TAMCO Portfolio Management

1. TAMCO Portfolio Management TM SHARIAH STRATEGY (A Shariah Compliant PMS Strategy) Presented By R. K. GUPTA MD & PO Taurus Asset Management Company Ltd

2. Emergence of Shariah Investment • Muslims represent nearly a quarter of the world’s population. • Islamic Finance & Investment as an industry is evolving and developing. • Investor base for Shariah investment is becoming large and product base is also improving. • Market for Shariah compliant products is growing resulting particularly, equity assets of Shariah Compliant investors are increasing • Therefore, demand for securities / products / schemes that meet Shariah principles is growing. • Shariah compliant indices are being launched in an effort to attract more investors from India and abroad. • Such indices attract those investors who want to buy stocks without violating Islamic investment guidelines. • In India also, such indices have been launched.

3. Opportunities of Shariah Investment • The global Islamic asset management business ranges between $30 billion to $50 billion, which is a drop in the ocean compared with the multi-trillion dollar conventional fund business. (Source: arabnews.com) • Changing political situation in America and European countries and falling GDPs of Europe and North America have forced rich Islamic investors from the Gulf countries to look for investment opportunities in South East Asian countries, including India) • Islamic finance in India, home to the world’s second-largest Muslim population after Indonesia, is still in its infancy. • Efforts should help channel socially-conscious investor’s savings of more than $1 trillion in the coming years, including from the cash-rich Gulf (Source: gulfnews.com)

4. Global Islamic Investments • The Dow Jones and FTSE have already established global Islamic indices. • The Dow Jones Composite Islamic Index with 2440 compliant companies and over 70 country Islamic indices as of today enjoys wide spread marketing acceptance. • The FTSE/SGX Asia Shariah 100 index provides more opportunities for Islamic investors to invest in Asian market. • The S&P BRIC Shariah Index is designed to capture the largest and mostly liquid stocks in Brazil, Russia, India and China that meet the criteria of Shariah law. • In India, there are two Shariah Compliant Indices: • By NSE – S&P CNX 500 Shariah • By BSE – TASIS Shariah - 50

5. Global Islamic Investments • Non Islamic investors have began to show more interest in Islamic products. • A new Islamic Asset class showing immense potential in private equities. • There are more than 130 Islamic Equity Funds managed by some of the world’s top Fund Managers viz. Citibank, Deutsche Bank, HSBC, Merrill Lynch, UBS etc. • These Funds have brought modern Fund Management techniques and the world creation of inter price system to the door step of Muslim investors.

6. CHOICE OF SHARIAH COMPLIANT Investments

7. Shariah Compliance India Scenario • Shariah compliant investment in India is a recent concept to attract Muslim investors, in particular. • Equity based Shariah investment is the most popular product in India. • India has the second highest Muslim population in the world. • Awareness has reached Muslims who are now ready to join the main-stream. • Number of Shariah-compliant stocks in India are much higher than many Muslim countries, thus providing large stock universe for investment by Islamic investors. • Out of 6,000 BSE listed companies, approximately4,200 are Shariah compliant. The market capitalization of these stocks accounts for approximately 61% of the total market capitalization of companies listed on BSE (Source: islamicequity.co.in)

8. A Step Forward • TAMCO has taken another step in this direction by offering “TM Shariah Strategy” under its Portfolio Management Services. • As such Indian Muslims have got another avenue to park their investible income in “TM Shariah Strategy”, a Shariah Compliant PMS product. • Multigain, a leading Advisory & Broking Group in the area of financial services has entered into an arrangement with TAMCO as a sole marketing partner to market a specialized PMS product – TM Shariah Strategy, a Shariah Compliant PMS Strategy.

9. Why Shariah Investment • Despite such huge and fledging stock market in India, parts of Muslim population have not been able to participate • Different aspects of their lives, including investments, are governed by Shariah Laws • Opening an avenue for the inclusion of Muslims at large in the Great Indian Growth story • Shariah Investment is not essentially only for Muslim population but for every person who has values and ethics. • TM Shariah strategy is TAMCO’s unique socially responsible approach for the benefit of interested HNI’s. • TAMCO already has a Shariah compliant mutual fund scheme in the market by the name of Taurus Ethical Fund for the benefit of retail investors at large.

