Debt Market Update

The month of May saw the yields of bonds rise because of higher government bond supply. The government bond supply increased by INR 3,000 crs to INR 15,000 crs in the last three consecutive auctions (including the auction announced on 1st June). The yield of 10 years benchmark increased by 48bps to 6.7% by May end.

The GDP grew by 5.8% y-o-y in Q1 CY09, higher than market expectation of 5%. Strong growth in government spending resulted in good growth in GDP. The last Inflation numbers were at 0.61% and expected to turn negative in June due to high base effect.

On the interest rate front, we continue to hold our view that the long end of the curve is expected to remain volatile and the 10 years GOI to trade in the range of 6.25% to 6.75%. Moderate inflation, easy monetary policy and enormous liquidity in the system are positive factors but the concern remains on increase in supply of government bonds. The short end of the curve would remain begin due to easy liquidity condition.

Equity Market Update

A clear majority for the Congress led UPA government improved the sentiment in Indian equity markets. This is the first time since 1996 that the country has a stable government and the ruling party does not depend much on alliance This new unexpected scenario created euphoria in the equity markets. India’s stock markets almost lost control and trading had to be halted for the rest of the day for the first time in the history. The 2111 point surge in Sensex in one day post election results pushed the Indian equity market ahead of competition as one of the best performing markets across the world in 2009.

Global clues were also positive. Stress tests of US Banks came out with result that US banks are better capitalised than what they were generally perceived to be. Employment numbers and home sales numbers were better than expected. There is a growing buzz about a global economic recovery. The relatively good performance of equity markets across the world is perhaps the main driver of the new optimism.

Oil price climbed above $58 a barrel for the first time in nearly six months as the US economy showed sign of recovery and now it is hovering around $68 a barrel. Prices of commodities also showed a northward movement. Rupee against US dollar appreciated in anticipation of better inflow post elections.

The prevailing market sentiment is that the worst of the economic contrac-tion is already behind us. The continued inflow of funds has pushed equity markets to valuations which are pricing in a quick economic recovery from 2H09. The risk-appetite of investors has gone up which was at the bottom in 2008. The risk aversion is coming off. We believe the market direction going forward hinges on the extent and speed of this perceived recovery.

Hopes on the disinvestment front are large. India could outperform emerg-ing markets in the coming 12 months especially if the government delivers on the policy front. India is likely to turn into one of the lowest risk, highest growth investment destinations globally.

About Baroda Pioneer Asset Management CompanyA joint venture between two large and well established financial services companies - Bank of Baroda and Pioneer Global Asset Management S.p.A. We are the Investment

Managers to Baroda Pioneer Mutual Fund. As joint venture partners, Bank of Baroda and Pioneer Investments are Sponsors in the mutual fund.

Baroda Pioneer Mutual Fund is positioning itself to serve the varied asset management needs of esteemed clients like yourselves. Since the formation of the joint venture in June 2008, we have been working relentlessly to create an operational and servicing platform suited to the exacting requirements of our clients.

The key to a successful asset management company is the strength and reputation of its shareholders / partners. And we give below a brief summary of our partners.

Bank of Baroda: More than 100 years old, it’s one of India’s largest public sector banks. It currently has more than 2900 branches spread out across the length and breadth of India. The Bank has a strong international presence with around 70 branches in 25 countries outside India. It’s a very tech savvy Bank with high levels of automation and connectivity across its wide network of branches. With its wide suite of products, the bank services around 33 million customers around the world.

Pioneer Investments: It is a global investment management group (the “Group”) with $226.91 billion of total assets under management as at end of November 2008. It’s part of the Unicredit Bank, one of the largest banking groups in Europe. Providing a wide range of investment solutions including mutual funds and structured products to clients that include institutions, corporations, intermediaries and private investors around the world. Institutional clients account for nearly $63.6 billion as at the end of November 2008. With offices in 31 countries, the Group employs approximately 2,400 staff.

Pioneer Investments has 80 years experience in traditional investments, providing appropriate investment strategies to clients and partners. The flagship mutual fund, Pioneer Fund, is the third oldest mutual fund in the US and exemplifies Pioneer Investments’ history of consistently managing money and helping investors pursue their financial goals. From the global investment centres in Dublin, Boston and Singapore, Pioneer Investments applies its bottom up investment process supported by internal fundamental and quantitative research capabilities.

Contact Points:Registered Office

Baroda Pioneer Asset Management Company Ltd.

501 Titanium, 5th Floor, Western Express Highway,

Goregaon (E), Mumbai - 400063.

Phone: +91 22 3074 1000 / 4219 7999.

Fax: +91 22 3074 1001.

Statutory Details: Baroda Pioneer Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Sponsors: Pioneer Global Asset Management S.p.A and Bank of Baroda. Trustees: Board of Trustees of Baroda Pioneer Mutual Fund. Investment Manager: Baroda Pioneer Asset Management Co. Ltd. Risk Factors: All Investments in Mutual Fund and securities are subject to market risk and there is no assurance or guarantee that the objective of the Scheme will be achived. The NAV of the scheme can go up or down depending upon the factors and forces affecting the capital market. Past performance of the scheme, the sponsors or its group affiliates are not indicative of and do not guarantee of future performance of the scheme. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond their initial contribution of Rs. 10 lacs towards setting up of the Mutual Fund and such other accretions and additions to the corpus.

Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. Investor will be advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor.

