Ocean Dial Asset Management India Capital Growth Fund May 2020 - - PowerPoint PPT Presentation

Source: Ocean Dial Asset Management, Bloomberg

Ocean Dial Asset Management India Capital Growth Fund May 2020

The Proposals

01

3

REASONS FOR THE CONTINUATION VOTE

+ The Board carries out a formal assessment of the company’s performance every three years and a vote on the company’s continued existence is put to shareholders only in the event that either of the following criteria are met: + the company’s monthly average market capitalisation over the past year is below £30 million; or + the company’s published diluted NAV per ordinary share has underperformed its benchmark, the BSE Mid Cap Total Return Index, by more than a cumulative 5 per cent. over the previous three years.

4

REASONS FOR THE CONTINUATION VOTE

+ With less than three months to go until 6 August 2020 (the date for the next three-yearly assessment), the Board regards it as unlikely that performance could improve sufficiently to exceed the second part of the test by then. + the diluted NAV per ordinary share fell 45.8 per cent from 7 August 2017 to 15 May 2020, giving a cumulative underperformance against the benchmark of 14.1 per cent. + Given the strong likelihood of there needing to be a continuation vote this year and coinciding with changes made by the investment manager, the Board has decided to bring forward the date for proposing the continuation resolution and the proposals. + The Board recognises that for ICGF to have a future: + Performance will need to improve significantly; + The level of the discount must be brought in; + A route to liquidity must be provided; and + Costs must be competitive.

5

THE PROPOSALS

+ Despite the company’s underperformance and taking account of the investment manager’s outlook for the company’s investments, the Board considers that there is good potential for the company’s performance to improve markedly. The Board is therefore proposing that the company should continue on the basis of the following proposals: + the introduction of the redemption facility, giving shareholders the right to request the redemption of part or all of their shareholding on 31 December 2021 and every second year thereafter at an exit discount equal to a maximum of a six per cent. discount to NAV per redemption share; and + a change to the investment manager’s fee from 1.25 per cent. of total assets per annum, to the lower of 1.25 per

• cent. of average market capitalisation (calculated on a daily basis) per annum or 1.25 per cent. of total assets per

annum with effect from 1 July 2020, with a further review of the investment manager’s fee in 2022. + Given the existence

• f

the redemption facility, the requirement for a three-yearly continuation vote would terminate and accordingly the continuation resolution is conditional on the passing of the special resolution to amend the company's articles to include the redemption facility. + If at any redemption point, the directors believe that implementing the redemption requests received will materially impair the future viability of the remainder of the fund, they will cancel the redemption point and instead move to the realisation of the company. At the present, the Board views below £40 million as materially impaired.

+ The Directors believe that the proposals will provide the following benefits to shareholders: + being able to redeem some or all of their shareholding, without being reliant on the market liquidity of the ordinary shares; + progressively reducing the discount at which the ordinary shares trade compared to NAV per ordinary share; + addressing, through the redemption facility and the issue of ordinary shares from treasury, market imbalances in the supply of, and demand for, the ordinary shares; + an uplift in NAV per ordinary share for the company and continuing shareholders as a result of the exit discount applied to the ordinary shares that are redeemed; + a greater likelihood that the value of the ordinary shares will reflect the prospects of the company’s investment strategy; and + a reduction in the operating costs of the company and a more effective alignment between the investment manager and shareholders by switching the investment manager’s fee calculation from total assets to market capitalisation.

BENEFITS OF THE PROPOSALS

7

IF THE PROPOSALS ARE NOT APPROVED…

+ ...your Board would put forward proposals to enable shareholders to realise their investment. + If the special resolution to approve the redemption facility is not passed, the continuation resolution will not become unconditional and the Board will be obliged to put forward to shareholders proposals to wind-up, reorganise or reconstruct the company. + Given the extremely volatile market environment and the as yet unknown impact of Covid-19 on India, the Board considers that the realisation of the company’s portfolio of investments at the present time is likely to result in sub-optimal returns for shareholders and is not in the interests of the company or of shareholders as a whole.

Process & Performance

02

40 60 80 100 120 140 160 180 200 220

Rebased ICGF Performance vs Benchmark June 17-April 20

Rebased NAV BSE MidCap Index

9

PERFORMANCE

Source: Ocean Dial Asset Management, Bloomberg

June 2014 – June 2017 June 2017 – April 2020 December 2019 – May 15 2020 ICGF Rebased NAV Absolute Performance 113.8%

• 41.7%
• 29.4%

BSE MidCap Absolute Performance 97.1%

• 23.9%
• 21.8%

ICGF Relative Performance 16.7%

• 17.8%
• 7.6%

ICGF CAGR 28.8%

• 17.3%

N/A

40 60 80 100 120 140 160 180 200 220

Rebased ICGF Performance vs Benchmark June 14-June 17

Rebased NAV BSE MidCap Index

Enhanced toolkit Ranking tool: integrated across models; reinforced sell discipline AI tool: Efficient aggregation of unstructured data

