Portfolio Management Services · 2010 2009 2008 2007 2006 2003 2002 2001 Unifi is founded Alternate...

RELATIONSHIP

ACCOUNTABILITY

PRODUCT

Portfolio Management Services

“An investment in

Knowledge pays

the best interest.”- Benjamin Franklin

Executive Summary

Performance

Advisory Team

Core group of 5 professionals, headed by Sarath Reddy, having a

combined experience of over 80 years in the India capital markets

Portfolio Risk Controls

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

Operational Risk Control

Best-in-class prime broker, custodian and counter parties.

Independent administrator and Big 4 auditor

Investment Philosophy

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 NameYear of

InceptionCAGR Correlation

Standard

Deviation

Event Arbitrage 2002 13.69% # 0.02 8.23%

Sector Trends Large Cap 2003 24.39% 0.85 26.09%

Delisting* 2009 43% 0.61 14.78%

Insider Shadow 2010 8.86% 0.94 20.78%

DVD 2013 61.81% 0.84 5.56%

About Unifi

“ Unifi is a long only investor, 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 12 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

“”

Unifi: Historical Timeline

13 Years Timeline of Unifi History & Events

20102009 2008 2007 2006 2003

2002

2001Unifi is founded

Alternate Investment

Fund

Additional Office in Hyderabad

Sector Trends Fund

Additional Office inBangalore

Special Opportunities Fund

Delisting Fund

Unifi Investment Management Subsidiary in Mauritius

Unifi Financial subsidiary registered as NBFC

Partnered with Dubai International Securities

Insider ShadowFund

Unifi Foundation setup

India Spin-Off Fund

2014

Registered with SEBIRealty &

Related

2012

2011

India Large Cap Fund

2013

Deep Value Discount Fund

Unifi Alternative Investment fund license Approved

Additional Office inMumbai

Holdco Fund

er

Domestic Funds

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

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

LocationsClient base spread across India andabroad, managed through offices inChennai, Hyderabad, Bangalore & Mumbai.

Fund Details

Firm Assets Administrator & CustodianAbout $ 102mn In-house

Minimum Investment AuditorRs. 2.5 million Brahmayya

Average Investment BankRs. 14 million HDFC Bank, Axis Bank

Legal Advisor FeesHSB Partners Combination of mgmt &

performance fees

International Funds

Registered with FSC Mauritius since 2007

FSC Mauritius Reg. No. C107003590

ClientsInstitutional, Family Offices

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

Fund Details

Date of Inception Fees2nd April 2007 1% Management Fee

20% Performance fee over LIBOR

Fund Assets Administrator$ 15mn Apex Fund Services Ltd.

Firm Assets Prime BrokerAbout $ 102mn Kotak Mahindra (UK) Ltd.

Min Investment Auditor$ 100,000 Nexia Baker &

Arenson, Mauritius

Avg Investment Legal Advisor$ 3mn Bingham Mc Cutchen LLB (USA)

Bank & CustodianHSBC Bank

Funds Portfolio

Sector Trends Large Cap Fund, (2007)

Insider Shadow Fund, (2010)

Funds Management

Funds Portfolio

Event Arbitrage ‘Alternate Fund’, (2002)

Sector Trends Large Cap Fund, (2003)

Delisting Fund, (2009)*

Insider Shadow Fund, (2010)

Deep Value @ Discount Fund, (2013)

Holdco Fund, (2014)

* Closed for subscription

Investment Approach

Theme Development Concept Validation & Review Portfolio Management

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Short Term Investment

Themes

Long Term Investment

Themes

Handoff to Research for Testing and In-depth Analysis

Research Team ”Idea Generation Process

FUND LAUNCH

Fund Manager ”Review & Select Investment

OpportunitiesEvaluation of Risk/Return scenarios

INVESTMENT COMMITTEE REVIEW


We believe that scale is not a driver but an outcome of excellence in our work. Our thematic investment styles are designed around nicheinvestment opportunities that exist in the Indian capital markets. Usually such specialties offer limited scope for scale-up in terms of the capitalwe can deploy effectively. The focus is always upon discovering and taking advantage of an insight that can provide the edge, and thenadding layers of research and due diligence to construct a portfolio. The common foundation of knowledge, work culture and networksunderpin 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 pricecombined with Growth.

Unifi believes that both micro (firm level) and macro risks are critical in determining outcomes. We carefully evaluate the fundamentals of eachbusiness that we own, and in addition ask ourselves if the prevailing and expected conditions in the economy will act for or against ourinterest. 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 toit, 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 weare exposed.

