December 2016

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investing in equity and equity related securities of companies in the Finance, Retail & Entertainment sectors

*Investors should consult their financial advisers if in doubt about whether the product is suitable

Canara Robeco F.O.R.C.E Fund FINANCIAL OPPORTUNITIES RETAIL CONSUMPTION ENTERTAINMENT

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An Open Ended Equity Scheme

Introduction

F.O.R.C.E.- A theme Risk-Return Matrix India Growth Story F.O.R.C.E.- Brief

Canara Robeco F.O.R.C.E. Fund Investment Strategy Portfolio Performance

Why Canara Robeco F.O.R.C.E. Fund

Product Positioning

Fund Facts

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Risk-Reward Matrix

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Balanced Fund

Thematic Funds

Mid & Small Cap Funds

Large Cap Fund

Index Funds

RETURN

VO

LATI

LITY

Broad gamut to operate with and

invest in stocks related to particular theme

Higher risk and volatility as compared to diversified fund

LOW MEDIUM HIGH

Diversified Funds/ Multi Cap Funds/

ELSS

Thematic Funds have high risk as well reward opportunity in comparison to other categories

Consumption

Infrastructure

Banking & Financial Services

CREATES PLATFORM FOR SUPPLY

CREATES CONSUMPTION DEMAND

SAVINGS TO INVESTMENT

INVESTMENT FINANCE

India – Structural Drivers for Growth

Job Creation

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3Q FY15 GDP (%)

Source: Bloomberg

India is better positioned among peers

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India vis-à-vis other emerging markets GDP growth

FINANCIAL SERVICES RETAIL CONSUMPTION MEDIA & ENTERTAINMENT

Financial Opportunities, Retail Consumption & Entertainment F.O.R.C.E

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Indian Consumption Story - Direct Beneficiaries

FIRST WAS… THEN CAME… GOING FORWARD…

F.O.R.C.E

Changing Needs of Indian Consumer – Necessities to Discretionary

FOOD, GROCERIES, CLOTHING, HEALTHCARE

AUTOMOBILES, TELECOM, BANKING, HOUSING

FINANCIAL SERVICES, RETAIL, MEDIA & ENTERTAINMENT, LEISURE

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F.O.R.C.E

Financial Opportunities

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FINANCIAL OPPORTUNITY

Banking Services

Brokerage & Distribution

Financing (NBFCs)

Insurance (Life &

General)

Asset Management

(MFs)

Investment Banking /

Private Equity / Venture

Capital

Financial Services – A Wide Canvas

India has one of the most developed and regulated financial markets in the developing world

Regulatory supervision, changing investor needs, Integration and reduction in the cost of

administration are emerging trends in the financial services industry

Investment Universe Expected To widen in the coming years

Likely Future Investment Avenues

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India's Rising Income & Domestic Savings – Opportunities Galore

Total savings in last 5 years – ~INR 138 tn Expected Savings in next 5 years – ~INR 256 tn One Beneficiary – Banking & Financial Services

#Source: Economic survey, *Advanced Estimates, The above data is as per 2011-12 series; AC Neilson. ##Source: Motilal Oswal Securities

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30

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010,00020,00030,00040,00050,00060,00070,00080,000

FY12

FY13

FY14

FY15

E

FY16

E

FY17

E

FY18

E

FY19

E

FY20

E%

INR

Bln

India's domestic savings##

Gross domestic saving GDS/GDP %

Currency 13%

Net Bank deposits

42%

Net Non Banking Deposits

1%

Shares and debentures

3%

Net claims on government

1%

Life insurance funds 26%

Provident & pension funds

13%

Trade Debt (Net)

1%

India's Financial Savings – 2014##

10

55000

60000

65000

70000

75000

2011-12 2012-13 2013-14 2014-15*

Per capital net National Income at market prices (Rs.)#

5x Growth in Per Capita Income expected

by 2030

F.O.R.C.E

Retail Consumption

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The Indian Economy – Noteworthy facts supporting the Consumption Story

Source: CIA World Factbook, Final Census Report April 2013,: http://pib.nic.in/, UN World Urbanization Prospects 2014, Deloitte: 'India matters: Winning in growth markets‘, India’s Urban Awakening, 2010: Mckinsey

• Fastest growing economy 2nd

• Largest country already in terms of PPP next only to China & US 3rd

• India’s population under the age of 35 65%

• Household consumption as a % GDP, better than China 60%

• Population still lives in rural India 70%

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Top 20 Countries by Population (Billion)

How ‘SMALL’ is the Indian Consumption market?