10

FOCUS ON IMPROVING PERFORMANCE

RENEWED INPUTS

Expansion of investment team from four to seven members 3 day, full-team intense offsite analysing strengths, weaknesses, hits, and misses (Nov 2019) Full time analyst covering data and AI software Closure of open-ended alternate strategy

EVIDENCED OUTPUTS

ESG integration Additional analyst to take

• wnership across portfolios

House of Ocean Dial Investment committee approved focused universe of 143 companies; each analyst covers

• wn portfolio of ~30 names

Bandwidth and focus Portfolio Adviser’s stocks under

• wnership from 63 to 35*

*13 May 2020

IDENTIFICATION OF BEST OPPORTUNITIES

SUPERIOR RETURNS

IMPROVED SELL DISCIPLINE FORMALISED RISK MANAGEMENT SMALL AND MIDCAP MEAN REVERSION INDIAN ECONOMIC RECOVERY DISCOUNT MEAN REVERSION

Gaurav Narain

Job title Co-Head of Equities Joined Ocean Dial 2011 Experience 26 years

Shahil Shah

Job title Assistant Fund Manager Joined Ocean Dial 2005 Experience 15 years

11

INVESTMENT & RESEARCH TEAM CHANGES

Ashutosh Garud

Job title Analyst Joined Ocean Dial 2020 Experience 15 years

Tridib Pathak

Job title Co-Head of Equities Joined Ocean Dial 2019 Experience 30 years

Saurabh Chugh

Job title Analyst Joined Ocean Dial 2006 Experience 17 years

Ankush Kedia

Job title Analyst Joined Ocean Dial 2018 Experience 14 years

Saurabh Rathore

Job title Analyst Joined Ocean Dial 2019 Experience 3 years

Since 2017, the Investment & Research Team has expanded from four to seven, with the expectation of an additional hire soon

12

RANKING TOOL

Source: Ocean Dial Asset Management

Behavioural guidance framework utilising multiple valuation methodologies

13

ENHANCED ANALYTICS TOOL

Source: Ocean Dial Asset Management, Egregore Labs

Increased analyst productivity in assessing new ideas, monitoring universe companies, and aggregating due diligence from a broader range of sources

14

NEW INVESTMENTS – FUTURE WINNERS

Aegis Logistics Leading LPG terminal operator

£622m Small Cap

5 year historic EPS CAGR at 29%. High visibility, expect 20% EPS growth over next 3 years CCL Products World’s largest private label instant coffee manufacturer

£294m Small Cap

3 year expected EPS CAGR > 15%, embedded

• ptionality from domestic brand launch

Gujarat Gas India’s largest city gas distribution company

£1.9bn Mid Cap

3 year volume CAGR at 20%. Attractively valued with structural volume growth in place. ICICI Lombard General Insurance Largest private sector general insurance company

£6.5bn Large Cap

Compounding machine. Expect 15% annual growth in net earned premium in line with historical 5 year average of 17% Multi Commodity Exchange ~100% market share in energy, bullion, base metal trading contracts

£662m Small Cap

Regulatory tailwinds to drive steady state 10- 12% increase in trading volumes. Operating leverage to drive superior earnings growth

MARKET LEADERS WIDE ENTRY BARRIERS STRONG UNDERLYING FUNDAMENTALS

Source: Ocean Dial Asset Management, 13 May 2020, Small cap less than £1.6bn, Mid Cap £1.6bn – 5.7bn, Large Cap greater than £5.7bn

40 50 60 70 80 90 100 110 120 Feb-20 Feb-20 Feb-20 Feb-20 Mar-20 Mar-20 Mar-20 Mar-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 May-20 May-20

New Buys combined performance (weight adjusted)

Combined buys BSE MidCap 40 50 60 70 80 90 100 110 120 Dec-19 Dec-19 Jan-20 Jan-20 Jan-20 Jan-20 Jan-20 Feb-20 Feb-20 Feb-20 Feb-20 Mar-20 Mar-20 Mar-20 Mar-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 May-20 May-20

Outright Sells combined performance (weight adjusted)

BSE MidCap Combined Sells

15

ICGF: PORTFOLIO ACTIVITY

Source: Ocean Dial Asset Management, Bloomberg Performance has been calculated by rebasing the individual stocks and the Benchmark to 100, and aggregating the buys on a weight adjusted basis according to their current weights in the portfolio. The respective weights of the four sells are reflective of their weight in the portfolio one month before they were sold. The time period of the buys shows the performance since the first new purchase entered the portfolio (Gujarat Gas on 6 Feb 2020), and the time period of the sells shows performance since the first outright sell exited the portfolio (Indian Bank on 19 Dec 2019). DCB Bank has been excluded from these calculations due to a short holding period.

