India Special Opportunities Portfolio

January 2023

Aditya Birla Sun Life AMC Limited- Portfolio Manager

 Aditya Birla Capital Limited – A Financial Powerhouse

VISION To be a leader and role model in a broad based and integrated financial service business

Aditya Birla Sun Life AMC Limited – Portfolio Manager 2

As on Mar 31 2018
 ABSLAMC: A Joint Venture between two pioneering companies

✓ A US $48.3 bn corporation - one of the largest ✓ A leading Canadian financial services company
Indian conglomerates with operations in over 36
countries ✓ AUM CAD $ 1,445 billion (as on Dec 31, 2021)

✓ A dominant player in many commodity & ✓ Offering diversified range of risk and financial
manufacturing businesses apart from service management products for individuals and corporate
businesses ✓ Large international footprint across continents –
✓ Major presence in Financial Services - Mutual Funds, major presence in North America & Asia
Life Insurance, Wealth Management & Distribution,
Security based lending, Infrastructure Finance,
General Insurance Advisory, Broking & Private Equity

Aditya Birla Sun Life AMC Limited – Portfolio Manager 3

 Overview: Aditya Birla Sun Life Asset Management
Heritage
✓ Founded in 1994, one of the oldest in India
✓ A JV between Aditya Birla Group & Sun Life Financial Inc since 2001
✓ Have seen the market evolve across different asset classes over the years
✓ Driven by client centric product Innovation
Asset ✓ International presence in Dubai, Singapore and Mauritius.
Management Market Dominance
✓ One of the top AMCs in India with AUM of over 2,75,287 Cr (December 2022)
✓ Over 7.9 million investor accounts (December 2022)
✓ Strengths across different asset classes

Best in Class Management

✓ Offer portfolio management services, alternate & offshore investment solutions to HNI’s and Institutions
✓ Aditya Birla Sun Life Alternate Business manages / advises Rs. 11,586 Cr. of assets (December 2022)
Alternate ✓ 10 member dedicated team for Equity and Fixed Income, with a cumulative experience of over 60 yrs - over 8
Business yrs average experience with ABSLAMC
✓ Disciplined processes driving investment management

Aditya Birla Sun Life AMC Limited – Portfolio Manager 4

 ABSLAMC – Diversified Investment Experience

Aditya Birla Sun Life AMC Limited (Investment Manager)

Mutual Fund Portfolio Alternative Offshore Presence

Management Investment Subsidiaries of
Services (PMS) Funds (AIF) ABSL AMC
Singapore
Product Offerings / Locations

Equity Funds Discretionary India Equity Opportunities Aditya Birla Sun Life Asset
Fund (Cat3 – Open Ended) Management Company Pte Ltd

India Equity Services Fund Dubai

Debt Funds Non-Discretionary Aditya Birla Asset Management
(Cat 3 – Close Ended) Company Ltd

Aditya Birla Real Estate Mauritius

Hybrid Funds Advisory Aditya Birla Sun Life AMC
Special Opportunities Fund (Mauritius) Limited

Index , ETFs & Solution Aditya Birla Real Estate Mauritius

oriented Funds Debt Fund India Advantage Fund

Aditya Birla Sun Life AMC Ltd 5

Our Investment Philosophy

To identify & capitalize upon the prevailing market inefficiencies in a

Simple, Timely & Efficient manner
Focus on Businesses
With ability & commitment to grow
earnings faster than inflation

Buy Companies that have

Purchase at Reasonable Price • Large Opportunity Canvas (scope for non-
Entry Level valuations which accord linear growth outcomes)
“Margin of safety” • Credible Management
• Emphasis on Capital Efficiency
• Superior return ratios

31
Portfolio Construction Process

1. Investment Universe 6. Investor Servicing

Portfolio Universe as per fund mandate Fund Performance, Reporting &
Investor Servicing