Larger than the 3rd largest Country

More than the size of 5th Largest

Country

Source: TRAI, CIA World Factbook 13

India’s active Facebook users are greater than the population of Egypt

& Iran combined

The Indian Consumer – Young Urban Middle Class

Demographic dividend – Key Factor for economic growth

Young

>~25% of India's population is in the age group of 20-34 Yrs

>The median age of the poulation is 27 Yrs

Benefit

A Young Workforce is

More Productive + Higher Disposable Income

Urban

> Urban population is expected to more than double by 2050 from current 377 million

Benefit

Culture of

Consumerism + Brand Awareness

Middle Class

> By 2030, India is likely to become the world’s largest middle class market with a total consumer spend of nearly US $ 13 trillion

Benefit

Change in Spending Pattern from

Necessities to Discretionary

Source: CIA World Factbook, Final Census Report April 2013,: http://pib.nic.in/, UN World Urbanization Prospects 2014, Deloitte: 'India matters:

Winning in growth markets'

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The Indian Retail Pie – Current Scenario

5th Largest Retail Destination Globally

Contributes to 10% of GDP

Employs 8% of India’s Working Population

Fuelled primarily by – Changing demographic scenario, increase in number of Working women,

prevalence of Nuclear family structure, Easy Availability of Credit & High Exposure to Media & Brands

Market Share: Organized Retail – 8%. Unorganized Retail – 92%. (Huge Opportunity!)

Unorganized Retail - 15mn mom & pop stores exists in India

Source: www.ibef,org 15

Source: BCG – Retail 2020: retrospect, reinvest rewrite 16

Huge Growth Potential in Retail & Ecommerce space

F.O.R.C.E

Entertainment & Media

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Source: Wikipedia

Highest Number of Movies & Largest

Number of Tickets sold

Low Screen Density per million people

ratio

The Times of India – Among the Top Selling

Newspaper

Low English Newspaper Penetration

Indian Consumption Story – It does not end there…

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Source: Edelweiss

0

400

800

1200

1600

2000

2400

CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 E CY 2016 E CY 2017 E CY 2018 E CY 2019 E

Media & Entertainment Sector

Sector Size (USD Billion)

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Indian Media & Entertainment Industry – A Humongous Opportunity U

SD B

n

Cable and satellite (C&S) households expected to increase from ~168mn in CY14 to ~196mn households in CY19

Radio witnessed a robust YoY growth of 17.6% in CY14

Phase III auctions, key driver for the industry

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Key Trends in Media & Entertainment Sector

Themes Our View

Financial Services

Macro economic indicators turning favourable

Stress in corporate lending is bottoming out while retail lending continues to grow

Biggest beneficiaries of Investment cycle turning around

Media & Entertainment

Digitization remains a strong theme as there has been a steady growth in subscribers

Increasing digitization may help increase TV penetration and thereby help media companies grow

Economic revival would led to Advertisement revenue growth for media companies

Retail Consumption

Consumer - Discretionary

With expected economic revival , discretionary spending would revive

Favourable demographics for consumption growth – High proportion of young & working population

Consumer - Staples

Over the last few years consumer spend has been largely driven by rural demand with rising income levels and increasing penetration

Demand for staples would be steady but would be lagging the demand for discretionary consumption

Stronger growth prospects for the retail consumption space if FDI in retail goes through & GST is implemented

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Goods & Services Tax (GST)

Major Catalyst for Organized Players

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Goods & Services Tax (GST) & its Benefits

GST

Destination Based Tax

Input Credit across Value

Chain

Minimizes Cascading

Effect

Avoids Double Taxation

Unified Tax for goods &

services

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Benefiting

the economy

and

major sectors

Triple benefit to Companies in the Consumption Basket

Increase in Revenue

GST implementation is likely to reduce effective tax rate

Demand revival due to a possible decrease in price of

branded goods

Increase in Sales

Gaining Market Share

Input Tax set off available for Organised Players

Price differential between organised & unorganised

sector likely to reduce

Organised sector likely to gain market share

Reduction in Cost

GST would be an unified destination tax across India

Reduction in additional distribution cost

Increase in Savings therefore Increased Profitability

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Impact of GST on the F.O.R.C.E Sectors

Sector Impact of Tax

Rate

Cascading

Impact

Supply Chain

Management

Double

Taxation

Overall

Impact

FMCG

Media

BFSI

Positive Impact Negative Impact Neutral

Two major Sectors of Canara Robeco F.O.R.C.E may benefit from implementation of GST

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Presenting: Canara Robeco F.O.R.C.E Fund

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Benefit from the India Growth Story” Designed to benefit from demographic advantage of “young India” for the next

decade and participating in the changing consumption pattern emerging out of rising middle class and urbanization.

