Gold MF

& Investments
Presenting

Shine bright with

Edelweiss Gold & MF Strategy

Edelweiss Personalized Managed Accounts is a Division of Edelweiss Asset Management Limited rendering Portfolio Management Services

Edelweiss Gold & MF Strategy

INTRODUCTION
It is difficult to foretell which asset class will outperform other asset classes during volatile times. Currently, investors value Gold as an asset class on par with equity, bonds and real estate. Indeed, gold investments have been providing enhanced risk-adjusted returns at a time when equities and bonds are on a roller coaster. Not surprisingly, Gold is regarded as an effective hedge against inflation, preserving purchasing power over a long period of time. It is a suitable investment vehicle for people looking to build a balanced portfolio with desired returns. Edelweiss Gold & MF Strategy is an innovative way to diversify ones portfolio across asset classes.

INVESTMENT POSITIVES FOR GOLD

Gold has traditionally been a hedge against inflation; it acts as a store of value Gold facilitates in maintaining the value of money during times of currency weakness Gold is seen as a safe haven in times of uncertainty Changes in the price of Gold have low or negative correlation with changes in the prices of assets like equity, debt, etc.; it also serves as an excellent form of portfolio diversification Gold is less volatile than most commodities and equity indices Golds most valuable contribution to a portfolio lies in its low correlation with most other asset classes.

Edelweiss Gold & MF Strategy

Edelweiss Gold & MF Strategy

PRESENTING EDELWEISS GOLD & MF STRATEGY

Edelweiss Gold & MF Strategy follows a need-based asset allocation strategy to deliver improved returns and sound risk management. It seeks to help investors to take advantage of diversification through dynamic asset allocation by investing in debt and equity mutual fund Schemes along with Gold Exchange Traded Funds (ETF). It provides the fund manager with the flexibility to tilt the allocation made between asset classes through a quantitative model so that the fund is positioned to take full advantage of prevailing market conditions.

INVESTMENT PHILOSOPHY
Enhance returns using a mix of Gold ETFs and units of equity and debt oriented Mutual Fund Schemes and varying allocation from time to time based on a Quantitative Model and technical factors Follow multiple asset classes strategy within the Mutual Fund segment (Gold ETFs and units of equity and debt oriented Mutual Fund schemes) to generate long-term capital appreciation in excess of a static allocation and at a lower risk level The philosophy of the strategy is to make use of the Modern Portfolio Theory (MPT) technique to maximize risk-adjusted returns. As the objective is risk-adjusted returns, in the short term the Strategy could lag behind the benchmark from a return perspective The Portfolio Manager may use historical data (correlation matrices, extreme event co-movement, coskewness etc.), macro-economic and thematic research (to estimate the expected returns from the 3 asset classes) and combine these in a Quantitative Model to arrive at the optimal asset allocation for a certain period

Edelweiss Gold & MF Strategy dynamically varies exposure between Gold and Mutual Funds for superior riskadjusted returns.

INDICATIVE ASSET ALLOCATION PATTERN / INVESTMENT STRATEGY

For the Gold/Cash component: A part of the total corpus will be earmarked to switch between investment in either Gold ETFs or Liquid Funds. Whether to invest in Gold ETFs or Liquid Funds will be decided by the Fund Manager based on a Quantitative Model. Below is the back-tested performance of the stand alone strategy on the Gold component, henceforth referred to as the Gold Strategy.
2008 Gold Strategy Gold ETF* Gold Strategy Std Dev Gold ETF Std Dev Gold Strategy Drawdown Gold ETF Drawdown 41.6% 24.5% 24.3% 27.7% -13.9% -17.7% 2009 28.2% 24.9% 16.5% 18.2% -11.0% -10.3% 2010 22.6% 21.7% 12.5% 13.4% -6.4% -7.3% 2011 38.5% 29.9% 15.7% 19.2% -7.0% -8.8% 2012 17.7% 11.2% 10.0% 11.1% -5.0% -6.0% CAGR 29.4% 22.3% 15.5% 18.7% -12.3% -17.7%

*Gold ETF represents Goldman Sachs Gold Exchange Traded Scheme. Gold Strategy represents dynamic asset allocation between Gold ETF and Liquid Funds. The above data is for illustration purpose only. Actual returns may vary from those illustrated. Past performance may or may not be sustained in the future. Returns before trading cost and pre management fees.

For the MF units component: Stable, long duration holding. Further, once such securities are transferred into the Clients account with Edelweiss PMA, for all subsequent buy and/or sell decisions under this segment by the Fund Manager, consent of the Client shall be obtained.