Consistency of returns relative to our initial objective (in certain strategies we allow ourselves considerable latitude to deviate in order tooutperform eventually) as well as the benchmark is an important measure of performance. We aim to consistently generate top quartileperformance.

Our People. The bedrock of our firm’s ethos is best represented by our commitment to Accountability and Continuity, both internal andexternal. We attract people who are passionate and give them time and opportunity to succeed. We maintain a tight code of conduct and havezero 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 onemade 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 iscommitted to stick diligently to the client’s mandate and deliver the best possible outcome while remaining vigilant on the underlying risks.

Investment Philosophy & Funds


Opportunistic Investing

Corporate Events Time Frame 3-18 Months

Fundamentally Driven, Buy & Hold

Based on sustained growth of the Indian EconomyTime Frame 2-3 yrs

India Spin-Off

Fund

Event Arbitrage

Fund

Insider Shadow

Fund

Delisting Fund

Realty & Related Fund

Corporate Delisting

Tenders Offers, IPOs

Buybacks etc

Corporate Demergers

Insider Activity

Sector Trends ” Large

Cap Fund

40% exposure to severely beaten

down realty developers, 60% in suppliers to realty

sector

Three Sectors offering

Visible, Predictable & Sustained Growth

Special Opportunities

Fund

Cherry Pick 7-8 of the best ideas from

Sector Trends, Concentrated, Passive Long-

term

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 Value @ Discount

Fund

Fund Structure

Event Arbitrage Fund

Objective

Generate stable absolute returns that are consistently superior to 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. The prime focus is to achieve the desired returns by

building a portfolio with relatively low volatility than the benchmark indices to ensure capital preservation across market cycles.

Strategy

Invest in a basket of stocks with underlying arbitrage opportunities driven by corporate events like mergers, acquisition, initial public offers, buyback

of shares, regulation triggered / voluntary open offers made to the public by controlling shareholders etc. 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. Temporary inefficiencies in the market

providing access to robust companies with exceptionally high dividend yields and moderate capital gain opportunities are also circumspectly

considered.

Portfolio Structure

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

opportunities 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 / leverage are also selectively considered to lock-in gains / generate higher returns.

Fund Performance

Event Arbitrage Fund

*FY-05 onwards completely alternate performance

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

FY03 - 2.33% 3.97% -3.63% 4.92% -3.94% -1.45% -0.23% 4.36% 2.20% -0.42% -1.68% 6%

FY04 3.24% 5.68% 3.24% 2.33% 3.05% 7.89% 8.54% 2.53% 2.68% -0.45% 0.81% -1.45% 45%

FY05 - -1.47% 0.24% 4.31% 4.92% 3.89% 1.76% 2.25% 4.80% 0.59% 1.76% 3.10% 29.22%

FY06 1.69% 1.96% -0.66% 3.95% 2.08% -0.16% -1.02% 3.94% 2.12% 1.64% 0.35% 2.12% 19.41%

FY07 4.27% -12.68% 0.44% 0.12% 4.89% 4.18% 1.13% 3.37% 8.85% 4.66% -1.23% 1.51% 19.88%

FY08 1.47% -3.90% 2.76% 5.87% 0.52% 0.39% 3.21% 4.26% 2.36% 0.41% 1.36% -5.45% 13.46%

FY09 5.16% -0.33% -0.32% 2.08% 1.39% -2.80% -4.97% -0.25% 1.88% 1.18% 0.14% 0.75% 3.63%

FY10 2.89% 4.55% 2..81% 2.63% 2.14% 3.59% -1.87% 1.34% 2.57% -0.42% 0.47% -2.11% 19.97%

FY11 1.49% -1.34% 0.49% 0.62% 1.86% 0.56% -0.43% -0.98% 3.45% -3.26% -0.61% 4.20% 5.98%

FY12 3.09% -1.03% -0.25% 0.43% -1.74% 0.44% 1.99% -1.32% -0.01% 3.28% 0.33% 0.24% 5.44%

FY13 0.54% -0.74% 1.11% -0.59% 0.60% 3.53% 0.08% 0.86% 0.55% 1.48% 1.61% 0.08% 9.41%

FY14 1.54% 2.45% -3.33% 2.00% 0.77% 1.54% 2.01% 1.30% 1.73% 0.80% 1.88% 0.94% 14.38%

FY15 1.24% 1.52% 0.37% 0.70% -0.30% 2.64% 0.75% 0.16% 1.56% 0.73% 9.76%

-8%-6%-4%-2%0%2%4%6%8%10%12%14%16%18%20%22%24%

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Monthly Returns Unifi i-BEX

RETURNS

Unifi Benchmark

Average Monthly Return 1.10% 0.62%

CAGR 13.69% 7.50%

Cumulative Returns 297.05% 117.58%

Largest Monthly Gain 8.85% 12.78%

Largest Monthly Loss -9.81% -5.08%

% of positive Months 75.97% 66.67%

RISK

Standard Deviation (Ann.) 8.23% 6.94%

Sharpe Ratio 0.69 N.A.