10. Why Shariah Investment The Shariah 50 has outperformed the SENSEX by nearly 25% and the BSE 500 by over 30% over BSE’s back-test horizon - 1stJan 08 to 22nd Dec 10. (Source: BSE)

11. SHARIAH PMS vs Conventional PMS Over the back testing period, annualized volatility for the Shariah 50 was also less than both SENSEX and the BSE 500 by nearly 5 percentage points. (Source: BSE)

12. Why Shariah Investment • From the graphs and return figures, it is pretty evident that Shariah 50 has been consistently able to outperform the Sensex as well as BSE-500. • Similar study was done on Indonesian stock market between Jakarta Islamic Index and Jakarta Composite Index concluding that Islamic index is more resilient towards crisis compare to conventional stock index. (Source: Dept. of Islamic Economic, Airlangga University, Indonesia) • Various empirical studies have suggested that the Shariah screening process automatically reduces the risk of investment which is inline with the nature of Islamic value of small uncertainty (Gharar shaghir)

13. SHARIAH PMS vs Conventional PMS

14. Shariah investment identification • PMS would apply fundamental, technical & logical analysis on the list to identify investment worthy stocks. • No investment would be made in T/Z category (illiquid) shares. • TAMCO’s Shariah-compliant list will be reviewed by TASIS monthly to check for its conformity to the Shariah principles. • In case any stock is removed from Shariah list and fund has an investment in that stock, it will be given appropriate time to sell that stock from the portfolio. So there won’t be any distress selling. • Free cash can be invested in gold ETFs only

15. Portfolio building process Bottom-up/ Top-down approach Market behavior & Trend analysis Information & News analysis

16. TM Shariah Strategy Highlights • A Shariah Compliant PMS Strategy • Minimum Investment Rs.5 lacs • Individuals, Sole Proprietorship Firms, Partnership Firms Company/Body Corporates, Trusts Association of Pensions NRIs/FIIs (subject to RBI approval) can invest. • Investment can be made only by cheque / draft or through listed stocks. • Independent SEBI registered Custodian. • Personalized services both by TAMCO Relationship Manager & officials of Multigain. • Regular reporting. • Facility of Tracking the Portfolio with User I.D & password. • Choice of Discretionary and Non-Discretionary Portfolio. • Regular communication from TAMCO – PMS.

17. Norms for Shariah Compliance In terms of the present Shariah law, funds of the TM Shariah Strategy will not be invested in the following areas: • Fixed interest instruments • Derivatives including but not limited to options, futures and contracts for difference. • Banking and finance companies. • Manufacture or distribution of alcohol products. • Gambling and entertainment. • The production, packaging or any other activities related to Pork or Pork products or other non-halal meats. • Sugar companies due to their heavy focus on molasses which are used for production of alcohol. • Equities or other securities issued by companies whose activities relate in any way to the production or distribution of pornographic material. • Investment trusts, unit trusts and other collective investment schemes that do not adhere to Islamic Shariah investment principles.

18. Shariah compliance by tasis • The monitoring and reviewing of Shariah Compliance of TM Shariah Strategy is done by Taqwaa Advisory & Shariah Investment Solutions (P) Ltd (TASIS). • The portfolio of this strategy is to be monitored every month by TASIS officials to conform its Shariah compliance. • TASIS (Taqwaa Advisory & Shariah Investment Solutions) is India’s premiere Shariah Advisory Firm which provides the services of stock screening, product structuring, Shariah Monitoring and Shariah Certification in India. • It is a well known body for Shariah Advisory in India following are its feats: • TASIS has become India’s first institution to become a member of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) • BSE and TASIS Launch Shariah-Compliant Index to Promote Financial Inclusion in India. • GIC (Re), a Government of India owned company, appoints TASIS for Shariah advisory. • For more details, visit www.tasis.in

19. The Index BSE TASIS Shariah 50 • Launched by BSE and Taqwaa Advisory and Shariah Investment Solutions (TASIS) in December 2010 • This Index consists of 50 largest and most liquid Shariah compliant stocks within the BSE-500. • TASIS employs strict financial screening norms which are more conservative than its peers. • First Shariah compliant equity index which is publically disseminated on a real-time basis. • The index constituent weights are capped at 8%.

20. About TAMCO • SEBI approved Asset Management Company since 1993 • At present, Investment Manager for various schemes of Taurus Mutual Fund. • The present AUM of Taurus Mutual Fund is about Rs.2800 Crs. • Taurus Mutual Fund is also managing a Shariah compliant scheme called Taurus Ethical Fund, India’s first such scheme approved by SEBI. • In the second Venture, TAMCO has started Portfolio Management Services (PMS) after getting licence from SEBI. • This is a Board run Company whose operations are also being monitored by Board of Trustees comprising of eminent personality.

