Canara Robeco Nifty Index Abridged Annual …

1 Canara Robeco Nifty IndexAbridged Annual Report 2013 - 2014 Canara Robeco Asset Management Company Offi ce: Construction House, 4th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400 (022) 22621371, 66585000 - 10. Email: OFFICES: AHMEDABAD: Unit , Onyx Building, Near Raj Hans Society, IDBI Cross Roads, Off . Road, Ahmedabad - 380 009. Phone: +91 079-40278936, Fax: +91 079-40264254, E-mail: BANGALORE: 1st Floor, Sana Plaza , 21/14-A, Road, Near Trinity Metro Station, Bangalore - 560 001. Phone: +91 80 39871400/01, Fax: +91 80 30901092, E-mail: CHANDIGARH: Canara Bank, Circle Offi ce, 3rd Floor, Sector 34-A, Chandigargh - 160 022. Phone: +91 172 2648007, E-mail: CHENNAI: 770-A, 1st Floor, Spencer Annexe, Anna Salai, Chennai - 600 002.

2 Phone: +91 44 28492598, E-mail: DELHI: 306, Kanchen Junga Bldg., 18, Barakambha Road, New Delhi - 110 001. Phone: +91 11 23326417/23314175, E-mail: GOA: Shop No. F-3, Edcon Tower, Panajim, Goa - 403 001. Phone: +91 832 2422415/ 6450631, E-mail: HYDERABAD: V. V. Vintage Boulevard, 1st Floor, Municipal H. , Somajiguda, Raj Bhavan Road, Hyderabad - 500 082. Phone: +91 40 39132301/39132302, Fax: +91 40 39132300, E-mail: INDORE: 211, City Centre, Road, Indore - 452 003. Phone: +91 731 6451222, E-mail: KOCHI: Door No. XL/6030, 1st Floor, Al-Falah Plaza, (Opp. Oriental Bank of Commerce), Broadway North End, Kochi - 682 : +91 484 2364846, E-mail: KOLKATA: Horizon, Block B, 5th Floor, 57, Chowringhee Road, Kolkata - 700 071.

3 Phone: +91 33 30584716/17/18, E-mail: MANGALORE: 227/2A, Essel Towers, Bunts Hostel Circle, Mangalore - 575 003. Phone: +91 824 2448804, E-mail: MUMBAI: Construction House, 4th Floor, 5, Walchand Hirachand Marg, Mumbai - 400 001. Phone: +91 22 22621371/66585000/10, E-mail: PUNE: C-2, Deccan Mall, 2rd Floor, Next to Deccan Post Offi ce, Deccan Gymkhana, Pune-411 004, Phone: +91 20 30923820/21/22/23/24, Fax: +91 20 25661454, E-mail: SURAT: M-8/9, Jolly Plaza, Athwagate, Surat - 395 001. Phone: +91 261 6554243, E-mail: Robeco Nifty IndexTRUSTEE REPORT1As on 31st March, 2014, Canara Robeco Mutual Fund has 24 schemes of which 10 are debt oriented schemes, 7 are equity oriented schemes, 5 are hybrid schemes, 1 is an Exchange Traded Fund & 1 is domestic Fund of Fund.

4 The average assets under management (AAUM) for the fi nancial year ended 31st March 2014 was Rs. crores as against Rs 8, Crores for the fi nancial year ended 31st March total number of investors as on 31 March 2014 was 511826 as against 552023 as on March 31, the year, Canara Robeco Mutual Fund launched 2 new products viz. Canara Robeco Capital Protection Oriented Fund - Series 2 (Plan A) in November 2013 & Canara Robeco Medium Term Opportunities Fund in February 2014. Canara Robeco Capital Protection Oriented Fund - Series 2 (Plan A) is a 3 year closed-ended Capital Protection Oriented scheme that invests in a blend of highest quality fi xed income papers and equity. The fund invests passively in highest rated fi xed income instruments having duration in line with maturity of the scheme with the objective that the fi nal maturity value of fi xed income investments is aimed to be equal or greater than the principal of the Robeco Medium Term Opportunities Fund is an open ended debt scheme which aims to generate income and capital appreciation through a portfolio constituted of medium term debt instruments and money market the year, the scheme Canara Capital Protection Oriented Fund - Series 1 - 36 Months (Plan A), a 3 year closed-ended Capital Protection Oriented scheme matured on 7th February 2014 & Canara Robeco Interval Scheme Series - 2 (Quarterly Plan 2)

