An investment in Knowledge pays the best interest. - Benjamin - - PowerPoint PPT Presentation

SLIDE 1

RELATIONSHIP ACCOUNTABILITY PRODUCT

Funds Management Services

“

An investment in Knowledge pays the best interest.”

• Benjamin Franklin

SLIDE 2

Executive Summary

Perf erfor

• rmance

ance Advisory

• ry Team

am Core group of 5 professionals, headed by Sarath Reddy, having a considerable experience in the India capital markets.

Portf tfoli

• lio
• Risk Controls
• ls

Comprehensive risk management framework including in- depth stock reviews, exposure limits and marketable liquidity assessment. Robust risk monitoring mechanisms comprising of daily MTM and liquidity assessment combined with real-time tracking of corporate events and performance. Operati tional nal Risk Control Best-in-class prime broker, custodian and counter parties. Objec ective Focus on identifying unique investment opportunities that consistently generate superior (risk adjusted) returns with due emphasis on capital preservation.

Unifi Capital is a discretionary , long-only India centric fund manager; specializing in event oriented top-down themes and a bottom-up focus on “growth with value”.

Fund Name Year of Inception CAGR Correlation Ann. Standard Deviation Event Arbitrage 2002 13.63% 0.02 7.96% Sector Trends Large Cap 2011 21.11% 0.88 14.38% Delisting* 2009 43.00% 0.62 14.54% Insider Shadow 2010 10.82% 0.90 20.31% DVD 2013 47.62% 0.79 18.59% Holdco 2014 61.28% 0.53 24.00% Spin Off 2014 34.98% 0.42 17.56%

SLIDE 3

About Unifi

• Unifi

focuses

• n

long

• nly

investment strategies as well as event arbitrage, focused on Indian equities, with a strong in-house research team & offering high levels of service supported by continuity & customization.

• Core team of five experienced capital market

professionals who co-founded the company in 2001.

• Unifi has a successful 14 year performance

record, evidenced by every fund having performed better than its benchmark.

• Unifi is headquartered in Chennai with offices

in Bangalore, Hyderabad, Mumbai, UAE and

• Mauritius. Total team strength is about 50.

Rule #1: Never lose money Rule #2: Never forget Rule #1

• Warren E. Buffett

“

”

SLIDE 4

4

Timeline of Unifi History & Events

2010 2009 2008 2007 2006 2003 2002

2001

Unifi is founded

Additional Office in Hyderabad

Event Arbitrage fund

Additional Office in Bangalore

Delisting Fund

Unifi Investment Management Subsidiary in Mauritius Unifi Financial subsidiary registered as NBFC

Partnered with Dubai International Securities

Insider Shadow Fund

Unifi Foundation setup

India Spin-Off Fund

Registered with SEBI

2012 2011

Sector Trends Fund

2013

Deep Value Discount Fund

Unifi Alternative Investment fund launched

Additional Office in Mumbai

Holdco Fund

2015 201414 Years

Unifi: Historical Timeline

SLIDE 5

Domes mestic ic Funds nds

Registered with SEBI since 2002 as a PMS provider . SEBI Reg No. INPO 00000613 Clien ents s

High Networth Individuals, Family Offices, Senior Corporate Professionals and NRIs

Loca cation

• ns

Client base spread across India and abroad, managed through offices in Chennai, Hyderabad, Bangalore , Mumbai & Middle East Markets

Fu Fund Details ls

Firm Assets Administrator & Custodian About Rs. 9000 Mn IL&FS Sec. Services (ISSL) Minimum Investment Funds Auditor

• Rs. 2.5 million

K.S.Jagannathan & Co. Firm Auditor Brahmayya & Co. Average Investment Bank

• Rs. 14 million

HDFC Bank, Axis Bank Legal Advisor Fees HSB Partners Combination of mgmt. & performance fees

Inter erna natio ional nal Funds ds

Registered with FSC Mauritius since 2007

FSC Mauritius Reg. No. C107003590

Clien ents

Institutional, Family Offices

Loca cation ions

Managed by subsidiary in Mauritius (Unifi Investment Management Ltd.) through offices in UAE and Mauritius

Fu Fund Details ls

Date of Inception Fees 1st January 2012

1% Management Fee 20% Performance fee over LIBOR

Fund Assets Administrator $ 5 mn Apex Fund Services Ltd. Firm Assets Prime Broker About $ 136mn Kotak Mahindra (UK) Ltd. Min Investment Auditor $ 500,000 Nexia Baker & Arenson, Mauritius Bank & Custodian Legal Advisor HSBC Bank

Bingham Mc Cutchen LLB (USA)

Fu Funds Portf tfoli

• lio

Sector Trends Large Cap Fund, (2012)

Funds Management

Fu Funds Portf tfoli

• lio

Event Arbitrage ‘Alternate Fund’, (2002) Delisting Fund, (2009)* Insider Shadow Fund, (2010) Sector Trends Large Cap Fund, (2011) Deep Value @ Discount Fund, (2013) Holdco Fund, (2014) Spin Off Fund, (2014)

* Closed for subscription

SLIDE 6

Key People

Fund Management

SARATH K. REDDY MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER In a career spanning 25 years in the Indian financial sector, Sarath has handled a variety of functions across equities and fixed

• income. Having started his career with Standard Chartered Bank, Sarath took the first opportunity that came along to turn
• entrepreneur. He founded Unifi Capital in 2001 along with a highly experienced team of professionals. As Unifi’s Chief

Investment Officer, he works very closely with the analysts and fund management team. SARAVANAN V.N. RESEARCH & PORTFOLIO MANAGER Saravanan is a Chartered Accountant with 12+ years of functional experience in equity research, corporate finance, auditing and taxation. He has been with Unifi for the last 9 years and currently tracks pharmaceuticals, NBFC and domestic debt

• markets. Additional responsibilities include advising on debt fund investments, hedging and arbitrage opportunities. His prior

experience includes 3 years of articleship in PWC, 2 years in ICICI Bank Corporate Banking division. Saravanan manages Event arbitrage fund and AIF High yield fund. BAIDIK SARKAR RESEARCH & PORTFOLIO MANAGER Baidik is a Chartered Accountant with 10+ years of experience in consulting, corporate finance and equity research. He has been with UNIFI for last 7 years and currently handles equity research across IT, realestate and the agricultural sector and also assists the CIO in managing the company’s Large Cap and Spin Off fund. Prior to this, Baidik worked as a Strategy Consultant with the Government Reforms and Institutional Development arm of Pricewaterhouse Coopers (PwC).

