New Fund Launches

8/7/2019 New Fund Launches

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Mutual fund investments are subject to market risks,


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THE TIGER ROARS

India, meanwhile, continues to shine.

The massive explosion of the BPO and software industries

over the last few years have been the key drivers of this

country's growth. These two industries alone are set to

contribute a whopping US$ 60 billion in exports to India's

economy in 2010 - up from US$ 24 billion in 2005.

Net borrowing levels among Indian corporates have comedown significantly. ROEs have improved from 16% in FY99

to 21 5% in FY06 Healthy balance sheets and a promise of

55

45

35

25

151965 1980 1991 1994 1997 2000 2003

(% of GDP) Agriculture Industry Services

India GDP - Services constitute over 50%

Two economies are roaring their presence louder than any

other in today's global economy. Together, India and China

have taken the world by storm - and by surprise - with

how rapidly their economies are advancing. Now, for the

first time ever, you as an investor can take advantage of

the opportunities presented by these exciting economies

with the introduction of the ABN AMRO China-India Fund.

ENTER THE DRAGON

Let's start with China.

Over the last thirty-six years, the Oriental giant has surged

ahead at a 9.60% annual GDP growth rate and over the last

15 years, this figure has jumped to 12.5%. Goldman Sachs

has even revised its 2007 growth estimate for China upwards

to 12.8% from the earlier predicted 10.8%.

This growth owes a lot to the country's rapidly changing outlook.

China has evolved from a net importer (-4% of GDP) into a net

exporter (+4% of GDP). Trade and investment form a 47%

chunk of the economy. And substantial investments in

infrastructure and manufacturing have boosted their GDP growth.

The people of China are leading this economy ahead as well.

The country's burgeoning young, urban and highly

Source: CLSA Asia-Pacific Markets

An Open-Ended Equity Scheme NFO Closes October 1, 2007


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THE 'CHINA-INDIA' PHENOMENON

YOUR CHANCE TO GO ROARING ALL THE WAY TO THE BANK

There is clearly a new world economic order.

According to World Bank data, China is the world's fastestrd

growing economy and will soon become the world's 3

largest economy in terms of GDP.

thIndia, meanwhile, will be the 9 largest world economy in

GDP terms by the year 2010.

Introducing ABN AMRO China-India Fund -an actively

managed fund that aims to give you the benefit of reducing

risks of investing in the local economy through

diversification, and retains the flexibility to invest in other

economies as well under exceptional circumstances.

According to sources, by 2020, China-India will be the

new financial world superpower with an astounding#estimated combined GDP of US$ 16 trillion.

Disclaimer:The material contained herein has been obtained from sources believed to be reliable, but ABN AMRO Asset Management (India) Limited (AAAMIL) makes no representation that it is accurate or complete. AAAMIL haobligation to tell the recipient when opinions or information given herein change. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Except for the historical informcontained herein, statements in this Publication, which contain words or phrases such as 'will', 'would', etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-lostatements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. AAAMIL undertakes no obligation to update forlooking statements to reflect events or circumstances afte r the date thereof. The words like believe/ belief are independent perception of Fund Manager and should not be construed as opinion or advise.Name & Type of Scheme: ABN AMRO China- India Fund (An Open-Ended Equity Scheme). Investment Objective: To provide long-term capital appreciation by primarily investing in equity & equity related securities of India and CThe fund may also invest a limited proportion in other international equity and equity related securities and also debt and money market instruments. Asset Allocation: Indian Equities & Equity related securities: 65-75%; ChEquities & Equity related securities: 25-35%; Domestic Debt, Money Market instruments & Other international equity & equity related securities: 0-10%. Expenses: The sales, marketing & other such expenses connected with saledistribution of the Scheme will be met from the entry load. The maximum recurring expenses will be 2.50% of average daily net assets.

Liquidity: Being an Open-Ended Scheme, Units may be purchased or redeemed on every Business Day at NAV based prices, subject to provisions of entry / exit load, iStatutory Details: Sponsor: ABN AMRO Asset Management (Asia) Ltd. Trustees: ABN AMRO Trustee (India) Private Limited. Investment Manager / AMC: ABN AMRO Asset Management (India) Limited. ABN AMRO Mutual(the Fund) was set up as a Trust under the Indian Trusts Act, 1882 by ABN AMRO Bank N.V. in 2004 acting as a Settlor and consequent to the change in controlling interest of the AMC, the Sponsor wou ld act as the Settlor w.e.f. Oc31, 2005. ABN AMRO Trustee (India) Private Limited, a company incorporated under the Companies Act, 1956 with a limited liability, is the Trustee to the Fund. ABN AMRO Asset Management (India) Limited, a company incorporaunder the Companies Act, 1956 with a limited liability, has been appointed as the Investment Manager to the Fund. The Sponsor is not responsible or liable for any loss or shortfall resulting from the operations of the Scheme beyoninitial contribution of Rs. 1 Lakh. Risk Factors: Mutual Funds and securities investments are subject to market risks and there can be no assurance or guarantee that the Scheme's objectives will be achieved. The NAV of Units issunder the Scheme may go up or down depending on the various factors and forces affecting the securities markets. Past performance of the Sponsors and its affiliates / Mutual Fund / AMC does not indicate the future performance