+ Year to date, new entries to the portfolio have outperformed the benchmark, positively contributing to performance + Multi Commodity Exchange, CCL Products, Aegis Logistics, Gujarat Gas and ICICI Lombard General Insurance + Stocks that we have sold out of have underperformed the benchmark + Indian Bank, Yes Bank, Motherson Sumi Systems and Jammu & Kashmir Bank

16

ANALYSING DOWNSIDE RISK TO PORTFOLIO VALUATIONS

Source: Ocean Dial Asset Management, Bloomberg as on 15 May 2020

+ At long term averages there is 38.3% upside + The aggregate portfolio trailing PE was 13.1x at its low in March versus: + Based on valuations 1 Std. Dev below long term averages the portfolio has 15.4% upside + Portfolio has been concentrated to 33 holdings from an average of 38 in 2017, with the intention to further reduce this to 30-32

Historic 3 year NAV return Starting PE (trailing) Ending PE (trailing) Best CAGR (March 2014-17) 43.8% 15.6 18.1 Worst CAGR (February 2017-20)

• 6.5%

22.7 20.6 Mean CAGR 20.1%

ICGF Portfolio % of portfolio 5 Yr Avg ROE Valuation Methodology Historical Multiple

• 1 Std. Dev.

Upside on -1

• Std. Dev. On

FY20E PI Industries 6.5% 24.6 PE 20.7

• 49.7%

Divi Labs 6.5% 21.3 PE 18.2

• 59.9%

Federal Bank 5.1% 9.8 PB 1.1 76.3% Gujarat Gas 4.0% 19.4 PE 16.7

• 14.2%

Jyothy Labs 4.0% 15.3 PE 23.0 9.5% Bajaj Consumer 3.7% 42.4 PE 16.4 75.6% Emami 3.6% 18.7 PE 27.3 70.8% City Union Bank 3.6% 15.3 PB 2.8 36.2% Berger Paints 3.5% 24.6 PE 33.1

• 54.3%

Tech Mahindra 3.5% 20.5 PE 11.6 5.1% MCX 3.4% 9.4 PE 26.0 0.9% Balkrishna Inds 3.2% 19 PE 11.0

• 42.2%

Aegis Logistics 3.1% 19 PE 20.3 13.1% Kajaria 3.0% 20.3 PE 23.4 16.8% Exide 2.9% 15.1 PE 17.1 15.8% JK Lakshmi 2.8% 6.3 EV/EBITDA 7.8 86.8% Indusind Bank 2.7% 15.5 PB 2.4 160.5% CCL Products 2.5% 21.8 PE 14.4

• 8.5%

Finolex Cables 2.5% 20.4 PE 16.1 110.9% Ramco Cement 2.4% 16.3 EV/EBITDA 10.7 9.6% Welspun India 2.3% 20.3 PE 7.6 71.0% IDFC First Bank 2.2%

• 4.8

PB 1.1 35.5% Skipper 2.1% 16.9 PE 8.3

• 1.4%

PSP Projects 2.1% 38.5 PE 11.3 21.0% Essel Propack 2.0% 17 PE 11.0

• 57.3%

ICICI Lombard 2.0% 19 PE 33.3

• 16.9%

Radico Khaitan 1.9% 11.7 PE 11.6

• 29.3%

Ramkrishna Forgings 1.8% 10.2 PE 12.0 2.3% Sagar Cement 1.6% 3.8 EV/EBITDA 7.1 66.4% Neuland Laboratories 1.6% 7.6 PE 11.7

• 13.0%

BLS International 0.5% 31.8 PE 24.2 602.2% Total 92.3% 15.4%

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

BSE MidCap TTM P/B

TTM P/B Average

• 1SD

+1SD

17

+ The Indian markets have corrected ~30% in the last two months + Valuations are now below minus 1 standard deviation of the last 15 years average

MARKET CORRECTION: RECORD LOW VALUATIONS

Source: Ocean Dial Asset Management, Bloomberg

0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40

BSE Mid Cap current year PE / BSE Sensex current year PE

BSE MidCap / BSE Sensex Average Mid Cap

+ A multi year cyclical low for valuations in the Indian market – particularly ICGF’s midcap segment + Strong board proposals to drive down discount, provide liquidity & reduce costs, including a redemption facility + Structural upgrade to the investment team and the investment process is on track to deliver + Not the right moment for shareholders to crystallise the fund + Your support for the proposals at the forthcoming general meeting is requested