SLIDE 7

Key People

Board of Directors

SARATH K. REDDY MANAGING DIRECTOR In a career spanning 25 years, Mr. Sarath Reddy has lead a variety of functions in the field of Investments. Having started his career in Mumbai with Standard Chartered Bank, he took the first opportunity that came along to turn into an entrepreneur. He founded Unifi Capital in 2001 with a highly experienced team of professionals. As Unifi’s Chief Investment Officer, he works very closely with the analysts and fund management team. NARENDRANATH K. EXECUTIVE DIRECTOR Narendranath is one of Unifi's co-founders. He manages day to day operations, finance and compliance. He began his financial services career in 1980. During a 20 year stint with a leading non-bank finance company, he has had hands-on exposure at a senior level to equipment leasing, hire purchase, and credit cards. Functionally, he has handled business development, client relationship, capital raising, compliance and back-room operations.

• G. MARAN

EXECUTIVE DIRECTOR Maran is one of Unifi’s co-founders and currently holds position of Executive Director. Over his 16 years in the capital markets, he has worked with some of the leading names in the financial markets. His last stint was for four years at Alpic Bank of Bahrain & Kuwait Finance Ltd. He currently manages investments for some of Unifi’s most important relationships and has also been instrumental in spearheading Unifi’s initiatives into niche investment strategies and new geographies. SANDEEP REDDY Sandeep is the co-founder of Peepul Capital. Prior to the launch of Peepul Capital in 2000, he had 10 years of experience in Strategy Consulting with PriceWaterHouse in San Francisco and with Andersen Consulting in London. He has been one of the early participants in the rapidly evolving Indian private equity industry having been active for over ten years. He takes overall responsibility in defining and executing Peepul Capital's strategy. In that role he has spawned and built a number of entities as well as driven migration through their lifecycles.

SLIDE 8

Investment Approach

Theme Development Concept V alidation & Review Portfolio Management

H Y P O T H E S I S T E S T I N G Opportunistic Investment Themes Long Term Investment Themes Handoff to Research for Testing and In-depth Analysis Resear arch Team m –

Idea Generation Process

FUND D LAUN UNCH

Fu Fund Manager er –

Review & Select Investment Opportunities

Evaluation of Risk/Return scenarios INVESTMENT COMMITTEE REVIEW

SLIDE 9

Investment Philosophy

We believe that scale is not a driver but an outcome of excellence in our work. Our thematic investment styles are designed around niche investment opportunities that exist in the Indian capital markets. Usually such specialties offer limited scope for scale-up in terms of the capital we can deploy effectively. The focus is always upon discovering and taking advantage of an insight that can provide the edge, and then adding layers of research and due diligence to construct a portfolio. The common foundation of knowledge, work culture and networks underpin all our investment strategies, providing us the benefit of scale. Unifi is essentially a value investor in growth businesses. We place Value first but always also demand growth potential in a business we own. We believe that stock performance, particularly in mid and small firms, needs a catalyst; and often the best catalyst is an attractive price combined with growth. Unifi believes that both micro (firm level) and macro risks are critical in determining outcomes. We carefully evaluate the fundamentals of each business that we own, and in addition ask ourselves if the prevailing and expected conditions in the economy will act for or against our

• interest. At times, while making longer term investments, we consciously trade off adverse macro conditions for terrific entry valuations.

Defining what Value, Risk and Consistency in returns mean to us. Value investing is easy to understand but hard to practice. Our job is to buy something for less than it is at least worth and generally hold on (for years) till we can sell at a price above its fair value. Risk is typically measured by the volatility of returns generated by an asset. While this makes great sense, we include another dimension to it, and believe that the greatest risk emanates from the probability of an asset’s permanent diminution of value i.e. loss of invested capital. While earning superior returns relative to benchmark is important, it is far more important to earn superior return on each unit of risk that we are exposed. Consistency of returns relative to our initial objective (in certain strategies we allow ourselves considerable latitude to deviate in order to

• utperform eventually) as well as the benchmark is an important measure of performance. We aim to consistently generate top quartile

performance. Our People. The bedrock of our firm’s ethos is best represented by our commitment to Accountability and Continuity, both internal and

• external. We attract people who are passionate and give them time and opportunity to succeed. We maintain a tight code of conduct and have

zero tolerance for poor integrity or quality. Adhere to the clients’ mandate. Typically, our clients are smart and successful individuals. The most important investment decision is the one made by our client (with our RM’s careful advice) at the outset in choosing the asset class and the risk level. As his investment manager Unifi is committed to stick diligently to the client’s mandate and deliver the best possible outcome while remaining vigilant on the underlying risks.

SLIDE 10

Investment Strategy & Funds

Investment Philosophy Opportunistic Investing

Corporate Events Time Frame  3-18 Months

Fundamentally Driven, Buy & Hold

Based on sustained growth of the Indian Economy Time Frame  2-3 yrs

India Spin-Off Fund Event Arbitrage Fund Insider Shadow Fund

Tenders Offers, IPOs Buybacks etc Corporate Demergers Insider Activity Sector Trends – Large Cap Fund

Three Sectors

• ffering Visible,

Predictable & Sustained Growth

Unifi’s Portfolio of Investment Strategies

Pick about 10 stocks at a discount to intrinsic value. The fund aims to double capital in 36 months.

