FUND REGISTERED IN : AT BE CH CL DE ES FR IT LU NL SG DOCUMENT FOR THE USE OF BOTH NON-PROFESSIONAL AND PROFESSIONAL INVESTORS AS OF 31 OCTOBER 2013 EDMOND DE ROTHSCHILD INDIA (E)
EdR India (E) INDIA EQUITY FUND
EDMOND DE ROTHSCHILD ASSET MANAGEMENT EMERGING MARKETS EQUITY MORNINGSTAR TM Ranking as of 30/09/2013 in the category India Equity : QQQ Fund size : EUR 78,68 mil. GENERAL INFORMATION Investment objective Invested in the shares of companies in the Indian sub-continent (India, Sri Lanka and Bangladesh), the Fund actively selects stocks that offer the best risk/return ratio, without restriction in terms of predefined style or market capitalisation. Monthly comment The Reserve Bank of India (RBI) raised its repo rate by 25 bps (7.75%) and injected further liquidity into the banking system. However, given a good monsoon season, food prices are expected to stabilise, prompting the RBI not to tighten monetary policy any further. Approximately half the listed companies in India have already published their earnings, which have generally come in slightly better than expected. IT companies reported in-line earnings, as did private banking, with the cost of credit stabilising. In industry, Larsen & Toubro posted modest profits growth of 7%, while its orders jumped 26%. Havells has published excellent results, up some 49%. In pharmaceuticals, Lupin provided a welcome surprise with a 40% leap in earnings growth. Within the portfolio, our positions in Petronet and Asian Paints were wound up. Given their high-multiple valuations —unwarranted by their earnings growth prospects —we also reduced our consumer stock positions (Hindustan Unilever, ITC and Bata). Instead, positions were initiated on recovery stocks such as Crompton Greaves (manufacturing) and Ambuja (cement). A new position was also established in Havells. With the rupee stabilising, and large enough electricity price hikes agreed for State Electricity Boards to ease investor concerns over the banks (with $90 billion USD exposure), we are becoming cautiously more optimistic about the prospects facing the Indian market.
PERFORMANCES Benchmark (Index) : MSCI India (NR) (EUR) Market benchmark (NR index) : MSCI India (NR) (EUR) Index : Former benchmark expressed in price index chained with official benchmark expressed net dividend reinvested - NR index: Market index corresponding to the benchmark, dividend reinvested. Performance chart (from 14/04/08 to 31/10/13) Cumulative performances (Net of fees) (Rolling periods) 140 1 month 3 monthsYTD 1 year 2 years 3 years 5 years 10 years Since Annualized inception since inception 120 Share (E)8,06 4,15 -9,25 -8,84-10,65 -24,38 52,28 -8,74 -1,63 100 Index10,08 5,24 -6,61 -4,24-3,30 -23,94 61,86 -2,95 -0,54 NR Index10,08 5,24 -6,55 -4,07-1,63 -21,57 71,00 3,63 0,64 80
60 Risk indicators (Rolling periods) Volatility Tracking error Sharpe ratio 40 52 weeks3 years 52 weeks 3 years 52 weeks 3 years Share (E) 19,83 19,695,03 6,76 -0,54 -0,47 Index 21,57 24,33-- -0,30 -0,37 14/04/2008 16/07/2008 14/10/2008 15/01/2009 16/04/2009 21/07/2009 22/10/2009 27/01/2010 04/05/2010 04/08/2010 03/11/2010 07/02/2011 12/05/2011 12/08/2011 23/11/2011 24/02/2012 04/06/2012 03/09/2012 07/12/2012 11/03/2013 19/06/2013 19/09/2013 Share (E) Index PORTFOLIO Sector breakdown * Fund % of Net Assets
22,7 17,7 15,5 11,7 9,6 6,4 7,1 4,0 2,4 1,7 1,1
