Lotus India AMC launches India's first Quant based Mutual Fund Scheme

Company Brief

New Delhi, October 22, 2007

Lotus India AMC, a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, today announced the launch of India's first Quant based Mutual Fund Scheme: Lotus India AGILE Fund (Alpha Generated from Industry Leaders Fund). Quant funds operate on the basis of computer generated mathematical models designed by the Fund Management Team. The investment objective of this scheme is to generate capital appreciation by investing in a passive portfolio of stocks selected from the industry leaders on the basis of a mathematical model.

The New Fund Offer priced at Rs.10 per unit (plus applicable entry load) will open for initial subscription from October 25, 2007 and close on November 23, 2007. The fund will re-open for ongoing purchases/redemptions no later than December 20, 2007. The fund will invest 90-100% in equity and equity related instruments and 0-10% in debt and money market instruments. The fund offers two options i.e. Growth and Dividend. The Dividend option offers Dividend Payout and Dividend Re-investment facilities.

Lotus India Agile Fund is an open ended equity scheme that will invest in 11 stocks (9% each) determined by a mathematical model. The portfolio will be reviewed and reset every month.

Speaking on the occasion of the launch, Mr. Ajay Bagga, Chief Executive Officer, Lotus India AMC said, "We have always believed in introducing innovative products and services to meet the needs of an evolving market. The Lotus India Agile Fund employs a quantitative investment approach, which is a first of its kind in the asset management industry in India. This fund will redefine the product suite available in the market and will provide investors a model based alternative to the existing value and growth based investing philosophies. Based on the extensive backtesting done, we believe that this offers an attractive additional asset allocation opportunity to equity mutual fund investors."

About Lotus India Asset Management Company Private Limited

Lotus India Asset Management Company Private Limited (Lotus India AMC) is a joint venture between Fullerton Fund Management Group (Fullerton) and Sabre Capital Worldwide. Alexandra Fund Management (AFM), the sponsor of Lotus India AMC, is an affiliate of Fullerton (both Fullerton and AFM are wholly owned by Temasek Holdings Pte Ltd, Singapore.)

Having received approval from SEBI to launch an AMC in July 2006, the company launched its first product - Lotus India Liquid Fund in November 2006. Since then, they have followed with a series of products like Lotus India Tax Plan, Lotus India Liquid Plus Fund, Lotus India Short Term Plan, Lotus India Contra Fund, Lotus India Mid Cap Fund, Lotus India Arbitrage Fund, Lotus India Growth Fund, Lotus India Active Income Fund, Lotus India Overnight Fund, Lotus India Equity Fund and a series of Fixed Maturity Plans (FMPs) across varying maturities.

As of September 30th 2007, Lotus India AMC had Assets under Management of Rs. 6,386 Crs and within the very first year of operations has moved to become among the Top 20 AMCs in the industry. (Source: AMFI)

With over 180 employees, across 56 locations and over 8,500 distributor tie-ups, Lotus India AMC has established a wide footprint across the country.

For further information contact:

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