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    Canara Robeco Mutual FundInvestment Manager : Canara Robeco Asset Management Co. Ltd.Construction House, 4th Floor, 5, Walchand Hirachand Marg,Ballard Estate, Mumbai 400 001.Tel.: 6658 5000, 6658 5086 Fax: 6658 5012 / 13.www.canararobeco.com

    KeyInformationMemorandumand application form

    Open Ended Equity / Hybrid SchemesCanara Robeco Infrastructure Canara Robeco Equity DiversifiedCanara Robeco Balance Canara Robeco Emerging EquitiesCanara Robeco Nifty Index Canara Robeco Equity Tax Saver

    Canara Robeco F.O.R.C.E Fund Canara Robeco Large Cap + Fund

    Open Ended Debt / Money Market SchemesCanara Robeco Floating Rate Canara Robeco LiquidCanara Robeco Treasury Advantage Fund Canara Robeco IncomeCanara Robeco Gilt PGS Canara Robeco Dynamic Bond FundCanara Robeco Short Term Fund Canara Robeco Monthly Income PlanCanara Robeco InDiGo Fund

    This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of thescheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors' rights & services, risk factors, penalties & pending litigations etc. investors should,before investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centres ordistributors or from the website: www.canararobeco.com.

    The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filedwith Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certifiedthe accuracy or adequacy of this Key Information Memorandum.

    This Key Information Memorandum (KIM) dated as on 31st December, 2010.

    Canara Robeco KIM l 01

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    Canara RobecoEquity Diversified

    Canara RobecoEmerging Equities

    Canara RobecoInfrastructure

    Type & Category :Open Ended Equity Scheme

    Type & Category :Open Ended Equity Scheme

    Type & Category :Open Ended Equity Scheme

    Type & Category :Open Ended Equity Scheme

    Investment Objective : To generatecapital appreciation by investing inequity and equity related securities.

    Investment Objective :To generatecapital appreciation by primarilyinvesting in diversified mid cap stocks.

    Investment Objective : To generateincome/capital appreciation byinvesting in equities and equity relatedinstruments of companies in theinfrastructure sector.

    Investment Strategy: Canara RobecoInfrastructure is an open-end Schemehaving a primary objective to generateincome / capital appreciation byinvesting in equities / equity relatedinstruments of companies in theinfrastructure sector.The Association of Mutual Funds in India(AMFI) has laid down classification ofindustries which is treated as a base listfor classification of industries under theInfrastructure Sector. However, the listof industries is indicative and the AMCmay add such other industries / sectorswhich broadly satisfy the category ofinfrastructure industries. The Indianeconomy has been among the fastestgrowing economies in the world. If thegrowth rate has to be sustained over alonger period, the country needs hugeinfrastructure spending. One of the keyconstraints for the Indian corporates tobecome globally competitive isinadequate infrastructure. Realising theu r g e n c y a n d i m p o r t a n c e o f infrastructure development, thegovernment has initiated a number ofmeasures. The government has createda positive regulatory and policyenvironment like implementation of theElectricity Act, Telecom policies, etc. Thecountry needs additional Power,Telecom, Aviation and the Maritimesectors etc. The government is findinginnovative ways of funding throughPublic-Private Partnership initiatives,imposition of cess, etc. There are goodinvestments happening in roads,

    seaports, airports, power, oil and gassectors, water supply, sewerage, etc.Hence one of the key economic growthdrivers today is the huge infrastructurespending.With the spending, many companies inthe infrastructure sector stand to benefitby way of increased turnover and highere a r n i n g s . T h i s p r e s e n t s i d e a lopportunities in the stock market, as themarke t cap i ta l i zat ion o f th e secompanies will also grow in tune withthe earnings growth. The scheme isdesigned to invest in shares of thosecompanies, which hold high potential tobenefit from such infrastructurespending. The scheme will look forcompanies, which are reasonablyvalued and are having high earningsgrowth potential in the infrastructure

    sector.

    Investment Strategy: The Scheme is anopen-ended scheme with an objective togenerate long term capital appreciationby primarily investing in diversified midcap stocks that have potential to emergeas the bigger Corporates with higherperformance. The scheme is designed toinvest in shares of those companies,which hold high potential to emerge asthe better performers in the future.Indian Corporates have emerged asglobally competitive, cost conscious,profit oriented enterprises with the built-in capacity to exploit the globalopportunities. With such robust businessmodel, though they are mid-sized / smallsized in terms of market capitalizationtoday, they have the potential to emerge

    as blue chips of tomorrow. Thedynamically changing and fastestgrowing Indian economy is enablingentrepreneurs to capitalize on thegrowth opportunities. Such companiescommand low P/E ratio as compared toindustry P/E. When they achieve highergrowth rate, automatically the value getunlocked and consequently the P/E ratiowould improve thereby facilitatingwealth creation to the shareholders.They have the potential of becoming theblue chips of the market tomorrow. Suchcompanies offer good scope forinvestments.

    Investment Strategy: The fund willinvest in any of the 'Top 150' stocks onthe basis of market capitalizationrepresenting large cap stocks. CanaraRobeco Large Cap+ Fund will have adistinctive feature in its investmentprocess. This fund will use the inputs ofthe Robeco EmergingMarkets Quantitative model ('REMQuant model') in its investment processas an Idea Generator.

    Investment Strategy: The Schemewould adopt a bottom-up approach toinvesting with an aim of identifyingcompanies with strong competitiveposition in good business and havingquality management. Essentially, thefocus would be on fundamentally strongcompanies with scope for good growthover time. Some key factors such asFundamentals of the business, thequality of management, the financialstrength of the company, etc. would beconsidered at the time of stock selection.The AMC would incorporate adequatesafeguards for controlling risks inportfolio construction process at thetime of investing. Stock specific risk willbe minimized by investing only in those

    companies that have been thoroughlyanalyzed by the AMC. The AMC will alsomonitor and control maximumexposures to any one security.

    Asset Under Management (31.12.2010)(INR crs) : 148.87

    Asset Under Management (31.12.2010)(INR crs) : 36.81

    Asset Under Management (31.12.2010)(INR crs) : 199.43

    Asset Under Management (31.12.2010)(INR crs) : 392.96

    Number of Live Folios : 33192 Number of Live Folios : 6960 Number of Live Folios : 15504Number of Live Folios : 150885

    Comparison with Other Schemes :Canara Robeco Infrastructure capturesthe opportunity created by huge growthin capital formation in the economy,through a predominantly large-caporiented portfolio. The fund follows at h e m a t i c a p p r o a c h t o w a r d sInfrastructure with a 'Growth' style ofinvesting. The fund has a bias towardsconcentrated holdings on highconviction ideas.

    Comparison with Other Schemes :Canara Robeco Equity Diversified followsa predominantly bottom-up investmentapproach with a focus on fundamentallysound companies which are likely todeliver superior capital appreciationover the medium-term. The fund has apredominant focus on large caps withselect high conviction mid cap ideas. Thefund provides a blend of 'Growth' and'Value' style of investing.

    Comparison with Other Schemes :Canara Robeco Emerging Equitiesprovides a portfolio of well diversfiedgrowth oriented companies within smalland midcap universe. The Fund identifiesstars of tommorrow within the segment.

    Comparison with Other Schemes :Canara Robeco Large Cap+ is an openended fund which will invest in Top 150companies based on their Marketcapitalization. The fund aims to benefitfrom the growing Indian economy byinvesting in large cap stocks as they havea potential to grow in tandem withIndian economy. The fund will also utilizethe inputs from the internal quant modelwhich will act as an idea generator

    Canara RobecoLarge Cap+ Fund

    Investment Objective :The InvestmentObjective of the fund is to provide capitalappreciation by predominantly investingin companies having a large marketcapitalization. However, there can be noassurance that the investment objectiveof the scheme will be realized.

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    Canara RobecoEquity Diversified

    Canara RobecoEmerging Equities

    Canara RobecoInfrastructure

    *For the purpose of this Fund, Mid &Small Cap Companies are defined asthose which are ranked from 151 to 500on the basis of market capitalisation. Theranking will be reviewed periodically.

    Instruments % of InvestibleFunds (Indicative)

    Min MaxEquity and Equity 75 100relatedinstruments ofcompanies

    in theinfrastructuresector includingderivatives of suchcompanies

    Domestic Debt 0 25and MoneyMarketInstruments

    Asset Allocation

    Instruments % of InvestibleFunds (Indicative)

    Asset Allocation

    Min MaxEquity and Equity 85 100relatedinstruments.

    Money Market 0 15

    instruments.