Information Financials Consumer Consumer Healthcare Industrials Energy Telecommunication Materials Utilities Cash/T-Billis/bonds Technology Discretionary Staples Services * Carried out after breaking down the underlying LCF Rothschild Group funds. Market cap breakdown * Top holdings % of Net Assets 5 Main holdings (Number of holdings : 28) Sector % of Net Assets TATA CONSULTANCY SERVICES Information Technology 9,3 250 - 2 500 M. EUR 11,0 HCL TECHNOLOGIES LTD Information Technology 8,5 HOUSING DEVELOPMENT FINAN Financials 7,5 ITC LTD Consumer Staples 7,1 2 500 - 10 000 M. EUR 26,8 HDFC BANK LTD Financials 5,7 Total 38,2 Financial data * (weighted averages) 10 000 - 50 000 M. EUR 55,2 PER PER EPS var. PCF PBV Yield 2013 2014 2013/2014 2013 2013 2013 21,7 18,5 18,5 19,3 4,7 1,3 Cash/T-Billis/bonds 7,1
PERFORMANCE TRACK RECORD Net performance Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Annual 2009 Share (E) 1,97 -6,28 2,66 15,00 28,40 1,32 6,76 -0,54 7,66 -2,87 6,69 7,02 86,09 Index 6,18 -9,59 7,28 19,77 27,92 -1,56 7,47 -2,39 8,88 -5,03 6,52 8,25 94,26 2010 Share (E) -2,66 3,22 10,51 4,10 0,74 4,02 -5,21 1,78 4,20 -2,01 -0,70 3,30 22,39 Index -2,26 3,19 10,15 3,61 -0,48 4,07 -5,42 0,92 8,14 -0,32 -0,23 4,36 27,70 2011 Share (E) -13,34 -2,54 6,08 -2,93 0,49 2,82 0,27 -8,94 -1,06 1,63 -10,47 -2,34 -27,87 Index -14,95 -2,54 8,12 -5,39 -1,33 0,50 -1,63 -12,86 0,49 4,34 -12,95 -2,53 -35,90 2012 Share (E) 14,50 1,80 -4,98 -2,34 -5,37 1,77 3,55 -1,37 10,00 -4,22 4,15 -3,55 12,60 Index 19,84 2,54 -4,97 -4,15 -5,68 4,19 2,35 -1,32 12,24 -4,56 3,98 -1,40 22,03 2013 Share (E) -1,27 -3,38 2,18 -0,41 0,61 -7,80 -3,24 -8,58 5,43 8,06 Index 1,97 -3,82 1,95 1,47 -1,27 -6,92 -4,83 -10,12 6,36 10,08
This document is not contractual and is to be used for information purposes only. Publication. 1/31/3 EDMOND DE ROTHSCHILD ASSET MANAGEMENT 47, Rue du Faubourg Saint-Honoré - 75401 Paris Cedex 08 Société Anonyme. AMF Agreement Number 04000015 332.652.536 R.C.S. PARIS FUND REGISTERED IN : AT BE CH CL DE ES FR IT LU NL SG DOCUMENT FOR THE USE OF BOTH NON-PROFESSIONAL AND PROFESSIONAL INVESTORS AS OF 31 OCTOBER 2013 EDMOND DE ROTHSCHILD INDIA (E)
EdR India (E) INDIA EQUITY FUND
EDMOND DE ROTHSCHILD ASSET MANAGEMENT EMERGING MARKETS EQUITY MORNINGSTAR TM Ranking as of 30/09/2013 in the category India Equity : QQQ Fund size : EUR 78,68 mil. MAIN MOVEMENTS OF THE MONTH New positions Strengthened positions Sold Reduced DABUR INDIA LTD LARSEN & TOUBRO LTD ASIAN PAINTS LTD ITC LTD AMBUJA CEMENTS LUPIN LTD IL&FS TRANSPORTATION NETW SUN PHARMACEUTICAL INDUST HAVELLS INDIA LTD ZEE ENTERTAINMENT ENTERP MOTHERSON SUMI SYSTEMS L CROMPTON GREAVES LTD HDFC BANK LTD ADANI PORT IDEA CELLULAR LTD BATA INDIA LTD
PERFORMANCE ANALYSIS Top 5 positive performers Top 5 negative performers (from 30/09/13 to 31/10/13) (from 30/09/13 to 31/10/13) Av. weight(%) Contribution(%) Av. weight (%) Contribution (%) TATA CONSULTANCY SERVICES 9,24 1,01 ITC LTD 8,73 -0,08 HOUSING DEVELOPMENT FINA 7,21 0,96 AMBUJA CEMENTS 1,33 -0,07 HDFC BANK LTD 5,18 0,79 HINDUSTAN UNILEVER LTD 1,73 -0,02 TATA MOTORS LTD 4,22 0,61 APOLLO HOSPITALS ENTERPRI 1,65 -0,02 MOTHERSON SUMI SYSTEMS L 3,37 0,60 DABUR INDIA LTD 0,05 -0,01
YIELD / RISK
