Introduction to L&T Investment

Management

June 2014

2

Agenda

• Overview

• Equity capability

• Fixed Income capability

• Appendix

Overview

Source: internal. * as at 30.5.2014

3

• Assets of approx Rs19,937 crores*

• Consistent growth in assets: 84% (post FIL acquisition)

• Healthy mix of assets across equity, fixed income and hybrid schemes ;

equity assets under management make for over 25% of the total assets

• Nearly 800,000 investors across retail and high networth segments based in

200 towns and cities

• High quality, scalable retail and institutional asset management business

• Comprehensive product range across equity and debt

• Team size ~ 221

• Capability to manage institutional and segregated mandates

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Vision and Key Goals

• To be among the leading asset management companies in India

• To be known for ethics, professionalism and efficiency

• To consistently deliver long term investment performance

• To deliver great customer experience through product innovation

and high service standards

• To be the preferred AMC for distributors and customers

• To help grow the market and get a disproportionate share over time

• To be a profitable and admired business

Vision Statement

“Creating prosperity for our investors, partners and stakeholders by delivering

consistent long term investment performance, by being a value provider of

investment solutions and quality service”

Investment Philosophy

Fundamental research is the foundation of our investment process (equity / credit)

Focus on delivering long term consistent performance

Following a disciplined approach to investing and risk management

Team based approach with individual accountability

▪ In-house research and broad-based

coverage results in more

opportunities and helps mitigate risk

▪ While the macro environment plays

a role, bottom-up stock selection is

central to portfolio construction▪ Identifying sustainable and scalable

businesses with good management,

track record and strong execution

capability

▪ Picking good quality companies that

have the potential to grow over time

▪ Ongoing focus on valuation

▪ Focus on three critical aspects of

portfolio construction▪ Liquidity

▪ Duration management

▪ Credit Selection

▪ Uses Rigorous research to deliver

relative value (Top down +bottom

up)

▪ Diversification key for a prudent risk

profile

Equity Fixed Income

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▪ L&T Equity Fund

▪ L&T India Large Cap Fund

• L&T Midcap Fund

• L&T India Special Situations Fund

• L&T India Value Fund

• L&T Tax Advantage Fund

• L&T Infrastructure Fund

▪ L&T Global Real Assets Fund

▪ L&T Indo Asia Fund

▪ L&T Monthly Income Plan

▪ L&T MIP - Wealth Builder Fund

▪ L&T India Equity and Gold Fund

▪ L&T India Prudence Fund

• L&T Cash Fund

• L&T Liquid Fund

• L&T Ultra Short Term Fund

• L&T Floating Rate Fund

• L&T Low Duration Fund

• L&T Short Term Income Fund

• L&T Short Term Opportunities

Fund

• L&T Income Opportunities Fund

• L&T Gilt Fund

• L&T Triple Ace Bond Fund

• L&T Flexi Bond Fund

• L&T Fixed Maturity Plan

L&T Tax Saver Fund and L&T Long Term Advantage Fund – I closed for subscription and are not included in

the above list. L&T Emerging Businesses Fund is a closed-ended fund. For product labeling refer last slide.6

L&T Mutual Fund Product Range

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Strong Risk Management Framework

• Appropriate reporting structure to avoid conflict of interest between business,

investment and compliance functions

• Compliance team responsible for ensuring compliance with various regulatory and

internal requirements

• Committees to have an oversight on critical activities such as investment

management, valuation procedures, etc

• Comprehensive risk management framework covering various functions such as

Fund Management, Operations, Sales & Distribution and Customer Service to render

high standards of service, exercise appropriate due diligence and ensure proper

controls and process

• Strong due diligence process for approving brokers / counter parties to manage

counter party risk

• Best trade execution practices keeping in mind investors’ interests

• Appropriate processes to govern and restrict any personal trading activity

• Regular review of policies and its compliance

• External Auditor – Price Waterhouse, internal audit conducted by Suresh Surana &

Co; reviews are done by the Audit committee which is chaired by an independent

director

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Equity Capability

S.N. Lahiri

Head - Equities

Venugopal Manghat

Co-Head, Equities

Praveen Ayathan

Chief Dealer -

Equities

Vihang Naik

Animesh Shah

Abhijeet

Dakshikar

Karan Desai

Priti Rane (Research

Support) ^

Funds managed

L&T Equity Fund*, L&T Emerging Businesses Fund (Co-

PM)*, L&T Tax Advantage Fund, L&T India Special Situations

Fund*, L&T Midcap Fund, L&T Infrastructure Fund, equity

component of L&T India Prudence Fund* and L&T India

Equity and Gold Fund*

Funds managed

• L&T India Large Cap

Fund*

• L&T India Value Fund*

• L&T Indo Asia Fund*

(India component), Asia

component is invested in

Fidelity Funds Asian

Aggressive Fund

managed by David

Urquhart)

• L&T Monthly Income

Plan and L&T MIP Wealth

Builder (equity

component)

($ These funds are closed for subscriptions * Investments In foreign securities managed by Abhijeet

Dakshikar). ^ Also support dealing activities and acts as team co-ordinator for equity investment team.