    Instruments % of InvestibleFunds (Indicative)

    Asset Allocation

    Min MaxMid & Small Cap 65 100equity and equityrelatedinstruments*

    Equity & equity 0 35relatedinstruments ofCompaniesother than theabove

    Domestic Debt 0 35and MoneyMarketInstruments

    Instruments % of InvestibleFunds (Indicative)

    Asset Allocation

    Min MaxLarge Cap equity 65 100and equity relatedinstruments*Domestic Debt and

    Money Market 0 35Instruments(includingsecuritized debt upto 10% of AUM)

    Benchmark Index : BSE 200 Benchmark Index :CNX Mid Cap Benchmark Index :BSE 100Benchmark Index : BSE 100

    Plans/ Options :Growth OptionGrowth Option with AutomaticRepurchaseDividend Option -

    Dividend Reinvestment,Dividend Payout

    Bonus Option

    Plans/ Options :Growth OptionDividend Option -

    Dividend Reinvestment,Dividend Payout

    Plans/ Options :

    Growth Option

    Dividend Option -

    Dividend Reinvestment,

    Dividend payout

    Plans/ Options :Growth OptionGrowth Option with AutomaticRepurchaseDividend Option -

    Dividend Reinvestment,Dividend payout

    Bonus Option

    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

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    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

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    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

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    Minimum Investment:Lumpsum:`5,000 in multiples of`1thereafter.Subsequent purchases: Minimumamount of`1,000.00 and multiples of`1.00 thereafter.

    SIP/STP: For Monthly Frequency - `1000 and in multiples of`1 thereafter.For Quarterly Frequency-`2000 and inmultiples of`1 thereafter.

    Fund Manager : Mr. Anand Shah Fund Manager : Mr. Anand Shah Fund Manager : Mr. Anand ShahFund Manager : Mr. Anand Shah

    Performance Performance PerformancePerformance

    Scheme Benchmark

    Inception Date 2

    Last 1 year 11.75% 15.66%

    Last 3 years -4.52% -1.45%

    Last 5 years - -

    Since inception 18.11% 17.31%

    NAV on 31.12.2010

    (Growth Option) 23.3000

    .12.05 2.12.05

    `

    Scheme Benchmark

    Inception Date

    Last 1 year 20.67% 16.22%

    Last 3 years 4.61% -1.56%

    Last 5 years 19.68% 16.37%

    Since inception 27.06% 23.21%

    NAV on 31.12.2010

    (Growth Option) 57.3800

    16.9.03 16.9.03

    `

    Scheme Benchmark

    Inception Date

    Last 1 year 28.32% 19.16%

    Last 3 years -2.56% -1.26%

    Last 5 years 12.90% 17.03%

    Since inception 16.08% 19.76%

    NAV on 31.12.2010

    (Growth Option) 23.7900

    11.3.05 11.3.05

    `

    Scheme Benchmark

    Inception Date

    Last 1 year - -

    Last 3 years - -

    Last 5 years - -

    Since inception 6.60% 8.37%

    NAV on 31.12.2010

    (Growth Option) 10.6600

    21.8.10 21.8.10

    `

    YoY absol ut e re turns Benchmark

    Returns (%) Returns (%)

    YoY absolute returns Benchmark YoY absolute returns Benchmark

    Performance of the Scheme(Growth Option)

    Performance of the Scheme(Growth Option) Returns (%)

    Performance of the Scheme(Growth Option) Returns (%)

    Performance of the Scheme(Growth Option)

    Returns : CAGR Past performance mayor may not be sustained in future.

    Returns : CAGR Past performance mayor may not be sustained in future.

    Returns : CAGR Past performance mayor may not be sustained in future.

    Returns : CAGR Past performance mayor may not be sustained in future.

    Canara RobecoLarge Cap+ Fund

    *For the purpose of this Fund, Large CapCompanies are defined as those whichare ranked from 1 to 150 on the basis ofmarket capitalization at the time ofinvestment. The ranking will be reviewedon the basis of market capitalisation ofcompanies at the end of every calendarquarter.

    (Note : Scheme has been not completed 1 year)

    BenchmarkAbsolute Returns

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    Canara RobecoEquity Diversified

    Canara RobecoEmerging Equities

    Canara RobecoInfrastructure

    Entry Load : Nil*

    Exit Load :

    Lump Sum/ SIP / STP:

    1% - If redeemed/switched out within 1year from the date of allotment, Nil - ifredeemed/switched out after 1 yearfrom the date of allotment.

    * Entry Load : Nil*

    Exit Load :

    Lump Sum/ SIP / STP:

    1% - If redeemed/switched out within 1year from the date of allotment, Nil - ifredeemed/switched out after 1 yearfrom the date of allotment.

    * Entry Load : Nil*

    Exit Load :

    Lump Sum/ SIP / STP:

    1% - If redeemed/switched out within 1year from the date of allotment, Nil - ifredeemed/switched out after 1 yearfrom the date of allotment.

    * Entry Load :Exit Load :Lump Sum/ SIP / STP:1% for all amounts ifredeemed/switched-out within 1 year from thedate of allotment. Nil if redeemed /switched-out after 1 year from the date ofallotment.

    Nil**

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 2.40%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 2.50%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 2.39%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 2.32%

    Canara RobecoEquity Tax Saver

    Canara RobecoNifty Index

    Canara Robeco Balance

    Investment Objective : ELSS seeking toprovide long term capital appreciationby predominantly investing in equitiesand to facilitate the subscribers to seek

    tax benefits as provided under Section80 C of the Income Tax Act, 1961

    Investment Strategy : The Scheme aimst o a c h i e v e l o n g t e r m c a p i t a lappre c iat ion by pre domin an t lyinvesting in equities to facilitate thesubscribers to seek tax benefits asprovided under Section 80 C of theIncome Tax Act, 1961. Given the lock-infeature of the Scheme, the fundmanager is entrusted with the levy toengage in long term investing with nosudden liquidity pressures. Theinvestment emphasis of the scheme willbe in identifying companies with st rongcompetitive position in good business

    and having quality management. TheAMC will follow an active investmentstyle supported by in-house research.

    Investment Strategy : Canara RobecoBalance is an open ended equity basedScheme with partial allocation to DebtInstruments. The Scheme is positionedas a lower risk alternative to a pureequities scheme, while retaining someof the upside potential from equitiesexposure. The Scheme provides theInvestment Manager with the flexibilityto shift allocations within the prescribedasset allocation brackets in the event ofa change in view regarding an assetclass.The Equity Investment philosophy would

    bottom-up stock picking with the aim toinvest in companies with strongcompetitive position in good businessand having quality management.Essentially, the focus would be onfundamentally strong companies withscope for good growth over time. Somekey factors such as Fundamentals of thebusiness, the quality of management,the financial strength of the company,etc. would be considered at the time ofstock selection.On the remaining portion of theportfolio, the Scheme would investsome portion of the portfolio in MoneyMarket Instruments so as to meet thenormal repurchase requirements. Theremaining investment will be made insecurities which are either expected tobe reasonably liquid or of varyingmaturity. However, the NAV of theScheme may be affected, if the securitiesinvested in are rendered illiquid afterinvestment. In addition, the InvestmentManager will study the macro economicconditions, including the political,economic environment and factorsaffecting liquidity and interest rates.

    Investment Strategy : Canara RobecoNifty Index being an index linked schemefollows passive style of managementand is subject to tracking errors. TheScheme may invest in other indicesmanaged by the AMC or in the indexschemes of any other Mutual Funds,provided it is conformity to theinvestment objectives of the Schemeand in terms of the prevailingRegulations.The Scheme will be managed passivelywith investments in stocks in aproportion that is as close as possible to

    the weightage of these stocks in therespective index. The investmentstrategy would revolve around reducingthe tracking error to the least possiblethrough regular rebalancing of theportfolio, taking into account thechange in weights of stocks in the index.In addition, the Investment Managerwill study the macro economicconditions, including the political,economic environment and factorsaffecting liquidity and interest rates. TheInvestment Manager would use thisanalysis to assess the likely direction ofinterest rates and position the portfolioappropriately to take advantage of thesame on the fixed income portion of theportfolio.

    Investment Strategy : Canara RobecoF.O.R.C.E Fund (Financial Opportunities,Retail Consumption & EntertainmentFund) is an open-end Scheme having aprimary objective to generate income /capital appreciation by investing inequities / equity related instruments ofcompanies in the Finance, Retail &Entertainment sectors. The Schemewould aim to capture opportunitieswithin the above said sectors primarilyapart focusing on other sectors.Some Opportunities in the financialsector include - Banks Public & Private,

    Investment Banks, Distribution Houses,Listed asset management companies,Insurance Companies, BrokerageHouses, etc. Opportunities in theentertainment sector include Broadcasting, Electronic and PrintMedia, Content providers, Multiplexes,etc. On the Retail Side, Organizedplayers facilitating Retail Consumptionprovide a wide array of investmentopportunities going forward.The investment emphasis of the schemewill be in identifying companies withstrong competitive position in goodb u s i n e s s a n d h a v i n g q u a l i t ymanagement. The AMC will follow anactive investment style supported by in-house research. Essentially, the focuswould be on fundamentally strongcompanies with scope for good growthover time. The AMC, in selecting thescrips will focus on the fundamentals ofthe business, the industry structure, thequality of management sensitivity toeconomic factors, the financial strengthof the company and the key earningsdrivers.