21. Services offered by TAMCO-PMS At present, TAMCO PMS is offering following Investment strategies under Discretionary Portfolio Management Services: • Alpha Generator Strategy • Focused PSU Strategy • Wealth Building Strategy • Arbitrage strategy • TM Shariah Strategy For more details visit www.tamcopms.com

22. About multigain • “Multigain is an integrated financial services group, offering a wide range of services to different clients, segments of the economy, includes EPF Trusts, Corporate, high net-worth individuals and retail investors. Provide all financial solutions under one umbrella.” • Multigain is an ISO ISO 9001:2008 certified company working since 1994, having its own branches in Moradabad, Mumbai, Noida , Lucknow & in 15 different states with more than 100 employees, 100 plus Franchisees & more than 300 Advisors across PAN India. • Multigain has Membership with BSE, NSE, MCX’SX, USE, NSEL, MCX, NCDEX, NMCE, ACE, ICEX and CDSL. • Multigainstarted working early in the area of Shariah finance and launched Multigain Shariah Investment Services (MSIS) in 2009

23. Multigain Shariah Investment services pvt. Ltd. • Multigain Shariah Investment Services Pvt. Ltd. (MSIS) was launched in 2009 by its parent company Multigain group. It is an independent vertical whose operations are separate from Multigain’s financial services. • Multigain is India’s 1st Shariah Compliant Commodity Broker in National Spot Exchange Ltd. • MSIS is India’s Largest Integrated Platform of Distributing & Broking of Shariah Base Investment Products & Services. • The objective of Multigain Shariah Investment Services is to give an opportunity to those investors who want to invest in accordance to the Shariah principles in ethically correct sectors. • Shariah Investment Solutions: • Equity Trading • Spot Commodity Trading • Portfolio Management Service • Mutual Fund & ETF

24. PMS VS INDIVIDUAL TRADING

25. PMS VS MUTUAL FUND

26. WHY TAMCO PMS

27. The Joint Venture • TAMCO and Multigain have entered into an arrangement whereby; • TAMCO will be responsible for the Fund Management, Back office & Accounting as per the SEBI’s guidelines. • Multigain will be responsible for marketing of TM Shariah Strategy through various channels, sub-brokers etc. both in India and abroad. • TASIS will be responsible for the Shariah compliance of TM Shariah Strategy • Role and responsibility of the identities are well defined.

28. For any query/information, contact us • At TAMCO • Taurus Asset Management Co. Ltd. • UGF, Kanchenjunga Building, • 18, Barakhamba Road, New Delhi 110 001 • 45382222, 23717593, 23738664 • Fax : 23738664, E-mail : queries@tamcopms.com Mudita (Relationship Manager) Ph(Direct): 011-45382203 Mobile: 9899687551 email: mudita@tamcopms.com C M Mathur Ph(Direct): 011-45382204 Mobile: 9810264642 email: mathur@tamcopms.com • At Multigain • Multigain Commodities Services (P) Ltd. • H-50, Lajpat Nagar • Moradabad 244 001 • (0591) 2490400, 2490500 • Mobile: +91-9917400021/+91-9837037174 • E-mail :jasem@multigain.in/pms@multigain.in

29. Risk Disclosure • Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objective of any of the portfolio will be achieved. • Investors in the PMS Product are not being offered any guaranteed/assured returns. • Past performance does not indicate the future performance of the portfolios of the Portfolio Manager. • The names of the portfolio strategies do not in any manner indicate their prospects or return. • The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should be relied upon as such. • Neither Taurus Asset Management Co. Ltd. nor any person connected with it, accepts any liability arising from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. • Disclosure Document shall be obtained and read carefully before executing the PMS agreement and any time thereafter. • For tax consequences, each investor is advised to consult his/her own professional tax advisor. • This presentation is not for public distribution and has been furnished solely for information and must not be reproduced or redistributed to any other person. Person into whose possession this document may come are required to observe these restrictions. No part of this material may be duplicated in any form and/or redistributed with Taurus Asset Management Co. Ltd.’s prior written consent. • Distribution Restrictions – This material should not be circulated in countries where restrictions exist on soliciting business from potential clients residing in same countries.