5. Monitoring
2. Stock Screening Investment • Periodic monitoring
• Financial Modelling & Due Diligence Process • Stop loss Triggers
• Quantitative & Qualitative Screener • Maintain Sell Discipline

3. Portfolio Optimisation 4. Portfolio Construction

• Risk reward analysis & Portfolio
Portfolio of high conviction 20-30 names
optimisation

12
Investment Process - Screening & Monitoring
Screening
Fundamentals Monitoring
Return on Equity >15%
Net Debt / EBITDA less than 2x
Improving margins & Turnover Ratios
Aggregate Portfolio liquidity If loss on stock is higher than
Stop loss Triggers benchmark on trailing 3
months by more than 30%
Valuation
Higher EPS Growth, RoCE & Net Debt to EBITDA vs benchmark
Large Opportunity Canvas
Quarterly Monitoring
Periodic Monitoring Event Based Triggers
Governance
Promoter's conduct & Management Integrity
High Pledge & Accounting Red Flags Poor Capital Allocation
Limited Equity Dilution in recent past
Maintain Sell Discipline Weakening Competitive Position
Any emerging governance issues

Financial Modelling & Due Diligence

Visible Earnings CAGR > 15% in medium term
Sustained Competitive Advantage led by Unique Value Proposition
Interaction with investee companies & its ecosystem
 India Special Opportunities Portfolio – Broad concept
The core focus would be on companies that are primed to benefit from the catalysts mentioned below:

Portfolio Construct
Portfolio Weight Catalysts that drive stock selection Rationale

• Micro turnaround
Higher upside potential
• Macro / Change in business cycle
with catalyst expected to
65% - 70% • Management change
play out over a period of
• Deleveraging
2-3 years
• Demerger

• Mid to large cap potential

30%-35% Consistent performers
• Secular growth names

Aditya Birla Sun Life AMC Limited- Portfolio Manager 9

 India Special Opportunities Portfolio – Investment Process

Portfolio Universe
ROE/ ROCE
Apply quantitative &
Leverage and debt servicing
qualitative screeners
Management Quality

Reject the companies which do not filter through the screeners Micro / Macro Turnaround
Identify companies that
Demerger / Deleveraging
benefit from the catalysts

Management Change
Narrow down the list to 50 -60 stocks
Risk / Reward Analysis
Portfolio optimisation
Significant potential upside

Select 15-25 quality companies with high growth and potential upside

Aditya Birla Sun Life AMC Limited - Portfolio Manager 10

 India Special Opportunities Portfolio – Focus on Strong Filters

Fundamentally strong companies help to provide downside protection

Quantitative factors
▪ Strong balance sheets
▪ Good capital allocation track record
▪ High return on capital over a longer time frame

Qualitative factors
▪ High corporate governance
▪ Established business model
▪ Prominent market share
▪ Skilled management

Aditya Birla Sun Life AMC Limited - Portfolio Manager 11

 Model Portfolio structuring
Sector Allocation Catalysts

Market Cap Investment Style

Growth Blend Value

Large Cap
Mid & Small

Market Cap Categorization as per Average Market Capitalization of listed companies during the six
months ended December 31, 2022. Source: AMFI
Aditya Birla Sun Life AMC Limited – Portfolio Manager 12
As of December 31, 2022
 Current Model Portfolio
Portfolio vs. Benchmark (Higher Growth/ROEs with low leverage)
Prem/Disc to Top 10 Holdings & Weights
PE (x) FY22A FY23E FY24E benchmark
% of Net
(FY24E) Top 10 Portfolio Holdings
ISOP 30.5 28.2 23.3 Assets
NSE 500 23.6 23.1 19.0 22.8%
ICICI Bank Ltd 6.8%
NIFTY 24.5 21.5 18.2
Axis Bank Ltd 6.5%
Prem/Disc to Trent Ltd 5.7%
ROE (%) FY22A FY23E FY24E benchmark
Kotak Mahindra Bank Ltd 5.1%
(FY24E)
ISOP 15.3% 16.0% 17.5% Bharti Airtel Ltd 4.6%
NSE 500
NIFTY
14.8%
14.6%
14.1%
14.8%
13.5%
15.5%
30.1%
Persistent Systems Ltd 4.4%
Bank Of Baroda 4.4%
Prem/Disc to
Bharat Dynamics Limited 4.3%
EPS growth (%) FY22A FY23E FY24E benchmark
(FY24E) Siemens Ltd 4.0%
ISOP
NSE 500
27.1%
22.8%
25.7%
2.1%
21.0%
21.8% -3.5%
ITC Ltd 3.8%
NIFTY 20.4% 6.3% 18.4%