    Type & Category : Open Ended EquityLinked Tax Saving Scheme

    Investment Objective :income/capital appreciation byinvesting in companies whose securitiesare included in the S & P CNX Nifty.

    To generate Investment Objective : The objective ofthe Fund is to provide long - term capitalappreciation by primarily investing inequity and equity related securities ofcompanies in the Finance, Retail &Entertainment sectors.

    Type & Category :Linked Equity Scheme

    Open Ended Nifty Type & Category :Open Ended EquityScheme

    Type & Category : Open Ended BalancedScheme

    Investment Objective : To seek togenerate long term capital appreciationand / or income from a portfolioconstituted of equity and equity relatedsecurities as well as fixed incomesecurities (debt and money marketsecurities)

    Canara Robeco F.O.R.C.EFund

    Asset Under Management (31.12.2010)(INR crs) : 184.58

    Asset Under Management (31.12.2010)(INR crs) : 5.35

    Asset Under Management (31.12.2010)(INR crs) : 194.05

    Asset Under Management (31.12.2010)(INR crs) : 234.56

    Number of Live Folios : 93615 Number of Live Folios : 13827Number of Live Folios : 1527Number of Live Folios : 61400

    Canara RobecoLarge Cap+ Fund

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    Benchmark Index :

    BSE 100

    Plans/ Options :Growth Option

    Dividend Option - DividendReinvestment

    - Dividend payout

    Plans/ Options :Growth Option

    Dividend Option - DividendReinvestment

    - Dividend payout

    Plans/ Options :Growth Option

    Dividend Option - DividendReinvestment

    - Dividend payout

    Minimum Investment:Lumpsum : 500 in multiples of 1thereafterSIP/STP : For monthly frequency - 500and in multiples of 1 thereafterFor quarterly frequency - 1000 and inmultiples of 1 thereafter

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    Benchmark Index :

    S & P CNX Nifty

    Benchmark Index :

    S & P CNX Nifty

    Benchmark Index :

    Crisil Balanced Fund Index

    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafter. NRI/FII/OCBs : 50,000 & inmultiples of 1,000.Corporates/Trusts & InstitutionalInvestors : 50,000 & in multiples of10,000SIP/STP : For monthly frequency -1000 and in multiples of 1 thereafter.For quarterly frequency - 2000 and inmultiples of 1 thereafter

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    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

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    Minimum Investment:Retail Plan : 5,000.00 and multiplesof 1.00 thereafter. Subsequentpurchases: Minimum amount of500.00 and multiples of 1.00thereafter.Institutional Plan : 5,00,00,000.00(

    5 cr) and multiples of 1 thereafter.Subsequent purchases: Minimumamount of 5,00,000.00 (Rs FiveLakhs) and multiples of 1.00 thereafter.SIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

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    Canara RobecoEquity Tax Saver

    Canara RobecoNifty Index

    Canara Robeco Balance Canara Robeco F.O.R.C.EFund

    Comparison with Other Schemes :Canara Robeco Equity Tax Saver is anELSS with a 3 year lock-in periodproviding Tax Benefits under Sec 80 C ofIncome Tax Act. The fund benefits fromlong term investing due to its lock-in andhas a balanced portfolio of large andmid cap stocks with a 'Growth' style ofinvesting.

    Comparison with Other Schemes :Canara Robeco Balance aims tog e n e r a t i n g l o n g - t e r m c a p i t a lappreciation through a prudent mix ofequity and debt portfolio, suitable forthe average investor as it takes away theburden of focusing on asset allocationbetween equity & debt. The fund investsin a careful blend of select stocks anddebt securities which effectively spreads

    the risk.

    Comparison with Other Schemes :Canara Robeco Nifty Index is an indexfund following passive style of investingby tracking S&P Nifty.

    Comparison with Other Schemes :Canara Robeco FORCE Fund is an openended thematic fund predominantlyinvesting in 3 sectors benefitting fromthe rising and stable domestic demandi . e . F i n a n c i a l S e r v i c e s , R e t a i lC o n s u m p t i o n a n d M e d i a &Entertainment. The fund will also lookfor opportunity to invest in few othercompanies which benefit from this

    theme not covered in the sectorsmentioned above. The fund will invest instocks across the Market Capitalisationrange and will look to follow 'Growth'style of investing.

    Asset Allocation Asset Allocation

    Instruments % of InvestibleFunds (Indicative)

    Min MaxEquity and Equityrelated 80 100Instruments.Money Marketinstruments. 0 20

    Instruments % of InvestibleFunds (Indicative)

    Min MaxEquity and Equityrelated 40 75instruments

    Debt SecuritiesincludingSecuritized debt

    havingrating above AA or 25 60equivalent,MoneyMarketInstruments, Govt.Securities

    Asset Allocation

    Instruments % of InvestibleFunds (Indicative)

    Min MaxEquities covered bythe Nifty in thesamepercentageweightage as inthe Nifty (including 90 100

    Exchange TradedEquity Derivativeson theS&P CNX Nifty).

    Money MarketInstruments 0 10including CallMoney.

    Asset Allocation

    Instruments % of InvestibleFunds (Indicative)

    Min Max# Equity and equityrelated instrumentsof companies in theFinance, Retail &Entertainmentsector 65 100

    Other Equity andequity relatedinstruments 0 35

    Domestic Debt andMoney Marketinstruments(Includingsecuritised debt upto 10% of net assets) 0 35

    # The scheme shall invest minimum 40%and maximum 65% in Finance Sector,minimum 15% and maximum 35% inEntertainment sector and minimum 10%and maximum 25% in Retail sector.

    Plans/ Options :Retail Plan :Growth OptionGrowth option with automaticrepurchaseDividend Option-

    Dividend ReinvestmentDividend payout

    Institutional Plan :Growth OptionGrowth option with automaticrepurchaseDividend Option -

    Dividend ReinvestmentDividend payout

    06 l KIM Canara Robeco

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    Performance Performance Performance Performance

    Canara RobecoNifty Index

    Canara Robeco Balance Canara Robeco F.O.R.C.EFund

    Canara RobecoEquity Tax Saver

    Fund Manager :Mr. Anand Shah

    Fund Manager :Mr. Anand Shah

    Fund Manager :Mr. Anand Shah / Ms. Suman Prasad

    Fund Manager :Mr. Anand Shah

    Scheme Benchmark

    Inception Date 31.3.93 1.1.90

    Last 1 year 24.99% 15.66%

    Last 3 years 7.02% -1.45%

    Last 5 years 19.15% 16.58%Last 10 years 15.61% 18.02%

    Since inception 15.03% 14.09%

    NAV on 31.12.2010(Growth Option) 27.2200`

    Scheme Benchmark

    Inception Date 1.2.93 31.3.02

    Last 1 year 17.36% 13.57%

    Last 3 years 5.18% 3.45%

    Last 5 years 17.73% 13.64%Last 10 years 20.14% -

    Since inception 10.76% -

    NAV on 31.12.2010(Growth Option) 62.4800`

    Scheme Benchmark

    Incept ion Date 8.10.04 5.7.90

    Last 1 year 17.65% 17.95%

    Last 3 years -0.65% -0.02%

    Last 5 years 15.72% 16.66%Last 10 years - -

    Since inception 20.71% 21.52%

    NAV on 31.12.2010(Growth Option) 32.3300`

    Scheme Benchmark

    Inception Date 14.9.09 14.9.09

    Last 1 year 32.80% 17.95%

    Last 3 years - -

    Last 5 years - -Last 10 years - -

    Since inception 31.15% 20.67%

    NAV on 31.12.2010(Growth Option) 14.2100`

    Returns (%) Returns (%) Returns (%)Performance of the Scheme(Growth Option)

    Performance of the Scheme(Growth Option)

    Performance of the Scheme(Growth Option)

    Returns : CAGR Past performance mayor may not be sustained in future.

    Returns : CAGR Past performance mayor may not be sustained in future.

    Returns : CAGR Past performance mayor may not be sustained in future.

    Returns : Absolute Past performancemay or may not be sustained in future.

    YoY absol ute ret urns BenchmarkYoY absolute returns Benchmark YoY absolute returns Benchmark

    Entry Load : NilExit Load : Nil

    ** Entry Load :Exit Load : Lumpsum / SWP / SIP/STP :1% - If redeemed / switched out within 1year from the date of a llotment, Nil ifredeemed / switched out after 1 yearfrom the date of allotment

    Nil

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 1.00%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 2.36%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 2.39%

    Actual Recurring Expenses for theprevious financial year ended September

    30, 2010 : 2.38%

    Entry Load : Nil*

    Exit Load :

    Lump Sum/ SIP / STP:

    1% - If redeemed/switched out within 1year from the date of allotment, Nil - ifredeemed/switched out after 1 yearfrom the date of allotment.

