Sundaram BNP Paribas Select Focus March2010

8/8/2019 Sundaram BNP Paribas Select Focus March2010

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Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in

Sundaram BNP Paribas Select Focus- An open end equity scheme

A Dynamically Managed Large-Cap Fund

A member of

Refer Disclaimer on sl ide: 42, 43, 44 & 45

March 2010



2Sundaram BNP Paribas Tax Saver

Sundaram BNP Paribas Asset Management2www.sundarambnpparibas.in

www.sundarambnpparibas.in Sundaram BNP Paribas Asset Management

www.sundarambnpparibas.in

DisclosuresSelect Focus

Mutual Fund Investments are subject to market risks. Please read the Statement of

Additional Information (SAI) and Scheme Information Document (SID) carefully before

investing. Copy of the SAI, SID, key information memorandum and application form may also be

obtained from the offices / investor service centres of Sundaram BNP Paribas Asset Management, itsdistributors and at www.sundarambnpparibas.in

All mutual funds and securities investments are subject to market risks, and there can be no

assurance or guarantee that fund's objectives will be achieved. NAV may go up or down,depending on the factors and forces affecting the securities market. Main types are market risk,

liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired.

There is uncertainty of dividend distribution and risk of capital loss. Past performance of the

Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors

in the schemes are not being offered any guaranteed or indicated returns.

Sundaram BNP Paribas Select Focus is only the name of the scheme and does not in any

manner indicate either quality or future prospects and returns.

For detailed disclosures on risk factors and disclaimers refer slide 42, 43, 44 & 45

http://www.sundarambnpparibas.in/




3Sundaram BNP Paribas Tax Saver

Sundaram BNP Paribas Asset Management3www.sundarambnpparibas.in

www.sundarambnpparibas.in Sundaram BNP Paribas Asset Management


Reasons to own Select FocusSelect Focus

Portfolio of blue-chips with high liquidity & S & P CNX Nifty as

benchmark

A high alpha product in the large-cap space indicating the quality

of stock picking

Optimum vehicle to play the expanding large-cap universe and

emerging mega-cap stocks

Aggressive style that focuses on few themes & less than 30stocks that has led to an impressive track record

Consistently proven ability to zero in on value enhancing themes

Past Performance may or may not be sustained in futu re

Source: Latest Fact Sheet


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Reasons to own Select FocusSelect Focus

Annual returns of 31.9 per cent over more than seven years since

launch outpaces Nifty by 7.2 percentage points

An investment of Rs 100 in July 2002 is now worth Rs 838; Rs

1000-a-month SIP since launch is worth Rs 2.63 lakh

A fund that must be considered as a core part for any equityportfolio

The fund has an asset base (Rs 1184 crore as of March 31 ,2010)

that is scalable without impacting performance

Srividhya Rajesh has managed this fund since launch, ensuring

stability and consistency in fund management stylePast Performance may or may not be sustained in futu re

Source: Fact Sheet as on March 31, 2010



Product PositioningSelect Focus

● Positioning: Concentrated large-cap fund

● Approach: Generate capital appreciation by taking active sector, stock

and cash calls.

● Style: Own a concentrated portfolio with emphasis on two/three themesaccounting for 50%-70% and a maximum of 30 stocks. The portfolio will

aim to generate sizeable outperformance.

● Benchmark: S & P CNX Nifty

● Cap-curve: At least 85% on an average will be invested in large-capstocks and the rest may be invested in mid-cap stocks.

● Mid-cap limits to be used only if required.


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Select Focus

Performance



Value of early investment

Value of Rs100 invested in July 2002

Select Focus: Rs 838

S&P CNX 500: Rs 610

Select Focus

S&P CNX Nifty: Rs 546

Investment and Value in Rs as on March 31,2010Past Performance may or may not be sustained in future

S l F



Performance since launch at different stages of the marketSelect Focus

Bull

Market Peak

Dec 2007

Ranking Since Launch

Past Performance may or may not be sustained in future

21/103 17/103 29/96

1 1

29.1

19.120.1

2

53.3 33.5

40.8 25.545.2 27.6

Post Meltdown

Dec 2008

Recovery

Phase

Dec 2009

Quartile Presence

Select Focus

Benchmark S&P CNX Nifty

S&P CNX 500

Ranking as of December 31, 2007, December 31, 2008 & December 31, 2009. Data Source: NAV India; Analysis: In-house Annualized Returns since launch is in percentage computed on compounded annual basis.Please refer disclaimer in slide 42, 43, 44 & 45