Prem/Disc to
Net Debt to Equity (%) FY 22 FY18E FY18E
benchmark
* Financials excluded in calculation of D/E
ISOP -11.6%
Source: All ratios are based on Bloomberg consensus estimates.
NSE 500 7.0% -266%
NIFTY 9.1%
Note: Premium/Discount to benchmark Nifty 500 is listed for the period FY23E.

Aditya Birla Sun Life AMC Limited – Portfolio Manager 13

As of December 31, 2022
 ISOP Performance

Absolute CAGR
Returns (%) Since Inception
1 month 3 month 6 month 1 year 2 year 3year
(14/06/2018)
India Special Opportunities
-3.0% 2.6% 14.4% 5.7% 20.1% 19.8% 15.3%
Portfolio
Nifty 500 -3.1% 4.2% 15.4% 3.0% 15.8% 16.1% 11.6%

Disclaimer :
Past performance of any product does not indicate its future performance. The returns of investment approaches are calculated using TWRR method and considers all inflows and
outflows and market value of entire portfolio for computation of performance . It is calculated net of all expenses and fees. Investment approach level performance reported above is
not verified by SEBI.
As on December 31, 2022

Aditya Birla Sun Life AMC Limited – Portfolio Manager 14

 Case Studies

Aditya Birla Sun Life AMC Limited - Portfolio Manager 15

 AIA Engineering – Micro turnaround
Business :- Industrial Machinery

❑ Current Market Cap : 24,193 Cr (as of December 31, 2022)

❑ AIA Engineering is a niche player in the value-added, impact abrasion, and corrosion resistant high chrome metallurgy segment with
current capacity of 200,000 Mtpa

Catalyst Playing out :

❑ Entry into high potential gold and copper ore markets (addressable market ~1.2mn Mtpa), which account for ~40% plus of the overall
market bodes well from a medium-term perspective, as they have been traditionally stronger in metals like iron ore.

Investment Rationale

➢ 90-95% of the mining demand is currently being serviced by conventional and forged mill internals. With the industry moving from cost
of parts to total cost of ownership, there is a huge opportunity for AIA to convert users to high chrome mill internals.
➢ Despite the overall challenging environment, AIAE is continuing with its capex plans to fuel long-term growth (FY21 capex at Rs.250 cr.).
➢ Volumes are expected to pick up from FY22 onwards as demand normalizes. The company has net cash of Rs.1,460 cr. after dividend
payment in March 20.
➢ Valuations at 29x FY22 P/E are reasonable for the quality of the franchisee (RoE of 14.4% in FY22E) along with long runway for growth

Aditya Birla Sun Life AMC Limited - Portfolio Manager Source: Bloomberg, Internal Research 16
 Shree Cement – Macro turnaround
Business :- Materials

❑ Current Market Cap : 84,030 Cr (As on December 31, 2022)

❑ Shree Cements Ltd. (SRCM) is the largest cement manufacturer in North India and among the top cement manufacturing groups in the
country with annual capacity of 29.3 m.t. with manufacturing plants at Beawar, Ras, Khushkhera, Suratgarh, Raipur and Jaipur in
Rajasthan and Laksar (Roorkee) in Uttarakhand.
Catalyst Playing out :
❑ Cement industry dynamics are likely to see a significant change post the industry consolidation witnessed over the last 3-4 years. Higher
capital cost, non availability of new limestone mines and difficulty in setting up new capacities all mean advantages for incumbents

Investment Rationale

➢ SRCM stands out within the cement industry for the following reasons:
• Consistent capacity addition providing volume growth visibility
• Volume growth is expected to be higher than industry, leading to consistent market share gain in the coming years.