    * Entry Load : Nil*

    Exit Load :

    Lumpsum / SWP / SIP/ STP :1% - If redeemed / switched out within1 year from the date of allotmentNil if redeemed / switched out after1 year from the date of allotment

    *

    0

    80

    60

    20

    40

    -60

    -40

    -20

    29 Dec06

    31 Dec07

    31 Dec08

    31 Dec09

    31 Dec10

    BenchmarkAbsolute Returns

    Canara Robeco KIM l 07

    Since Inception

    15

    10

    5

    25

    30

    20

    35

    0

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    Type & Category : Open Ended CashManagement Scheme

    Type & Category : Open Ended DebtScheme

    Type & Category : Open Ended DebtScheme

    Type & Category : Open Ended DebtScheme

    Investment Objective : To generateIncome by investing in Debt instruments,MMI and small portion in equity.

    Investment Strategy : In Canara RobecoLiquid the funds will be invested inMoney Market Instruments (with un-expired maturity less than 91 days)offering reasonable liquidity andreturns, with risk perceived by theInvestment Manager and a portion ofthe funds will also be invested in ratedand un-rated corporate bonds anddebentures.

    Investment Strategy : The Scheme willinvest primarily in Debt and Moneymarket instruments with an objective togenerate regular returns. The secondaryobjective of the Scheme is to generatelong-term capital appreciation byinvesting a portion of the Scheme'sassets in equity and equity relatedinstruments.The funds will be invested in debt andmoney market securities of differentmaturities and risk profiles. Theinvestments may be made in primary aswell as secondary markets. As far aspossible, the portfolio will be adequatelydiversified to reduce the risk ofunderperformance, arising out ofunexpected security-specific factors.Investments will be made in State /Central Government Securities, TreasuryBills : i) supported by the ability toborrow from the Treasury ii) supportedby sovereign guarantee or of the StateGovernment iii) supported by theGovernment of India / State Governmentin any other manner.The Scheme being open ended, someportion of the portfolio may be investedin Money Market Instruments so as tom e e t t h e n o r m a l r e p u r c h a s er e q u i r e m e n t s . T h e r e m a i n i n ginvestment will be made in securitieswhich are either expected to bereasonably liquid or of varying maturity.However, the NAV of the Schemes maybe affected, if the securities invested inare rendered illiquid after investment.

    The Investment Manager targets toidentify securities which offer optimumlevel of yield at lower level of risks. Rateddebt instruments in which the Schemeinvests will be of investment grade asrated by the credit rating agency. Inaddition, the Investment Manager willmonitor the macro economic conditions,including the political, economicenvironment and factors affectingliquidity and interest rates.The Equity Investment philosophy wouldbe bottom-up stock picking with the aimto invest in companies with strongcompetitive position in good businessand having quality management.Essentially, the focus would be onfundamentally strong companies withscope for good growth over time.

    Investment Strategy : The focus of theScheme is to achieve the investmentobjective through investments incombination of debt and money marketinstruments having varied yield andmaturity profile. The Scheme ispositioned as an intervening investmentavenue between long-term debt schemeand short term liquid scheme. Apartfrom investment restrictions under SEBI(MF) Regulations, the Fund does notpresently intend to follow any internalnorms vis-a-vis limiting exposure to aparticular security or sector etc.However, the Fund may considerimposing any restrictions depending onthe changes in the investmentenvironment from time to time.The fund will be invested in debt andmoney market securities of differentmaturity and r isk prof i les. Theinvestments may be made in primary aswell as secondary markets. As far aspossible, the portfolio will be adequatelydiversified to reduce the risk of under-performance arising out of unexpectedsecurity-specific factors. Investments willbe made in State / Central GovernmentSecurities, Treasury Bills : i) supported bythe ability to borrow from the Treasury ii)supported by sovereign guarantee or ofthe Statement Government, ii i)supported by the Government of India /State Government in any other manner.The Scheme will seek to underwriteissuance of Government Securities if any,to the extent permitted by SEBI/RBI,

    subject to the prevailing rules andregulations specified in this respect. TheScheme may also participate in theirauction from time to time. In addition,the Investment Manager will study themacro economic conditions, includingpolitical, economic environment andfactors affecting liquidity and interestrates. The Investment Manager woulduse this analysis to assess the likelydirection of interest rates and positionthe portfolio appropriately to takeadvantage of the same.

    Canara Robeco LiquidCanara RobecoFloating Rate

    Canara Robeco TreasuryAdvantage Fund

    Canara RobecoMonthly Income Plan

    Asset Under Management (31.12.2010)(INR crs) : 162.10

    Asset Under Management (31.12.2010)(INR crs) : 360.27

    Asset Under Management (31.12.2010)(INR crs) : 2,285.83

    Asset Under Management (31.12.2010)(INR crs) : 1,460.86

    Number of Live Folios : 597 Number of Live Folios : 9943Number of Live Folios : 1153Number of Live Folios : 760

    Comparison with Other Schemes :Canara Robeco Floating Rate offers aninvestment option with mix of fixed andfloating rate instruments in its portfolio.The fund is similar to a money marketfund and is less sensitive to interest ratefluctuations.

    Comparison with Other Schemes :Canara Robeco Liquid invests in onlyshort-term money market instrumentswith an aim to generate higher returnthan the risk free rate of return andensuring liquidity at all the time. Thefund is suitable for investments with veryshort term horizon & to park surplusmoneys.

    Comparison with Other Schemes :Canara Robeco Treasury AdvantageFund seeks to provide consistent incomeand liquidity through investments madeprimarily in money market and debtsecurities following a low risk strategy.The portfolio duration of the fund tendsto b slightly higher than a liquid fund.

    Comparison with Other Schemes :Canara Robeco Monthly Income Plan is adebt oriented hybrid fund which aims togenerate consistent income and stableperformance with a small participationto equity investments.

    Investment Objective : The fund seeks togenerate income by investing in aportfolio comprising of short term debtinstruments and money marketinstruments with weighted averageportfolio duration of equal to or lessthan 1 year.

    Investment Strategy : In Canara RobecoLiquid the funds will be invested inMoney Market Instruments (with un-expired maturity less than 91 days)offering reasonable liquidity andreturns, with risk perceived by theInvestment Manager and a portion ofthe funds will also be invested in ratedand un-rated corporate bonds anddebentures.

    Investment Objective : To enhance theincome, while maintaining a level ofliquidity through, investment in a mix ofMMI & Debt securities.

    Investment Objective : To generateincome/capital appreciation through alow risk strategy by investment in DebtS e c u r i t i e s a n d M o n e y M a r k e tInstruments.

    08 l KIM Canara Robeco

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    Benchmark Index :Index

    Crisil Liquid FundBenchmark Index :Index

    Crisil Liquid Fund

    Instruments % of InvestibleFunds (Indicative)

    Min MaxMMI/Call/DebtInstruments withresidual average 20 100maturity of equal orless than one year.

    Debt Instrumentswith residualaverage maturityof more than one 0 80year (InclSecuritised Debt)

    Benchmark Index :Index

    Crisil Liquid Fund

    Instruments % of InvestibleFunds (Indicative)

    Min MaxDebt (includingsecuritized Debt 75 90with MMI)Equity and Equityrelated 10 25

    instruments

    Plans/ Options :Growth OptionGrowth Option withAutomatic RepurchaseDividend OptionMonthly Div Payout/Reinvest.Quarterly Div Payout/Reinvest.

    Benchmark Index :Index

    Crisil MIP Blended

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Money MarketInstruments / 65 100Call Money

    Debt (Including 0 35

    Securitised Debt)

    Asset Allocation Asset AllocationAsset AllocationAsset Allocation

    Plans / Options : Retail Plan :Growth Option , Dividend Option :Daily Divi. Reinvestment, Weekly Divi.Reinvestment, Fortnightly Divi.Reinvestment, Monthly Div.Reinvestment.Institutional Plan : Growth Option,Dividend Option : Daily Dividend

    Reinvestment, Weekly DividendReinvestment,Fortnightly Div.Reinvestment, Monthly Div. Payout /Reinvestment, Quarterly DivPayout/Reinvestment.Super Institutional Plan : GrowthOption , Dividend Option : Daily Div.Reinvestment, Weekly Div. Payout /Reinvestment, Fortnightly Div.Reinvestment, Monthly Div. Payout /Reinvestment

    Plans / Options : Retail Plan :Growth Option, Dividend Option :Daily Divi. Reinvestment,Weekly Divi. Reinvestment,Fortnightly Divi. Reinvestment,Monthly Div. Reinvestment.Institutional Plan : Growth Option/,Dividend Option : Da il y Di v id en d

    Reinvestment, We e k l y D i v i d e n dReinvestment,F o r t n i g h t l y D i v .Reinvestment, Monthly Div. Payout /Reinvestment, Q u a r t e r l y D i vPayout/Reinvestment.Super Institutional Plan : GrowthOption, Dividend Option : Daily Div.Reinvestment, Weekly Div. Payout /R e in ve stme n t, Fortn igh t ly D iv .Reinvestment, Monthly Div. Payout /Reinvestment

    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

    ` `

    `

    `

    `

    `

    Fund Manager :Mr. Ritesh Jain

    Performance of the Scheme(Compounded Annualized Returns)