18

THE RIGHT TIME TO SUPPORT A CONTINUATION

Markets: A Perspective

03

• 19.6%
• 19.0%
• 21.8%
• 18.8%
• 21.1%
• 30.1%

Top 10 weighted Nifty 50 stocks Nifty 50 Index Bottom 40 weighted Nifty 50 stocks NSE 500 Index Nifty Midcap 100 Index Nifty Smallcap 100 Index

NSE Indices – Performance CYTD 2020 20

38.3% 18.7%

• 6.9%

6.6%

• 17.5%
• 33.9%

Top 10 weighted Nifty 50 stocks Nifty 50 Index Bottom 40 weighted Nifty 50 stocks NSE 500 Index Nifty Midcap 100 Index Nifty Smallcap 100 Index

Performance of NSE Indices (Jan'18 to Dec'19)

32.4% 36.0% 51.7% 44.7% 61.7% 63.8% Top 10 weighted Nifty 50 stocks Nifty 50 Index Bottom 40 weighted Nifty 50 stocks NSE 500 Index Nifty Midcap 100 Index Nifty Smallcap 100 Index

Performance of NSE Indices (Jan'16 to Dec'17)

+ Last 4 years has seen divergence and polarisation of performance + Current correction is wide-spread without any divergence

MARKET CORRECTION

Source: Ocean Dial Asset Management, Bloomberg as on 30 April 2020

26% 30% 17% 13% 11% 2% 18% 6% 18% 15% 15% 15% Above 2 2 to 1 1 to 0 0 to -1

• 1 to -2

Below -2

Mid Cap

31st Jan 2020 30th April 2020 29% 20% 11% 25% 13% 4% 5% 4% 12% 17% 25% 32% Above 2 2 to 1 1 to 0 0 to -1

• 1 to -2

Below -2

Small Cap

31st Jan 2020 30th April 2020

21

57% of small caps at below -1 std deviation 30% of mid caps at below -1 std deviation

MARKET CORRECTION: PRICE-VALUE GAPS AT RECORD LOWS

Source: Ocean Dial Asset Management. $7bn > Mid Cap > $2bn, Small Cap < $2bn

FY20 Valuation vs. 5 Yr Historical Average

22

35% 26% 30% 48% 55% 69% 88% 149% 56% 99% 98% 61% 72% 65% 81% 75% 71% 92% 78% 71% 52%

Market Cap-to-GDP

CYCLICAL LOWS IN HEADLINE DATA

Source: Ocean Dial Asset Management, Bloomberg as per respective financial year 2.1 1.9 2.2 3.1 4.8 5.3 5.7 6.9 7.3 5.2 5.7 5.3 3.8 3.8 3.5 3.3 2.7 2.7 1.7 1.8

Corporate profit-to-GDP (%)

India in Covid times

04

24

+ Took an early call to prioritise health issues over economic + Severe lockdown to reduce community level spread – window to beef-up infrastructure + Growth rate on decline; outbreak yet to peak + Stimulus directed at sustaining employment over demand generation + Focus on providing liquidity to Small & Medium Enterprises + Direct fiscal support limited to ~1% of GDP – overall support at ~10% of GDP + Using Covid as an opportunity to implement the next leg of structural reforms + Big reforms in Agriculture – could be a game changer + Other areas: labour, mining, defence, power distribution and privatisation

HOW IS INDIA'S GOVERNMENT TACKLING THE CRISIS?

100 97 93 93 89 89 85 80 80 79 78 75 74 71 71 68 67 62 51 39 38

India New Zealand Italy Russia France Spain Mexico Norway United Kingdom South Korea Netherlands Germany Canada Australia Malaysia United States China Iran Japan Brazil Sweden

COVID-19: OXFORD UK GOVERNMENT RESPONSE TRACKER

25

+ India has taken the most stringent lockdown measures

Source: Oxford Covid-19 UK Government Response Tracker. As on 16 May 2020

133 (18.5%) 187 (26.0%) 299 (41.5%) 81 (11.3%) 20 (2.8%) Zero Cases Less than 10 Cases 10 to 100 Cases 101-500 Cases Greater than 500 26

+ Out of the 720 districts of India, 133 have zero Covid-19 cases + ~54% of all identified cases are from 9 districts, indicating effectiveness of stringent lockdown + 70% of the cases are in the developed urban districts of India

COVID-19: SPREAD AND CONCENTRATION OF VIRUS

Source: covid19india.org as on 18 May 2020

Number of districts (% of total districts)

27

COVID-19: DETECTION RATE (CASES AS % OF TOTAL TESTS)

Source: Worldometer as on 11 May 2020

+ India has exhibited low detection rates despite undertaking targeted testing

48% 18% 18% 16% 14% 14% 13% 12% 11% 10% 10% 9% 9% 9% 7% 6% 6% 5% 5% 4% 4% 4% 3% 2% 2% 1% 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Brazil Iran Sweden Netherlands USA Singapore France UK Spain Egypt Turkey Belgium Indonesia Italy Japan Germany Canada Portugal Austria India Norway Israel Czechia Malaysia