Deep V alue @ Discount Fund Holding Companies

Holdco Fund

SLIDE 11

Portfolio Parameters

Pre-trade

Ongoing Surveillance

Post-trade

Firm Infrastructure

In-depth bottom-up Stock Review even in top-down investment themes. Sensible Exposure Limits:

• Sector Specific
• Company Specific

‘Marketable Liquidity’ Assessment Staggered Purchases (No Chasing) Derivatives only to preserve gains – Zero

• pen positions

Daily Mark-to-Market assessment including detailed review of extreme movements. Weekly Liquidity Attribution Assessment to ensure conformity with the theme. Real-time monitoring of corporate communications to stock exchanges and methodical tracking of sector and company specific news in media. Quarterly meet/call with management of all the portfolio companies to measure progress, review results and revalidate assumptions. Opportunistic hedging/tactical trading to respond to short-term, counter-theme market moves.

Best-in-class IT infrastructure with back-up. Independent reporting lines for

• perations, funds management and

risk-monitoring; Daily MIS to clients with private web access facility. Research Access to premium databases capturing economic, sector and company specific trends. Three independent audits – Internal, Accounts specific (K.S.Jagannathan & Co) and Statutory (Brahmayya & Co.). The PMS auditors carry out an annual audit and submit an audited account to each PMS account holder.

Risk Management Framework

INFRASTRUCTURE

SLIDE 12

Market Neutral Strategies

SLIDE 13

Fund Structure

Event Arbitr trage Fund

Objec ectiv tive The fund seeks to generate stable absolute returns that are consistently superior to conventional fixed income instruments by identification and quick execution of low risk – moderate gain event arbitrage opportunities arising in the equity markets from time to time. Additionally, nominal and high yield debt would be considered to ensure optimum utilisation of funds and enhance returns with uncompromising emphasis on capital preservation. Strat rategy egy The core investment strategy is to exploit corporate event arbitrage opportunities in the listed capital markets that inherently have limited correlation to economic cycles and market volatility. These opportunities are driven by corporate events like mergers, acquisitions, delisting and buyback of shares through a “tender offer”. The risk- return pay-off in most of such deals is deal-specific and hence has limited correlation to market cycles. Typically, the price at which the buyer makes an offer for purchase is higher than the prevailing market price so as to induce shareholders to offer their

• shares. Arbitrage opportunities emerge in such cases due to the perceived discount in the pre-event market price in relation to the open offer and the

post-event price, occurring largely due to asymmetric information distribution, difference in investment objectives and expectation amongst investors. Nom Nominal nal and and High gh Yi Yiel eld Deb Debt: It is quite possible that there may not sufficient Event Arbitrage opportunities at a given point of time. Hence, we do invest in debt / fixed income papers either short term or with high liquidity instead of parking money in low yielding liquid mutual funds. The focus is

• n opportunities in the AA to Investment Grade segment to optimize after tax yields while balancing risks.

Port rtfol folio Stru ruct cture re Investments are balanced among the opportunities that are selected. Typically, exposure to any event will usually be not less than 2.5% and not more than 25% of a portfolio. Also, exposure to an event is restricted to 10% of its potential opportunity/offer size. Investment allocation towards selected

• pportunities is gradually increased over a period of time in line with our improved understanding of the event and also to mitigate the impact cost of

build-up. Sufficient liquidity in the underlying stock, credible management and the risk-reward balance are key requirements for any opportunity. Event specific hedging are also selectively considered to lock-in gains / generate higher returns.

SLIDE 14

Fund Performance

Event Arbitr trage Fund

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year CY04

• 1.47%

0.24% 4.31% 4.92% 3.89% 1.76% 2.25% 4.80% 22.45% CY05 0.59% 1.76% 3.10% 1.69% 1.96%

• 0.66%

3.95% 2.08% 0.06%

• 1.02%

3.93% 2.12% 21.24% CY06 1.64% 0.35% 2.11% 4.26%

• 10.59%
• 2.61%

0.12% 4.87% 4.17% 1.12% 3.72% 8.82% 18.02% CY07 4.65%

• 1.78%

2.07% 1.46%

• 3.89%

2.75% 5.85% 0.52% 0.39% 3.20% 4.25% 2.35% 23.64% CY08 0.41% 1.35%

• 5.43%

5.15%

• 0.33%
• 0.32%

1.46% 1.39%

• 2.22%
• 4.95%
• 0.23%

1.89%

• 2.29%

CY09 1.23% 0.09% 0.75% 2.89% 4.54% 2.80% 2.62% 2.13% 3.58%

• 1.87%

1.34% 2.57% 24.98% CY10

• 0.41%

0.47%

• 2.11%

1.49%

• 1.34%

0.48% 0.62% 1.82% 0.59%

• 0.42%
• 0.98%

3.49% 3.63% CY11

• 3.25%
• 0.62%

4.20% 3.15%

• 1.02%
• 0.25%

0.42%

• 1.74%

0.44% 1.99%

• 1.32%
• 0.01%

1.77% CY12 3.27% 0.33% 0.20% 0.54%

• 0.74%

1.10%

• 0.58%

0.60% 3.53% 0.10% 0.86% 0.57% 10.13% CY13 1.50% 1.62% 0.17% 1.42% 2.51%

• 3.32%

1.99% 0.69% 1.57% 2.00% 1.30% 1.73% 13.85% CY14 0.75% 1.88% 0.93% 1.26% 1.52% 0.37% 0.70%

• 0.30%

2.63% 0.75% 0.15% 1.54% 12.85% CY15 0.74% 1.50% 1.71% 0.98% 0.85%

• 0.60%

1.65% 1.65% 1.43% 0.78% 1.01% 0.16% 12.50%

* Returns are post management fees and before performance fees.