    Fund Manager :Mr. Anand Shah /Ms. Suman Prasad

    Performance of the Scheme(Compounded Annualized Returns)

    Fund Manager :Mr. Ritesh Jain

    Performance of the Scheme(Compounded Annualized Returns)

    Fund Manager :Ms. Suman Prasad / Priti Shah

    Performance of the Scheme(Compounded Annualized Returns)

    Canara Robeco LiquidCanara RobecoFloating Rate

    Canara Robeco TreasuryAdvantage Fund

    Canara RobecoMonthly Income Plan

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Indian MoneyMarketInstruments 70 100

    Indian Debt

    Securities 0 30

    Plans/ Options :a) Growth Optionb) Dividend Option (Payout /

    Reinvestment)- Daily Dividend Reinvestment- Weekly Dividend Payout /

    Reinvestment- Fortnightly Div idend

    Reinvestment- Monthly Dividend Payout /

    Reinvestment

    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

    ` `

    `

    `

    `

    `

    Minimum Investment:Lumpsum :Retail Plan : Rs 5000/- under eachoption and in multiples of 1 thereafter.Institutional Plan : Rs 1 cr under each

    option and in multiples of 1 thereafter.Super Institutional Plan : Rs 5 crs undereach option and in multiples of 1thereafter.Systematic Investment Plan (SIP):Minimum instalment amount - 1,000and 2,000 respectively for Monthlyand Quarterly frequency respectivelyand in multiples of Re 1 thereafter.Systematic Transfer Plan (STP)/Systematic withdrawal plan (SWP):Minimum installment amount - 1,000and 2,000 for Monthly and Quarterlyfrequency respectively and in multiplesof Re 1 thereafter.

    `

    `

    `

    `

    `

    `

    `

    Minimum Investment:Lumpsum :Retail Plan : Rs 5000 under each optionand in multiples of 1 thereafter.Institutional Plan : Rs 1 cr under each

    option and in multiples of 1 thereafter.Super Institutional Plan : Rs 5 crs undereach option and in multiples of 1thereafter.Systematic Investment Plan (SIP):Minimum instalment amount - 1,000and 2,000 respectively for Monthlyand Quarterly frequency respectively andin multiples of Re 1 thereafter.S y s t e m a t i c T r a n s f e r P l a n( S T P ) / S y s t e m a t i c w i t h d r a w a lplan(SWP): Minimum installmentamount - 1,000 and 2,000 forMonthly and Quarterly frequencyrespectively and in multiples of Re 1thereafter.

    `

    `

    `

    `

    `

    ` `

    Scheme Benchmark

    Incept ion Date 4.3.05 4.3.05

    Last 1 year 5.71% 5.12%

    Last 3 years 6.94% 6.12%

    Last 5 years 7.24% 6.38%

    Since inception 7.05% 6.13%

    NAV on 31.12.2010(Growth Option) 14.8802`

    Scheme Benchmark

    Inception Date 15.1.02 15.1.02

    Last 1 year 5.00% 5.12%

    Last 3 years 6.37% 6.12%

    Last 5 years 6.74% 6.38%

    Since inception 6.36% -

    NAV on 31.12.2010(Growth Option) 17.3860`

    Scheme Benchmark

    Inception Date 16.9.03 16.9.03

    Last 1 year 5.19% 5.12%

    Last 3 years 6.54% 6.12%

    Last 5 years 4.62% 6.38%

    Since inception 6.40% 5.72%

    NAV on 31.12.2010(Growth Option) 15.7256`

    Scheme Benchmark

    Incept ion Date 4.4.88 4.4.88

    Last 1 year 9.92% 7.00%

    Last 3 years 7.70% 5.70%

    Last 5 years 12.83% 7.90%

    Since inception 10.69% -

    NAV on 31.12.2010(Growth Option) 29.2808`

    Canara Robeco KIM l 09

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    2

    8

    6

    4

    10

    029 Dec

    0631 Dec

    0731 Dec

    0831 Dec

    0931 Dec

    10

    Canara Robeco LiquidCanara RobecoFloating Rate

    Canara Robeco TreasuryAdvantage Fund

    Canara RobecoMonthly Income Plan

    YoY absolute returns Benchmark

    Performance of the Scheme(Growth Option)

    Performance of the Scheme(Growth Option)(Retail Plan)

    Performance of the Scheme(Growth Option)(Retail Plan)

    Performance of the Scheme(Growth Option)

    Past performance may or may not besustained in future.

    Past performance may or may not besustained in future.

    Past performance may or may not besustained in future.

    Past performance may or may not besustained in future.

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 0.40%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 0.41%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 2.09%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 0.35%

    Returns (%) Returns (%)Returns (%)Returns (%)

    Entry Load : NilExit Load : Lumpsum / SIP/STP : 0.25% . If redeemed/switched outwithin 15 days from the date ofallotment, Nil . if redeemed/ switchedout after 15 days from the date ofallotment

    ** Entry Load : NilExit Load : For all investment amountsR e t a i l , I n s t i t u t i o n a l & S u p e rInstitutional Plan Lump Sum/SIP/STP Nil

    **Entry Load : NilExit Load : Lumpsum / SIP/ STP : Nil

    **

    YoY absolute returns Benchmark YoY absolute returns BenchmarkYoY absol ute re turns Benchmark

    Entry Load : NilExit Load : Lumpsum /SWP / SIP/STP: 1% - if redeemed/switched out within1 year from the date of allotment,Nil if redeemed / switched out after 1years from the date of allotment.

    **

    2

    8

    6

    4

    10

    029 Dec

    0631 Dec

    0731 Dec

    0831 Dec

    0931 Dec

    10

    2

    8

    6

    4

    10

    029 Dec

    0631 Dec

    0731 Dec

    0831 Dec

    0931 Dec

    10

    -10

    20

    10

    0

    30

    -2029 Dec

    0631 Dec

    0731 Dec

    0831 Dec

    0931 Dec

    10

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    Canara Robeco Income Canara Robeco Gilt PGS Canara RobecoBond Fund

    Dynamic Canara RobecoTerm Fund

    Short

    Type & Category : Open Ended DebtScheme

    Investment Objective : To generateincome through investment in debt andmoney market securities of differentmaturity and issuers of different riskprofiles.

    Type & Category : Open Ended GiltScheme

    Type & Category : Open Ended DebtFund

    Investment Objective : The objective ofthe Fund is to seek to generate incomefrom a portfolio of debt and moneymarket securities.

    Type & Category : Open Ended DebtFund

    Investment Objective : To provide riskfree return (except interest rate risk) andlong term capital appreciation byinvesting only in Govt. Securities.

    Investment Strategy : Canara RobecoDynamic Bond Fund is an open endeddebt fund having a primary objective toseek to generate income from a portfolioof debt and money market securities.The Fund will invest in debt securities inorder to generate consistent superiorrisk adjusted returns as per theinvestment objectives of the fund. TheFund may invest a portion of theportfolio in Money Market Instrumentsand the remaining investment will bemade in securities of varying maturity.The asset allocation for the Fund shalldepend on prevailing market conditions.When the market outlook is bullish, thefund manager would increase theexposure to debt instrument withmaturity over one year and likewisewhen the outlook is bearish, theexposure to such long dated securitieswill be reduced. The Fund shall take into

    account the following parameters whiledecisions for investments are taken:Liquidity of securities, Rating, Maturityprofile, Companys growth prospects,Quality of the security, and prevailinginterest rate scenario. The Fund will alsotake into account risk management toolslike modified duration, VAR andconvexity for efficient management ofthe Fund investments. The Fund mayalso use various derivatives and hedgingproducts from time to time as would beavailable and permitted by SEBI in anattempt to protect the value of theportfolio and enhance Unit Holdersinterest.

    Investment Strategy : CR Gilt PGS is anopen ended Gilt Fund wherein theinvestments would be done only inGovernment Securities of differentmaturities. The investments may bemade in primary as well as secondarymarkets. As far as possible, the portfoliowill be adequately diversified to reducethe risk of underperformance, arisingout of unexpected security-specificfactors. The Scheme being open-ended,some portion of the portfolio will beinvested in short term governmentsecurities so as to meet the normalr e p u r c h a s e r e q u i r e m e n t s . T h eremaining investment will be made insecurities which are reasonably liquidand of varying maturity.The investment pattern of the Scheme isindicative and may be changed by theF u n d M a n a g e r f o r d e f e n s i v econsiderations. The funds raised under

    the Scheme shall be invested only inGovt. Securities defined in Section 2(2)of the Public Debt Act, 1944.