Theme to Team with Macro-economic fundamentals are slowly stabilizing; Banks & Financial Sector is a beta-play &

any improvement in economic fundamentals is likely to benefit this sector.

The Government is believed to be committed towards boosting growth as well as taming inflation. This will help to increase Financial Savings of individuals & thereby help to increase Consumer Spending, thereby, benefitting both Financials & Consumption sector

Canara Robeco F.O.R.C.E Fund - Key Highlights

Sector Allocation Range (%)

Financial Services 40 – 65

Retail, Consumption 10 – 25

Media & Entertainment 15 – 35

Fund predominantly invests in 3 sectors benefitting from the demographic dividend

Fund also looks for opportunity to invest in few other companies which benefit from this theme

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Asset Allocation

Portfolio Snapshot- Glimpse of the Portfolio

Portfolio include Top 10 holdings under equity instruments. All data as on 30th December, 2016

Top 5 Sector break up (% to NAV) Name of the Company Industry Classification % of Net Assets

HDFC Bank Ltd Banks 9.50%

Zee Entertainment Enterprises Ltd Media & Entertainment 7.59%

I T C Ltd Consumer Non Durables 7.48%

State Bank of India Banks 5.43%

ICICI Bank Ltd Banks 5.06%

Kotak Mahindra Bank Ltd Banks 4.79%

Yes Bank Ltd Banks 4.69%

Bajaj Finserv Ltd Finance 2.97%

IndusInd Bank Ltd Banks 2.84%

Hindustan Unilever Ltd Consumer Non Durables 2.53%

Concentrated portfolio with 36 stocks

Top 10 Stocks: 52.88%

Top 3 Sectors: 71.66%

Top 5 Sectors: 87.46%

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-20%

0%

20%

40%

60%

80%

100%

120%

Equities I 96.36% Money MarketInstruments I 4.58%

Others I -0.94%

0% 10% 20% 30% 40%

Banks | 34.76%

Consumer Non Durables | 20.51%

Media & Entertainment | 16.39%

Finance | 11.47%

Textile Products | 4.33%

Market Capitalization (%)

Portfolio Snapshot- Glimpse of the Portfolio

Investment Style

All data as on December 30, 2016

Quantitative Information

Growth Blend Value

Large Cap Mid Cap Small Cap

Diversified Thematic Sector

Criteria Values

Standard Deviation 18.65

Portfolio Beta 1.13

Portfolio Turnover Ratio 0.63 times

R-Squared 0.80

Sharpe Ratio 0.66

Key Highlights

Emphasis on tactical ideas to benefit from market developments

Fund invests in companies which have potential for growth

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71%

23% 2%

4% Large Cap

Mid Cap

Small Cap

Debt, Cash &Others

The past performance may or may not be sustained in the future. Returns are based on growth NAV of Regular plan and are calculated on compounded annualized basis for a period of more than (or equal to) a year and absolute basis for a period less than a year. Inception Date: September 14, 2009 #Scheme Benchmark ##Additional Benchmark $NAV per unit for since inception is as of Dec’30, 2016 and for others is as of beginning of the period. Load is not taken into consideration for computation of returns. Returns of dividend option under the scheme for the investor would be net of distribution tax as applicable. The performance of other funds managed by fund manager of Canara Robeco F.O.R.C.E. Fund is on the slide number 36

Performance at a Glance- Fund v/s Benchmark

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Canara Robeco F.O.R.C.E. Fund has generated Rs.26,180 on an investment of

Rs.10,000 since inception

Period

Returns (%) Current Value of Standard

Investment of Rs.10000 in the

NAV Per Unit (Rs.)