• 15.00
• 10.00
• 5.00

0.00 5.00 10.00 50.00 70.00 90.00 110.00 130.00 150.00 170.00 190.00 210.00 230.00 250.00 270.00 290.00 310.00 330.00 350.00 370.00 390.00 410.00 430.00 450.00 470.00 Monthly Returns Value of Rs.100 Invested MonthlyReturns UNIFI I-BEX

Portfolio Benchmark 1.10 0.61 13.63 7.38 344.15 129.47 8.82 12.78

• 10.59
• 5.08

77.86 67.14 7.96 6.70 0.71 0.00 Benchmark 5.65 0.03 0.02 Beta Correlation Returns Description Average Monthly Return CAGR Cumulative Returns Largest Monthly Gain Comparision to Benchmarks Description Alpha Largest Monthly Loss (%) of positive Months Risk Standard Deviation Sharpe Ratio

SLIDE 15

UNIFI High Yield Fund

Unifi i Alte ternati tive e Investm tmen ent t Fund

Objec ectiv tive Unifi High Yield Fund (HYF) is a discretionary fund focusing on event oriented arbitrage and structured investment opportunities across multiple asset classes with an objective to generate absolute returns of 15% p.a with a standard deviation of 12% or less. The endeavour is to consistently generate superior compounded annual returns than conventional fixed income instruments with uncompromising emphasis on capital preservation. Strat rategy egy Unifi HYF’s core investment strategy is to exploit corporate event arbitrage opportunities in the listed capital markets that inherently have limited correlation to economic cycles and market volatility. Typically, arbitrage opportunities emerge in such cases due to the perceived discount in the pre- event market price in relation to the open offer / post-event price, occurring largely due to asymmetric information distribution, difference in investment objectives and expectation amongst investors. In the debt segment, the focus is on high yield fixed income opportunities with accrual mind set and tax efficiency. Even ent Arb rbitr trage age opport

• pportuni

nities ties emerge from corporate events like mergers, acquisition, buybacks, regulation triggered / voluntary open offers made to the public by controlling shareholders, company delistings, declaration of special dividends etc. The risk- return pay-off in most of such deals is deal- specific and has limited correlation to market cycles. Nom Nominal nal and and High gh Yi Yiel eld Deb Debt The focus is on opportunities in the AA to Investment Grade segment to optimize after tax yields while balancing

• risks. Typically, all debt investments are made with Hold to Maturity (HTM) mind set but some of it could be traded opportunistically to maximize

capital appreciation or minimize risk. Structure Unifi AIF is a SEBI registered Category III Alternative Investment Fund incorporated in the form of a trust. It is a privately pooled investment vehicle with a defined investment policy and is supervised by independent trustees. IL&FS Securities Services Limited is the independent custodian and fund

• accountant. The fund is open ended with a monthly window for subscription and redemption.

SLIDE 16

Fund Performance

Monthly Performance in (%) Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Annual FY14 0.92% 1.56%

• 0.70%

1.60% 1.02% 0.87% 1.18% 1.07% 2.84% 0.79% 2.20% 0.95% 14.40% FY15 1.15% 1.43% 1.22% 1.44% 1.13% 1.20% 1.14% 1.36% 1.48% 1.28% 1.38% 1.83% 16.82% FY16 0.92% 1.14% 0.75% 1.58% 1.26% 0.87% 1.24% 0.82% 1.31% 10.18%

• 4%
• 3%
• 2%
• 1%

0% 1% 2% 3% 4% 5% 50 60 70 80 90 100 110 120 130 140 150 Apr/13 Apr/13 May/13 Jul/13 Jul/13 Aug/13 Sep/13 Oct/13 Nov/13 Dec/13 Jan/14 Feb/14 Mar/14 Apr/14 May/14 Jun/14 Jul/14 Aug/14 Sep/14 Oct/14 Nov/14 Dec/14 Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 Monthly Returns Value of Rs.100 Invested

Monthly Returns UNIFI AIF Birla Sh. Term Opp. Fund Fran Temp Corp. Bond BSL Dynamic Bond Fund(G) Reliance Dynamic Bond(G)

UNIFI AIF Birla Sh. Opp. Fund(G) Fran. Corp. Bond fund(G) BSL Dynamic Bond Fund(G) Reliance Dynamic Bond(G) 1.22% 0.82% 0.86% 0.81% 0.73% 15.63% 10.32% 10.79% 10.07% 9.03% 49.07% 31.00% 32.54% 30.20% 26.85% 2.84% 1.94% 3.06% 2.45% 2.85%

• 0.70%
• 1.17% -2.10%
• 2.82%
• 3.81%

96.97% 96.97% 93.94% 87.88% 75.76% 1.88% 1.88% 2.71% 3.41% 5.02% % of positive Months Average Monthly Return CAGR Cumulative Returns Largest Monthly Gain Largest Monthly Loss Risk Returns Standard Deviation (Annualised)

SLIDE 17

Unifi AIF Trust

Trustees ees:

• Mr. RAVI SANTHANAM

An engineer from IIT, Madras and a management graduate from IIM, Calcutta, he brings to the table insights and experience gained over the last three decades including over a decade as Managing Director and CEO of large business organizations like Hindustan Motors and Mahindra group.

• Mr. Santhanam has a track record of growing businesses by building organizations, brands and stakeholder relationships. He also has completed

an Advanced Management Program from Harvard Business School, Boston.

• Mr. PREMKUMAR KARRA

An eminent Chartered Accountant, based out of Chennai, with over 35 years of professional practice, he is presently a senior partner with M/s. Karra & Co., Chartered Accountants. Mr. Premkumar brings along vast and varied experience in the fields of audit and tax practice. He advises some large corporate business houses. He also provides consultancy services to non-resident clients on investing in India either individually or through the FDI route.

