Benefits of investing in the Fiducian India Fund

 1. Well researched investment strategy Using the Fiducian Manage the Manager System of investment management for the Fiducian Funds, we invest in a blend of well researched funds, engage individual investment mandates and/or seek advice from investment professionals who are selected for their expertise and on the basis of the complementarity of their investment styles. In the case of our diversified funds, the investment process adopted by Fiducian involves analysis of the business cycle and the global economic environment to determine tactical asset allocation decisions. This process is designed to enable our Funds to be invested relatively more defensively in times of uncertainty, and relatively less defensively at other times. However, these funds are to remain within specified asset sector ranges at all times, in consequence always being ‘true-to-label’. Careful and prudent investing under this system aims to provide investors with the proven benefits of diversification which, over time, aims to deliver better than average returns with reduced volatility.

 2. Investment philosophy
 Our goals are relatively straightforward - they are:
 • To add value for investors through understanding and controlling the trade-offs between investment risk and return over particular time periods;
 • To exceed the S&P BSE 100 Index (AUD) benchmark after fees, over rolling 5-year periods;
 • To provide full, fair and timely investment information to investors and their Financial Advisers;
 • To keep our products true-to-label.

 3. Highly structured & rigorous investment process

Our Investment Team undertakes continuous analysis of leading fund managers in Australia and overseas, reviewing policy, personnel and performance. We use this information and our analysis of the stage of the business cycle to select fund managers and to allocate funds between selected managers. Experienced managers are selected for the diversification and performance benefits they may provide through their particular investment styles. Portfolio exposure, operations and performance of all of our fund managers are routinely monitored. Discussions are regularly held with our fund managers to ascertain their current thinking about markets and economies in which they operate and to consider their analyses of their investments and performance. In this way we can assess whether each manager remains ‘true-to-label’ and is not unduly influenced by such things as changing staff, changing investment trends and fashionable investment market themes. This process assists us in our continuing process of manager selection and manager weighting.

 4. The better team wins rather than a single star Leading fund managers with different, specialist investment skills have been combined into a cohesive offering of wellblended funds. Selected fund managers are charged with creating consistent performance over a long-term investment horizon. However, it is understood that during different economic conditions, in different markets and in different asset sectors, fund managers could deliver a range of good or poor investment returns. This is why Fiducian offers its carefully researched selection of blended funds.

 5. Continual research
 Our skilled Investment Team continually reviews fund managers in Australia and overseas to find those suitable to be managers within the Fiducian Funds. The best prospects must then pass through a number of critical filters before they qualify for selection. Fiducian also undertakes thorough analysis of the business cycle and the global economic environment to enable informed asset allocation decisions.

 6. Always striving to improve
 Fiducian constantly monitors the Fund’s underlying investment managers to ensure that they maintain their investment styles and processes. From time to time fund managers may be removed and new managers appointed if the Investment

Team’s research so warrants.
 The key benefits of investing in the Fund for you and your 
Financial Adviser are as follows:
 • Access to Fiducian’s proven Manage the Manager System 
of managing investments
 • Access to a range of asset classes, each of which is 
included for its different risk/return characteristics which 
can be expected to add value in different economic 
environments
 • Diversified exposure to a broad range of leading Australian 
and international fund managers
 • Active asset allocation decisions
 • Tactical tilting between fund manager styles and disciplines 
as well as between asset classes

Investor suitability

In our view this Fund is suited to investors who are seeking access to a high-growth economy. While it holds promise for capital growth, caution is warranted when investing in this Fund. Due to the potential for significant fluctuations at times, investment should be aimed at longer-term returns with money that is not required for cash flow at short notice.    

About the Fund

The Fiducian India Fund provides investors with the unique opportunity to invest in a well-diversified range of companies listed on Indian stock exchanges. In recent years India has been one of the fastest growing economies in the world. Many Indian companies have been taking advantage of this growth and in particular have been benefiting from a rapidly expanding consumer market. This Fund aims to provide investors with actively managed exposure to this market in a country that could become a major economic power over the next two decades.

This Fund seeks to manage inherent volatility by blending portfolios provided by experienced and well-known fund managers, each with established compliance procedures and excellent performance track records. Each of these fund managers utilises different investment styles and focuses on different market sectors, providing investors in this fund with well-diversified overall market exposure.

Investment Philosophy

Our goals are relatively straightforward - they are:

• To add value for investors through understanding and controlling the trade-offs between investment risk and return over particular time periods;
• To exceed the Bombay Stock Exchange 100 Index (BSE 100) benchmark in $A after fees, over rolling 5-year periods;
• To provide full, fair and timely investment information to investors and their Financial Planners;
• To keep our products true-to-label.

The significant features of the Fiducian India Fund, like all of the Fiducian Funds, are as follows:

• Well Researched Investment Strategy
• Highly Structured & Rigorous Investment Process
• The better team wins rather than a single star
• Continual Research
• Always striving to improve

Investment description

The Fiducian India Fund aims to provide investors with the opportunity to invest in a well-diversified range of companies listed on Indian stock exchanges. It is managed by carefully selected Indian fund managers who are based in India and have satisfied Fiducian’s selection criteria.

This Fund gives investors the opportunity to invest in an economy that has been one of the fastest growing in the world in recent years. The fund may utilise currency hedging at any time to facilitate the implementation of the investment objectives. The Fund is suitable for investors seeking good long term capital growth but it will also experience periods of high
volatility.

How we invest your money

The Indian shares are selected by Indian fund managers who are based in India and which have met Fiducian's fund manager selection criteria. These fund managers employ large teams of research analysts with substantial local knowledge of the many languages, business processes in different geographical regions, economic activities and the regulatory environment in India.

The Fiducian Manage the Manager System is a Multi Manager, Multi Style and Multi-Disciplined process with a Tactical Asset Allocation overlay. Fiducian Funds are constructed using a number of investment managers, each employing a different investment style. In our funds, we also actively manage the Asset Allocation of funds to smooth the volatility of potential asset sector performance.

Asset allocation

The Fiducian India Fund has the following asset sector exposures:

• Indian Shares: 75% to 100%

• Cash: 0% to 25%