New India - Excel Funds

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Apr 7, 2016 - FUND. EXCEL. NEW INDIA LEADERS. Focused on Long-term wealth Creation award-winning equity strategy designe
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New India EXCEL

EXCEL

FUND

INDIA FUND

EXCEL

NEW INDIA LEADERS FUND

April 2016 Partnered with our on-the-ground award-winning Sub-Adviser

Compelling Reasons To Invest in india ìì Largest democracy in the world with a USD 2.1 trillion economy

ìì Natural hedge to Canadian markets: Indian markets have a low correlation with the ‘commodities-heavy’ Canadian market, providing favourable diversification to dampen portfolio volatility

ìì High expected growth: The World Bank predicts India to grow by 7.8% in 2016, higher than any other major economy globally

ì ì Stable Currency: The Indian rupee has outperformed most emerging market (“EM”) and developed market (“DM”) currencies over the last 5 years in total return terms

ìì Fundamentally strong economy supported by lower inflation, declining fiscal and current deficits, and increasing foreign reserves

▌compared ▌ to the Canadian economy India has a: nn Faster GDP growth rate

GDP (USD)

nn Significantly lower debt-to-GDP ratio nn Larger and more rapidly expanding middle class

2.1 Trillion

1.8 Trillion

7.8%

1.7%

27 Years

42 Years

51.7%

94.8%

1.2 Billion

35 Million

Median Age Government Debt to GDP Population

Source: World Bank: Global Economic Prospects, January, 2016, IMF Data, CIA, Canada Census.

▌ ▌India Foreign Exchange Reserves

20

400

15

350

Foreign  R eserve  (USD  billion)

Inflation   Index  Year  Over  Year  % Change

▌ ▌India Inflation Declining

10 5 0 -­‐5

usd 356 billion

300 250 200 150 100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Consumer   Price  Index

Canada

GDP Growth Forecast (2016)

nn Younger tax-paying working population

-­‐10

India

Wholesale  Price  Index

50

usd 43 billion

0

Source: Bloomberg data , as at March 31, 2016. Source: Bloomberg data, as at March 31, 2016.

▌ ▌Yield and Spread between Canadian and Indian Bonds

▌ ▌Indian Rupee Outperformed DM Currencies*

12 Canada

Currency  Total   Return  in   %

India 10

6 4

Source: Bloomberg data, as at March 31, 2016. Canada represented by Canadian Government 10-year bond yield. India represented by Indian Government 10-year bond yield.

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

0

2002

2

2001

Yield   (%)

8

45 40 35 30 25 20 15 10 5 0 -­‐5

Source: Bloomberg data, as at March 31, 2016. *5 year total return in CAD terms.

▌ ▌SENSEX Forward Price Earnings

▌ ▌foreign institutional investor flows

25

Current  P/E

21

Equity

30

19 17

Fixed  Income

10

13 11 9

2006

2007

2008

2009

2010

P/E  F orward

2011

2012

2013

2014

2015

2016

0

1.0  

0.7  

6.5  

8.6  

10.7  

Source: Bloomberg data, as at March 31, 2016.

19.3  

0.9   9.0  

0.9  

7.1   1.2  

2.7   -­‐1.3  

8.1  

17.2   29.1   -­‐0.6  

17.3  

-­‐10 -­‐20

10  Year  Average  P/E  F orward

6.5  

2.3  

20

15

26.1  

10.1  

40

18.19

FII  U SD  B illion  

Forward  P/E  

50

Average  1 0-­‐Year P/E 16.52

23

15.9  

24.0  

-­‐12.2  

2.8   -­‐0.5  

-­‐8.7  

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016   YTD

Source: National Securities Depository Limited of India data, accessed on April 7, 2016.

.

