Performance Update of the Portfolio Management Services (PMS) I manage at BRICS Securities

1. MULTIPLE -STRATEGY
TREND RATED
AUTOMATIC TRADING SYSTEM
Portfolio Management Services (PMS)
Performance Update
16 August, 2010
Vivek Mavani – Vice President and Senior Portfolio Manager

2. BRICS Growth Synopsis
 BRICS Growth is a Long only Diversified Equity Product aimed at generating Absolute
Returns
 The Objective is:
 Generate Steady & Consistent returns over medium to long term
 Low Volatility
 Cautious on Margin of Safety
 The Focus is therefore on Stock Picking with a Buy and Hold philosophy
 Invest in high quality and high growth companies at reasonable valuations and
hold them over a period of time. (Not trade in & out frequently)
 Our conservative approach to managing investments, (especially during periods of
volatility) is reflected in our superior performance.

3. Absolute Performance – 16 August, 2010
YTD Since
Weekly Monthly Quarterly Half Yearly
(Calendar) Inception
BRICS Growth 3.28% 7.60% 18.11% 30.78% 30.41% 41.50%
NIFTY -1.24% 0.45% 6.38% 11.59% 4.18% 6.59%
SENSEX -1.29% -0.44% 9.76% 10.83% 3.36% 5.34%
S&P CNX 500 -0.55% 0.69% 11.04% 11.36% 5.21% 10.57%
S&P CNX MIDCAP 0.71% 3.48% 14.96% 22.32% 17.27% 30.13%
Inception Date: 1 October, 2009 Portfolio returns are net of fees & expenses

4. Performance Snapshot
32%
27%
22%
17%
12%
7%
2%
-3%
Monthly Quarterly Half Yearly YTD (Calender) Since Inception
BRICS Growth NAV Nifty Sensex S&P CNX 500 CNX Mid Cap
Inception Date: 1 October, 2009 Portfolio returns are net of fees & expenses

5. Consistency in our Month-on-Month Performance
Month Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 July-10 Aug-10
BRICS Growth -0.67% 2.79% 6.27% -1.84% 0.75% 6.24% 3.77% 1.86% 5.81% 3.84% 6.87%
NIFTY -7.31% 6.81% 3.35% -6.13% 0.82% 6.64% 0.55% -3.63% 4.45% 1.04% 0.94%
SENSEX -7.23% 6.48% 3.18% -6.34% 0.44% 6.68% 0.18% -3.50% 3.83% 1.56% 1.02%
S&P CNX 500 -6.46% 7.59% 4.43% -4.00% -0.69% 4.50% 1.27% -3.24% 4.59% 1.23% 1.77%
CNX MID-CAP -1.77% 8.65% 3.97% -3.11% -0.48% 7.50% 4.62% -3.79% 4.83% 3.50% 3.58%

6. Month-on-Month Comparison
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10
BRICS Growth Nifty Sensex S&P CNX 500 CNX Mid Cap

7. Compared to Top 20 Mutual Funds
Ranked on 1 month returns
Performance
Rank Scheme Name
1 Mth % 3 Mths % 6 Mths %
1 Brics Growth 7.60 18.11 30.78
2 IDFC Premier Equity Fund - Plan A - Growth 6.75 15.67 25.75
3 Canara Robeco Emerging Equities - Growth 4.50 16.03 27.15
4 Escorts Growth Plan - Growth 4.20 7.76 22.76
5 HDFC Equity Fund - Growth 4.19 12.93 22.36
6 Franklin India Opportunity Fund - Growth 3.98 9.69 14.87
7 Fortis Future Leaders Fund - Growth 3.93 13.18 24.37
8 SBI Magnum Global Fund 94 - Growth 3.71 12.82 18.64
9 Kotak Emerging Equity Scheme - Growth 3.57 13.58 22.03
10 DSP BlackRock Equity Fund - Growth 3.48 9.90 18.26
11 Reliance Equity Opportunities Fund - Growth 3.43 13.18 25.93
12 Tata Select Equity Fund - Appr 3.15 7.52 13.06
13 Morgan Stanley A.C.E Fund - Growth 3.06 9.72 17.14
14 HDFC Long Term Equity Fund - Growth 2.95 12.06 19.17
15 Quantum Long-Term Equity Fund - Growth 2.83 10.22 19.49
16 Franklin India High Growth Companies Fund - Growth 2.82 9.71 13.88
17 Franklin India Prima Fund - Growth 2.65 11.55 17.98
18 DSP BlackRock India Tiger Fund - Growth 2.58 9.42 15.75
19 DSP BlackRock Opportunities Fund - Growth 2.57 10.6 19.68
20 Religare Growth Fund - Growth 2.55 9.08 15.33
The comparison includes 250 Diversified Equity Funds across all Fund Houses