➢ This will make SRCM the largest beneficiary of expected sector upturn; (c) industry leading RoE at 18%; (d) Strong balance sheet with net
cash position, which is expected to sustain in the medium term.

➢ While the industry demand may fall in the short term due to Covid disruptions, demand for Shree may fall lesser than industry & the
strong cash levels in the is expected to benefit Shree.

Aditya Birla Sun Life AMC Limited - Portfolio Manager Source: Bloomberg, Internal Research 17
 Bharti Airtel – Macro Turnaround
Business :- Communication

❑ Current Market Cap: 4,65,558 Cr (as of December 31, 2022)

❑ Bharti Airtel is a leading global telecommunications company with operations in 17 countries across Asia and Africa. The company ranks
among the top three mobile service providers globally in terms of subscribers at 279 mn.

Catalyst Playing out :

❑ Bharti Airtel is well positioned to benefit from the improving sector dynamics led by improvement in ARPUs. Improving data usage, lower
selling & distribution expenses, growth in home broadband & positive outcome of AGR issues bode well for the telecom sector.

Investment Rationale
➢ In contrast to fears, the company has witnessed only limited churn post RJio’s recent Jio fiber launch (35-40% of recent plan renewals
were annual). The recently launched ‘Xstream’ website and app (rebranded version of Airtel Thanks) offer wide content, which should
further increase FTTH subscriber stickiness.
➢ ARPU accretion from broadband subscribers (2x ARPU v/s voice only subs) is likely to contribute to growth. We expect consol. EBITDA
CAGR of around 25% over FY20-22 due to the above mentioned reasons.
➢ While the steady EBITDA performance, deleveraging and the improving FCF position have protected the stock even in the current weak
market, an incremental upside would hinge on pricing actions & positive regulatory verdicts.
Aditya Birla Sun Life AMC Limited - Portfolio Manager Source: Bloomberg, Internal Research 18
 Trent Limited – Mid to large cap potential
Business :- Retail

❑ Current Market Cap : 48,039 Cr (as of December 31, 2022)

❑ Trent is one of the leading players in the Indian retail industry with a series of established brands in various retail segments
❑ Trent operates in multiple retail formats in both the value and lifestyle segments such as Westside (lifestyle), Zara (lifestyle), Star
Bazaar (Hypermarket) and Landmark (books and music)

Catalyst Playing out :

❑ One of the few retailers to get the business model right, having 95% private label, and 53% gross margins along with consistent SSG
(average of 9% over FY13-17), resulting in industry leading margins and RoCE of (9.7%/15% in FY18)

Investment Rationale
➢ Trent was among the earliest entrants in the organised retail sector in India and has focused on developing a robust business model in
each of the retail formats pursued. Trent is pre-dominantly present in high growth / profitable women wear portfolio (~60 efficiently
managing supply-chain / inventories which itself creates a strong entry barriers for peers.
➢ Zara, where Trent has a 50% stake (in the JV with Inditex), is a jewel in the company’s crown. Going forward, we expect Zara to record
~12% YoY revenue growth. As of 31st March’20, Trent has Rs.840 cr. in cash balances and in liquid debt funds, indicating the company
has strong cash position.