COMPARISION TO BENCHMARK

Alpha 5.69%

Beta 0.02

Correlation 0.02

R-Squared 0.00

# CAGR Return is from FY 05 onwards

Delisting Fund*

Objective

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 favor of minority share holders.

The Delisting Fund sought to achieve attractive absolute rate of return by investing in companies that have a high likelihood of delisting. The price

discovered in the delisting process invariably offered a substantial premium over the then prevailing market price.

Strategy

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.

Portfolio Structure

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 Derivates 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

Delisting Fund*


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





% of positive months 68.42% 68.42%

RISK

Standard Deviation

(Annualised) 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

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Monthly Returns Unifi BSE 500

Insider Shadow Fund

Objective

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.

Strategy

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 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.

Portfolio Structure

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

Insider Shadow Fund


FY11 4.96% 3.73% 2.55% 4.22% 3.02% -6.21% 1.47% -9.78% -5.92% 4.22% 1%

FY12 5.04% -4.58% -0.28% 0.49% -11.02% -1.67% -2.03% -10.30% -8.49% 15.65% 4.96% -2.23% -16.12%

FY13 0.39% -7.11% 3.79% -2.08% -2.38% 10.57% 3.04% 0.65% 1.27% -3.98% -9.77% -2.34% -9.10%

FY14 3.23% -0.16% -2.96% -4.02% -5.08% 4.42% 7.01% 0.64% 6.01% -6.33% 2.61% 8.87% 13.68%

FY15 2.76% 11.94% 13.59% 0.44% 10.95% 5.17% 2.03% 2.24% 0.25% 6.18 % 69.88%

Fund Performance

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Monthly Returns

Unifi

Benchmark(Midcap 50%+SmallCap 50%)

RETURNS

Unifi Benchmark


CAGR 8.86% 8.26%





RISK

Standard Deviation (Annualised) 20.78% 22.41%

Sharpe Ratio N.A. N.A.

COMPARISON TO BENCHMARK

Alpha 0.49%

Beta 0.86

Correlation 0.94

R-Squared 0.88

Sector Trends- Large Cap Fund

Background

History emphasizes that only a few sectors drive market performances at any given point in time. Thus, an investment in the right sector at the right

time is a definitive means of earning superior returns compared to the benchmark indices. As different economic events drive performance of different

sectors at various points in time, the concept of this style is to side with companies that are at the positive end of a business cycle and avoid companies

that are at the un favourable end of the business cycle.

Strategy

In short, the strategy will be to avoid Underweight sectors that are at the moment defensive and/or underperforming and be over weight on sectors

that are expected to see favourable near term tail winds. 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

Portfolio Structure

65-80% of the portfolio will be invested in Top-5 sectors of BSE- 30 and the remaining will be invested in bottom up ideas from BSE 200; all sectors

participating in India’s growth is 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. Our Universe will mostly be limited to BSE 200. 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.