8. Compared to Top 20 Mutual Funds
Ranked on 3 month returns
Performance
Rank Scheme Name
1 Mth % 3 Mths % 6 Mths %
1 Brics Growth 7.60 18.11 30.78
2 Canara Robeco Emerging Equities - Growth 4.50 16.03 27.15
3 IDFC Premier Equity Fund - Plan A - Growth 6.75 15.67 25.75
4 Kotak Emerging Equity Scheme - Growth 3.57 13.58 22.03
5 Fortis Future Leaders Fund - Growth 3.93 13.18 24.37
6 Reliance Equity Opportunities Fund - Growth 3.43 13.18 25.93
7 HDFC Equity Fund - Growth 4.19 12.93 22.36
8 SBI Magnum Global Fund 94 - Growth 3.71 12.82 18.64
9 HDFC Long Term Equity Fund - Growth 2.95 12.06 19.17
10 Franklin India Prima Fund - Growth 2.65 11.55 17.98
11 HDFC Growth Fund - Growth 2.32 11.30 19.17
12 Fidelity Equity Fund - Growth 1.93 10.75 20.59
13 DSP BlackRock Opportunities Fund - Growth 2.57 10.6 19.68
14 JPMorgan India Equity Fund - Growth 2.19 10.38 18.68
15 Quantum Long-Term Equity Fund - Growth 2.83 10.22 19.49
16 DSP BlackRock Equity Fund - Growth 3.48 9.90 18.26
17 Morgan Stanley A.C.E Fund - Growth 3.06 9.72 17.14
18 Franklin India High Growth Companies Fund - Growth 2.82 9.71 13.88
19 Franklin India Opportunity Fund - Growth 3.98 9.69 14.87
20 Fidelity India Growth Fund - Growth 1.45 9.65 18.78
The comparison includes 250 Diversified Equity Funds across all Fund Houses

9. Compared to Top 20 Mutual Funds
Ranked on 6 month returns
Performance
Rank Scheme Name
1 Mth % 3 Mths % 6 Mths %
1 Brics Growth 7.60 18.11 30.78
2 Canara Robeco Emerging Equities - Growth 4.50 16.03 27.15
3 Reliance Equity Opportunities Fund - Growth 3.43 13.18 25.93
4 IDFC Premier Equity Fund - Plan A - Growth 6.75 15.67 25.75
5 Fortis Future Leaders Fund - Growth 3.93 13.18 24.37
6 Escorts Growth Plan - Growth 4.20 7.76 22.76
7 HDFC Equity Fund - Growth 4.19 12.93 22.36
8 Kotak Emerging Equity Scheme - Growth 3.57 13.58 22.03
9 Fidelity Equity Fund - Growth 1.93 10.75 20.59
10 DSP BlackRock Opportunities Fund - Growth 2.57 10.60 19.68
11 Quantum Long-Term Equity Fund - Growth 2.83 10.22 19.49
12 ICICI Prudential Fusion Fund - IP - Growth 2.02 9.59 19.37
13 HDFC Growth Fund - Growth 2.32 11.30 19.17
14 HDFC Long Term Equity Fund - Growth 2.95 12.06 19.17
15 Fidelity India Growth Fund - Growth 1.45 9.65 18.78
16 JPMorgan India Equity Fund - Growth 2.19 10.38 18.68
17 SBI Magnum Global Fund 94 - Growth 3.71 12.82 18.64
18 DSP BlackRock Equity Fund - Growth 3.48 9.90 18.26
19 ICICI Prudential Discovery Fund - Growth 1.66 7.70 18.11
20 Franklin India Prima Fund - Growth 2.65 11.55 17.98
The comparison includes 250 Diversified Equity Funds across all Fund Houses

10. BRICS Growth NAV Trend
 Indices have been range bound in the BRICS Growth NAV v/s Indices (normalised)
last nine months, with interim periods of
150
volatility
145
 Yet BRICS Growth has delivered steady 140
& consistent returns in line with our
135
objective
130
 Performance has been a result of our 125
Stock Picking 120
 Leading to consistency in our 115
performance as well as increasing out- 110
performance of our returns compared to 105
the benchmark indices
100
95
90
85
1-Nov-09
1-Apr-10
1-May-10
1-Jul-10
1-Aug-10
1-Feb-10
1-Dec-09
1-Jan-10
1-Mar-10
1-Jun-10
1-Oct-09
BRICS Growth Nifty Sensex
S&P 500 CNX Midcap