Aditya Birla Sun Life AMC Limited - Portfolio Manager Source: Bloomberg, Internal Research 19
 ICICI Bank Limited– Management change
Business :- Banking

❑ Current Market Cap: 6,21,519 Cr (as of December 31, 2022)

❑ ICICI Bank is one of the leading private sector banks in India. It is the third largest bank in India in terms of assets and fourth in term of
market capitalization

Catalyst Playing out :

❑ ICICI Bank has made changes at the senior management level with the appointment of Mr. Sandeep Bakhshi as MD and CEO of the bank
to oversee all operations of the group

Investment Rationale
➢ Changes at the senior management level with the appointment of Mr. Sandeep Bakhshi as ED and COO of the bank to oversee all
operations of the group.
➢ While the bank’s balance sheet is superior than its peers given the construct of its loan book, near term performance can be contingent
upon the recovery path for the sector in a post Covid environment.
➢ Adequate CET 1 capital of 15.7%, strong deposit franchise & technology leadership is expected to help ICICI Bank tide over the Covid
crisis in a better way.
➢ Valuations are at a significant discount to the private banking space at 2.8x FY22 P/B, offering a high margin of safety.

Aditya Birla Sun Life AMC Limited - Portfolio Manager Source: Bloomberg, Internal Research 20
 India Special Opportunities – Portfolio Construct
Portfolio Name India Special Opportunities

Structure Discretionary PMS

Nature Open ended

Market cap Multi cap

The portfolio invests or proposes to invest in listed equity & equity related instruments with the aim of generating long
term capital appreciation & income in the form of dividends. It can also invest in money market instruments & units of
mutual fund. ISOP portfolio aims to invest in stocks that are primed to benefit from the following catalysts – Micro
Investment Approach turnaround, Macro turnaround, Management Change, Deleveraging, Demerger, Mid to Largecap potential, Secular growth
companies. Stock selection is done through a combination of ‘Bottom up’ approach i.e. analyzing the fundamental
attributes of the company & competition & ‘Top down’ approach i.e. analyzing the macro economic factors & industry
growth characteristics.
No of stocks 15-25
Investment Manager Aditya Birla Sun Life AMC Limited (ABSLAMC)
Portfolio Manager Sameer Narayan, Dhaval Mehta, Salvin Shah
Tenure Minimum 3 years

Minimum Investment Rs 50 lakhs

Management fee 2.5% per annum

Performance fee Nil

Please refer to Appendix A- Client Fee Schedule
Operating expenses

Aditya Birla Sun Life AMC Limited - Portfolio Manager 21

 Leadership Team
A Balasubramanian, MD & CEO
▪ A Balasubramanian has over 29 years’ experience in the Mutual Fund Industry and has been with ABSLAMC since inception. Previously worked with GIC Mutual Fund. Currently, he
is on the Board of Governors of SEBI established National Institute of Securities Markets (NISM).
▪ He has done Diploma in Financial Management, AMP from IIM, Bangalore, MBA from GlobalNxt University, Malaysia, Advanced Management Programme from Harvard University.

Anil Shyam, Head- Alternate Business & ETF

▪ Anil Shyam is Head of Alternate Business at Aditya Birla Sun Life AMC Limited. He has over two decades of experience and has been associated with the organisation since
October 2007.
▪ He has previously worked at AK Capital Services Limited, Cholamandalam AMC Limited, JM Financial Asset Management Private Limited and at ICICI Prudential AMC Limited.
▪ He holds a Bachelor’s Degree in commerce and Master’s Degree in Finance & Control from Himachal Pradesh University, Shimla.