    Investment Strategy : The funds will beinvested in debt and money marketsecurities of different maturities and riskprofiles offering reasonable liquidity andreturns, with risk perceived by theInvestment Manager and a portion ofthe funds will also be invested in ratedand un-rated corporate bonds anddebentures.As per the guidelines of RBI, MutualFunds have currently ceased to accessthe call money market. The Schemestherefore proposes to avail facility ofreverse repos / CBLO (CollateralizedBorrowing and Lending Obligations) totemporarily invest short term liquidityand to meet redemption / repurchaserequirements.The investments may be made inprimary as well as secondary markets. Asfar as possible, the portfolio will beadequately diversified to reduce the risk

    of underperformance, arising out ofunexpected security-specific factors.Investments will be made in State /Central Government Securities, TreasuryBills : i) supported by the ability toborrow from the Treasury ii) supportedby sovereign guarantee or of the StateGovernment iii) supported by theG o v e r n m e n t o f I n d i a / S t a t eGovernment in any other manner.The funds will be invested in debt andmoney market securities of differentmaturities and risk profiles offeringreasonable liquidity and returns, withrisk perceived by the InvestmentManager and a portion of the funds willalso be invested in rated and un-ratedcorporate bonds and debentures.As per the guidelines of RBI, Mutual

    Funds have currently ceased to accessthe call money market. The Schemestherefore proposes to avail facility ofreverse repos / CBLO (CollateralizedBorrowing and Lending Obligations) totemporarily invest short term liquidityand to meet redemption / repurchaserequirements.The investments may be made inprimary as well as secondary markets. Asfar as possible, the portfolio will beadequately diversified to reduce the riskof underperformance, arising out ofunexpected security-specific factors.Investments will be made in State /Central Government Securities, TreasuryBills : i) supported by the ability toborrow from the Treasury ii) supportedby sovereign guarantee or of the StateGovernment iii) supported by theG o v e r n m e n t o f I n d i a / S t a t eGovernment in any other manner.

    Investment Objective : The objective ofthe Fund is to generate income from aportfolio constituted of short to mediumterm debt and money market securities.

    Asset Under Management (31.12.2010)(INR crs) : 247.73

    Asset Under Management (31.12.2010)(INR crs) : 35.68

    Asset Under Management (31.12.2010)(INR crs) : 34.92

    Asset Under Management (31.12.2010)(INR crs) : 83.05

    Number of Live Folios : 484Number of Live Folios : 326Number of Live Folios : 611Number of Live Folios : 4538

    Investment Strategy : Canara RobecoShort Term Fund is an open ended debtfund with an objective to seek togenerate income from a portfolioconstituted of short to medium termdebt and money market securities. Thecharacteristics of this product are similarto that of a debt fund. Canara RobecoMutual Fund offers Canara RobecoLiquid Fund for investing short termsurpluses and Canara Robeco IncomeFund for long term investments. Takinginto consideration the investmentprofile, this fund is aimed to bepositioned between the liquid fund andthe income fund. The Fund will invest indebt securities in order to generateconsistent superior risk adjusted returnsas per the investment objectives andaims to maintain a modified durationnot exceeding two years under normalcircumstances. The Fund may invest a

    portion of the portfolio in Money MarketInstruments and the remaininginvestment will be made in securities ofvarying maturity. The asset allocation forthe Fund shall depend on prevailingmarket conditions. The Fund shall takeinto account the following parameterswhile decisions for investments aretaken: Liquidity of securities, Rating,Maturity profile, Company's growthprospects, Quality of the security, andprevailing interest rate scenario. TheFund will also take into account riskmanagement tools like modifiedduration, VAR and convexity for efficientmanagement of the Fund investments.The Fund may also use variousderivatives and hedging products fromtime to time as would be available and

    permitted by SEBI in an attempt toprotect the value of the portfolio andenhance Unit Holder's interest. The Fundmay invest in other debt/income/fixedmaturity/interval schemes managed bythe AMC or such schemes managed byany other Mutual Funds, provided it is inconformity to the investment objectivesof the Fund and in terms of the prevailingRegulations. The Investment Managerwill monitor the macro economicconditions, including the political,economic environment and factorsaffecting liquidity and interest rates. TheInvestment Manager would use thisanalysis to assess the likely direction ofinterest rates and position the portfolioappropriately to take advantage of thes a m e . A p a r t f r o m i n v e s t m e n trestrictions under SEBI (MF) Regulations,the Fund does not presently intend tofollow any internal norms vis-a-vislimiting exposure to a particular scrip orsector etc. However, the Fund mayconsider imposing any restrictionsdepending on the changes in theinvestment environment from time totime. The investments may be made inprimary as well as secondary markets. Asfar as possible, the portfolio will beadequately diversified to reduce the riskof underperformance, arising out ofunexpected security-specific factors.

    Canara Robeco KIM l 11

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    Canara Robeco Income Canara Robeco Gilt PGS Canara Robeco DynamicBond Fund

    Canara Robeco ShortTerm Fund

    Past performance may or may not besustained in future.

    Past performance may or may not besustained in future.

    Past performance may or may not besustained in future.

    Absolute Returns Past performancemay or may not be sustained in future.

    Plans/ Options :Growth OptionGrowth Option with AutomaticRepurchaseDividend OptionDividend ReinvestmentDividend PayoutBonus Option

    Plans/ Options :Growth OptionGrowth Option with AutomaticRepurchaseDividend OptionDividend ReinvestmentDividend Payout

    Plans/ Options :Retail Plan :Growth OptionGrowth option with automaticrepurchaseDividend OptionDividend Reinvestment, DividendPayoutInstitutional Plan :Growth OptionGrowth option with automaticrepurchaseDividend Option : DividendReinvestment, Dividend Payout

    Plans/ Options :Retail Plan :Growth Option, Dividend Option :Weekly Divi. Reinvestment, MonthlyDivi. Reinvestment / PayoutInstitutional Plan :Growth Option, Dividend Option :Weekly Divi. Reinvestment, MonthlyDivi. Reinvestment / Payout

    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

    ` `

    `

    `

    `

    `

    Minimum Investment:Lumpsum : 5000 in multiples of 1thereafterSIP/STP : For monthly frequency -1000 and in multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

    ` `

    `

    `

    `

    `

    Minimum Investment:Lumpsum :Retail Plan - 5000/- under each optionand in multiples of 1 thereafterInstitutional Plan - Rs 1 cr under eachoption and in multiples of 1 thereafter

    `

    `

    `

    Minimum Investment:Lumpsum :Retail Plan - 5000/- under eachoption and in multiples of 1 thereafterInstitutional Plan - 1cr under eachoption and in multiples of 1 thereafterSTP : For monthly frequency - 1000 andin multiples of 1 thereafterFor quarterly frequency - 2000 and inmultiples of 1 thereafter

    `

    `

    `

    `

    `

    `

    `

    `

    Fund Manager : Mr. Ritesh Jain Fund Manager : Mr. Ritesh Jain Fund Manager : Mr. Ritesh Jain Fund Manager : Ms. Suman Prasad /Priti Shah

    Performance of the Scheme(Compounded Annualized Returns)

    Performance of the Scheme(Compounded Annualized Returns)

    Performance of the Scheme(Compounded Annualized Returns)

    Performance of the Scheme(Compounded Annualized Returns)

    Scheme Benchmark

    Inception Date 19.9.02 19.9.02

    Last 1 year 4.98% 4.96%

    Last 3 years 13.37% 5.81%

    Last 5 years 10.16% 5.66%

    Last 10 years - -

    Since Inception 8.94% 5.54%

    NAV on 31.12.2010(Growth Option) 20.3326`

    Scheme Benchmark

    Inception Date 31.3.09 31.3.09

    Last 1 year 4.81% 5.12%

    Last 3 years - -

    Last 5 years - -

    Last 10 years - -

    Since Inception 5.58% 4.49%

    NAV on 31.12.2010(Growth Option) 10.9983`

    Scheme Benchmark

    Inception Date 29.5.09 29.5.09

    Last 1 year 2.97% 4.96%

    Last 3 years - -

    Last 5 years - -

    Last 10 years - -

    Since Inception 3.34% 4.43%

    NAV on 31.12.2010(Growth Option) 10.5374`

    Scheme Benchmark

    Inception Date 29.12.99 #

    Last 1 year 3.31% 6.31%

    Last 3 years 9.24% 7.94%

    Last 5 years 7.73% 7.37%

    Last 10 years 8.83% -

    Since Inception 8.97% -

    NAV on 31.12.2010(Growth Option) 25.7469`

    #Benchmark Index : Crisil I-Sec Li-BexIndex was formulated on 31.03.2002and hence since inception are notcomparable.

    Comparison with Other Schemes :Canara Robeco Income is an activelymanaged debt fund wherein the fundmanager takes an active view of theinterest rate movements by keeping aclose watch on various parameters ofthe Indian economy as well as thedevelopments in the global markets.Based on the interest rate view, theduration of the portfolio will be decidedalong with the asset allocation patternbetween sovereign & corporate bonds.

    Comparison with Other Schemes :Canara Robeco Gilt PGS invests in G-Secsof varying maturity issued by ReserveBank of India (RBI). Being invested insovereign papers, the fund does notexpose its investors to Credit Risk as inthe case of other bond funds.