For product labeling refer last slide.

Funds managed

•L&T Tax Saver Fund$

•L&T Long Term Advantage

Fund – I$

•L&T Emerging Businesses

Fund (Co-PM)*

Banks and

Finance, Auto &

Auto Ancillaries

Capital Goods,

Engineering, Metals,

Gas Utilities, Asset

Owners & Construction

IT, Telecom, Cement,

FMCG and Logistics

Retail, Real Estate,

Consumer Durables

Kanak Durga

Rajesh Pherwani

Head - Research

Healthcare, Oil,

Media

Funds Managed:

L&T Global Real Assets Fund

(Feeds into Fidelity Funds

Global Real Asset Securities

Fund managed by Amit

Lodha)

Equity investment team structure

9

Hitesh Gondhia

Generation

of Ideas

Manufacturing

and

monitoring of

Portfolios

• External Research:

• Broker research

• Industry research

• In house fundamental

research:

• Around 350 stocks

under active

coverage

• Filters / screens

• Business cycles

• Meet industry

experts,

competitors,

suppliers, regulators

Identify potential ideas

• Quality

• Profitability and attractiveness of business

• Competitive positioning

• Stage in business cycle

• People

• Management track record and management incentives

• Corporate governance

• Valuations

• P/E, EV / EBITDA

• good businesses at reasonable valuations or companies

on cheap valuations where fundamentals are improving

When buying a business, know the business

• Discussion in

Investment Committee

• Investment mandate –

scheme objectives,

stock and sector

diversification

• Regulatory limits

• Risk philosophy –

concentration, liquidity,

market cap size

• Tracking error

Implementation

Valuations

Evaluation

of

companies

Equity Investment Process – G.E.M.

10

11

Fixed Income Capability

Shriram Ramanathan

Head – Fixed Income

Shobheta Manglik

Fund Manager

Vikram Chopra

Fund Manager

Vikas Garg

Credit Analyst

Funds managed

•L&T Triple Ace

Bond Fund

•L&T Gilt Fund

•Fixed Maturity

Plans (Co-PM)

Funds managed

•L&T Short Term

Opportunities Fund

•L&T Short term Income

Fund (Co-PM)

•L&T Flexi Bond Fund

(Co-PM)

•L&T MIP (Debt Portion)

•L&T MIP Wealth Builder

(Debt Portion)

•L&T India Prudence

Fund (Debt Portion)

•L&T India Equity and

Gold Fund (Debt

Portion)

•Fixed Maturity Plans

(Co-PM)

Richa Sharma

Dealer / Macro research

Jalpan Shah

Dealer / Macro research

Funds managed

L&T Cash Fund, L&T Low Duration Fund, L&T

Income Opportunities Fund, L&T Liquid Fund , L&T

Ultra Short Term Fund , L&T Floating Rate Fund,

L&T Short Term Income Fund (Co-PM), L&T Flexi

Bond Fund(Co-PM), Fixed Maturity Plans (Co-PM)

Portfolio Management Trading Credit Research

12

Fixed income investment team structure

For product labeling refer last slide.

Fixed Income Investment Process – G.E.M.

Generation of

ideas

Manufacturing

and

monitoring of

Portfolios

• Views

• Top-down

• Bottom-up

• Types of Analysis

• Fundamental

• Macro

• Credit

• Market Technical

• Sources of Alpha

• Duration

• Credit / Issuer

• Security / Curve

Diversified sources

of ideas• Issuer Analysis based on

• Management contacts (company visits, conference calls)

• Annual reports

• Third-party research

• Proprietary company database

• Sector outlook

• Company Financials: Expected leverage and CF ratios

• Business & Environment: Market position, strategic focus and

implementation, management track record, quality of

disclosure and transparency

• Periodic rating review based on

• Management, business model, balance sheet & liquidity risk,

earnings & cash flow risk, peer group analysis

Fundamental Credit Analysis

• Discussion in Investment

Committee

• Idiosyncratic risk

diversified through limits

at sector and issuer level

• Allocations to credit

ratings, sectors, issuers

done in accordance with

risk tolerance and limits

• Exposures are regularly

reviewed to ensure

portfolio exposures are

within investment

guidelines

Implementation

Evaluation

of issuers

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Appendix 1: Fund Manager Profile

