SELECT SECTOR PORTFOLIO

ABSL Select Sector Portfolio follows a wealth creation approach focused on sustainable long term capital appreciation by investing in high quality businesses with consistent earnings growth, high ROE or ROCE, low leverage and strong franchise. The strategy follows both top down and bottom up investment approach by identifying industries with strong operating dynamics and selecting companies with superior fundamentals, credible management and large opportunity canvas. The portfolio focuses on recurring winners and scalable businesses that can grow earnings faster than nominal GDP while being purchased at attractive valuation with margin of safety. Portfolio construction is benchmark agnostic and concentrated with high conviction names selected through extensive financial modelling, quantitative and qualitative screening, risk reward analysis and continuous monitoring. The strategy primarily invests in businesses core to the India growth story and focuses on companies with sustainable growth profile, capital efficiency and resilience over medium to long term. Illustrative holdings include BSE Limited, Persistent Systems Limited, Lumax Industries Limited, Hitachi Energy India Limited, National Aluminium Company Limited, Federal Bank Limited, ICICI Bank Limited and Coromandel International Limited. Sector agnostic. Market cap combination predominantly mid cap and small cap with limited allocation to large cap.