Scheme Nifty 50*

S&P BSE Sensex **

Scheme Nifty 50* S&P BSE Sensex**

Since Inception (CAGR) 26.18 14.10 7.56 7.03 26,180 17,023 16,422

30 Dec’2015 to 30 Dec’2016 25.33 3.36 3.01 1.95

Not Applicable 30 Dec’2014 to 30 Dec’2015 24.87 1.85 -4.06 -5.03

30 Dec’2013 to 30 Dec’2014 15.91 56.32 31.39 29.89

Performance at a Glance – Fund v/s Benchmark Canara Robeco F.O.R.C.E. Fund

has outperformed Nifty 50 across all time periods shown

Source: MFI Explorer, Performance as on December 30, 2016. Inception Date: September 14, 2009. Returns are on CAGR basis. Past performance may or may not be sustained in the future.

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Criteria 1 Year (%) 2 Years (%) 3 Years (%) 5 Years (%)

Since Inception (%)

Canara Robeco F.O.R.C.E. Fund 3.71% 3.07% 18.26% 18.83% 14.10%

Nifty 50 3.66% -0.38% 9.16% 12.09% 13.59%

Outperformance/ Underperformance 0.05% 3.45% 9.10% 6.74% 0.51%

-5%

0%

5%

10%

15%

20%

1 year 2 years 3 years 5 years Since Inception

Canara Robeco F.O.R.C.E. Fund

Nifty 50

Performance at a Glance – SIP

1 year 3 years 5 years Since Inception

Total Amt invested (INR) 1,20,000 3,60,000 6,00,000 8,80,000

Market Value (INR) 1,21,207 4,14,270 8,55,405 14,50,854

Investment date is taken to be 1st of the month or subsequent day if 1st is a holiday and investment of Rs.10,000 is taken. Returns are as on Dec’30, 2016 and are CAGR. The calculations are based on the regular growth plan NAVs.. Past performance may or may not be sustained in the future. Scheme Benchmark# , Additional benchmark##. Inception Date: September 14, 2009

Canara Robeco F.O.R.C.E. Fund has outperformed the benchmark & S&P

BSE SENSEX

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0%

5%

10%

15%

1 year 3 years 5 years Since Inception

Canara Robeco FORCE Nifty 50 S&P BSE SENSEX

Product Positioning

CR Emerging Equities

CR Infrastructure

CR Equity TaxSaver

Large Cap

Diversified

Mid & Small Cap

Thematic Fund

ELSS

SATE

LITE

PO

RTF

OLI

O

COR

E P

OR

TFO

LIO

CR Equity Diversified

CR Large Cap +

CR F.O.R.C.E.

NEE

D B

ASE

D

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Above positioning is for illustration purpose only

Why Canara Robeco F.O.R.C.E. Fund

Fund being a thematic fund, invests in the niche space and follows a Growth style of investing

Expected turnaround in the economic cycle leading to increase in employment which may boost the discretionary consumption and benefit the sectors that fund invests in

Since the banking sector is undergoing correction, it is expected to see an upturn. As the fund has maximum allocation to Banking and Financial Services, it could benefit from the opportunity lying ahead in the sector

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Fund Category Open Ended Equity Scheme

Investment Objective To provide long-term capital appreciation by primarily investing in equity and equity related securities of companies in the Finance, Retail & Entertainment sectors.

Inception Date 14-Sep-09

Asset Allocation Equity related companies in Finance, Retail & Entertainment: 65-100% (Risk Profile - High) Other Equity & related instruments: 0-35% (Risk Profile - High) Domestic Debt & MMI (Including securitised debt up to 10% of net assets): 0-35% (Risk Profile - Low)

Plans/Options Regular & Direct Plan:

Options: Growth / Dividend with payout & Reinvestment

Facilities SIP/ SWP/ STP/ Dividend Transfer Facility

Fund Size Rs. 116.86 Crs (Month End AuM)

Load Structure 1% - if redeemed/switched out within 1 year from the date of allotment. Nil – if redeemed / switched out after 1 year from the date of allotment.

Benchmark Nifty 50

Fund Manager Mr. Hemang Kapasi

Fund Facts

All data as on December 30, 2016 35

Disclaimer

The information used towards formulating the outlook have been obtained from sources published by third parties. While such publications are believed to be reliable, however, neither the AMC, its officers, the trustees, the Fund nor any of their affiliates or representatives assume any responsibility for the accuracy of such information. CRMF, its sponsors, its trustees, CRAMC, its employees, officer, directors, etc assume no financial liability whatsoever to the user of this document. Mutual Fund Investments are subject to market risk. Investors are requested to read the Scheme related documents carefully before investing.

Mutual Fund Investments are subject to market risks, read all scheme related documents

carefully.

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