• Mr. M. S. Sundara Rajan
• M. S. Sundara Rajan is an Indian banking consultant, economist and was previously the chairman of Indian Bank. Mr Rajan is a M.A. (Econ),

CAIIB and A.C.S. He is a visiting faculty to many institutions. His core expertise is in investment banking, project finance, corporate restructuring and capital market. Rajan won the Golden Peacock Award on behalf of Indian Bank in October 2009.He has been part of several key strategic initiatives at Indian Bank including taking it to public markets via IPO, introduction of Biometric ATM and introduction of touch screen kiosk across its branches in India.

Unifi AIF Trust

Monthly NAV - Audited Bond valuation - S&P CRISIL Equities – Mark to market

Bank Minimum Commitment Performance Reporting Auditor NAV Calculation Fees

1% fixed and 20% performance above the hurdle rate of 10% (per tax) per annum

Tenure

Open ended; Monthly subscription and redemption

Independent Custodian & Accountant

IL&FS-Securities Services Ltd HDFC Bank INR 1 crore Monthly NAV & Quarterly Review K.S.Jagannathan & Co

SLIDE 18

Pure Equity Strategies

SLIDE 19

Fund Structure

Sector r Trend- Large Cap ap Fund

Objec ectiv tive A historical analysis of market performance suggests that the broader indices at any given point in time are driven by a few sectors; each a function

• f its exclusive set of headwinds and tailwinds. Thus, an investment in the right sector at the right time is a definite means of earning superior

returns over the benchmark indices. The underlying driver of this style is to align with sectors and companies that are in the favourable end of the business cycle and underweighting sectors facing industry head winds. The portfolio will largely (>85%) consist of companies within the blue chip universe of BSE200 while the fund management strategy is aligned with identifying and participating in growth as defined by (a) visibility of medium to long term earnings, (b) strong balance sheet metrics, (c) competitive MOAT and, (d) how the risk/reward is positioned at existing

• valuations. The fund manager at any given point in time reserves the flexibility to participate in an opportunity outside of BSE200 (not exceeding

15% of the portfolio) that is backed by in-house fundamental conviction. Strat rategy egy The investment strategy will be to manage differential sector exposure levels to constituents of BSE 200, relative to the Sensex. Alpha will be generated by maintaining an overweight stance on sectors expected to lead the market and by going under weight/ avoiding sectors that are expected to lag the market. The benchmark for performance evaluation is BSE 30 and universe for investment in BSE 200. Port rtfol folio Stru ruct cture re 60-70% of the portfolio will be invested in Top-3 sectors of BSE- 30 and the remaining will be invested in bottom up ideas from BSE 200; all sectors participating in India’s growth are represented in BSE 200. The average market cap of companies in BSE 200 is US$4.7 bn. and the median market cap is US$2 bn. BSE 200 companies consist of front line leaders in their respective industries and are companies that have the best operating levers, financial metrics and governance norms to perform. Among the BSE 200, BSE 30 stocks (Sensex) will likely have a majority of the exposure.

SLIDE 20

Sector r Trend –Large Cap ap Fund

Fund Performance

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year CY11

• 1.25%
• 1.25%

CY12 12.63% 4.89%

• 2.32%
• 0.22%
• 7.69%

6.67% 0.63% 0.43% 8.31%

• 0.15%

5.69% 0.88% 32.12% CY13 1.81%

• 6.72%
• 0.82%

3.26% 0.87%

• 1.55%
• 3.19%
• 1.74%

5.52% 8.89%

• 1.59%

3.34% 7.35% CY14

• 4.14%

5.10% 3.25% 1.72% 8.64% 5.84% 0.76% 6.42% 0.80% 5.88% 4.93% 3.62% 51.39% CY15 1.81% 2.88%

• 1.73%
• 3.70%

4.66% 0.25% 4.68%

• 3.46%

1.56%

• 1.96%
• 1.30%
• 0.18%

3.09%

* Returns are post management fees and before performance fees.

• 10.00
• 5.00

0.00 5.00 10.00 15.00 60.00 90.00 120.00 150.00 180.00 210.00 240.00 29/12/2011 29/12/2012 29/12/2013 29/12/2014 29/12/2015 Monthly Returns Value of Rs.100 Invested MonthlyReturns Unifi SENSEX

Portfolio Benchmark 1.69 1.14 21.11 13.55 118.58 68.02 12.63 11.25

• 7.69
• 6.51

63.27 55.10 14.38 13.82 0.91 0.40 Benchmark 8.14 0.89 0.88 Standard Deviation Sharpe Ratio Comparision to Benchmarks Cumulative Returns Largest Monthly Gain Largest Monthly Loss (%) of positive Months Risk Returns Description Average Monthly Return CAGR Description Alpha Beta Correlation

SLIDE 21

Fund Structure

Deep V alue @ Discount t Fund

Objec ectiv tive The Fund seeks to achieve above-average returns with below-average risk. The market’s current focus is on short-term issues, rather than on a long- term structural shift. Today’s valuations allow for exceptional returns along with substantial downside protection. The Fund aims to double investors’ capital in 36 months or less. Philos

• soph
• phy
• Focus on absolute returns.
• Intrinsic value is not a single, precise number; rather, it is a range.
• Buy at a discount to intrinsic value, conservatively calculated.
• Look for situations where the market is not only ignoring the future, but also a bit of the present.
• The combination of both a bargain price at the time of purchase and the value add from retained earnings over the holding period

will contribute to investment returns.

• Aim to be rational, not merely contrarian.
• Cheap price in relation to value is often the single biggest catalyst.

