Shânti India

Investment objectives:

The Shânti India fund seeks to achieve an optimal risk / return trade-off by investing essentially in securities issued by Indian companies.

Fund management organisation:

Shânti India is managed by Eric Mookherjee, Chairman of Shânti Asset Management. He is assisted in Paris by Lenny Kessler-Vaschetti, Fund Manager, and is advised in India by four buy-side analysts. The fund management process, mainly fundamental, is based on detailed analysis, doubled by frequents meetings with the management of several Indian companies.

Furthermore, the Indian buy-side analysts team based in Mumbai tracks Indian stocks, especially in small and medium size market capitalisation.

Investment process:

The fund management process is mainly fundamental and based on detailed analysis of companies financials (DCF), doubled by frequents meetings with the managements. There is no specific style, be it value or growth. A close attention is given to entry barriers: strength of brand for domestic oriented companies and/or competitiveness for companies related to export. The portfolio has a significant share of convertible bonds, which is useful as well for the portfolio stability as to benefit from favorable macro-economic anticipation for this category of assets.

Shânti Asset Management's internal rules of risk management:

Large caps except oil: not more than 10% per stock.
Medium caps: not more than 5% per stock.
Small caps: not more than 3% per stock.
Liquidity: not more than 5 days of average volume.
Sector weight: not more than 10% of deviation compared to the distribution of the BSE SENSEX.
Convertible bonds counted according to their sensitivity to the underlying share.
The fund could use FX forward in the aim of hedging or market exposition increase.

Fund characteristics:

Designation	Shânti India - class A	Shânti India - class B
Legal form	Fund under French law, in conformity with European standards - UCITS III
Inception date	November 18, 2005
Minimum inital subscription amount	50 000 Euros	1 share
ISIN code	FR0010232660	FR0010606186
Fixed management fees	2% p.a	2.50% p.a
Performance fees	-	20% on fund's over performance in comparative terms with Sensex Total Return in EUR, with"High Water Mark".
Currency	EUR
Distribution / Capitalisation	Capitalisation
Custodian	RBC Investor Services Bank France
Valuation	Daily
Transfer agent	RBC Investor Services Bank France Tel.: +33 (0)1 70 37 85 36. Your bank or custodian muts place the order with RBC Dexia by phone every day before 5 p.m at D - 1. Subscription / redemption at unknown NAV. Settlement in D + 3.
Initial NAV	100 Euros