Fund Structure

Sector Trends ”Large Cap Fund


FY04 7.39% 4.72% 4.49% 10.73% 16.10% 8.14% 25.25% -2.40% -0.56% -14.09% 71%

FY05 3.73% -10.61% -1.33% 7.15% 7.45% 7.11% -0.90% 7.68% 7.27% 1.23% 2.25% -4.39% 28%

FY06 0.37% 6.12% 3.96% 5.83% 4.60% 2.01% -5.02% 7.67% 6.83% 4.21% 1.50% -0.08% 44%

FY07 13.91% -9.93% -3.87% 0.96% 9.13% 8.19% 1.69% 4.95% 6.76% 7.15% -0.18% -9.92% 29%

FY08 5.59% 6.51% 4.82% 2.08% 0.82% 8.03% 9.44% 3.66% 10.59% -14.97% -5.47% -17.61% 9%

FY09 10.43% -1.97% -13.82% 0.27% 3.52% -12.42% -20.76% -5.14% 7.51% -7.82% -3.68% 5.47% -36%

FY10 14.44% 39.59% 0.06% 12.63% 10.67% 6.79% 4.84% 1.27% 8.69% -3.38% -1.88% -4.58% 122%

FY11 8.87% -3.05% 1.06% 7.39% 5.17% 7.34% 1.81% -4.00% 0.96% -8.60% -7.65% 2.77% 11%

FY12 2.35% -7.14% -1.46% -0.37% -10.55% -2.85% 5.79% -8.83% -3.21% 12.53% 5.54% -4.04% -14%

FY13 2.16% -7.07% 7.79% -0.06% 1.32% 7.23% -0.25% 4.78% 0.26% 0.44% -3.73% -0.80% 11.69%

FY14 -0.47% 2.06% -0.99% -0.28% 1.02% 3.80% 10.27% -0.56% 4.88% 1.75% 6.06% -0.67% 29.63%

FY15 2.55% 7.87% 3.69% -0.79% 5.93% 3.44% 5.91% 4.79% 3.92% 1.78% 46.36%

Fund Performance

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Monthly Returns Unifi

Bse 500 Bse Sensex

RETURNS

Unifi BSE 500 Sensex

Average Monthly Return 2.11% 1.90% 1.84%

CAGR 24.39% 20.90% 20.84%

Cumulative Returns 1176.31% 815.55% 810.15%

Largest Monthly Gain 39.59% 33.33% 28.26%

Largest Monthly Loss -20.76% -27.11% -23.89%

% of positive months 65.00% 65.00% 62.86%

RISK

Standard Deviation (Annualized) 26.09% 26.87% 24.60%

Sharpe Ratio 0.59 0.44 0.48

COMPARISON TO BENCHMARKS

Alpha 5.67% 5.19%

Beta 0.82 0.88

Correlation 0.85 0.82

R-Squared 0.72 0.67

New Fund Offering

Deep Value @ Discount Fund

Objective

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.

PhilosophyFocus 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.

Strategy 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 ofsituations such as: Pockets of cyclical pessimism towards the industry or the company, Valuation mismatch that arise from de-mergers of disparatedivisions into companies, Compulsions of large institutional investors causing value buying opportunities While we track the performance of ourfirms actively, the fund will hold a very passive, concentrated portfolio of 8-10 stocks with virtually no trading.

Structure and FeesThe Fund will operate on the PMS platform where the investor’s assets will remain either in cash with a bank/liquid fund (pending deployment), orin 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 expectedtime frame to realize the full value of the investment is about 36 months. Capital would be returned to the investor either when the portfolio doublesor at the completion of 36 months, whichever is earlier. Unifi’s management fee will be 1% p.a. of NAV and a performance fee i.e a 20% profit shareover a 10% hurdle rate..

Deep Value at Discount Fund

Fund Performance

Year 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% 4.10% 5.70% 6.89% 10.50% 20.78%

CY14 -4.79% 8.45% 7.69% 10.51% 17.90% 10.81% 2.72% 4.28% 8.43% 2.12% 0.30% 9.57 % 109.27%

CY15 4.68% 4.68%

RETURNS

Unifi Benchmark


CAGR 61.81% 23.35%





RISK

Standard Deviation 5.56% 5.95

Sharpe Ratio 2.79 0.75%

COMPARISION TO BENCHMARK

Alpha 42.30%

Beta 0.75

Correlation 0.84

R-Squared 0.70

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

Jan

-13

Mar

-13

May

-13

Jul-

13

Sep

-13

No

v-1

3

Jan

-14

Mar

-14

May

-14

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Monthly Returns DVD Midcap Small Cap

New Fund Offering

Unifi Alternative Investment Fund

Investment objectiveThe objective of the fund is to generate consistent absolute returns higher than conventional fixed income instruments.This fund would primarily employ the following strategies with a capability to use permitted leverage and derivatives on an opportunistic basis. Itwould not have any segment bias and would consider equity as well as debt investment opportunities across all sectors subject to extant regulations.

Event Arbitrage Identification of low risk-moderate gain opportunities in the capital markets thrown up by market events, behavior and regulation.Such opportunities arise from corporate events like mergers, acquisition, buyback of shares and regulation triggered open offers for acquisition ofshares from public shareholders.

Convertible Bonds & Arbitrage Investments in rupee or dollar denominated Convertible Bonds / Debentures issued by Indian companies with goodcredit standing. A well-constructed portfolio of Convertibles can deliver attractive yields especially when held till maturity. The yields could furtherimprove if they can be converted into Equity on the stipulated date at a discount to the market price at that point. Our focus would be to invest inconvertible papers of select creditworthy companies to capture appealing YTMs and the potential equity advantage without detracting from the basicobjective of capital safety.