Scheme. ABN AMRO China- India Fund is the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and returns. Investors should study Offer Document carefully in its enbefore investing and retain the Offer Document for future references. Unitholders in the Scheme are not being offered any guaranteed / assured returns. To the extent the assets of the scheme are invested in overseas financial assthere may be risks associated with currency movements, restrictions on repatriation and transaction procedures in overseas market, lack of complete or reliable information, market irregularities or high taxation. Further, the repatrof capital to India may also be hampered by changes in regulations or political circumstances as well as the application to it of other restrictions on investment It may be noted that if rupee appreciates it will lead to reduction in yi

No load for switches between equity Schemes of ABN AMRO Mutual Fund and in case of investmade by Fund-of- Funds Schemes, by FIIs & their Sub-Accounts.

ABN AMRO ASSET MANAGEMENT -

GLOBAL PERSPECTIVE AND LOCAL EXPERTISE

ABN AMRO Asset Management is well-qualified to give you

the 'China-India' advantage. It has a firmly-entrenched

presence and strong track record in both countries.

In China, ABN AMRO Asset

Management has US$ 4.50 billi

worth of assets under

management in Chinese equitymarkets, and an expert team wi

a combined experience of nearly

80 years across portfolio

management and research. Our

China Equities Investment Proce

consisting of a Top-Down /

Bottom-Up approach is constant

looking to capture stock

opportunities by understanding t

drivers of stock performance.

In India, ABN AMRO Mutual Fund

offers a wide range of funds acrossasset classes aimed at catering to

different investment needs. It

currently has almost Rs. 7,500

crores (as on July 31, '07) of

assets under management, across

more than 200,000 investor folios,

of which more than Rs. 1,000

crores are in equity schemes.

This thorough local knowledge in China and India is backed by

ABN AMRO Asset Management's 7 decades of global experien

and expertise. A team of over 1,800 professionals across 26

countries manages EUR 211 billion worth of assets (as onJune 30, '07), for institutions, central banks, pension funds,

insurance companies and thousands of retail and private clients

ABN AMRO China-India Fund certainly has the

ingredients in place to make it a smart investment.

Source: ABN AMRO Asset Management(Asia). Performance as on Jun 30, 2007,Gross of Fees & includes the investment ofinterest and other earnings. Actual returns willbe reduced by the advisory fees and otherexpenses. Past performance may or may notbe sustained in the future. The performanceshown above is of ABN AMRO China EquityFund and is not to be construed as a measureof future performance of ABN AMRO China-India Fund.

ABN AMRO FUNDS

CHINA EQUITY

FUND - A

FTSE CHINA INT'L

INDEX (his. CLSA

CHINA; 2005-06)

88.29

45.62

15.3510.42

40.51

77.99

0.00

20.00

40.00

60.00

80.00

100.00

SinceJan 1996

1 Year 3 Years

(%)

New Fund Offer Period September 3, '07 - October 1, '07

New Fund Offer Price Rs. 10/- per unit

Fund Managers Mr. Sameer Narayan &

Mr. Pradeep Kumar

Benchmark Index Custom Benchmark - 65% of BSE 200 +

35% of FTSE China International Index

Minimum Investment Regular Plan: Rs. 5,000/-

Additional Investment Rs. 1,000/- and in multiples of Re.1/-

thereafter

Plans/Options Offered Regular Plan: Growth, Dividend Payout and

Dividend Reinvestment Options

Load Structure Entry Load: For < Rs. 5 crores - 2.5%;

For >= Rs. 5 crores & < Rs. 10 crores -Nil; For >= Rs. 10 crores - Nil

CDSC: For < Rs. 5 crores - 1% if redeemed

/ switched-out within 1 year from date of

allotment; For >= Rs. 5 crores & < Rs. 10

crores - 0.5% if redeemed / switched-out

before March 15, '08; For >= Rs. 10

crores - Nil

ABN AMRO CHINA-INDIA FUND - Fund Features

ABN AMRO

OPPORTUNITIES FU

BSE 20070.81

51.46

42.4048.50

1 Year Since Inception0.00

20.00

40.00

60.00

80.00

(% CAGR)

Period: April 15, 2005 - July 31, 2007.Past performance may or may not besustained in future.