Sameer Narayan, Head – Alternate Investment Equity

▪ Has 25+ years of experience in Indian Equity markets with significant alpha generation track record over longer time periods.
▪ Prior to joining ABSLAMC, he was Head – PMS at Invesco Asset Management (India) Private Limited. He managed segregated mandates across both growth (Caterpillar) & value
(RISE & DAWN ) strategies. Prior to Invesco, he set up the Adani Family Office in Sep 2011. He began his buy-side career with BNP Paribas Asset Mgmt in 2006 where he advised
offshore mandates. He has had varied sell-side experience through his stints at SSKI, Enam Securities & Motilal Oswal.
▪ Sameer holds Master in Management Studies (MMS) from Narsee Monjee Institute of Management Studies, Mumbai and B.E. degree with specialization in Production Engineering.
Dhaval Mehta, Portfolio Manager (Equity)
▪ Has 9+ years of experience in equity research and portfolio management. Dhaval’s main domain expertise is in Consumer Staples & Discretionary, Retail, Building Material, Cement
and Media sector.
▪ Prior to joining ABSLAMC, Dhaval worked with ASK Investment Managers as Portfolio Manager. At ASK, he used to manage assets over $200mn and have delivered stellar
performance across investment cycles. Prior to ASK, he has worked with Emkay Global Financial Services, Ventura Securities and Infosys.
▪ Dhaval is an MBA from Narsee Monjee Institute of Management Studies Mumbai and have done its Bachelor of Engineering from D.J Sanghvi College of Engineering Mumbai.
Salvin Shah – Portfolio Manager (Equities)
▪ Has 9+ years in Portfolio Management and Equity Research, Salvin has extensive experience in managing Indian Equities. His endeavor is to maximize returns for the investors
while keeping an eye on portfolio risk. He has been successful at identifying themes and stocks at a very early stage which has resulted in multi-bagger returns for the investors.
▪ Prior to joining ABSLAMC, he worked with Sanctum Wealth Management as Co-fund Manager in their PMS business. Before Sanctum, Salvin was a part of equity research team at
Edelweiss Securities and Athena Investment Management.
▪ He is a member of Institute of Chartered Accountants of India (ICAI) and a commerce graduate from Mumbai University.

Aditya Birla Sun Life AMC Limited – Portfolio Manager 22

 Risk Factors & Disclaimers
Risk Factors associated with investments in Equity & Equity related securities:
• Risk arising from the investment objective, investment strategy, asset allocation and quant model risk:
• Market risk, political and geopolitical risk and risk arising from changing business dynamics, which may affect portfolio returns. At times, portfolios of individual clients
may be concentrated in certain companies/industries. The performance of the portfolios would depend on the performance of such companies / industries / sectors of
the economy.
• The portfolio proposes to invest in equity and equity related securities. Equity and Equity related securities by nature are volatile and prone to price fluctuations on a daily
basis due to both macro and micro factors.
• The value of the portfolio will fluctuate as the daily prices of the individual securities in which they invest fluctuate and may be worth more or less than its original cost,
at a given point in time.
• In respect of investments in equity and equity-related instruments, there may be risks associated with trading volumes, settlement periods and transfer procedures that
may restrict liquidity of investments in equity and equity related securities.
• The value of the portfolio may be affected generally by factors affecting securities markets, such as price and volume volatility in the capital markets, interest rates,
currency exchange rates, changes in policies of the Government, taxation laws or policies of any appropriate authority and other political and economic developments and
closure of stock exchanges which may have an adverse bearing on individual securities, a specific sector or all sectors including equity and debt markets.
• Within the regulatory limits applicable at any point in time, the Portfolio Manager may choose to invest in unlisted securities that offer attractive yields. Securities, which
are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk, in comparison to securities that are listed on the
exchanges or offer other exit options to the investor, including a put option. This may however increase the risk of the portfolio. The liquidity and valuation of the
portfolio’s investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of disinvestments
• Investment made in unlisted equity or equity-related securities may only be realizable upon listing of these securities. Settlement problems could cause the portfolio to
miss certain investment opportunities.
• Investors may note that Portfolio Manager's investment decisions may not always be profitable, as actual market movements may be at variance with anticipated trends.
• Though the constituent stocks of most indices are typically liquid, liquidity differs across stocks. Due to the heterogeneity in liquidity in the capital market segment,
trades on this segment may not get implemented instantly.
• The portfolio may have higher concentration towards a particular stock or sector, at a given point in time. Any change in government policy or any other adverse
development with respect to such a stock or the sector, may adversely affect the value of the portfolio.
• The portfolio also proposes to invest in derivative instruments. The Portfolio manager intends to use exchange traded derivatives as a hedging tool & does not intend to
take any naked positions. Nevertheless, trading in derivatives market has risks and issues concerning the use of derivatives that investor should understand. Derivative
products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds.

