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Quick background
Investment manager for Sundaram Mutual Fund sponsored by Sundaram
Finance & Newton Group in 1996. Newton exited in 2002
BNP Paribas Asset Management (BNPP AM) became a partner in 2006. In 2010,
as part of a global acquisition, the parent company of BNP Paribas Asset
Management has acquired the banking and financial services activities of the
Fortis Group. Hence, Sundaram Finance has fully bought-out BNP Paribas stake
and has taken 100% charge of the business.
The mutual fund is now fully sponsored by Sundaram Finance and it holds a
100% stake in the Asset Management Company and the Trustee Company
2
Vision, Mission & Philosophy
To take the least cost and most effective solution
Never ever take short cuts
Admit and share mistakes - internally
Take necessary steps to avoid repetition of work
Respect others, their needs, religion and sentiments
Be on time always
Communicate freely and maintain confidentiality
Develop and maintain trust
Work as a coherent team
To be a significant player in the Indian asset management
space and be one of the top ten asset managers
To provide people the best experience
in accessing financial markets
• Respect others, their needs and sentiments
• Develop and maintain trust
• Communicate freely and maintain confidentiality
• Be on time always
• Never ever take short cuts
• Admit and share mistakes …
3
Key strengths
Robust and transparent investment process
Process is as important as the end result
Process is meant to control emotions
Stay true to defined parameters
All actions should be explainable
A disciplined team approach
To build a group where every member understands the goals
Fund managers are expected to adhere to the investment objectives of individual funds at all times
Clearly defined products
An extensive product range for all risk/return profiles
Quality service
Emphasis on quality at all levels is the key to long-term success
4
Key strengths
Robust in-house research
Ability to
identify ideas early
zero in on the right stocks
show patience
be disciplined in selling
Rigorous risk management and compliance to contain risks without sacrificing
performance
Acclaimed track record for several products
5
Custodians
Sundaram Finance Limited
Sundaram Trustee Company Limited
Sundaram Asset Management Company Limited
Sundaram Mutual Fund
Sundaram BNP Paribas Fund Services
Standard Chartered / HDFC Bank / HSBC
Sponsor
Investment Manager Trustee
Mutual Fund Transfer Agent
Structure for mutual fund business
6
Investor
SEBI
Sundaram Finance
Sundaram Mutual Fund
Organised as a Trust
Sundaram Asset Management Company
• Investment manager for mutual fund
• Investment advisory
• Portfolio management services
Sundaram Trustee Company
Launches funds
• Safeguard interest
of investors in the
mutual fund
• Oversight of the
Investment
Manager
Role profile & ownership pattern
Ownership
7
The group was founded by Mr. T V Sundaram Iyengar in 1911 as a bus service
Considered as one of the most respected names in Indian business
Leaders in quality management
Pioneers in employee welfare, customer satisfaction and values
Origin of Sundaram Finance TVS - a reputed & diversified business group
9
Founded to serve TVS group customers
1954
1970-1990
Established a strong presence in financing commercial vehicles
1990s-
Targeted capture of retail space in
financial services
Reliance on organic growth and
joint ventures with foreign partners
to capitalise on new opportunities
Established in 1954 as a subsidiary of
Madras Motor and General Insurance
(part of the TVS Group)
Founded by Sri T S Santhanam (1912-
2005)
IPO in 1972
Origin of Sundaram Finance TVS’ automobile business
10
Positive brand experience
Brand survey findings
Perceived as higher on all
parameters reinforcing
positive experience
Performance has always
exceeded promise
Highest level of word-of-
mouth recommendation
Customer loyalty deepens
with longer association
Service
Openness Fair play
Integrity Discipline
Relationships Prudence
11
The Sundaram Finance group
Sundaram Finance Distribution Royal Sundaram General Insurance
Sundaram Business Services
Sundaram Info Tech Solutions
LGF Services Limited
Sundaram Asset Management
Sundaram BNP Paribas Home Finance
Infreight Logistics Solutions
Sundaram Trustee Company Joint venture between Royal & Sun Alliance UK and Sundaram
Finance
Sundaram BNP Paribas Fund Services
Joint venture between Sundaram Finance and BNP Paribas Group
Joint venture between Sundaram Finance and BNP Paribas Group
12
Fundamentals &
Management
Assessment
Equity Investment process
Fund Mangers+
Economist RESEARCH TEAM
External Research
Published Information
Company Visit
Recommended
List
Internal Investment
Committee
Final Fund Portfolio
APPROVED BUY LIST
Executive
Committee
STOCK
SELECTION Top-Down
Approach
Fund Themes
Sector and Stock Limits
Bottom-Up
Stock Picking
Po
rtfo
lio
Co
nstr
ucti
on
Idea F
low
&
Re
se
arc
h
Ap
pro
val
of
Sto
ck
s
Best Trade Execution
Risk Management
Norms
Idea
Generation
Diversification
Liquidity
An active fundamental approach