5 , a debt oriented interval scheme was wounded up on 1st October 2013 due to not meeting the requirement of minimum number of FUND PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE FUND Canara Robeco Nifty Index Canara Robeco Nifty Index is an Index linked fund which invests in companies whose securities are a part of the S&P CNX Nifty . The fund has outperformed its benchmark in the last three years. The scheme has marginally underperformed the benchmark since inception, one year & fi ve year period mainly due to tracking error arising out of timing mismatches between fund infl ows and actual deployment. Fund Performance as on Robeco Nifty Index -Regular Plan - Growth@S&P CNX NiftyOne year (Absolute) Year (CAGR) Year (CAGR) *Since Inception (CAGR) @Past performance may or may not be sustained in the future.

6 *Date of Inception: October 8, 2004 Equity Markets Outlook for Financial Year 2014-15 The fi nancial year 2013-14 saw indices viz. S&P BSE Sensex & CNX Nifty touching all time highs due to fall in CAD to multi year low & decrease in both WPI & CPI infl ation and on account of large buying by foreign investors in bluechip stocks following improved growth outlook, Market also remained supported on expectation of formation of stable Government at the centre based on opinion polls. The equity markets are expected to remain stable with a positive bias till elections. In the event of a clear and decisive mandate, markets are likely to gain momentum from here on. India is relatively better positioned when compared to the BRIC Nations.

7 Brazil and China are both witnessing a slow down and Russia is surrounded by political uncertainty. Given the stable macro environment coupled with a stable currency scenario, India off ers a relatively better investment opportunity from the FII perspective. Fixed Income Markets Outlook for Financial Year 2014-15 The impending elections and the fi scal stance of the next government are going to be important inputs for RBI s policy formulation in the next fi scal year. In the recent monetary policy meet on April 1st, 2014 RBI has also fl agged concerns on infl ation in terms of increased food prices if EL-Nino conditions materialise, worsening geo-political situation and faster tapering process. G-sec may remain range bound as market starts to build positions ahead of elections but may be wary of uptick in infl ation print.

8 Liquidity is expected to improve on higher government expenditure and large government bond redemptions in the 1 QFY15. Short term rates should continue to ease and the curve is likely to steepen. CPI infl ation is partly driven by demand, but more so by government policies. Thus, taming infl ation requires close coordination between fi scal and monetary policies. The next government s policy priorities and fi scal stance will be known when the budget is presented in June/July. A prudent fi scal stance is likely to assist in the dis-infl ationary process over the long term. Investors, based on their risk profi le and investment horizon, can consider investing in fi xed income funds on a staggered BRIEF BACKGROUND OF SPONSORS, ASSET MANAGEMENT COMPANY & TRUSTa.

9 Sponsors Canara Bank: Canara Bank, having its Head Offi ce at 112 J C Road, Bangalore 560 002 is a leading Public Sector Bank in India. Canara Bank was established in July 1906 in Karnataka, and was nationalised in 1969. Canara Bank has a presence of over 4755 branches across the country, 5 overseas branches, 1 representative offi ce at Sharjah and 1 joint venture in Moscow with State Bank of India and serves over clients through its network. Union of India holds 69% shares in Canara Bank (as on 31st March 2013). The Bank has an unbroken record of profi ts since its inception. Canara Bank has been rated AAA by CRISIL for their bond issuance program. Robeco India Holding (100% subsidiary of Robeco Groep ): Robeco Groep , having its Corporate Offi ce at Coolsingel 120, 3011 Rotterdam, The Netherlands is established in 1929 and a leading asset management company providing asset management products and solutions to institutional and private clients worldwide.

10 Robeco s assets under management were about Euro 205 billion as of December 2013. Robeco has investment presence in Rotterdam, Paris, Zurich, New York and Hong Kong, and sales presence in Australia, Japan, Korea, China, Bahrain, Belgium, Singapore, Germany, Spain, Switzerland, and USA amongst other countries. In 2013, ORIX has bought about 90% of Robeco from Rabobank. It is the center of expertise for asset management within Orix and committed to delivering long-term investment solutions and to providing excellent services to Asset Management Company Canara Robeco Asset Management Company Ltd. ( AMC ) (formerly known as Canbank Investment Management Services Ltd.) is a company incorporated under the Companies Act, 1956 on 2nd March, 1993, having its registered offi ce at Construction House, 4th Floor, 5, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400 001.