Edelweiss Gold & MF Strategy

To exhibit the edge added by asset allocation decisions, illustration below indicates the performance of each individual asset class (Gold, Gold Strategy, Equity MFs) v/s its benchmark and the combined indicative performance of the Gold & MF strategy v/s its benchmark.

Edelweiss Gold & MF Strategy

ILLUSTRATION SHOWING COMPARISON OF EACH ASSET CLASS ^ (EQUITY, DEBT, LIQUID AND GOLD ) AGAINST THEIR RESPECTIVE BENCHMARKS
500 450 400

INDICATIVE PERFORMANCE OF GOLD & MF STRATEGY VS ITS BENCHMARK OF 1/3 DOMESTIC PHYSICAL GOLD + 1/3 NIFTY + 1/3 CRISIL LIQUID#
250

200

350 300
Gold Strategy
Gold & MF Strategy Gold & MF Strategy Benchmark

150

250 200 150

Domestic Gold Gold Strategy Benchmark CRISIL Liquid Fund Index Portfolio of Large Cap MFs Nifty

100

50

100 50
07-Dec-07 21-Mar-11 07-Oct-11 10-Nov-12

02-Sep-10

10-Jan-09

14-Feb-10

24-Apr-12

24-Jun-08

29-Jul-09

0 07-Dec-07 24-Jun-08 10-Jan-09 29-Jul-09 21-Mar-11 10-Nov-12 02-Sep-10 14-Feb-10 24-Apr-12 07-Oct-11

#Gold & MF Strategy performance has been computed as per a model allocation of 40% in the Gold Strategy, 30% in an equi-weighted portfolio of 3 good performing large-cap Equity Mutual Funds and 30% in the Crisil Liquid Fund index. Gold & MF Strategy benchmark is 1/3 Domestic Physical Gold + 1/3 Nifty + 1/3 Crisil Liquid. Performance is only illustrative in nature & might not mirror actual performance. Actual performance will depend on the allocation between various asset classes and the specific Mutual Fund schemes used.

^ Performance shown for Gold strategy is based on back tested numbers since Dec 2007.

Edelweiss Gold & MF Strategy

Edelweiss Gold & MF Strategy

WHO SHOULD INVEST?

Investors looking for risk reduction through diversification, especially with physical / ETF Gold holdings Investors who are bullish on the long-term prospect of gold as an investment class Investors who wish to diversify their portfolio through dynamic asset allocation

Edelweiss Gold & MF Strategy is suitable to ride out uncertain market environments with the advantage of diversification.

ABOUT EDELWEISS ASSET MANAGEMENT LIMITED

Edelweiss Asset Management Limited (Edelweiss AMC), a subsidiary of Edelweiss Financial Services Limited (EFSL) acts as the Portfolio Manager to Edelweiss Personalized Managed Accounts. It also acts as the Investment Manager to Edelweiss Mutual Fund (EMF)through its Mutual Fund Division. Edelweiss AMC follows a research-based, process-oriented investment approach. It also believes in observing the highest ethical standards while deploying investors monies, servicing investors and dealing with business partners. The investment products and advisory services range across the risk return spectrum for individual and institutional investors. The products: offer a good opportunity for asset growth with a constant focus on risk and preservation of capital are designed to provide consistent performance through market cycles

SCHEME FEATURES
Minimum Investment Performance Benchmark INR 25 Lakhs or equivalent of Gold ETFs, Mutual Fund*units at the time of investment (Applicable as per SEBI guidelines) 1/3rd CNX Nifty Index + 1/3rd CRISIL Liquid Fund Index + 1/3rd Domestic Price of Physical Gold

TEAMS TRACK RECORD

The Edelweiss philosophy of managing money is built around creating simple solutions to manage investments. The key to generating returns is to have a disciplined analytical investment process. This is one of the reasons Schemes of Edelweiss Mutual Fund managed by Edelweiss AMC as the Investment Manager, have performed consistently in the last few years and some Schemes have also featured in the 'Top Quartile' in their respective categories.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

* Units of Equity Mutual Funds excluding ELSS; units of Debt Mutual Funds excluding Fixed Maturity Plans, Liquid Funds and Ultra Short Term Bond Funds

Edelweiss Gold & MF Strategy

Edelweiss Gold & MF Strategy

SENIOR MANAGEMENT TEAM

Mr. Vikaas M Sachdeva
Chief Executive Officer

THE EDELWEISS GROUP

Mr. Anurag Madan
Whole Time Director / Principal Officer

Leading diversified financial services organization Incorporated in 1995 as an investment bank with focus on Private Equity Syndication Core inspiring thought of ideas creating wealth and values protecting it translated into an approach led by entrepreneurship and creativity and protected by intellectual rigor, research and analysis
Revenues FY12 Revenues 10 year CAGR (Mar 12) Balance Sheet (Mar 12)