Risk indicators (Rolling periods) Net yield analysis 52 weeks 3 years 5 years Since inception (week. yield) (month. yield) (month. yield) (month. yield) Volatility 19,83 19,69 23,24 Earnings rate 51,23 Tracking error 5,03 6,76 7,21 Maximum drawdown -32,52 Information ratio -0,84 -0,03 -0,19 Maximum profit 34,91 Sharpe ratio -0,54 -0,47 0,35 Payback period 221 day(s) Alpha -0,10 -0,21 0,01 Bêta 0,90 0,79 0,83 R2 0,95 0,95 0,94 Correlation ratio 0,97 0,97 0,97
FUND CHARACTERISTICS Share characteristics Fund characteristics Net asset value (EUR) : 91,26 Legal status Share issue date : 14/04/2008 Fund inception date : 09/02/05 AMF classification : International Equity ISIN code : FR0010594309 Fund domicile : French Recommended investment period : > 5 years Bloomberg code : STHONIE FP Lipper code : 65115568 Functionality Telekurs code : 3851190 Management Company : Edmond de Rothschild Asset Management Distribution : None, Accumulation Valuation : Daily Latest coupon : - Administration : CACEIS Fund Admin. Decimalised : 3 decimals Custodian : L.C.F.E.D.R.B. Initial minimum subscription : 1Share (1) Subscribers Type : All investors; unit specifically intended to be marketed by the Distributors Subscription & redemptions conditions : Daily before 16.30 pm C.E.T.on next day's net selected for this purpose by the Management Company. asset value (1) Management Subscription/Redemption fees Fund Managers Management fees : 2,4% Subscription fees : 5% maximum Ludovic VAUTHIER, Patricia URBANO Performance fees : yes (1) Redemption fees : no
(1) In the interests of clarity and transparency, please familiarise yourself with the specific features of this product as detailed in the prospectus. CONTACTS Your contacts Edmond de Rothschild Asset Management
UK : [email protected] Germany / Austria : [email protected] Benelux : [email protected] Asia : [email protected] Edmond de Rothschild Paris
Institutional Sales
Employee Savings Schemes
Banks and Asset Managers
Latin America : [email protected] Spain : [email protected] Switzerland : [email protected] Italy: [email protected] Platforms and IFAs
This document is not contractual and is to be used for information purposes only. Publication. 2/32/3 EDMOND DE ROTHSCHILD ASSET MANAGEMENT 47, Rue du Faubourg Saint-Honoré - 75401 Paris Cedex 08 Société Anonyme. AMF Agreement Number 04000015 332.652.536 R.C.S. PARIS FUND REGISTERED IN : AT BE CH CL DE ES FR IT LU NL SG DOCUMENT FOR THE USE OF BOTH NON-PROFESSIONAL AND PROFESSIONAL INVESTORS AS OF 31 OCTOBER 2013 EDMOND DE ROTHSCHILD INDIA (E)
EdR India (E) INDIA EQUITY FUND
EDMOND DE ROTHSCHILD ASSET MANAGEMENT EMERGING MARKETS EQUITY MORNINGSTAR TM Ranking as of 30/09/2013 in the category India Equity : QQQ Fund size : EUR 78,68 mil.
PRODUCT RISKS AND DISCLAIMERS
All of the data in this document relating to the Fund is provided by the valuation agent, except for the portfolio and the resulting analyses which are provided by EDRAM. Data distributors (RIMES and Bloomberg) are the main sources for the indices and the characteristics of the stocks held in the portfolio. Please note that the main risks of this UCITS are as follows: Credit risk : risk that the issuer of the bonds or money market securities may not be able to meet its obligations or that its credit rating may be downgraded. Liquidity risk : risk linked to the low level of liquidity on the underlying markets, which makes them sensitive to significant purchase / sale trends. Derivative exposure : the use of derivatives may cause a greater drop in the value of net assets than the drop in the value of the investment markets.