Strat rategy egy The fund as the name suggests concentrates on identifying Deep Value buys (within a market cap range of Rs 2000- 10000 million) that arise out of situations such as: pockets of cyclical pessimism towards the industry or the company, valuation mismatch that arise from de-mergers of disparate divisions into companies, compulsions of large institutional investors causing value buying opportunities. While we track the performance of our firms actively, the fund will hold a very passive, concentrated portfolio of 8-10 stocks with virtually no trading. Port rtfol folio

• Stru

ruct cture re The Fund will operate on the PMS platform where the investor’s assets will remain either in cash with a bank/liquid fund (pending deployment), or in the form of stock with CDSL. In either case, the assets will be under the investor’s name. The fund would remain open ended, but the expected time frame to realize the full value of the investment is about 36 months. Capital would be returned to the investor either when the portfolio doubles

• r at the completion of 36 months, whichever is earlier.

SLIDE 22

Deep V alue at Discount t Fund

Fund Performance

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year CY13

• 0.23%
• 3.46%
• 1.50%

2.53% 0.85%

• 3.42%
• 2.71%

0.85% 3.34% 5.72% 6.92% 10.54% 20.02% CY14

• 4.81%

8.04% 7.73% 10.58% 17.70% 10.88% 2.74% 4.31% 9.02% 2.12% 0.30% 9.57% 109.66% CY15 4.68%

• 0.63%

4.28%

• 1.61%

5.00%

• 2.67%

12.99%

• 2.20%

0.49%

• 2.76%

3.57% 4.82% 27.84%

* Returns are post management fees and before performance fees.

• 10.00
• 5.00

0.00 5.00 10.00 15.00 20.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 23-01-2013 23-03-2013 23-05-2013 23-07-2013 23-09-2013 23-11-2013 23-01-2014 23-03-2014 23-05-2014 23-07-2014 23-09-2014 23-11-2014 23-01-2015 23-03-2015 23-05-2015 23-07-2015 23-09-2015 23-11-2015 Monthly Returns Value of Rs.100 Invested MonthlyReturns Unifi BSE MIDCAP

Portfolio Benchmark 3.43 1.42 47.62 16.62 221.70 58.61 17.70 15.62

• 4.81
• 9.58

69.44 66.67 18.59 17.94 2.13 0.48 Benchmark 32.70 0.80 0.79 Comparision to Benchmarks Description Alpha Beta Correlation Largest Monthly Loss (%) of positive Months Risk Standard Deviation Sharpe Ratio Returns Description Average Monthly Return CAGR Cumulative Returns Largest Monthly Gain

SLIDE 23

Deep V alue at Discount t Fund - II II

Fund Performance

* Returns are post management fees and before performance fees.

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year CY13

• 1.34%

4.94% 6.23% 5.01% 9.83% 26.86% CY14

• 5.88%

7.40% 8.75% 9.38% 20.48% 8.63% 1.80% 3.98% 10.25% 2.46%

• 0.13%

8.02% 103.00% CY15 2.44% 2.03% 10.51%

• 1.62%

2.46%

• 3.16%

12.40%

• 3.35%

4.82%

• 2.22%

2.22% 4.73% 34.39%

• 10.00
• 5.00

0.00 5.00 10.00 15.00 20.00 25.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 Monthly Returns Value of Rs.100 Invested MonthlyReturns UNIFI BSE MIDCAP

Portfolio Benchmark 4.52 2.60 67.15 34.51 246.09 104.70 20.48 15.62

• 5.88
• 5.93

75.86 75.86 19.60 16.02 3.02 1.66 Benchmark 35.69 0.89 0.74 Returns Description Average Monthly Return CAGR Cumulative Returns Largest Monthly Gain Comparision to Benchmarks Largest Monthly Loss (%) of positive Months Risk Standard Deviation Sharpe Ratio Description Alpha Beta Correlation

SLIDE 24

Fund Structure

Holdco Fund

Objec ectiv tive e The objective of the fund is to seek to unlock value by investing in listed holding companies across a wide array of industries. Holding companies in the fund’s universe are defined as those entities which hold stakes in other listed entities, and trade at a significant discount to the NAV of the underlying assets. Backgr grou

• und

The main reasons for discounts are :

• Distribution tax if assets are to be distributed.
• Lack of control discount because minority shareholders cannot exercise control over the method and timing of distribution.
• Uncertainty over future growth of the underlying assets.
• Tendency of the controlling promoter to unlock value but instead of distribution to shareholders, re-invest in empire building.

Regulatory changes, like the Companies Act 2013 have enabled certain shareholder rights and brought sweeping changes in how companies approach “Related Party Transactions”. The renewed thrust of SEBI in ensuring higher level of corporate governance would motivate promoters to consider delisting their holding companies. Strat rategy egy To invest in holding companies which are sub-scale and run as group holding companies rather than strategic investment companies. Companies that have stakes in strong operating business but are typically run by, for and of the promoter are the most likely ones to feel the heat of change in regulatory landscape. Port rtfol folio

• Stru

ruct cture re The Fund will operate on the PMS platform where the investor’s assets will remain either in cash with a bank/liquid fund (pending deployment), or if deployed, in the form of stock with CDSL. In either case, the assets will be under the investor’s name. While the tracking and monitoring of the investments will be active, the activity at account level will be passive, resulting in lower transaction costs and better post-tax return. The fund would remain open ended, but the expected time frame to realize the full value of the investment is about 60 months. Capital would be returned to the investor either when the portfolio doubles or at the completion of 60 months, whichever is earlier.

SLIDE 25

Holdco Fund

Fund Performance

Year Jan Feb Mar Apr Apr May Jun Jul Aug Sep Oct Oct Nov Nov Dec Year CY 14 0.68% 9.97% 2.66% 13.77% 21.68% 3.50% 11.47%

• 2.54%

76.90% 0% CY 15 2.84%

• 4.05%
• 1.62%

3.48% 4.51%

• 0.19%

11.50%

• 5.57%
• 3.03%

10.49% 3.70% 2.30% 25.38%

* Returns are post management fees and before performance fees.