S l t F



Consistent outperformer

9 24

49

7966

-2

14 11

76

1

-52

108

45

-52

3655

72

40

2002 2003 2004 2005 2006 2007 2008 2009 2010

YTD

Fund Nifty

Select Focus

Returns in per cent; Returns as on March 31,2010

Past Performance may or may not be sustained in futu re

Select Foc s



SIP Performance

Investment Fund Benchmark

Lifetime 2,62,789

Last 7 years 84,000 1,98,328 1,71,529

92,539

43,898

13,958

2,12,820

Last 5 years 60,000 88,637

44,883

14,097

Last 3 years

Last 1 year

92,000

36,000

12,000

Select Focus

Investment and Value in Rs as on March 31,2010Past Performance may or may not be sustained in future

Select Focus



12Sundaram BNP Paribas Tax Saver Sundaram BNP Paribas Asset Management12www.sundarambnpparibas.inwww.sundarambnpparibas.in Sundaram BNP Paribas Asset Managementwww.sundarambnpparibas.in

Risk MeasuresSelect Focus

Mean Monthly Returns 32.31 Standard Deviation 29.59

Beta

Tracking Error

Correlation

Fund Benchmark

Sharpe Ratio 0.83 0.66

Sortino Ratio 1.24

Alpha

0.88

6.52

Treynor Ratio

0.96

10.79 25.59

0.54Information Ratio0.93

Data source : Bloomberg; Computation: In-house ; As on March 31, 2010Past Performance may or may not be sustained in future

Please refer Help Guide on slide 41

Risk-Return Metrics are based on month end NAVs since launch and have been annualised

Select Focus


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Select Focus

Fund Snapshot

Select Focus




FOCUSon 2/3 themes

LARGE CAP

Universe of about

100 stocks

SECTORS

Top-down approach

STYLE

Growth Bias

STOCKS

Bottom-up approachBlue-chip names

CONCENTRATED

Up to 30 stocks

Portfolio

Benchmark

S&P CNX Nifty

Investment objective To achieve capital appreciation by investing in a very few select Indian stocks