A description and more information about the risks associated with this UCITS are provided in the UCITS’ prospectus. The regulations, prospectus and Key Investor Information Document are available free of charge on request from Edmond de Rothschild Asset Management and/or from the following representatives and correspondents: Luxembourg Caceis Bank Luxembourg 5, Allée Scheffer,Luxembourg,L-2520,Luxembourg Germany Caceis Bank Deutschland GmbH Lilienthalallee 34 - 36D,Munich,80939,Germany Austria Société Générale Vienna Branch Prinz-Eugen-Strasse 32,Vienna,A-1040,Austria Spain Edmond de Rothschild Asset Management - Sucursal en España Pº de la Castellana 55,Madrid,28046,Spain France Edmond de Rothschild Asset Management 47, Rue du Faubourg St-Honoré,Paris 75401,Cedex 08,France Italy Société Générale Securities Services S.p.A. Via Benigno Crespi 19A,Milan,MAC2,Italy Italy State Street Bank S.p.A. Piazza San Carlo, n. 156,Turin,Italy Belgium Caceis Belgium Avenue du Port 86 C b320,Bruxelles,B- 1000,Belgium Switzerland Banque Privée Edmond de Rotshchild SA 18, rue de Hesse,Genève,1204,Switzerland and/or from the website (http://www.edram.fr), so that the potential investor may analyse the risks and establish his or her own opinion independent of EdRAM, and where necessary, take specialist advice regarding such questions, and especially in order to determine the relevance of such investment to his or her own financial situation. The data, comments and analyses given in this presentation reflect the views of Edmond de Rothschild Asset Management on the markets and their movements, regulation and taxation, taking into account its expertise, economic analyses and the information held at the present time. They do not, however, constitute any form of commitment or guarantee on the part of Edmond de Rothschild Asset Management. The figures quoted relate to previous years. Past performance and ratings are not reliable indicators of future performance or ratings. Performance data does not take into account the commissions and fees received when issuing and redeeming units or the tax charged by the client’s country of residence. The Fund’s investment policy does not anticipate any correlation between the Fund and the index indicated. As a consequence, the UCITS’ performance may differ from that of the index. Morningstar ratings are not market ratings and should not be considered as recommendations to buy, sell or hold units or shares of the above-mentioned UCITS. Rating - Source - © 2012 Morningstar, Inc. All rights reserved. If the figures expressed in this document are in a different currency than that of the Member State in which the client resides, the gains accruing to the client may increase or decrease in line with exchange rate fluctuations. Country-specific regulations regarding the way a UCITS is marketed may vary between countries. The UCITS may be offered in a jurisdiction other than the countries of registration, specifically under a private placement regime, if the applicable law of this other jurisdiction allows it. If you are in any doubt over the marketing possibilities for this Fund, please consult your usual financial advisor. A UCITS may not be offered to a person if prohibited by the law of their country of origin or of any other country which may apply to them or to the product. Residents of the United States: The Fund and its units are not registered under the 1933 Securities Act or any other United States regulation. They may not be offered or sold for the benefit of or on behalf of a “US Person” as defined by “US Regulation”. The UCITS may not collect subscriptions, directly or indirectly, from the People’s Republic of China. Hong Kong : This document is intended only for professional investors as defined under the relevant laws of Hong Kong and is not intended for the public in Hong Kong. The contents of this document have not been reviewed by any regulatory authority in Hong Kong. No action has been taken in Hong Kong to permit the distribution of this document. In accordance with the regulations in force, the UCITS may only be marketed to professionals and institutional investors or qualified and equivalent investors, or in the context of a private placement in the following country(ies): Chile and Singapore.
RISK SCALE
Risk and reward profile Lower risk, Higher risk,
potentially lower return potentially higher return 1 2 3 4 5 6 7
This rating system is based on average fluctuations in the fund's net asset value over the past five years, i.e. the scale of changes in the index securities, both up and down. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historic data such as those used to calculate the synthetic indicator may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk free investment.
This fund is rated in category 7, reflecting that it can be up to 110% exposed to equities markets, which presents a high risk/reward profile.
HISTORICAL DATA Benchmark modification history From 12/02/2013 MSCI India (NR) (EUR) From 14/04/2008 MSCI India (EUR)
This document is not contractual and is to be used for information purposes only. Publication. 3/33/3 EDMOND DE ROTHSCHILD ASSET MANAGEMENT 47, Rue du Faubourg Saint-Honoré - 75401 Paris Cedex 08 Société Anonyme. AMF Agreement Number 04000015 332.652.536 R.C.S. PARIS