    Comparison with Other Schemes :Canara Robeco Dynamic Bond Fundintends to invest and trade in G-secs andCorporate Debt by identifying mispricedopportunities & capturing volatilitytrends. The fund aims at generatingAlpha through free-style durationmanagement, allowing the fund toposition the modified duration of thefund from 6 months to 10 yearsdepending on interest rate view.

    Comparison with Other Schemes :Canara Robeco Short Term Fund isperfectly suited for an investor who has ashort term investment horizon andwishes to avoid high volatility butexpects superior returns than liquidfunds. The fund predominantly hasaccrual yields on high quality MoneyMarket Instruments along with an activetrading strategy for generating Alpha.

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Debt (Including 80 100Securitised Debt)

    Money MarketInstruments / Call 0 20Money

    Benchmark Index :

    Bond Fund Index

    CRISIL Composite

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Govt. Securities / 0 100MMI/Call Money

    Benchmark Index :

    Bex Index

    CRISIL I Sec Li -

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Government ofindia & Corporate 0 70Debt Securities(includingSecuritised Debt)

    Money Market 30 100Instruments

    Benchmark Index :

    Bond Fund Index

    CRISIL Composite

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Money Market 60 100Instruments

    Government ofIndia & DebtSecurities 0 40(includingSecuritised Debt)

    Benchmark Index :

    Index

    Crisil Liquid Fund

    Asset Allocation Asset Allocation Asset Allocation Asset Allocation

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    0

    30

    20

    40

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    Asset Allocation

    Canara Robeco InDiGo Fund

    Type & Category : Open Ended DebtFund

    Investment Objective : To generateincome from a portfolio constituted ofdebt & money market securities alongwith investments in Gold ETFs. However,there can be no assurance that theinvestment objective of the Scheme willbe achieved.

    Asset Under Management (31.12.2010)(INR crs) : 383.86

    Number of Live Folios : 10985

    Comparison with Other Schemes :The fund provides a unique combinationof Debt and Gold (through Gold ETFs) inone fund and aims to capture theseasonal patterns in Gold to providealpha to the portfolio by activelymanaging the asset allocation. The fundacts as a portfolio diversifier and alsoprovides a blend of accrual & capitalappreciation to its investors. The fundthrough its Gold investment aims togenerate additional yield without takingadditional duration risk or credit risk onthe fixed income portfolio.

    Instruments % of InvestibleFunds (Indicative)

    Min Max

    Indian Debt and 65 90Money Market

    InstrumentsGold ETFs 10 35

    Benchmark Index :Blended Gold Index

    Canara Robeco

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30, 2010 : 1.75%

    Investment Strategy: The Fund Managerwould take cues from seasonal patternso f g o l d , g l o b a l & d o m e s t i cmacroeconomic events and Governmentpolicy & Central Bank actions and decideon the asset allocation between gold &fixed income. The allocations will bewithin the limits defined in the assetallocation table for each asset class. TheFund Manager will then create aportfolio of fixed income securities andGold ETFs after adhering to stringentcredit quality and sector limitations.The portfolio will be constructed in a wayin which a high level of liquidity ismaintained in the portfolio thereby

    focusing on short to medium termsecurities, which would also help thefund manager to generate income.Gold can be a partial hedge againstinflation. Gold has seen a favorabledevelopment over the years in difficulttimes for the global economy especiallyin times of economic turmoil. Instead ofproviding enhanced yield at the cost ofadditional duration risk (G-Sec trading)or credit r isk (corporate bondexposures), the yields of a low durationfixed income portfolio can be enhancedby investing a limited allocation intogold. With a flexible allocation betweenfixed income and gold, the Scheme caneffectively capture the seasonal patternsin gold and fixed income.

    Canara Robeco Income Canara Robeco Gilt PGS Canara Robeco DynamicBond Fund

    Canara Robeco ShortTerm Fund

    YoY absolute ret urns Benchmark

    Performance of the Scheme(Growth Option)

    Performance of the Scheme(Growth Option)

    Performance of the Scheme(Growth Option)(Retail Plan)

    Performance of the Scheme(Growth Option)(Retail Plan)

    Returns (%) Returns (%)

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 2.12%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 1.11%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 1.50%

    Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de d

    September 30, 2010 : 1.68%

    Entry Load : NilExit Load: Lumpsum / SWP / SIP/STP :0.5% - if redeemed/switched out within6 months from the date of allotment, Nil if redeemed / switched out after 6Months from the date of allotment

    ** Entry Load : NilExit Load :Retail Plan and Institutional Plan - 1% - Ifredeemed /switched out within 4months from the date of allotment, Nil -if redeemed / switched out after4months from the date of allotment.

    ** Entry Load : NilExit Load :Retail Plan & Institutional Plan - 0.25% -If redeemed/switched out within 1month from the date of allotment, Nil - ifredeemed/switched out after 1 monthfrom the date of allotment

    **

    YoY absolute returns Benchmark YoY absolute returns BenchmarkYoY absolute returns Benchmark

    Entry Load : NilExit Load : Lumpsum / SWP / SIP/STP: 0.5% - if redeemed/switched out within6 months from the date of allotment, Nil if redeemed / switched out after 6Months from the date of allotment.

    **

    Plans/ Options :Growth OptionQuarterly Dividend Option(Payout and Reinvestment)

    Minimum Investment:Lumpsum : 5,000.00 and multiples of

    1.00 thereafter.SIP / STP : Additional Purchase:1,000.00 and multiples of 1.00thereafter.

    `

    `

    `

    `

    Performance of the Scheme(Compounded Annualized Returns)

    Fund Manager : Mr. Ritesh Jain

    Scheme Benchmark

    Inception Date 9.7.10

    Last 1 year - -

    Last 3 years - -

    Last 5 years - -

    Last 10 years - -

    Since Inception 4.13% 5.73%

    NAV on 31.12.2010(Growth Option) 10.4125

    9.7.10

    `

    Past performance may or may not besustained in future.

    Performance of the Scheme(Growth Option)

    Entry Load : NilExit Load : Lumpsum / SWP / SIP/STP1% if redeemed / switched-out in lessthan or equal to 1 year from the date ofallotment.Nil if redeemed or switched out after 1year from the date of allotment

    (Note : Scheme has been not completed 1 year)

    DisclaimerCanara Robeco Blended Gold Index is acomposite index of the Gold Index andCRISIL Short term Bond Fund Indexcomputed by CRISIL Limited for thep u r p o s e o f b e n c h m a r k i n g t h eperformance of Canara Robeco InDiGoFund. The Index shall not be copied,transmitted or distributed for anycommercial use." CRISIL has taken duecare and caution in computation of the

    Index, based on the data obtained fromsources which it considers reliable and isas per the valuation method prescribedby SEBI for the purpose of computationof the Index. However, CRISIL does notguarantee the accuracy, adequacy orcompleteness of the said data / Indexand is not responsible for any errors orfor the results obtained from the use of

    the said data/ Index . CRISIL especiallystates that it has no financial liabilitywhatsoever to the users of the Index

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    BenchmarkAbsolute Returns

    Since Inception

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    **In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30,2009, no entry load will be charged by the Scheme to the investor effectiveAugust 1, 2009. Upfront commission shall be paid directly by the investor to theAMFI registered Distributors based on the investors assessment of variousfactors including the service rendered by the distributor.

    Scheme specific Risk Factors for all the Equity Schemes

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure of

    the stock exchanges.

    Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure of

    the stock exchanges.Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure ofthe stock exchanges.

    Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure ofthe stock exchanges.

    Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure of

    Canara Robeco Balance

    Canara Robeco Emerging Equities

    Canara Robeco Equity Diversified

    Canara Robeco Equity Tax Saver

    Canara Robeco Infrastructure

    the stock exchanges.

    Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    Performance of the S & P Nifty Index will have a direct bearing on theperformance of the Scheme.

    In the event the S & P CNX Nifty Index is dissolved or is withdrawn, the Trusteesreserves a right to modify the Scheme so as to track a different and suitableindex/indices or to suspend tracking the Nifty till such time it isdissolved/withdrawn or not published and an appropriate intimation will besent to the Unit Holders of the Scheme. In such a case, the investment patternwill be modified suitably to match scheme objective and the composition of thesecurities that are included in the new index that will be tracked.

    Tracking error is inherent in any index based Schemes and as such, errors maycause Canara Robeco Nifty Index to generate returns which are not in line withthe performance of the Nifty or one or more securities covered by Nifty. Suchvariations are referred to as tracking errors are expected to be around 2% p.a.but may vary due to several factors.

    IISL undertakes a periodical review of the scrips that comprise the Nifty and may

    either drop or include new securities. In such an event, the scheme willendeavour to reallocate its portfolio to mirror the changes. However, thereallocation process may not occur instantaneously and permit precisemirroring of the Nifty during this period.