Broad portfolio strategySelect Focus

Select Focus




Select Focus

Sector Allocation

As on March 31, 2010; Source: Fact Sheet

Financial

Services,

18.0

IT, 17.4

Energy - Oil

& Gas, 14.4

Auto, 11.8

Energy -

Utilities, 8.4

ConsumerGoods, 5.9

Metals, 5.4

Others, 16.7

Cash, 2.0

Select Focus




Preferred sectors, stocksSelect Focus

4.612.717.4IT

ActiveBenchmarkFundUnderweight

-9.911.51.6Industrial Manufacturing

-5.723.718.0Financial Services

5.4

8.4

11.8

Fund

Metals

Energy – Utilities

Auto

Overweight

-3.69.1

5.03.4

6.65.2

ActiveBenchmark

Main Active Positions - Sectors

As on March 31, 2010; Source: Fact Sheet

Main Active Positions - Stocks

Overweight Underweight

Dr Reddy’s Labs Larsen & Toubro

Tata Power HDFC Bank

Aban Loyd Chiles Reliance Industries

Sun TV H D F C

Bajaj Auto Tata Steel

Position status is relative to benchmark

Position status is relative to benchmark

Select Focus




Select Focus

Portfolio

Company Weight %

Reliance Industries 7.5

Infosys 6.2

Dr Reddy’s Labs 3.8

Mahindra & Mahindra 3.7

Aban Loyd Chiles 3.6

Bajaj Auto 3.4

Lanco Infratech 3.3

Sterlite Industries 3.3

Bharti Airtel 3.6

Sun TV 3.4

Tata Power 5.1

T C S 4.6

State Bank of India 4.0

ICICI Bank 7.5

Company Weight %

Grasim 1.7

Siemens India 1.6

H D F C (Warrants) 1.6H D F C 1.4

Satyam Computers 1.4

BGR Energy Systems 1.4

Punjab National Bank 1.0

Torrent Pharma 0.4

Equity 98.0

Debt -

Derivatives -

Cash & Equivalents 2.0

AUM ( Rs Crore) 1184

Company Weight %

Tata Tea 3.0

Tata Motors 2.9

MphaisS BFL 2.3

Indian Hotels 2.3

Gujarat NRE Coke 2.2

Cairn India 1.9

Tata Motors (Class A) 1.8

ITC 2.9

Oracle Financial 2.8

Axix Bank 2.6

Source: Fact Sheet as on March 31, 2010

Select Focus




Profile of portfolio manager Select Focus

Srividhya Rajesh is the portfolio manager for Sundaram BNP Paribas Select

Focus. She has been with Sundaram BNP Paribas for ten years. She brings rich

experience to fund management having tracked markets through several bullish

and bearish phases. She is also the fund manager for Capex Opportunities. Witha sizeable part of her fund portfolio oriented towards large-cap stocks, she keeps

a close tab on macro-economic and sector trends. This is especially important for

Select Focus, as its portfolio is heavy on three themes at any point.

She follows a combination of top-down and bottom-up approaches based on the

fund specification. Once the sectors are identified, the emphasis shifts to the

bottom-up approach, even though the fund is focused in the large-cap space and

invests in stocks that are extensively researched. This style has enabled her to

zero on in themes and stocks that have helped the fund outpace the Nifty by a

comfortable margin. A two-year stint at the broking arm Kotak Mahindra opened a

window to the equity markets before she joined Sundaram BNP Paribas in 1996.

Srividhya Rajesh is a CFA Charter Holder and

a management graduate from BITS Pilani. She

has also done specialized courses in equity

research & financial applications from ICFAI.

Traveling, trekking and gardening are her

interests away from the world of stocks.

Select Focus




Select Focus

Award History

Best Large-

Cap Fund of

2006

Best Large-

Cap Fund of

2007

CNBC TV18 CRISIL AWARD

Five-Star FundICRA

Three-Year Track Record for 2008

Lipper Global Top 100 Fund

1 year performance in 2007

Past Performance may or may not result in future results

Please refer disclaimer in slide 42, 43, 44 & 45

Select Focus




Contact usSelect Focus

SMS: SFUND to 56767

Toll Free: 1800-425-1000

Thank

You


Call: 044 28578700

E-mail:[email protected]

Select Focus




Select Focus

Portfolio Insights

Additional Information

Select Focus




Investment process

Fundamentals &ManagementAssessment

Fund ManagersEconomist RESEARCH TEAM

External ResearchPublished InformationCompany Visit

RecommendedList

Internal InvestmentCommittee

Final Fund Portfolio

APPROVED BUY LIST

ExecutiveCommittee

STOCKSELECTIONTop-Down

Approach

Fund Themes Sector and Stock Limits

Bottom-UpStock Picking

P o r t f o l i o

C o n s t r u c t i o n

I d e

a F l o w &

R e s e a r c h

A p p r o

v a l

o f S t o

c k s

Best Trade Execution

Risk Guidelines

Norms

IdeaGeneration

Diversification

Liquidity

Select Focus




Common derivative positions & limits

Derivatives Action Portfolio Limit

Index Futures Buy / Sell

Buy / Sell

Buy / Sell

Buy

Sell

Buy

SellStock Options – Put Buy Stock: 10%

Stock Options – Put Sell Up to 25%; Stock: 10%.

Up to 25%

Index Options – Call Up to 25%

Index Options – Put Up to 25%

Stock Futures Stock: 10%

Stock Options – Call Up to 25%; Stock: 10%.