# Source: World Bank, CLSA Asia-Pacific Markets


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(A Close-ended Fund of Funds Scheme)


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THE NEED

DYNAMIC ASSET ALLOCATION STRATEGY (DAAS)

- AN INTRODUCTION

As an investor, if you have invested in equities you might be concerned about your

money. If you are an investor who has missed the rally, you might want to invest now

but you don't know whether this is the right time to invest. If you are someone who has

made money during the Bull run, you may not know if you should continue to stay

invested.

What you need is an investment option that uses a scientific method to make

investment decisions. An option that has the flexibility to change equity allocations depending on market

movements. Does such an investment option exist?

Presenting the that is

designed to provide participation in the upside of the equity marketswhile reducing equity exposure in falling markets.

Before exploring Dynamic Asset Allocation Strategy and its benefits,

let us understand the benefits of asset allocation.

Asset Allocation is defined as the practice of distributing a certain

percentage of a portfolio between different types of investment

assets, such as stocks, bonds, mutual funds, cash, real estate, etc. By

diversifying your asset base, you can seek to create a favorable

risk/reward ratio for your portfolio.

The first step towards understanding Dynamic Asset Allocation Strategy is to know more about the conceptsinvolved and how they aim to work together for your benefit.

Floor is the target value of the scheme at any given time and it is set with reference to the target value at

maturity. E.g. if 100 is the target value at maturity, the initial floor should be at 84 (discounting @ 6%).

Dynamic Asset Allocation Strategy (DAAS)

Floor:

Dynamic Asset Allocation Strategy

is a flexible quantitative method for

increasing participation in rising

equity markets, while diluting

losses in falling markets by:

! increasing equity allocation when

stock markets are rising

! reducing equity allocation when

stock markets are falling

Multiplier = 4

Floor(discounting@6%)= 84

Cushion(Value invested -

Floor)= 16

Equity Component(Cushion xMultiplier)

= 64

Fixed Income Component(Value invested -

EquityComponent)

= 36

Cushion

Floor

Cushion

XMultiplier

EquityComponent

Fixed IncomeComponent

Dynamic Asset

Allocation of the

two assets

Illustration shown above assumes that the Fund invests Rs. 100/- at inception

How Do

Floor,Cushion &

Multiplier

Work

Together?


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The asset allocation strategy seeks to achieve the objective that the value of the fund stays at or above the

floor at all times.

The excess of the portfolio value over the floor is called the Cushion. It determines the amount of

equity exposure the portfolio is allowed at any point of time.

The Multiplier is chosen based on the estimated downside from equities during a review period. A

multiplier of 4 means the maximum estimated downside of the equities is 25% between any two review

dates.

= Cushion x Multiplier

Cushion:

Multiplier:

Target Equity Allocation

HOW DOES

DYNAMIC ASSET ALLOCATION STRATEGY (DAAS) WORK?

Conversely, if equities fall in value, cushion decreases andallocation to equities is reduced

Appreciation in equity portfolio enables enhanced allocation to equities

ReviewDate

Equity Market

Movement

Portfolio Value

(Rs.) - (A) Floor Cushion

Target Allocation

(Equity) - (B)Cushion x Multiplier (4)

Target Allocation

(Fixed Income)(A) - (B)

Equity as %

of Portfolio

1-Apr-06 100.00 83.96 16.04 64.15 35.85 64.15%

1-May-06 5% 103.21 84.37 18.84 75.35 27.86 73.01%

1-Jun-06 10% 110.74 84.88 25.86 103.44 7.30 93.41%

1-Jul-06 -15% 95.23 85.29 9.94 39.74 55.48 41.74%

1-Aug-06 -10% 91.25 85.70 5.55 22.21 69.04 24.34%

1-Sep-06 -5% 90.14 86.11 4.03 16.13 74.01 17.90%

Basic

Principle:

Aim To

Cut

Losses

Early

& Back

Winners...

PLUS THE BENEFITS OF A FUND OF FUNDS

A Fund of Funds (FoF) is a mutual fund scheme that invests in other mutual fund schemes and does not invest

directly in securities.

A Fund of Funds Scheme offers you several benefits:

! Diversification across fund houses gives you the benefit of several investment managers, all within one

fund.

! Protects you from being over exposed to one investment process or style.

! Lesser Impact Cost (due to waiver of entry / exit loads on funds and brokerage charges in respect to direct

investments)

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