• 10.00
• 5.00

0.00 5.00 10.00 15.00 20.00 25.00 50.00 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00 180.00 190.00 200.00 210.00 220.00 230.00 240.00 22/05/2014 22/06/2014 22/07/2014 22/08/2014 22/09/2014 22/10/2014 22/11/2014 22/12/2014 22/01/2015 22/02/2015 22/03/2015 22/04/2015 22/05/2015 22/06/2015 22/07/2015 22/08/2015 22/09/2015 22/10/2015 22/11/2015 22/12/2015 Monthly Returns Value of Rs.100 Invested MonthlyReturns UNIFI BSE 500

Portfolio Benchmark 4.28 0.74 61.28 8.61 121.80 14.76 21.68 6.36

• 5.57
• 6.21

70.00 60.00 24.00 10.98 2.22 0.06 Benchmark 52.59 1.11 0.53 Returns Description Average Monthly Return CAGR Cumulative Returns Largest Monthly Gain Comparision to Benchmarks Largest Monthly Loss (%) of positive Months Risk Standard Deviation Sharpe Ratio Description Alpha Beta Correlation

SLIDE 26

New Fund Offering

Spin-off f Fund

Objec ectiv tive e The fund seeks to generate superior risk adjusted returns relative to market indices by investing in stocks of companies undergoing Spin-offs. Typically, such an action by the company will help remove the holding company discount that the market attributes and thereby enhance the stock’s

• valuation. Unifi’s proposition is to gain from the information asymmetry linked value-price mismatch, by closely tracking the entire Spin-Off process

and investing in such companies after a detailed review of their fundamentals. Strat rategy egy and Invest estment ment Univers erse Our universe is built from the Spin-offs approved by Boards of respective companies as filed with the stock exchanges. At any point in time, our portfolio may include 20% of companies that may not have publicly announced a demerger but we believe, through our primary research, are close to doing so. From the universe of such companies, we would select ideas to invest based on a bottom up approach that we have been practicing over the last fourteen years. Port rtfol folio

• Stru

ruct cture re The Fund will operate on the PMS platform where the investor’s assets will remain either in cash with a bank/liquid fund (pending deployment), or if deployed, in the form of stock with CDSL. In either case, the assets will be under the investor’s name. The fund would remain open ended, but it would be advisable to keep an investment perspective of 36 months to provide enough time for the market to price the impact of Spin-offs. The fund would build a portfolio of about 10 companies, where the exposure to any chosen sector will usually not exceed 30%. While the tracking and monitoring of the investments will be active, the activity at the account level will be passive, resulting in lower transaction costs and better post-tax return.

SLIDE 27

Spin-off f Fund

Fund Performance

Year Jan Feb Mar Apr Apr May Jun Jul Aug Sep Oct Oct Nov Nov Dec Year CY 14

• 0.73%

4.37% 3.60% 0% CY 15 3.25% 0.21% 2.86%

• 3.11 %

1.75%

• 2.67%

8.60%

• 2.86%

7.31% 0.24% 15.30% 2.32% 36.98% 8%

* Returns are post management fees and before performance fees.

• 5.00

0.00 5.00 10.00 15.00 20.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 Monthly Returns Value of Rs.100 Invested MonthlyReturns Unifi BSE Midcap

Portfolio Benchmark 2.65 0.61 34.98 7.20 41.91 8.45 15.30 5.55

• 3.11
• 4.78

71.43 64.29 17.56 8.73 1.54 0.00 Benchmark 27.63 0.80 0.42 Cumulative Returns Largest Monthly Gain Returns Description Average Monthly Return CAGR Largest Monthly Loss (%) of positive Months Risk Standard Deviation Sharpe Ratio Comparision to Benchmarks Description Alpha Beta Correlation

SLIDE 28

Inside der r Shadow w Fund

Objec ectiv tive Generate superior risk adjusted returns, in relation to the broad market, by investing in fundamentally sound companies where the promoters’ have acquired additional shares at market prices or companies that have repurchased their own shares. Typically, such an action by a company or a controlling shareholder demonstrates their conviction that the company’s growth prospects or inherent value has not been captured in its stock price at that point. Strat rategy egy The strategy is to create and update (on a daily basis), a universe of companies where the promoter is increasing his stake at market prices either through creeping acquisitions or buyback route, where complete disclosures of stock purchases have been made to the exchanges, and that seem to be motivated either by an undervalued stock price or an impending improvement in business prospects that are still to be reflected in the market price. From this universe the fund cherry picks for investment, firms using a bottom-up fundamental evaluation validated by the fund manager having a positive view of the sector in which the firm operates. An emphasis is placed on companies whose promoters have increased their stake in the recent past & where the current market price is trading at a discount or at an acceptable premium to the price at which the promoter increased his stake. The extent of financial outlay by the promoter or company has to be meaningful in relation to the size of the firm. Portfol rtfolio Stru ructu cture re The fund intends to keep investments balanced among companies, but may significantly vary exposure to companies as situations evolve. Typically, the fund will hold about 20 positions ranging from 2.5% to 10% of the portfolio, with a median of 5%.

Fund Structure

SLIDE 29

Inside der r Shadow w Fund

Fund Performance

Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year CY10 4.96% 3.73% 2.55% 4.22% 3.02%

• 6.21%

1.47% 14.08% CY11

• 9.78%
• 5.92%

4.22% 5.04%

• 4.58%
• 0.28%

0.49%

• 11.02%
• 1.67%
• 2.03%
• 10.30%
• 8.49%
• 37.48%

CY12 15.65% 4.96%

• 2.23%

0.39%

• 7.13%

3.78%

• 2.00%
• 2.50%

10.55% 2.99% 0.63% 1.27% 27.31% CY13

• 4.04%
• 9.83%
• 2.37%

3.26%

• 0.06%
• 2.80%
• 4.19%
• 5.12%

4.83% 6.85% 0.64% 6.01%

• 7.94%

CY14

• 6.33%

2.61% 8.87% 2.76% 11.84% 13.59% 0.44% 10.95% 5.17% 2.03% 2.24% 0.25% 67.42% CY15 6.18% 2.62% 5.16%

• 4.68%

1.22% 2.22% 11.67%

• 7.95%

6.97%

• 0.60%

1.35% 1.32% 26.84%

* Returns are post management fees and before performance fees.