Stock Options – Call Stock: 10%

Stock Futures Up to 25%; Stock: 10%




Select Focus




Pure large-cap orientation

Data Source: Bloomberg & In house; Analysis: In house

Median market cap

0

10000

20000

30000

40000

50000

60000

70000

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

Apr-09

Jun-09

Aug-09

Oct-09

Dec-09

Feb-10

M a r

k e t C a p

0

1000

2000

3000

4000

5000

6000

7000

N i f t y

Median Market Cap Nifty Average

Select Focus




Low stock overlap, source of alpha


0

10

20

30

40

50

60

70

Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09

S t o c k

O v e r l a p %

Stock Overlap Average

Select Focus




Source of alpha from sector overlap

0

10

20

30

40

50

60

70

80

90

Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09

S e c t o r O

v e r l a p %

Sector Overlap Average


P f d thSelect Focus




Preferred themes

2002Most preferred ideas: # of months during the

year the theme figured in the top three ideas

IT 5

Auto 3

Banks 1

Pharma 1

Consumer 1

Cash 3

Metals 1

12 out

of 15

Aug

Sep Cash Pharma IT

Nov IT Auto

Oct Cash IT Auto

Dec

Cash

IT Auto Metals

IT Consumer Banks

Source: Fact Sheet





Preferred themes

Banks 8

Metals 6

Cash 6

IT 3

Pharma 2

Energy 1

Construction 1

Auto 6

Engineering 3

26 out

of 36

Most preferred ideas: # of months during the


2003 Jan

Feb

Dec Metals IT Engineering

Banks Engineering Cash

Apr Banks Cash Auto

June Banks Metals Construction

Aug IT Energy Pharma

Oct Metals Auto

Mar Banks Cash Pharma

May Banks Cash Engineering

July Metals Auto Cash

Sep Metals Auto Banks

Nov Auto Metals IT

Banks

Banks Cash Auto

Source: Fact Sheet





Preferred themes

2004 Jan

Feb

Dec Banks Auto Metals

Cash Auto Metals

Apr Banks Auto Cash

June Cash IT Auto

Aug IT Chemicals Consumer

Oct IT Metals

Mar Cash Chemicals Auto

May Cash IT Auto

July IT Chemicals Auto

Sep Metals Chemicals IT

Nov Auto Banks Metals

Energy

Auto Cash IT



Auto 9

IT 7

Cash 6

Chemicals 4

Consumer 1

Energy 1

Metals 5

Banks 3

27 out

of 36

Source: Fact Sheet





Preferred themes

2005 Jan

Feb

Dec Engineering IT Energy

Metals Banks Energy

Apr Cash Banks Cement

June Banks Energy Engineering

Aug Engineering Banks Consumer

Oct Cash Engineering

Mar Banks Cement Metals

May Metals Banks Energy

July Banks Engineering Energy

Sep Cash Engineering Banks

Nov Engineering Energy IT

Energy

Banks Auto Metals



Banks 9

Energy 7

Metals 4

Cash 3

Cement 2

Auto 1

Consumer 1

Engineering 7

IT 2

27 out

of 36

Source: Fact Sheet





Preferred themes

2006 Jan

Feb

Dec IT Energy Engineering

Engineering Energy Auto

Apr Engineering Cement Energy

June Cash Engineering Energy

Aug Engineering IT Cash

Oct IT Engineering

Mar Engineering IT Consumer

May Cash Engineering Energy

July Cash Engineering IT

Sep Engineering IT Energy

Nov IT Engineering Banks

Energy

Engineering Consumer Energy



Engineering 12

Energy 8

Cash 4

Consumer 2

Auto 1

Cement 1

IT 7

Banks 1

31 out

of 36

Source: Fact Sheet

Preferred themesSelect Focus




Preferred themes

Energy 11

Engineering 7

Metals 5

Cash 2

Financial Services 7

IT 4



30 out

of 36

Jan

Feb

Dec Metals Energy Financial Services

IT Cash Engineering

Apr Energy IT Engineering

June Energy Financial Services IT

Aug Energy Engineering Metals

Oct Metals Energy

Mar Cash Energy Engineering

May Energy Engineering Financial Services

July Energy Financial Services Engineering

Sep Energy Metals Financial Services

Nov Metals Energy Financial Services

Financial Services

IT Engineering Energy

Source: Fact Sheet



Preferred themesSelect Focus




Preferred themes



Energy 12

Financial Services 12

Industrial

Manufacturing3

Cash 3

21 out

of 27

Jan

Feb

June Energy Financial Services Industrial Manufacturing

July Energy Financial Services IT

Aug Energy IT Financial Services

Sep Energy Financial Services Metals

Oct FinancialServices

Energy Metals

NovFinancial

ServicesEnergy Metals

Dec Energy Financial Services IT

Cash Energy Financial Services

Apr Energy Financial Services

Mar Energy Cash Financial Services

May Energy Financial Services Industrial Manufacturing

Industrial Manufacturing