Mr. Vikaas M Sachdeva, a Post Graduate Marketing professional has an overall experience of 21 years in the financial services sector, including 17 years in the Asset Management business. In his previous assignment, he was associated with Bharti AXA Investment Managers Private Limited as Country Head Business Development responsible for strategy, marketing, sales, distribution, investor servicing and product management. He was also associated with ING Investment Management India Private Limited for almost 3 years and Birla Sun Life Asset Management Company Limited for over 10 years at various positions.

Mr. Anurag Madan, having a Bachelor's degree in Economics from University of Delhi, and a CAIIB (Certified Associates of Indian Institute of Bankers),has more than 40 years of experience in financial services industries including Banking and Asset Management out of which 23 years were with State Bank of India, India's largest commercial bank, in various assignments in India and abroad, ranging from International Finance to Merchant Banking to Commercial Banking and SBI Mutual Fund. He also served as the Chief Operating Officer of Sun F&C Asset Management Company Limited for 5 years and as Director (Marketing & Operations) for 4 years. Prior to assuming charge as the Whole Time Director of the AMC, Mr. Madan was the Group Chief Operating Officer at Edelweiss Financial Services Limited.

INR 16.70 billion

PAT FY12

72%
PAT 10 year CAGR (Mar 12)

INR 145 billion

Group Net Worth incl. Minority (Mar 12)

INR 1.28 billion

92%

INR 28.75 billion

Mr. Peeyoosh Chadda

Head - Investment Advisory Group

Mr. Saurabh Sharma

Fund Manager - Personalized Managed Accounts

241 offices in over 120 cities 3108 employees servicing 372000 clients
Our Business Portfolio
Credit Capital Markets and Asset Management Commodities Life Insurance Treasury

Mr. Peeyoosh Chadda, PGDM (IIM Ahmedabad) & B.Tech (IIT Kharagpur),has a work experience of around 16 years. Prior to being deputed to Edelweiss Asset Management Ltd., he was associated with the Asset Management function of Edelweiss Financial Services Limited. His earlier experience includes assignments held with Barclays Capital in Investment Banking function and State Street Global Advisors, Hong Kong in Asset Management function.

Mr. Saurabh Sharma, B.Tech (Computer Science & Engineering) -IIT, Roorkee and MBA (IIM, Calcutta) has a total work experience of over 6 years. Prior to joining Edelweiss Asset Management Ltd., he has worked with IIFL Wealth Management Limited in the Products division.

Disclaimer: Edelweiss Gold & MF Strategy: The objective of the Strategy is to make use of the multiple asset classes within the mutual fund segment (Gold ETFs and units of equity and debt Mutual Fund schemes) to generate long term capital appreciation in excess of a static allocation model and at a lower risk level. The Investment Strategy will be to enhance returns using a mix of Gold Exchange Traded Funds (Gold ETF) and units of equity and debt oriented mutual fund schemes and varying allocation from time to time based on Quantitative Model and technical factors. Risk factors: Investments in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of the Strategy will be achieved. The investments may not be suited to all categories of investors. The value of the Portfolios can go up or down depending on various market factors. Past performance of the Portfolio Manager does not indicate the future performance of the Strategies or any other future Strategies of the Portfolio Manager. Investors are not being offered any guaranteed or indicative returns through any of the Strategies. The name of the Strategy does not in any manner indicate its prospects or returns. Some of the specific risk factors pertaining to investments in Gold ETFs as part of the Strategy include, but are not limited to Market Risk, Currency Risk, Counter Party Risk, Asset Class Risk, Regulatory Risk, Risk of holding physical gold, etc. The performance of the Strategy may be adversely affected by the performance of individual Gold ETFs, changes in the market conditions, micro and macro factors and forces affecting capital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestment risk. The portfolio manager is not responsible or liable for any loss resulting from the operations of the Strategy/ Portfolios. Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. Non-Diversified Portfolio tends to be more volatile than diversified portfolio. Please read the Disclosure Document before investing. Edelweiss Asset Management Limited is registered with Securities & Exchange Board of India as a Portfolio Manager vide Registration Number PM/INP000003955 having registered office at Edelweiss House, Off. CST Road, Kalina, Mumbai 400 098.

Edelweiss Personalized Managed Accounts is a Division of Edelweiss Asset Management Limited rendering Portfolio Management Services

February 2013