint

32,040 empaneled distributors

9,441 distributors submit purchase transactions every month

EAST, 12%

NORTH, 18%

SOUTH, 28%

WEST, 42% Folio

EAST, 5%

NORTH, 44% SOUTH,

22%

WEST, 29% AUM

7

CONSISTENT TRACK RECORD OF REWARDING INVESTORS

Dividends

Strong customer preference for dividends - 4,32,383 (36%) of customer folios in dividend option

Dividends paid out in at least one of our schemes in 8 out of the last 10 years

Fund % Rs. Per unit - on NAV of Rs 10

Select Midcap Fund 402 40.20

Tax Saver Fund 375 37.5

Balanced Fund 223.7 22.37

Select Focus 330 33

S.M.I.L.E 210 21

Many of the funds have returned multiple times the initial capital to investors

8

Investment Philosophy, Process and Risk Management

9

INVESTMENT PHILOSOPHY

Strong investment process

21 member Investment Team

Equity: 4 Fund Managers, 2 Assistant Fund Managers, 8 Analysts, 2 Dealers

Fixed Income: 3 Fund Managers, 2 Credit Analysts, 1 Dealer

1 Economist

Equity

~400 companies under coverage

~250 companies under active coverage (quarterly management visits)

Fixed Income

~350 companies covered in credit universe

10

INVESTMENT PROCESS

Fundamentals &

Management

Assessment

Fund Mangers+

Economist RESEARCH TEAM

External Research

Published Information

Company Visit

Recommended

List

Internal Investment

Committee

Dynamic Fund Portfolio

APPROVED BUY LIST

Executive

Committee

STOCK/ SECURITY

SELECTION Top-Down

Approach

Fund Themes/

Fund Positioning

Sector and Stock Limits/

Issuer & Security Allocation Limits

Bottom-Up Stock Picking/

Asset Quality Evaluation &

External Ratings Po

rtfo

lio

Co

ns

tru

cti

on

Ide

a F

low

&

Re

se

arc

h

Ap

pro

va

l

of

Sto

ck

s/ S

ec

uri

tie

s

Best Trade Execution

Risk Management

Norms

Idea

Generation

Diversification

Liquidity

ROBUST RISK MANAGEMENT PROCESS

11

Risk Management is a core and integral part our business. Our Enterprise Risk Management (ERM) framework has risk policies, guidelines and processes which holistically facilitates optimal risk exposure across functions and ensures that effective control and governance mechanisms are in place.

• Audit Committee of the board oversees the overall ERM framework. The Risk Management team, currently with four members, reports to the COO and functions independently. Investment Risks are monitored at the fund house level, individual fund portfolio level and at the specific investment level. Risk Management Team is actively involved in the overall Investment Process at all stages.

Organization

• Market Risks are managed through absolute and active exposure norms/limits to various factors such as asset class, sector, theme, duration, market cap and style; Market Risk is monitored at both security and fund portfolio levels;

Market Risks

• Internal Credit Committee oversees the credit process. Credit Analyst is independent from the fund management function and is part of the risk management team. Credit risks are managed through continuous evaluation of willingness and ability of issuer to service the debt and through company level and group level credit limits

Credit Risks

• Liquidity at both Security level and portfolio level is closely monitored and aligned with overall product risk profile. Portfolio liquidity is also relatively evaluated with respect to the investor and channel concentration in a particular fund. Changes in market volume and the impact costs are closely tracked.

Liquidity Risks

• Internal Risk Management Committee (IRMC), which has members from all department, reviews firm wide operational and cross-functional risks. Firm wide incidents are recorded, the root causes and the impacts are analyzed and the remedial preventive and corrective actions are closely tracked by the risk management team.

Operational Risks

A Monthly Risk Review is conducted by the top management to discuss firm wide investment and operational risks.

