IDFC Sterling Value Fund

Fund Snapshot Investment Growth Top Holdings Morningstar Category India Fund Value Time Period: 2/1/2016 to 1/31/2021 Portfolio Date: 12/31/2020

Fund Size (INR bn) 30 200.0 Position Equity Inception Date 3/7/2008 Market Portfolio Style Value Weighting % Annual Report Net Expense Ratio 2.05 180.0 Box (mil) Morningstar Rating Overall ÙÙ Manager Name Multiple 160.0 ICICI Bank Ltd È 1,177.11 3.99 Minimum Investment (INR) 5,000 Ltd Ì 1,130.22 3.83 140.0 Morningstar Analyst Rating ´ KEC International Ltd Ë 946.27 3.20 Jindal Steel & Power Ltd Ë 852.64 2.89 120.0 Birlasoft Ltd Î 839.46 2.84 Ltd Ì 787.97 2.67 100.0 Manager Biography & Fund Strategy JK Cement Ltd Ì 785.89 2.66 Anoop Bhaskar has been managing this fund since April 2016. He is a seasoned manager. His experience in managing funds from the large as well as mid/small-cap 80.0 Gas Ltd Ì 752.80 2.55 variety with the same degree of success speaks volumes about his management 2016 2017 2018 2019 2020 Ltd Ë 743.09 2.52 capabilities. Therefore, he is an apt fit here and has the requisite skill sets to successfully execute the strategy. Ltd Ë 720.38 2.44 Anoop Bhaskar draws on his experience, in-depth understanding of stocks, and IDFC Sterling Value Reg Gr S&P BSE 500 India TR INR analyst recommendations while investing. He runs the fund using a relative valuation strategy rather than absolute valuation. Therefore, while the valuation is Trailing Returns Equity Sectors the premise of the investment approach plied here, the fund doesn’t qualify as a true-blue value fund. Bhaskar looks at three attributes for evaluating a stock on Data Point: Return Calculation Benchmark: S&P BSE 500 India TR INR Portfolio Date: 12/31/2020 valuation--price/earnings, price/book, and enterprise value/sales--over a trailing 12- month period. A stock qualifies on his valuation expectation if two out of these three YTD 1 Year 3 Years 5 Years 10 Years % attributes are lower than the industry average. While investing, he tries to understand long-term trends and pick fundamentally sound companies, having IDFC Sterling Value Reg Gr 9.37 22.01 2.48 13.43 13.19 Basic Materials 19.6 monopolistic presence, at early stages and that have a competitive advantage in Consumer Cyclical 24.4 their respective spheres. Bhaskar has a relatively stringent stock-selection criterion. S&P BSE 500 India TR INR 6.80 26.70 10.88 16.32 12.34 He prefers companies that have decent amount of promoter holdings, good cash Financial Services 12.7 generation, and low leverage and businesses that are profitable over a cycle. He avoids businesses that show profitability in spurts. Although he believes in playing Real Estate 0.0 the entire business cycle in an issue, he can skillfully deploy tactical plays as well to capitalise on short-term opportunities. Sell-side research is extensively used, and Calendar Year Returns Consumer Defensive 6.3 the in-house team builds its investment thesis on that. Nonetheless, buy and sell Healthcare 6.8 decisions are made internally. Calculation Benchmark: S&P BSE 500 India TR INR 80.0 Utilities 3.2 Despite correction in the mid- and small-cap space in the past few years, the 61.3 managers have adhered to the fund’s billing as a mainly mid- and small-cap offering, 60.0 Communication Services 0.2 37.6 with 80% of assets invested there versus 35% for peers. Bottom-up stock-picking is 40.0 Energy 1.5 evident, and the top-down approach isn’t ignored. The manager doesn’t shy away 18.4 20.0 9.4 15.2 9.0 from having an overweight or underweight position in sectors either from a bottom- 6.8 1.1 5.2 Industrials 18.1 up basis or macro perspective. Anoop prefers constructing a diversified portfolio and 0.0 doesn’t believe in taking cash calls. -1.8 Technology 7.2 -20.0 -6.2 -13.0 -40.0 Total 100.0

Return YTD 2020 2019 2018 2017 2016

IDFC Sterling Value Reg Gr S&P BSE 500 India TR INR Source: Morningstar Direct