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Shriram Ramanathan

Funds Managed / Co-Managed

L&T Equity Fund, L&T Tax Advantage Fund, L&T India Special

Situations Fund, L&T Midcap Fund, L&T Infrastructure Fund, L&T

Emerging Businesses Fund, L&T India Prudence Fund and L&T

India Equity and Gold Fund investments in equity and equity related

instruments)

• Professional Experience

2012 – Present Head – EquitiesL&T Investment Management

2011 – 2012 Head – EquitiesCanara Robeco Asset Management, India

2011-2011 CIO – PMS Equity Investments Emkay Investment Managers, India

2008 – 2010 CIO – Advisory Services Fortuna Capital, India

2004 – 2008 Co-Head – Equities DSP Merrill Lynch Investment Managers, India

1995 – 2004 Head – Equities Dolat Capital Markets, India

• Education and Qualifications

B.E., (Mechanical)PGDBM, IIM, Bangalore

Soumendra N Lahiri

15

Head - Equities

For product labeling refer last slide.

• Funds Managed / Co-Managed

L&T Liquid Fund, L&T Cash Fund, L&T Ultra Short Term Fund, L&T Low Duration Fund, L&T Short Term Income Fund, L&T Income Opportunities Fund, L&T Floating Rate Fund and L&T Flexi Bond Fund

• Professional Experience

2012 – Present Head – Fixed IncomeL&T Investment Management

2009 – 2012 Portfolio ManagerFFMPL, Mumbai, India

2006-2009 Senior Investment Manager – Global Emerging Market Debt (Asia),ING Investment Management Asia Pacific, Hong Kong

2003 – 2005 Fixed Income Fund Manager ING Investment Management, Mumbai

2001 – 2003 Fixed Income ResearchZurich Asset Management, Mumbai

2000 – 2001 TreasuryICICI Limited

• Education and Qualifications

B.E., University of MumbaiPGDBM, XLRI, JamshedpurCFA Charterholder

Head – Fixed Income

Shriram Ramanathan

16 For product labeling refer last slide.

Shriram Ramanathan

• Funds Managed / Co-Managed

L&T India Large Cap Fund, L&T India Value Fund, L&T Indo

Asia Fund, L&T Monthly Income Plan and L&T MIP Wealth

Builder (investments in equity and equity related instruments)

• Professional Experience

2012 – Present Co-Head – Equity InvestmentsL&T Investment Management

1995 – 2012 Co-Head - EquitiesTata Asset Management, India

• Education and Qualifications

MBA Finance,B.SC (Mathematics)

Venugopal Manghat

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Co- Head – Equity Investments

For product labeling refer last slide.

Chief Executive Officer

Ashu Suyash

Administrative Assistant

Seema Paul

Chief Business Officer

Kailash Kulkarni

NH – Sales & Distribution

Ankur Thakore

NH – Institutional Sales

Mandar S

Head – Marketing, PI &

E-Channels

Terence Lucien

Head – Product

Development & Risk

mgmt- Nilesh Naik

Head – Equities

S.N. Lahiri

Head– Fixed Income

Shriram Ramanathan

Head -Legal,

Compliance, Co-sec,

& Risk – Hemang Bakshi

Head –Finance

Paras Nayyar

Head – Legal and

Compliance - Apurva

Rathod

Co- Head Equities

Venugopal Manghat

Head –Research &

Fund Manager

Rajesh Pherwani (+5)

Chief Dealer - Equities

Praveen (+2)

Credit Analyst

Vikas Garg

Dealers / Macro

Economic Research (2)

Fund Manager

Vikram Chopra

Fund Manager

Shobheta Manglik

Head – Operations,

Customer Services, IT

and Admin - Vinod V

NH – Public Sector

Markets - Drona Basu

Note: HR is a central group function18

Organization Structure

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Disclaimer

Disclaimer: This presentation is for general information only and does not have regard to specific

investment objectives, financial situation and the particular needs of any specific person who may

receive this information. Recipient of this presentation should understand that statements made

herein regarding future prospects may or may not be realized. Neither this presentation nor the

units of L&T Mutual Fund have been registered in any other jurisdiction. The distribution of this

presentation in certain jurisdictions may be restricted or totally prohibited and accordingly, persons

who come into possession of this presentation are required to inform themselves about, and to

observe, any such restrictions.

Risk Factors: Mutual Fund Investments are subject to market risks, read all scheme related

documents carefully.

CL01051.

Product Labeling

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