12

Equity

ASSETS UNDER MANAGEMENT - EQUITY

13


In Rs. Crs. AUM Composition AUM Growth

9,131

7,408

5,839

5,356

8,414

8,907

11,245

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Mar

20

11

Mar

20

12

Mar

20

13

Mar

20

14

Mar

20

15

Mar

20

16

Dec

20

16

Close ended 19%

Mid Cap & Small Cap 49%

Large Cap & Multi Cap 21%

Thematic & Sectoral

11%

14

EQUITY FUNDS – RISK RETURN SPECTRUM

LOW

Select Focus

Select Mid Cap

Rural India Equity Multiplier

Tax Saver

Balanced

Financial Services Opportunities

SMILE

Global Advantage

Infrastructure Advantage

HIGH

Equity Plus

Micro Cap Series

Top 100

Select Small Cap

Value

World Brand

Long Term Tax Advantage

15

Equity - Performance of Top 3 Funds

I - SUNDARAM SELECT MIDCAP (INVESTS IN MID AND SMALL CAPS)

16

Value of Rs. 10,000 invested at launch One Time Investment - Returns (%)

CAGR Since Launch: 28.9% vis-a-vis benchmark return of 19.1%.

Consistently outperformed the benchmark

An investment of Rs.10,000 at launch is now worth Rs 3,89,243.

The fund has delivered higher value of Rs. 2,65,025 as compared to

the benchmark for 10,000 invested at launch

AUM: Rs. 4,193 cr

Returns as on December 2016; in house calculations Past performance may or may not be sustained in the future

Dividend: 402% since launch No. of folios: 3.48 lakh

28.9

25.6

29.4

11.3

19.1 18.5

21.5

8.0

16.0

12.1

9.1

3.0

0

5

10

15

20

25

30

35

Since Inception Last 5 years Last 3 years Last 1 year

Fund Benchmark Nifty 50

0

50,000

1,00,000

1,50,000

2,00,000

2,50,000

3,00,000

3,50,000

4,00,000

4,50,000

Jul-

02

Jul-

03

Jul-

04

Jul-

05

Jul-

06

Jul-

07

Jul-

08

Jul-

09

Jul-

10

Jul-

11

Jul-

12

Jul-

13

Jul-

14

Jul-

15

Jul-

16


3.1X

II - SUNDARAM S.M.I.L.E (INVESTS IN SMALL CAPS)

17


CAGR Since Launch: 18.2% vis-a-vis benchmark return of 10.4%. An investment of Rs.10,000 at launch is now worth Rs 72,918.

The fund has delivered higher value of Rs. 40,384 as compared to


AUM: Rs. 1,026 cr



18.2

25.3

31.0

-0.1

10.4

16.8

22.5

1.8

12.2 12.1

9.1

3.0

-5

0

5

10

15

20

25

30

35



0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Feb

-05

Sep

-05

Ap

r-0

6

No

v-06

Jun

-07

Jan

-08

Au

g-0

8

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-

11

Feb

-12

Sep

-12

Ap

r-1

3

No

v-13

Jun

-14

Jan

-15

Au

g-1

5

Mar

-16

Oct

-16


2.24x

III - SUNDARAM TAX SAVER (MULTI CAP FUND)

18




An investment of Rs.10,000 at launch is now worth Rs. 1,55,769.

The fund has delivered higher value of Rs. 87,023 as compared to


AUM: Rs. 1,280 cr



17.4 17.0 17.1

6.8

11.9

13.7

11.5

4.0

11.0 12.1

9.1

3.0

0

2

4

6

8

10

12

14

16

18

20



0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

1,40,000

1,60,000

1,80,000

No

v-99

Jul-

00

Mar

-01

No

v-01

Jul-

02

Mar

-03

No

v-03

Jul-

04

Mar

-05

No

v-05

Jul-

06

Mar

-07

No

v-07

Jul-

08

Mar

-09

No

v-09

Jul-

10

Mar

-11

No

v-11

Jul-

12

Mar

-13

No

v-13

Jul-

14

Mar

-15

No

v-15

Jul-

16

Fund BSE 200 Index

2.27x

19

Fixed Income

ASSETS UNDER MANAGEMENT

20


In Rs. Crs.