• S. Korea

Australia New Zealand

Appendix

06

29

• 150.0%
• 100.0%
• 50.0%

0.0% 50.0% 100.0% 150.0% Ramkrishna Forgings Welspun India Sagar Cements JK Lakshmi Cement Skipper Gujarat Gas The Ramco Cements Neuland Laboratories Ccl Products India Aurobindo Pharma Radico Khaitan Essel Propack Jyothy Laboratories Aegis Logistics Finolex Cables PI Industries Berger Paints India Exide Industries Kajaria Ceramics Emami Balkrishna Industries Divi's Laboratories Bajaj Consumer Care BLS International Services Tech Mahindra PSP Projects Multi Commodity Exchange ICICI Lombard Gen Ins Net Debt to Equity FY20 100% D/E ratio

ICGF: FY20 BALANCE SHEET STRENGTH OF PORTFOLIO STOCKS

Source: Ocean Dial Asset Management as at 30 April 2020

50 70 90 110 130 150 170 190 210 230

• 40%
• 35%
• 30%
• 25%
• 20%
• 15%
• 10%
• 5%

0% ICGF Discount (LHS) ICGF Long Term Average Discount (LHS) ICGF Long Term Average Discount ex. March and April 2020 (LHS) Fund Performance (Rebased to 100) (RHS)

30

LONG-TERM DISCOUNT TO NAV

Source: Ocean Dial Asset Management, Bloomberg

Subscription Shares exercised

31

PORTFOLIO

Source: Ocean Dial Asset Management, Bloomberg as at 30 April 2020

Portfolio Company % of Portfolio P/E FY19 P/E FY20 P/ABV FY19 P/ABV FY20 Earnings Growth FY19 Earnings Growth FY20 ROE (3 Yr Avg) Net D/E (FY19) Dividend Yield PI Industries 6.7% 54.8 44.2 9.6 8.0 11.0% 24.0% 20.0% (0.1) 0.28% Divi's Laboratories 6.2% 45.8 43.7 8.9 7.9 53.5% 4.8% 18.6% (0.2) 0.69% Federal Bank 5.4% 7.8 5.1 0.8 0.7 40.6% 52.1% 10.5%

• 2.87%

Jyothy Laboratories 4.2% 20.8 21.0 3.2 3.1 30.7%

• 1.1%

15.5% 0.0 5.17% Bajaj Consumer Care 3.8% 9.3 9.3 4.4 3.0 7.6%

• 0.4%

42.3% (0.5)

• Berger Paints India

3.8% 100.7 70.9 20.0 16.8 9.1% 42.2% 23.1% 0.0 0.75% Gujarat Gas 3.6% 41.6 19.8 8.2 5.9 44.8% 110.4% 24.1% 0.9 0.39% City Union Bank 3.6% 16.2 15.4 2.5 2.4 6.5% 5.2% 15.2% (0.4) 0.69% Tech Mahindra 3.6% 11.5 11.5 2.4 2.1 15.3%

• 0.2%

20.7% (0.3) 4.39% Emami 3.5% 18.0 15.7 4.3 4.0

• 12.5%

15.1% 16.0% (0.0) 4.11% Kajaria Ceramics 3.4% 25.6 21.4 3.8 3.3

• 0.9%

19.5% 17.0% (0.1) 1.60% Balkrishna Industries 3.1% 24.4 21.6 3.9 3.6 5.5% 13.1% 18.1% 0.0 2.35% Multi Commodity Exchange 3.0% 33.0 25.3 4.4 4.1 52.4% 30.2% 11.9% (0.4) 1.87% Finolex Cables 2.9% 11.3 9.7 1.6 1.4

• 3.3%

16.1% 10.5% (0.3) 1.76% Exide Industries 2.8% 17.3 15.6 2.2 2.0 10.6% 10.9% 13.7% (0.2) 3.12% JK Lakshmi Cement 2.7% 29.5 10.5 1.5 1.4

• 5.2%

180.7% 8.3% 0.9 1.63% Radico Khaitan 2.7% 20.8 17.1 22.7 20.8 52.4% 22.0% 14.0% 0.2 0.41% The Ramco Cements 2.6% 25.7 15.8 2.9 2.5

• 9.0%

62.7% 14.4% 0.3 1.00% Aegis Logistics 2.5% 25.8 17.4 4.1 4.0 11.9% 48.2% 20.0% (0.1) 0.82% Indusind Bank 2.3% 8.5 7.4 1.1 1.0