11. BRICS Growth Outperformance
 Our out-performance has been BRICS Growth NAV Outperformance vis-a-vis Indices
increasing over a period of time 40%
35%
 Our Strategy has been to :
30%
 Buying during panics
 Book partial profits during sharp 25%
rallies
20%
 Remain liquid in the interim
15%
 Large liquidity helps :
 Protect against volatility 10%
 Provides enough courage and
5%
conviction to buy into panics
0%
 Current cash/liquid balances ~ at 18% of
the Portfolio -5%
-10%
1-Apr-2010
1-May-2010
1-Aug-2010
1-Nov-2009
1-Feb-2010
1-Jul-2010
1-Dec-2009
1-Jan-2010
1-Mar-2010
1-Jun-2010
1-Oct-2009
Nifty Sensex S&P 500 CNX MidCap

12. Portfolio Breakup
Sectoral Allocation Market Cap
Branded
Garments & Cash 18% Cash 18%
Retail 21% Large Cap
34%
Construction
6%
Banking & Media 6% Small Cap
Finance 14% 19%
Consumer
Oil & Gas Goods 13% Mid Cap
22% 29%
Large Cap. More than Rs 5,000 crores
Mid-Cap Rs 1,000 - 5,000 crores
Small Cap. Less than Rs 1,000 crores

13. Low Portfolio Turnover (Buy & Hold at work)
Portfolio Turnover
1.00
0.90
0.80
0.70
0.60
times
0.50
0.40
0.30
0.20
0.10
0.00
Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10
Portfolio Turnover

14. 10 Biggest falls since October 2009
 How much a portfolio falls during a Points Points % Fall -
correction / sharp downturn is as % Fall - % Fall -
Date Fall - Fall - BRICS
important as how much it gains in a bull Nifty Sensex
market Nifty Sensex Growth
 Protecting capital is often more important 27-Jan-10 -159.65 -3.19% -490.64 -2.92% -2.29%
during periods of volatility
03-Nov-09 -147.80 -3.14% -491.34 -3.09% -0.36%
 Downside protection equally contributes
to superior returns over a period of time 19-May-10 -146.55 -2.89% -467.27 -2.77% -0.84%
 We have managed to fall less than the 25-May-10 -137.20 -2.78% -447.07 -2.71% -1.62%
indices during each of the sharp falls /
panics since our inception 05-Feb-10 -126.70 -2.61% -434.02 -2.68% -0.47%
27-Oct-09 -124.20 -2.50% -387.10 -2.31% -0.65%
21-Jan-10 -127.55 -2.44% -423.35 -2.42% -1.32%
01-Jun-10 -116.10 -2.28% -372.60 -2.20% -1.24%
Against -- Nifty Sensex
26-Nov-09 -102.60 -2.01% -344.02 -2.00% -0.95%
Beta * 0.4023 0.3995
07-Jun-10 -101.50 -1.98% -336.62 -1.97% -0.99%
*Beta measures the volatility of the
portfolio relative to the index 04-Feb-10 -86.50 -1.75% -271.10 -1.64% -0.28%

15. Market Outlook
 Global macro economic risks will continue to weigh on the markets. Will definitely have
repercussions on India over a period of time, if not on a daily basis
 Rest of 2010, Markets are likely to remain range bound with negative bias and sharp
interim volatility
 Markets have been very discriminating against corporates under-performing expectations. As a
result valuations/multiples could de-rate over a period of time. These stocks may not bounce
back for a while even if the overall markets do
 Corporates that have delivered/exceeded expectations have witnessed re-rating of multiples and
have seen sharp bounce backs after each panic/fall
 Overall Valuations are reasonable, but definitely not cheap
 In some sectors/stocks valuations already factor in fairly aggressive growth rates for FY11
and FY12. Corporate performances could disappoint in those cases given high
expectations
 Q1 FY2011 results have just about met the expectations. In fact most sectors under-
performed the expectations on profit margin front.
 Pockets of opportunities still available in those stocks where growth v/s valuations are still
favourable

16. Our Strategy
 “Time” in the markets is more important than “Timing” the markets
 Superior long-term sustainable returns are not made by timing the markets in terms of selling at
the peaks. They are a result of purchase prices that are attractive in terms of valuations with
adequate margin of safety
 Even in range bound markets there are enough stocks providing consistent and absolute returns.
Stock picking therefore is the key
 Our strategy going ahead would continue to be:
 Buy on declines/panics
 Use the sharp rallies for part profit booking
 Hold large cash/liquidity during interim periods
 The sectors that we are bullish are and continue to be over weight:
 Banking & Financial Services,
 Gas Transportation & Distribution
 Domestic Consumption oriented sectors including Paints, Branded Garments, Media etc.

17. Happy Investing
Thank You
Vivek Mavani – Senior Portfolio Manager
vivek.mavani@bricssecurities.com
BRICS SECURITIES LIMITED
1st Floor, Sadhana House,
570, P. B. Marg,
Behind Mahindra Towers,
Worli, Mumbai – 400 018.
Tel: 91-22-6636 0000.