AUM Composition AUM Growth

3,904

4,254

6,929

9,852 10,453

11,820

15,300

3,000

5,000

7,000

9,000

11,000

13,000

15,000

17,000

Mar

20

11

Mar

20

12

Mar

20

13

Mar

20

14

Mar

20

15

Mar

20

16

Dec

20

16

Close ended 17%

Money 39%

Ultra Short-Term 17%

Short term 21%

Medium & Long term 6%

RISK-RETURN SPECTRUM

21

Flexible Fund – Flexible

Income Plan

Bond Saver

MIPs

GILT Fund

Ret

urn

Risk

Money Fund

Flexible Fund – Short Term Plan

Ultra Short term Fund

Select Debt Short Term Asset Plan

Banking & PSU Debt

Income Plus

Low Risk to High Risk Low Return to High Return

FTP

Capro

Hybrid

22

EMPHASIS ON CREDIT QUALITY


G-Secs 12.4%

A1+ (short term) 64.6%

AAA (medium term) 18.1%

AA+/AA/AA- 2.8%

Cash Equivalents 2.1%

23

Fixed Income - Performance of Top 3 Funds

I - SUNDARAM MONEY FUND

24

AUM: Rs. 5,918 cr


Dividend: 390% since launch No. of folios: 85,818

Rating Profile Long-term Returns (%)



Ranked 2 by CRISIL

2 stars by Value Research Ratings

7.91

8.78 8.33

7.60 7.48

8.49 8.31

7.50

6.41

8.20 8.03

6.96

0

1

2

3

4

5

6

7

8

9

10


Fund Benchmark CRISIL 91D Tbill

Sovereign, 19.0%

Highest Investment

Grade, 69.3%

Term Deposits, 8.2%

Reverse Repo/CBLO,

11.8%

Cash, Call & NCA – -8.3%

II - SUNDARAM ULTRA SHORT TERM FUND

25

AUM: Rs. 2,200 cr






Ranked 3 by CRISIL


8.41 9.01

8.39 8.00

7.61

8.49 8.31

7.48

6.56

8.20 8.03

6.94

0

1

2

3

4

5

6

7

8

9

10


Fund Benchmark CRISIL 91D Tbill

Sovereign, 0.6%

Highest Investment

Grade, 91.6%

Term Deposits, 6.1%

Reverse Repo, 0.3%

Cash & Others, 1.2%

III - FLEXIBLE FUND – SHORT TERM PLAN

26

AUM: Rs. 1,524 cr




CAGR Since Launch: 8.31% vis-a-vis benchmark return of 8.16%. Ranked 1 by CRISIL


8.31 8.82 8.57

7.88 8.16

9.27 9.65 9.83

6.32

7.60 8.02

7.27

0

2

4

6

8

10

12


Fund Benchmark CRISIL 1Yr Tbill

Certificate of Deposits

98.7%

Reverse Repo/CBLO

1.3%

27

Portfolio Management

ASSETS UNDER MANAGEMENT - PORTFOLIO MANAGEMENT

28

Data as of December 2016 Sundaram India Secular Opportunities Portfolio (SISOP)

Portfolio of Attractive Company’s Equity (PACE)

Concentrated set of high conviction stocks

A Core and a Satellite approach, balancing Value & Growth

In Rs. Crs. AUM Composition AUM Growth

120 130 210

390

975

1,280 1,280

0

200

400

600

800

1,000

1,200

1,400

Mar

20

11

Mar

20

12

Mar

20

13

Mar

20

14

Mar

20

15

Mar

20

16

Dec

20

16

Advisory 32%

SISOP 17%

Mid cap strategy 11%

PACE 7%

Other Strategies 33%

PERFORMANCE OF TOP STRATEGIES

29

Sundaram India Secular Opportunities Portfolio (SISOP)

Value of Rs.1 Lakh invested in Model Portfolio

Sundaram Mid cap Strategy

Sundaram Portfolio of Attractive Companies Equity – (PACE)

1.8x

3.0x

Investing in a concentrated set of high conviction stocks that exhibit secular growth characteristic

Investing in midcap stocks that are in early stages of their business cycle

Strategy

Benchmark

1.5x

2.0x

1.7x

5.0x

Follows a Core and a Satellite approach, balancing between value and growth

30

KEY PERSONNEL

Name Designation Designation

Since

Overall

Experience

Experience at

SAMC

Harsha Viji Managing Director July 2012 15 years 6 years

Sunil Subramaniam CEO July 2015 30 years 11 years

S.Krishnakumar CIO, Equity April 2015 25 years 13 years

Dwijendra Srivastava CIO, Fixed Income April 2014 18 years 6 years

Bharath S Fund Manager, PMS January 2016 14 years 12 years

THANK YOU

Documents

Corporate Presentation · III - SUNDARAM TAX SAVER (MULTI CAP FUND) 18 One Time Investment - Returns (%) Value of Rs. 10,000 invested at launch CAGR Since Launch: 17.4% vis-a-vis