    Any delay in the purchase or sale of shares due to illiquidity in the market,settlement and realisation of sales proceeds, delay in registration of securities orin receipt and consequent reinvestment of dividends etc. The indices reflectsthe prices of securities at a point in time, which is the price at close of businessday on The National Stock Exchange. The scheme however, may trade thesesecurities at different points in time during the trading sessions and thereforethe prices at which the scheme trades may not be identical to the closing price ofeach scrip on that day on the NSE. In addition, the scheme may opt to trade thesame securities on different exchanges due to price or liquidity factors, whichmay also result in traded prices being at variance, from NSE closing prices.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure ofthe stock exchanges.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure ofthe stock exchanges.

    Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives such

    situations to be exceptional in nature.

    (Financial Opportunities, Retail Consumption & Entertainment Fund)

    The fund will invest in equity and equity related securities of companies engagedin banking, financial services, retail consumption and entertainment and hencethe concentration risk is expected to be relatively high. Amongst these sectors,at times, a majority of investments could be under a single sector and in theevent the sector does not perform well due to forces affecting the market, thescheme performance may be affected to that extent.

    While banking and financial services sector is well developed in India, retailconsumption and entertainment sectors are of recent origin. The riskweightage for investment in these sunrise sectors could be relatively highercompared to other sectors.

    The value of the Scheme investments may be affected by factors affecting capital

    Canara Robeco Nifty Index

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

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    markets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure ofthe stock exchanges.

    Investment made in unlisted equity or equity-related securities may only berealisable upon listing of these securities.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has to

    meet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    Canara Robeco Large Cap+ Fund is an open ended equity fund investing in thetop 150 companies by market capitalization and thus will carry less risk ascompared to a mid cap / thematic equity fund. The underlying companies will bemore liquid and also the access to information for these companies is very highas the Institutional ownership in these companies is generally large. The Fundwill aim to have concentrated exposures in the stocks which are high convictionideas and are fitting in the Fundamental and Quantitative Parameters.

    The value of the Scheme investments may be affected by factors affecting capitalmarkets generally, such as price and volume volatility in the stock markets,interest rates, currency exchange rates, foreign investments, changes ingovernment policy, political, economic or other developments and closure ofthe stock exchanges.

    Trading volumes, settlement periods and transfer procedures may restrictliquidity of investments in equity and equity related securities. Differentsegments of the Indian financial markets have different settlement periods andsuch periods may be extended significantly by unforeseen circumstances. Thelength of the settlement may affect the Scheme in the event the Scheme has tomeet large number of redemption. The Investment Manager perceives suchsituations to be exceptional in nature.

    Risk Mitigation Factors for all the Equity Schemes : Investments made by theschemes would be in accordance with the investment objectives of the schemesand provisions of SEBI Regulations. Since investing required disciplined riskmanagement, the AMC would incorporate adequate safeguards for controllingrisks in the portfolio construction process. The risk control process involvesreducing risks through portfolio diversification, taking care however not todilute returns in the process. The AMC believes that this diversification wouldhelp achieve the desired level of consistency in returns. The AMC aims to identifysecurities, which offer superior levels of yield at lower levels of risks. With the aimof controlling risks, the investment team of the AMC will carry out rigorous in-depth analysis of the securities proposed to be invested in.

    While these measures are expected to mitigate the above risks to a large extent,there can be no assurance that these risks would be completely eliminated.

    Scheme specific Risk Factors for all the Debt Schemes

    I. Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds,debentures and money market instruments run price-risk or interest-raterisk. Generally, when interest rate rise, prices of existing fixed incomesecurities fall and when interest rates drop, such prices increase. The extentof fall or rise in the prices is a function of the existing coupon, days tomaturity and the increase or decrease in the level of interest rates.

    II. Credit Risk: In simple terms this risk means that the issuer of a

    debenture/bond or a money market instrument may default on interestpayment or even in paying back the principal amount on maturity. Evenwhere no default occurs, the price of the security may go down because thecredit rating of an issuer goes down. It must, however, be noted that wherethe Scheme has invested in Government securities, there is no credit risk tothat extent.

    III. Reinvestment Risk: Investments in fixed income securities may carryreinvestment risk as interest rates prevailing on the interest or maturity duedates may differ from the original coupon of the bond. Consequently, theproceeds may get invested at a lower rate.

    Different types of securities in which the Scheme would invest as given inthe offer document carry different levels and types of risk. Accordingly thescheme's risk may increase or decrease depending upon its investmentpattern e.g. corporate bonds carry a higher amount of risk thanGovernment securities. Further even among corporate bonds, bonds whichare AA rated are comparatively more risky than bonds which are AAA rated.

    Canara Robeco Large Cap+ Fund

    (Canara Robeco Floating Rate, Canara Robeco Treasury Advantage Fund,Canara Robeco Gilt PGS, Canara Robeco Short Term Fund, Canara RobecoLiquid, Canara Robeco Income, Canara Robeco Dynamic Bond Fund, CanaraRobeco Income Plan, Canara Robeco InDiGo Fund)

    IV. a) Risk associated with investing in Securitised Debt

    Scheme may invest in domestic securitized debt such as asset backedsecurities (ABS) or mortgage backed securities (MBS). ABS meanssecuritized debts wherein the underlying assets are receivables arisingfrom personal loans, automobile loans, etc. MBS means securitizeddebts wherein the underlying assets are receivables arising from loansbacked by mortgage of properties which can be residential orcommercial in nature. ABS / MBS instruments reflect the undividedinterest in the underlying of assets and do not represent the obligationof the issuer of ABS / MBS or the originator of the underlyingreceivables. The ABS / MBS holders have a limited recourse to theextent of credit enhancement provided. ABS / MBS holders will suffer

    credit losses in the event of the delinquencies and credit losses in theunderlying pool exceed the credit enhancement provided. Ascompared to the normal corporate or sovereign debt, ABS / MBS arenormally exposed to a higher level of reinvestment risk.

    b) Risk associated with Mortgage Backed Securities (MBS) - HousingLoans

    Prepayment Risk: The Fund may receive payment of monthly payoutsearlier than scheduled. Prepayments shorten the life of the instrumentto an extent that cannot be fully predicted. The rate of prepaymentsmay be influenced by a variety of economic, social and other factors.

    Credit Risk: Delinquencies may happen which would reduce theprincipal amount. Typically MBS structures come with creditenhancement in variety of forms. If delinquencies are higher than theamount available in the credit enhancement facility than the monthlypayouts to The Fund would reduce. Historically, it has been observedthat housing loans have lower default rates as compared to otherforms of credit.

    Liquidity Risk: Historically the secondary market volume of securitisedpapers has been limited. This could limit the ability of The Fund to resellthem. Secondary market traders could be at a discount or premiumdepending upon the prevailing interest rates.

    Conversion Risk: Conversion of loans from fixed rates to floating rateloans and vice versa could lead to a change in the expected cash flowsfrom the loans.

    c) Risk associated with Asset Backed Securities (ABS)-Auto loans

    Prepayment Risk: The Fund may receive payment of monthly payoutsearlier than scheduled. Prepayments shorten the life of the instrumentto an extent that cannot be fully predicted. The rate of prepaymentsmay be influenced by a variety of economic, social and other factors.Prepayment in auto loans is lower than housing loans as the shortertenor of auto loans makes it economically unattractive to prepay after

    considering the prepayment charges.Credit Risk: Delinquencies may happen which would reduce theprincipal amount. Typically ABS structures come with creditenhancement in variety of forms. If delinquencies are higher than theamount available in the credit enhancement facility than the monthlypayouts to The Fund would reduce. Typically auto loans carry higherrisk than MBS as the value retention of the underlying asset is higher inMBS as compared to the underlying asset of ABS.

    Liquidity Risk: Historically the secondary market volume of securitisedpapers has been limited. This could limit the ability of The Fund to resellthem. Secondary market traders could be at a discount or premiumdepending upon the prevailing interest rates.

    d) Risk associated with Asset Backed Securities (ABS) - Corporate loans

    Credit Risk: The Fund has an exposure to the Borrower/Borrowers andservicing of the instrument depends on the credit risk of the Borrower.

    The value of the instrument would fluctuate depending upon thechanges in the perceived level of credit risk as well as any actualdefault.

    Prepayment Risk: The Borrower may prepay the receivables prior totheir respective due dates. This may result in a change in the yield andtenor for The Fund.

    Limited Liquidity and Price Risk: Historically the secondary marketvolume of securitised papers has been limited. This could limit theability of The Fund to resell them. Secondary market trades could be ata discount or premium depending upon the prevailing interest rates.

    V. Risk associated with investing in Derivatives

    As and when the Scheme trades in the derivatives market, there are riskfactors and issues concerning the use of derivatives that investors shouldunderstand. Derivative products are specialized instruments that requireinvestment techniques and risk analysis different from those associated

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    with stocks and bonds. The use of a derivative requires an understandingnot only of the underlying instrument but also of the derivative itself.Derivatives require the maintenance of adequate controls to monitor thetransactions entered into, the ability to assess the risk that a derivative addsto the portfolio and the ability to forecast price or interest rate movementscorrectly. There is a possibility that loss may be sustained by the por