• 15.00
• 10.00
• 5.00

0.00 5.00 10.00 15.00 20.00 60.00 70.00 80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00 180.00 190.00 01/05/2010 01/08/2010 01/11/2010 01/02/2011 01/05/2011 01/08/2011 01/11/2011 01/02/2012 01/05/2012 01/08/2012 01/11/2012 01/02/2013 01/05/2013 01/08/2013 01/11/2013 01/02/2014 01/05/2014 01/08/2014 01/11/2014 01/02/2015 01/05/2015 01/08/2015 01/11/2015 Monthly Returns Value of Rs.100 Invested MonthlyReturns UNIFI BSE Smallcap

Description Portfolio Benchmark Average Monthly Return 1.03 0.70 CAGR 10.82% 6.01% Cumulative Returns 77.50% 38.49% Largest Monthly Gain 15.65 20.37 Largest Monthly Loss

• 11.02
• 14.14

(%) of positive Months 62.69% 56.72% Description Portfolio Benchmark Standard Deviation 20.31 22.62 Sharpe Ratio 0.14% 0.00 Description Benchmark 4.41 0.80 0.90 Correlation Comparison to Benchmarks Alpha Beta Returns Risk

SLIDE 30

ANNEXURE

SLIDE 31

Delistin ting g Fund*

Objec ectiv tive Several multinational companies which listed their Indian subsidiaries during the 1970s to comply with the then GOI rules have been seeking to delist. The SEBI (Delisting of Equity Shares Regulation of 2009) brought in much greater clarity in the delisting process and effectively shifted the balance of power in favour of minority shareholders. The Delisting Fund sought to achieve attractive absolute rate of return by investing in companies that have a high likelihood of delisting. The amendments made by SEBI to SCCR, 1957, Securities Contracts (Regulation) (Amendment) Rules, 2010, effective from 04.06.2010 and Securities Contracts (Regulation) (Second Amendment) Rules, 2010, effective from 09.08.2010, with respect to increasing the level of public shareholding in Listed Companies to at least twenty five percent and any listed company which has public shareholding below twenty five percent, shall increase it to at least twenty five percent within a period of three years catalysed this opportunity. The price discovered in the delisting process invariably offered a substantial premium over the then prevailing market price. Strat rategy egy The fund built a portfolio of 10-12 companies from an universe of about 40, that have a high probability of delisting, without compromising on the fundamentals and valuations. We ran several filters that examined their technology/product and market position versus the sector, financial strength, return ratios, management’s track record and valuations. Port rtfol folio Stru ruct cture re The fund invested into a diversified portfolio of 5-10 companies. Not more than 40% was invested in one sector and single stock investment was capped at 20% of the portfolio. Market capitalization of 100Cr was considered as a minimum threshold limit for stock selection. Most, if not all of the exits, were through the market to derive maximum tax advantage. Use of derivatives was provisioned to hedge the portfolio without exposing the fund to any leverage.

* The fund was conceptualized and launched in 2009 as a 18-24 month closed ended structure. Partial redemption was made at the end of 12 months and 100% proceeds were returned to investors in March 2011.

Fund Structure

*SUBSCRIPTION CLOSED

SLIDE 32

Delistin ting g Fund*

Year Apr Apr May Jun Jul Aug Sep Oct Oct Nov Nov Dec Jan Feb Mar Retur urns FY09

• 3.36%

7.23% 5.01% 6.18% 3.77%

• 1.17%

5.51% 6.43% 42% FY10 8.85%

• 5.46%

11.01%

• 0.16%
• 0.44%

4.52% 3.45%

• 1.43%

1.58%

• 2.05%

0.28%

• 21%

RETURNS Unifi BSE 500 Average Monthly Return 2.97% 1.08% Cumulative Returns 71.82% 19.56% Largest Monthly Gain 11.01% 9.53% Largest Monthly Loss

• 5.46%
• 10.46%

% of positive months 68.42% 68.42% RISK Standard Deviation (Annualized) 14.54% 18.78% Sharpe Ratio 2.25 0.21 COMPARISON TO BENCHMARKS Alpha 30.96% Beta 0.45 Correlation 0.62 R-Squared 0.38

* The fund was conceptualized and launched in 2009 as a 18-24 month closed ended structure. Partial redemption was made at the end of 12 months and 100% proceeds were returned to investors in March 2011.

Fund Performance

• 8%
• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% 90 100 110 120 130 140 150 160 170 180 Aug/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11

Monthly Returns Value of Rs.100 Invested

Monthly Returns Unifi BSE 500

* Returns are post management fees and before performance fees.

SLIDE 33

For further information visit:

www.unificap.com

CHENNAI: 11, Kakani Towers 15 Khader Nawaz Khan Road Nungambakkam High Road Chennai - 600 006. INDIA Ph: +91-44-3022 4466, 2833 1556 BANGALORE: 511, Barton Centre 84, M.G. Road Bangalore - 560 001. INDIA Ph: +91-80-255 9418/19 HYDERABAD: H No. 6-3-346/1, Road No. 1 Banjara Hills Hyderabad – 500 034. INDIA Ph: +91-40-6675 2622/23 MUMBAI: Shiv Sagar Estate, A Block, 8th Floor,

• Dr. Annie Besant Road,

Worli, Mumbai – 400018. INDIA Mb: +91 9930112828,+91 9819525063