• 8.8%

15.5% 14.6%

• 1.60%

IDFC Bank 2.2%

• 5.4
• 3.1

0.6 0.8 NA NA

• 8.9%
• Ccl Products India

2.2% 16.7 16.0 3.1 2.7 4.5% 4.3% 19.8% 0.3 3.48% PSP Projects 2.1% 14.5 9.5 3.5 2.7 39.7% 51.7% 29.5% (0.5) 2.75% Welspun India 2.1% 6.8 5.2 1.0 0.8 2.5% 29.1% 13.6% 0.9 3.80% Essel Propack 1.9% 29.7 25.3 4.1 3.6 9.5% 17.2% 15.0% 0.3 1.39% Skipper 1.9% 7.7 8.0 0.4 0.4

• 73.3%
• 2.7%

9.9% 0.7 1.05% Ramkrishna Forgings 1.9% 5.1 11.4 0.7 0.7 25.9%

• 55.2%

12.0% 0.9 0.81% Aurobindo Pharma 1.7% 15.1 14.2 2.6 2.3 0.3% 5.9% 19.5% 0.3 0.48% Neuland Laboratories 1.6% 35.3 14.9 12.6 60.2

• 5.4%

136.3% 3.4% 0.2 0.72% Sagar Cements 1.6% 44.8 11.3 0.8 0.6

• 48.2%

296.6% 3.8% 0.5 0.84% DCB Bank 1.5% 7.7 6.4 0.9 0.8 32.0% 20.0% 10.9%

• 1.24%

ICICI Lombard Gen Ins 1.1% 55.9 49.1 11.0 9.6 21.7% 13.7% 19.3% 0.1 0.54% BLS International Services 0.4% 4.0 3.6 0.8 0.7

• 22.4%

11.2% 31.1% (0.4) 5.11% Weighted for Portfolio 94.8% 18.1 15.4 2.1 1.9

• 13.0%

17.5% 15.7% 0.04 1.62%

1Financial firms have been excluded in calculating Net Debt/Equity

• 1.2%

16.2%

3IDFC First earnings growth not applicable due to impact of merger

*Manpasand Beverages (0.2% weight) and Arihant (0.1% weight) have been removed from the above table owing to discontinuous trading and low portfolio weights respectively

Invest estmen ent Banking Wealth Managem gemen ent Credi edit Solutions

• ns

Asse set Managem gemen ent

^ Only India based Investment Bank with global presence ^ Ranked No. 1 “Investment Bank – Private Equity” (VCCircle Awards) ^ High pedigree team of 100+ bankers with strong corporate and promoter relationships across India ^ Strong brand, values and ethos ^ Open architecture Wealth Management platform catering to Family Offices, UHNIs and Treasuries ^ $3.9Bn in Asset Under Management ^ Relationships with 1000+ Indian Families: Strong potential to increase market share and share of existing clients’ wallet ^ Specialized Asset Management businesses with differentiated strategy ^ Market leader in alternate strategies ^ Potential to unlock synergies across asset management businesses to create best-in class institution led Asset Management franchise ^ Experienced structured credit professionals with extensive knowledge across multiple industries and sectors ^ Deep relationships with various promoters and CXOs

At Ocean Dial, we aim to leverage on Avendus’ institutional ecosystem and inherent intellectual intensity to drive e the e Indi dia focused sed long-onl

• nly

y asset et managem gemen ent busi siness ess

Avendus Edge: Leveraging on institutional ecosystem

32

33

BOARD OF DIRECTORS

Source: Ocean Dial Asset Management, Bloomberg as at 30 April 2020

ELISABETH SCOTT

Elisabeth was appointed to the Board as Chairman

• n 18 December 2017. She has over 25 years’

experience in the asset management industry, having started in Hong Kong in 1992 where she remained until 2008, most recently in the role of Managing Director and Country Head of Schroder Investment Management (Hong Kong) Limited and Chairman of the Hong Kong Investment Funds

• Association. She is a non-executive Director of

Pacific Horizon Investment Trust PLC, Dunedin Income Growth Investment Trust PLC, Allianz Technology Trust PLC and Fidelity China Special Situations PLC, and is resident in the UK.

PETER NIVEN

Peter has over 40 years’ experience in the financial services industry both in the UK and offshore. He was a senior executive in the Lloyds TSB Group until his retirement in 2004 and until July 2012 was the Chief Executive of Guernsey Finance LBG, promoting the Island as a financial services

• destination. He now acts as a non-executive director
• n a broad portfolio of listed and unlisted investment

funds investing in asset classes including property, emerging markets and private equity. He is a Fellow

• f the Institute of Bankers, a Fellow of the Institute of

Directors and a Chartered Director. He is a resident

• f Guernsey and was appointed to the Board on 11

August 2011.