Cash Energy Financial Services

Source: Fact Sheet



Risk & SuitabilitySelect Focus




Risk & Suitability

Risk grid

Large

caps

• Core option for large-cap portfolio

• For investors starting a fund portfolio

• Investors who have a mid- cap bias in the portfolio

• Seek the comfort of blue chip names in the

portfolio

• Have an investment horizon of three-to-five years

Few

Themes

Big

Bets

Fund factsSelect Focus




Fund facts

Allotment Date July 2002

NAV (March 31, 2010) Growth: Rs 83.8168 Dividend: Rs 10.8568

Plans / Options Regular & Institutional / Growth, Dividend Payout , Re-investment & Sweep

Minimum Subscription Amount

Regular Plan First Investment: Rs 5000 Subsequent Purchase: Rs 500

Equity instruments (including ADRs and GDRs): 75%-100% • Equity futures & options including those of indices: Not exceeding 25% •

Cash, cash equivalents, money market instruments: Not exceeding 25%. Exposure in derivative shall not exceed 25% of the portfolio.

Equity Investments may also include overseas securities, up to a maximum of 35% of the net assets.

Objective

Seek capital appreciation (For detailed investment objective refer disclaimer)

Load Structure

Entry Load Nil

Exit Load 1% if redeemed within twelve months from the date of allotment

Institutional Plan First Investment: Rs 5000 Subsequent Purchase: Rs 500

SIP Rs 250 per month Rs 750 per quarter Rs 1000 per week

Asset allocation

Source: Fact Sheet

Source: Latest Factsheet

NAV over the yearsSelect Focus




108.7

51.7

85.6

83.8

60.7

40.7

22.6

10.9

28.0

0

20

40

60

80

100

120

' 02 ' 03 ' 04 ' 05 ' 06 ' 07 ' 08 ' 09 ' 10

The length of the line indicates the range of NAV movement during the period and a bar drops to show the closing value

NAV over the years

NAV of Growth Option as on March 31, 2010


Select Focus

Help Guide




NAV-based returns have been used in calculating all the numbers in `Risk Metrics’ table.

Mean Monthly Return: This is the average returns since launch.

Standard Deviation: The deviation of the returns from the mean returns of the fund. This gives an indication of the volatility in thereturns of the fund. This indicator hence should be read in conjunction with Mean returns and not to be used alone.

Beta: It considers the benchmark returns and finds out the extent to which fund moved in relation to benchmark.

Alpha: It is the excess return generated by the fund above its expected rate of return. The expected rate or return is the return of theindex multiplied by the beta.

Sharpe: This ratio is a measure of the fund’s risk-adjusted returns per unit of risk (risk measure used is standard deviation). It iscalculated by deducting the risk-free rate of return from the average monthly returns and dividing the result by the standard deviation.In general, higher the Sharpe ratio, the better it is as an indicator of risk adjusted returns.

Treynor Ratio: This ratio is a measure of the fund’s risk-adjusted returns per unit of market risk (risk measure used is beta). It iscalculated by deducting the risk-free rate of return from the average monthly return and dividing the result by the beta of the fund.

Tracking error: This is a measure of how closely a portfolio follows the index to which it is benchmarked. It measures the standarddeviation of the difference between the portfolio and benchmark returns. Tracking error (also called active risk) is a measure of thedeviation from the benchmark. An actively managed portfolio would normally have a higher tracking error.

Information Ratio: This is a measure the excess return of the fund over the benchmark by the amount of risk the manager takesrelative to a benchmark. Risk measure to compute information ratio is tracking error.

Correlation: This number shows the relationship between the returns of the fund and benchmark. If the ratio is 0, it means there is norelationship between them and if it is 1, it means the two move in tandem.

Turnover: This ratio measures churn or portfolio turnover. This is calculate by dividing the lower of purchases or sales by the average

daily assets for the chosen period.

Help Guide



http://www.crisil.com/


Sundaram BNP Paribas Select Focus March2010

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