Explore Our Lineup of Investment Solutions ìì Active portfolio management from on-the-ground, award-winning investment team ìì Direct access to Indian markets not readily available to Canadian investors ìì Investment exposure to one of the world’s fastest-growing economy ìì Tactical asset allocation decisions based on insights from local industry experts ìì Comprehensive fund offerings for a broad range of investor profiles EXCEL

EXCEL

EXCEL

INDIA FUND

FUND

designed for income & growth

NEW INDIA LEADERS FUND

award-winning equity strategy

nn Initial portfolio mix: 60% equities, 40% investment-grade quality bonds nn Seeks current income and long-term capital appreciation by investing in a diversified portfolio comprised primarily of publicly-listed equities and investment-grade bonds nn Broad portfolio holdings of 60-70 securities, stocks and bonds nn Balanced mandate that seeks to dampen portfolio volatility

n n Generates alpha by targeting equity securities of high-quality companies, trading just outside the index nn Concentrated portfolio holdings of 50-60 stocks nn Largest and longest-running Indiafocused mutual fund in Canada n n Tra c k re c o rd o f c o n s i ste n t outperformance versus benchmark

Focused on Long-term wealth Creation nn Seeks long-term superior growth of capital by investing primarily in equity securities of companies located in India that are considered to be emerging industry leaders. nn Focused portfolio consisting of ~25-30 high-quality, growthoriented companies n n Benchmark agnostic, tapping under-researched sectors in India

n n 4.0% initial annual indicative yield, to be paid in monthly cash distributions

▌ ▌Indian equities 10-YEAR Total Annualized Return versus Canada Annualized   Total  Return  (%)

15.0% 10.0%

10.3% 6.1%

5.0% 0.0% -­‐5.0%

MSCI  I ndia  I ndex

4.7%

4.0%

S&P  TSX  I ndex

MSCI  I ndia  M id   Cap  Index

MSCI  I ndia  S mall   TSX  V enture  Index Cap  Index

-­‐10.0% -­‐15.0%

-­‐14.6%

-­‐20.0%

Source: Bloomberg data, annualized total performance in CAD terms, as . at March 31, 2016.

nn As displayed in the chart, Indian markets have provided investors with positive returns consistently during different time frames n n Higher alpha can be generated from allocation to small- and mid-cap sized companies

Excel Funds and Birla Sun Life AMC Limited: Award-Winning Partnership

About Birla Sun life n n Leading independent asset manager in India with approximately USD 20 billion in AUM nn One of the largest and most sophisticated portfolio management teams in the industry nn Sub-adviser of the Excel India Fund, since 1998

About Excel Funds

Contact your Financial Advisor today and

Seize the opportunity

Founded in 1998, Excel Funds Management Inc. offers an award-winning suite of emerging market strategies, catering to a broad range of investor profiles and objectives. Leveraging a global network of over 500 portfolio managers and 200 research analysts, our team has firsthand knowledge of the markets to invest in India now and maximize your portfolio returns. in which they invest – providing us with a true competitive advantage over our peers. Our investment philosophy is grounded in disciplined fundamental research and continuously seeks out new growth opportunities in the emerging markets and beyond. Our on-the-ground sub-advisers and proprietary asset allocation models contribute to the firm being recognized as “The Authority in Emerging Markets”.

www.excelfunds.com

1-855-EXCEL30

Excel India Fund, Series A was awarded a 2015 Lipper Fund Award in the Geographic Equity category for the 3-year period ending July 31, 2015 out of a total of 12 funds. The Lipper Fund Awards, granted annually, are part of the Thomson Reuters Awards for Excellence awarded by Lipper, Inc. and highlight funds that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Ratings for Consistent Return, which is a risk-adjusted performance measure calculated over 36, 60 and 120 month periods. The highest 20% of funds in each category are named Lipper Leaders for Consistent Return and receive a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2 and the lowest 20% are scored 1. The highest Lipper Leader for Consistent Return in each category wins the Lipper Fund Award. Lipper Leader ratings change monthly. For more information, see www.lipperweb.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. All statements in this update, other than statements of historical fact, and including statements regarding the future economic effects of events, are “forward-looking statements”. These forward-looking statements reflect the current beliefs of the Fund’s portfolio manager and are based on information available to the Fund as of the date of this update. Actual results may differ materially as they are subject to a number of significant risks and uncertainties. Excel Funds has no obligation to update or revise the forward-looking statements in this update.