JOHN WHITTLE

John is a Chartered Accountant and holds the IoD Diploma in Company Direction. He is a non-executive Director of International Public Partnerships Limited, Starwood European Real Estate Finance Limited, Globalworth Real Estate Investments Limited and Advance Frontier Markets Fund Limited. He also acts as a non-executive Director to several other Guernsey investment funds. He was previously Finance Director

• f Close Fund Services, a large independent fund
• administrator. Prior to moving to Guernsey he was at

Pricewaterhouse in London before embarking on a career in business services, predominantly telecoms. He is a resident of Guernsey, was appointed to the Board on 17 November 2011 and is Chairman of the Audit Committee.

Ashutosh Garud

Job title Analyst Joined Ocean Dial 2020 Experience 15 years Previous company Avendus, Reliance Wealth Favourite dish Paav Bhaaji

David Cornell

Job title CIO and Managing Director Joined Ocean Dial 2010 Experience 25 years Previous companies Henderson Global Investors, New Star Favourite dish Sali Boti

Tridib Pathak

Job title Co-Head of Equities Joined Ocean Dial 2019 Experience 30 years Previous companies Enam, IDFC, Lotus Favourite dish Misal Pav

Gaurav Narain

Job title Co-Head of Equities Joined Ocean Dial 2011 Experience 26 years Previous companies New Horizon, ING, SG Asia Favourite dish Butter chicken

Shahil Shah

Job title Assistant Fund Manager Joined Ocean Dial 2005 Experience 15 years Previous company N/A Favourite dish Bhel Puri

Saurabh Chugh

Job title Analyst Joined Ocean Dial 2006 Experience 17 years Previous company Dolat Capital Favourite dish Butter chicken

Ankush Kedia

Job title Analyst Joined Ocean Dial 2018 Experience 14 years Previous company Avezo Advisors Favourite dish Pani Puri

Saurabh Rathore

Job title Analyst Joined Ocean Dial 2019 Experience 3 years Previous company Avendus, Credit Suisse Favourite dish Chole Bhature

INVESTMENT & RESEARCH TEAM

34

Aasavari Sarwar

Job title EA and IR Support Joined Ocean Dial 2018 Experience 12 years Previous company Four Seasons Hotels and Resorts Favourite dish Malvani prawn curry

Camilla Bryden

Job title Marketing Associate Joined Ocean Dial 2018 Experience 2 years Previous company The Superyacht Agency Favourite dish Black Daal

Amul Pandya

Job title Head of Business Development Joined Ocean Dial 2012 & 2018 Experience 8 years Previous company Cape Wrath Capital Favourite dish Daal Dhokli

David Ashenden

Job title Operations Manager Joined Ocean Dial 2017 Experience 25 years Previous company Henderson Global Investors Favourite dish Paneer Dosa

Robin Sellers

Job title CEO & Compliance Joined Ocean Dial 2011 Experience 25 years Previous company Close Brothers Group Favourite dish Lamb Madras

Latesh Mota

Job title Operations Manager Joined Ocean Dial 2018 Experience 10 years Previous company Avezo Advisors Favourite dish Dhansak

MARKETING TEAM OPERATIONS TEAM

35

36

MAJOR SHAREHOLDERS (>3% )

Shareholder Shareholding as at 15/05/2020 % Lazard Asset Management 22,453,761 19.96 Hargreaves Lansdown 10,927,236 9.71 Interactive Investor 6,051,819 5.38 Premier Miton Investors 5,575,000 4.96 Charles Stanley 4,779,256 4.25 Armstrong Investments 4,670,000 4.15 EFG Harris Allday 4,332,148 3.85 Investec Wealth & Investment 3,421,094 3.04

This presentation and any related documentation provided herewith (this “Presentation”) is given on a confidential basis for informational purposes only and does not constitute the provision of investment advice. In addition, the information in this Presentation does not convey an offer of any type and is not intended to be, and should not be construed as, an offer to sell or a solicitation of an offer to purchase any interest in the Gateway to India Fund or India Capital Growth Fund (each a “Fund” and collectively, the “Funds”). Any such offer or solicitation may be made only pursuant to the prospectus and relevant supplement of each Fund (the “Prospectus”) and not on the basis of the information contained in this Presentation. This Presentation is qualified in its entirety by the relevant Prospectus. In the case of any inconsistency between the descriptions or terms in this Presentation and the Prospectus relating to a Fund, the Prospectus shall control. Nothing herein shall imply that information contained herein is correct as of any time subsequent to the date of this