13
Fundamentals &
Management
Assessment
Fixed-Income Investment process
Fund Mangers+
Economist RESEARCH TEAM
External Research
Published Information
Company Visit
Recommended
List
Internal Investment
Committee
Dynamic Fund Portfolio
APPROVED BUY LIST
Executive
Committee of the
Board
SECURITY
SELECTION Top-Down
Approach
Fund Positioning
Issuer & Security Allocation
Limits
Asset Quality
Evaluation & External
Ratings
Po
rtfo
lio
Co
nstr
ucti
on
Ide
a F
low
&
Researc
h
Ap
pro
val
of
Secu
riti
es
Best Trade Execution
Risk Management
Norms
Idea
Generation
Diversification
Liquidity
An active fundamental approach
14
Risk management as an independent function ensures effective risk control
Risk management is a complement to the investment process
The objective of the risk management process is to monitor and measure the risks of
portfolio construction, diversification and holdings and their contribution to the overall risk
profile of each fund with clear definitions of process and procedures
Investment risk:
Market risk: Identification, measurement and control of market risks
Credit risk: Maintenance and control of target limits & risk measurement
Valuation risk: Mark-to-market & definition of processes and methodology
Support to investment team in performance analysis
Risk control parameters for new products & risk disclosures in Scheme Information
Document
To perform risk analysis, third-party as well as proprietary tools are used
Risk management A vital part of the process
15
Establish risk policy Evaluate performance Review major risk factors Confirm risk action plan
Risk Team
Monitor internal risk budget Measure performance Analyze funds’ risk Review of new products risk
Risk Committee Compliance Officer
Govern internal control Compliance monitoring Review legal documents New product filings
• Regular meeting with the Risk Committee of the Board Discuss investment strategy & performance and review risk
A clear risk organisation
Managing Director
Monthly Meeting
Risk management
16
Disclaimer
17
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Copies of the Statement of Additional
Information, Scheme Information Document and application form with Key Information Memorandum may be obtained from the offices / Investor Service
Centres of Sundaram Mutual or its authorized distributors or downloaded from www.sundarammutual.com. Past performance is no guarantee of future
result. General Risk Factors: 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. General
Disclaimer: This document is issued by Sundaram Asset Management, an Investment Manager registered with the Securities and Exchange Board of
India in India and is produced for information purposes only. It is not a prospectus or Offer Document or Scheme Information Document or an offer or
solicitation to buy any securities or other investment. Information and opinion contained in this document are published for the assistance of the recipient
only; they are not to be relied upon as authoritative or taken as a substitution for exercise of judgment by any recipient. They are subject to change
without any notice and not intended to provide the sole basis of any evaluation of the instrument discussed or offer to buy. It is neither a solicitation to
sell nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or be taken as investment advice. The
information and opinions contained in this communication have been obtained from sources that Sundaram Asset Management believes to be reliable; no
representation or warranty, express or implied, is made that such information is accurate or complete and it should not be relied upon as such. Sundaram
Asset Management neither guarantees its accuracy and/or completeness nor does it guarantee to update the information from time to time. This
communication is for private circulation only and for the exclusive and confidential use of the intended recipient(s) only. Any other distribution, use
or reproduction of this communication in its entirety or any part thereof is unauthorized and strictly prohibited. By accepting this document you agree to
be bound by the foregoing limitations. This communication is for general information only without regard to specific objectives, financial situations and
needs of any particular person who may receive it and Sundaram Asset Management is not soliciting any action based on this document. Sundaram Asset
Management in the discharge of its functions, may use any of the data presented in this document for its decision-making purpose and is not bound to
disclose the same. For scheme specific risk factors, asset allocation, load structure, fund facts and taxation aspects please refer the Statement of
Additional Information and Scheme Information Document available online and at branches/Investor Service Centres. Statutory: Mutual Fund: Sundaram
Mutual Fund is a trust under Indian Trusts Act, 1882 Liability for sponsor is limited to Rs. 1 lakh. Sponsor: Sundaram Finance Ltd. Investment
Manager: Sundaram Asset Management Company Ltd. Trustee: Sundaram Trustee Company Ltd.