Structured High Yield Debt Investments in high yield debt instruments ranging from pure interest bearing bonds to innovative and varied type ofdebt instruments including asset-backed securitized instruments. The returns from this strategy arise on account of periodical coupon accruals as wellas capital gains. Credit and credibility assessment of counter parties, collaterals, structures as well as intermediaries involved will carried out rigorouslybefore getting into any opportunity.

Selective Directional Trading Opportunistic position trading calls, on a highly selective basis, in permitted listed instruments with underlying such asequities and currencies.

StructureUnifi AIF is a SEBI registered Category III Alternative Investment Fund incorporated in the form of a trust. It is a privately pooled investment vehiclewith a defined investment policy and is supervised by independent trustees. IL&FS Trust Co Ltd handle the custody and settlement on behalf of thetrust.

Unifi Alternative Investment Fund

Fund Performance

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

FY14 0.92% 1.56% -0.70% 1.60% 1.02% 1.34% 0.72% 1.07% 2.63% 0.77% 1.69% 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% 15.88%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

50

60

70

80

90

100

110

120

130

Ap

r/13

Ap

r/13

May

/13

Jul/

13

Jul/

13

Au

g/1

3

Sep

/13

Oct

/13

No

v/1

3

Dec

/13

Jan

/14

Feb

/14

Mar

/14

Ap

r/14

May

/14

Jun

/14

Jul/

14

Au

g/1

4

Sep

/14

Oct

/14

No

v/1

4

Dec

/14

Jan

/15

Mo

nth

ly R

etu

rns

Va

lue

of

Rs.

100

Inv

este

d

Monthly Returns

UNIFI AIF

Birla Sh. Term Opp. Fund

Fran Temp Corp. Bond

BSL Dynamic Bond Fund(G)

Reliance Dynamic Bond(G)

RETURNS

UNIFI AIF

Birla Sh.

Opp.

Fund(G)

Fran. Corp.

Bond

fund(G)

BSL

Dynamic

Bond

Fund(G)

Reliance Dynamic

Bond(G)

Average Monthly Return 1.23% 0.91% 0.83% 0.93% 0.86%

CAGR 15.76% 11.41% 10.32% 11.62% 10.64%

Cumulative Returns 30.78% 21.91% 19.73% 22.33% 20.36%

Largest Monthly Gain 2.63% 1.94% 2.14% 2.45% 2.85%

Largest Monthly Loss -0.70% -1.17% -2.10% -2.82% -3.81%

% of positive Months 95.50% 95.45% 90.91% 90.91% 81.82%

RiskStandard Deviation

(Annualised) 2.02% 2.19% 2.84% 3.82% 5.27%

Individuals 35%

Family Office 38%

Corporate 18%

Fund of Funds 9%

Clients & AUM

Total Assets under Management of about Rs. 500 Cr

Category of Clients

Client Base Client Attrition Trends

Domestic76%

Offshore24%

Year Attrition %

2004-05 3%

2005-06 4%

2006-07 2%

2007-08 1%

2008-09 4%

2009-10 1%

2010-11 0.07%

Based on AUMs relative to each fiscal

Portfolio Parameters

Pre-trade

Ongoing Surveillance

Post-tradeFirm 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 open 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 operations, 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, Statutory (Deloitte) and Accounts specific;

The PMS auditors carry out an annual audit and submit an audited account to each PMS account holder.

Risk Management Framework

For further information visit:

www.unificap.com

CHENNAI:11, Kakani Towers15 Khader Nawaz Khan RoadNungambakkam High RoadChennai - 600 006. INDIAPh: +91-44-3022 4466, 2833 1556Fax: +91-44-2833 2732

BANGALORE:511, Barton Centre84, M.G. RoadBangalore - 560 001. INDIAPh: +91-80-255 9418/19

HYDERABAD:H No. 6-3-346/1, Road No. 1Banjara HillsScotia Bank BuildingHyderabad – 500 034. INDIAPh: +91-40-6675 2622/23

MUMBAI:Shiv Sagar Estate,A Block, 8th Floor,Dr. Annie Besant Road,Worli, Mumbai – 400018.Mb: +91 9930112828,+91 9819525063 Fax: +91-22-24950580

Portfolio Management Services · 2010 2009 2008 2007 2006 2003 2002 2001 Unifi is founded Alternate...

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