Aditya Birla Sun Life AMC Limited- Portfolio Manager 23

 Risk Factors & Disclaimers
• Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor. Even a small price movement in the underlying
security could have a large impact on their value. Execution of such strategies depends upon the ability of the Portfolio Manager to identify such opportunities. Identification and
execution of such strategies to be persuaded by the Portfolio Manager involve uncertainty and decision of the Portfolio Manager may not always be profitable. No assurance can be
given that the Portfolio Manager shall be able to identify or execute such strategies.
• The risks associated with the use of derivatives are different from or possibly greater than, the risk associated with investing directly in securities and other traditional investments.
As and when the product trades in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand. Derivative products are
specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding
not only of the underlying instrument but also of the derivative itself.
• Derivatives require the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to
forecast price or interest rate movements correctly. There is a possibility that loss may be sustained by the portfolio as a result of the failure of another party (usually referred as the
“counter party”) to comply with the terms of the derivatives contract. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability
of derivatives to correlate perfectly with underlying assets, rates and indices. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying
security could have a large impact on their value.
• The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives require the maintenance of adequate controls to
monitor transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a
possibility that loss may be sustained by the portfolio as a result of the failure of another party (usually referred as the “counter party”) to comply with the terms of the derivatives
contract. Derivative trades involve execution risks, whereby the rates seen on the screen may not be the rate at which ultimate execution takes place. The options buyer’s risk is
limited to the premium paid, while the risk of an options writer is unlimited. However, the gains of an options writer are limited to the premiums earned. The writer of a put option
bears the risk of loss if the value of the underlying asset declines below the exercise price. The writer of a call option bears a risk of loss if the value of the underlying asset increases
above the exercise price. Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the
underlying stocks. Risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures
pricing and potential high volatility of the futures markets.
• The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility in the values. The Portfolio
Manager may, from time to time, invest any un‐deployed funds in Liquid Portfolio of PMS or in money market instruments. Though the portfolio of liquid funds comprises of short‐term
deposits, government securities and money market instruments, they cannot be considered as totally risk free. This is because liquidity patterns and short term interest rates of the
government change, sometimes on a daily basis, thereby making the fund susceptible. Liquid Portfolio returns are not guaranteed and it entirely depends on market movements.
• Disclaimer: The views expressed above are the views of the Fund Managers of India Special Opportunities Portfolio. They should not be construed as investment advice.
• Investments in securities are subject to market risks and there can be no assurance or guarantee that the objectives of the Product will be achieved. Past performance may or may not
be sustained in future.
• Regulatory Disclosure: All investors have the option to invest directly with ABSLAMC-Portfolio Manager

Aditya Birla Sun Life AMC Limited- Portfolio Manager 24

To get in touch with your nearest PMS Relationship Contact Cell, visit
https://mutualfund.adityabirlacapital.com/investor-solution-portfolio-management-service
or
mail us at care.pms@adityabirlacapital.com
Reach us at our dedicated PMS toll free No: 1800 270 7000

Aditya Birla Sun Life Portfolio Management Services is a division of Aditya Birla Sun Life
AMC Limited.
CIN no. U65991MH1994PLC080811; Website: https://mutualfund.adityabirlacapital.com/
One India Bulls Centre, Tower 1, 17th Floor, Jupiter Mill Compound, 841, Senapati Bapat
Marg, Elphinstone Road, Mumbai - 400 013.
Tel: 4356 8000. Fax: 4356 8110 / 8111