• Presentation. The information in this document does not constitute or contain an offer or invitation for the sale or purchase of any shares in any Fund in any jurisdiction, is not intended to form the basis of any investment

decision, does not constitute any recommendation by any Fund, its directors, agents or advisers, is unaudited and provided for information purposes only and may include information from third party sources which has not been independently verified. Interests in the Funds have not been and will not be registered under any securities laws of the United States of America or its territories or possessions or areas subject to its jurisdiction, and may not be offered for sale or sold to nationals or residents thereof except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and any applicable state laws. In addition, none of the Funds is and nor will be registered as an investment company under the U.S. Investment Company Act of 1940, as amended. This Presentation is not intended for public use or distribution. It is the responsibility of every person reading this Presentation to satisfy themselves as to the full observance of any laws of any relevant jurisdiction applicable to such person, including obtaining any governmental or other consent which may be required or observing any other formality which needs to be observed in such jurisdiction. While all reasonable care has been taken in the preparation of this Presentation and all the information prepared in this Presentation is believed to be accurate, no warranty is given on the accuracy of the information contained herein, nor is any responsibility or liability accepted for any errors of fact

• r any opinions expressed herein. This Presentation may include indications of past performance of certain investments or asset classes. All performance information contained herein relates to the activities of each

Fund as a whole. Information presented may not take into account (i) variations in fees, investment restrictions or other differences between various classes of interests, (ii) the impact of any contractual arrangements between a Fund and an investor and (iii) the impact of the timing of subscriptions and redemptions. As a result, the information may not reflect actual performance for any specific investor. Rather, the information is intended to provide investors with generalized performance and exposure statistics for each Fund. All information provided herein is for informational purposes only and should not be deemed as a recommendation to buy or sell the securities referred to herein. All performance results are calculated net of all fees and expenses, including an investment management fee and, where applicable, a performance fee, and assume the reinvestment of all capital gains, interest, dividends and other earnings, and should not be regarded as final until audited financial statements are issued covering the period shown. Current performance may be lower or higher than performance quoted. Past performance is not a reliable indicator of and is no guarantee of future results. Investment returns may fluctuate with market conditions and every investment has the potential for loss as well as profit. The value of investments may fall as well as rise and investors in the Fund may not get back the amount invested. Emerging market equities can be more volatile than those of developed markets and equities in general are more volatile than bonds and cash. The value of an investment in a Fund may go down as well as up and there is no guarantee that an investor will get back the amount that they invested. Currency movements may also have an adverse effect on the capital value of your investment. Investing in a country specific fund may be less liquid and more volatile than investing in a diversified fund in the developed

• markets. The Funds may use derivatives (financial instruments whose value is linked to the expected price movements of an underlying asset) for investment purposes and the objective of protecting of the value of the

Fund, including taking long and short positions, and may use borrowing from time to time. The use of derivatives in this manner may have the effect of increasing the overall risk profile of a Fund. The Funds should be seen as long term investments and you should read the Prospectus, paying particular attention to the risk factors section, before making an investment. This Presentation may include case studies. Such studies express no views as to the suitability of the products or strategies described herein for the reader of this Presentation or to the individual circumstances of such reader or otherwise. Returns may fluctuate with market conditions and every investment or strategy has the potential for loss as well as profit. Where reference to a specific class of security is made, it is for illustrative purposes only and should not be regarded as a recommendation to buy or sell that security. Market index information shown herein such as that of the S&P BSE Dollex 30 and S&P BSE Mid Cap Total Return Index is included to show relative market performance for the periods indicated and not as standards of comparison, since indices are unmanaged, broadly based and differ in numerous respects from the Fund. Any comparisons to an index or benchmark are provided solely as a convenience to investors. The Funds are not intended to track any index, and may hold positions which are not contained within the index shown. The volatility and risk associated with an investment in any Fund may differ materially from the volatility and risk associated with an investment in the index shown. This document is issued by Ocean Dial Asset Management Limited and views expressed in this document reflect the views of Ocean Dial Asset Management Limited and its Mumbai based affiliated company and adviser, Ocean Dial Asset Management India Private Limited as at the date of publication. Comments on individual sectors and companies also reflect those views as at that date. Subsequent events may cause such views to change. It may contain forward-looking statements, which can be identified by words like “anticipate,” “intend,” “believe,” “plan,” “hope,” “goal,” “initiative,” “expect,” “future,” “intend,” “will,” “could” and “should” and by similar expressions, in reliance upon certain “safe harbour” provisions of applicable securities laws. Other information herein, including any estimated, targeted or assumed information, may also be deemed to be, or to contain, forward-looking statements. Prospective investors should not place undue reliance on forward-looking statements as this information is subject to various risks and uncertainties. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from actual results for many reasons. Variations of assumptions and results may be material. This information is for the use of intended professional and institutional investor recipients only and may not be reproduced, redistributed or copied in whole or in part without the express consent of Ocean Dial Asset Management Limited. Ocean Dial Asset Management Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered office 13/14 Buckingham Street, London WC2N 6DF.

REGULATORY INFORMATION