MAY 31, 2009

BARODA PIONEER MUTUAL FUND - FACTSHEET

FACTSHEET

SCHEME DETAILSNature of Scheme An open Ended Tax Benefit - Cum -

Growth Scheme with insurance cover

Date of Allotment Mar 31, 1996

Fund Manager Dipak Acharya

NAV Dividend Plan : Rs. 19.40

NAV Calculation Every Business Day

Average AUM INR 1079.67 (lacs) as on May 31, 2009

Benchmark BSE Sensex

Entry Load 2.25%

Exit Load Nil

Minimum Rs. 1,000/- & in multiples of Rs. 500/-

Investment

SIP Rs. 1,000/- Month - 6 Months

Rs. 1,500/- Month - 4 Months

Dividend Feb 07 - 60%, Dec 05 - 110%,

Mar 05 - 20%

Liquidity Sales / Repurchase at NAV on

every Business Day.

Baroda Pioneer ELSS’ 96 FundMay 31, 2009

INVESTMENT OBJECTIVE

The main objective of the scheme is to provide the

investor long term capital growth as also tax benefit

under section 88 of the Income Tax Act, 1961.

SECTORIAL BREAKDOWN

HOLDING AS ON MAY 31, 2009Name of Instruments Ratings / % to Net Industry Assets

EQUITY & EQUITY RELATED Reliance Industries Petroleum Products 9.30 ICICI Bank Banks 6.67 Tata Consultancy Services Software 6.35 Housing Development Finance Corporation Finance 5.35 Reliance Petroleum Petroleum Products 4.73 Larsen & Toubro Construction Project 4.59 Union Bank Of India Banks 4.03 Aditya Birla Nuvo Diversified 3.81 Unitech Construction 3.58 State Bank of India Banks 3.52 Infosys Technologies Software 3.29 Hindustan Unilever Diversified 3.21 Oil & Natural Gas Corpn Oil 2.87 MphasiS Software 2.76 Bharti Airtel Telecom - Services 2.69

Top 15 Total 66.75

Total 97.64

PREFERENCE SHARES Listed / awaiting listing on the stock exchanges Tata Steel Ferrous Metals 0.07

Total 0.07

CASH & CASH EQUIVALENT CBLO / Reverse Repo Investments 2.64 Net Receivables / Payables -0.35

Total 2.29

GRAND TOTAL 100.00* Total Exposure to liquid securities is 0.00% of the portfolio;i.e. Rs.0.00 lakhs #Pending Listing on Stock Exchange

*Performance less than one year not analysed.Please note that past performance may or may not be sustained in future. Performance of dividend plan for investor would be net of dividend distribution tax as applicable.

PERFORMANCE – ELSS ’96 OPTION

SCHEME DETAILSNature of Scheme An open ended Growth Fund

Date of Allotment Sep 12, 2003

Fund Manager Dipak Acharya

NAV Growth Plan : Rs. 39.58 Dividend Plan : Rs. 24.96

NAV Calculation Every Business Day

Average AUM INR 641.88 (lacs) as on May 31, 2009

Benchmark BSE Sensex

Entry Load Up to Rs. 2 crore : 2.25%, Above Rs. 2 crore : Nil

Exit Load Up to Rs. 2 crore : 1% if redeemed on or before 12 months; Above Rs. 2 crore : Nil

Minimum Rs. 5,000 & in multiples of Rs. 500 Investment thereof.

SIP Rs. 1,000/- Month - 6 Months Rs. 1,500/- Month - 4 Months

Dividend April 06 - 101%

Liquidity Sales / Repurchase at NAV on every Business Day.

Baroda Pioneer Growth FundMay 31, 2009

INVESTMENT OBJECTIVE

To generate long term Capital appreciation from an actively managed portfolio of equity related instruments.

SECTORIAL BREAKDOWN

HOLDING AS ON MAY 31, 2009Name of Instruments Ratings / % to Net Industry Assets

EQUITY & EQUITY RELATEDListed / awaiting listing on the stock exchangesReliance Industries Petroleum Products 10.72 ICICI Bank Banks 6.99 Housing Development Finance Corporation Finance 5.88 Aditya Birla Nuvo Diversified 5.64 Tata Consultancy Services Software 5.23 Union Bank Of India Banks 4.71 Larsen & Toubro Construction Project 3.78 Unitech Construction 3.65 State Bank of India Banks 3.53 Infosys Technologies Software 3.46 Oil & Natural Gas Corpn Oil 3.15 Bharat Heavy Electricals Industrial Capital Goods 2.94 Reliance Petroleum Petroleum Products 2.92 Crompton Greaves Industrial Capital Goods 2.83 GAIL (India) Gas 2.83

Top 15 Total 68.26

Total 92.48

PREFERENCE SHARES Listed / awaiting listing on the stock exchanges Tata Steel Ferrous Metals 0.70

Total 0.70

CASH & CASH EQUIVALENT CBLO / Reverse Repo Investments 5.59 Net Receivables / Payables 1.23

Total 6.82

GRAND TOTAL 100.00* Total Exposure to liquid securities is 0.00% of the portfolio;i.e. Rs.0.00 lakhs # Pending Listing on Stock Exchange

PERFORMANCE – GROWTH OPTION

*Performance less than one year not analysed. Please note that past performance may or may not be sustained in future. Performance of dividend plan for investor would be net of dividend distribution tax as applicable.

FACTSHEET

FACTSHEET

Scheme DetailsNature of Scheme An open ended Liquid Fund

Date of Allotment February 5, 2009

Entry Load Nil

Exit Load Nil

NAV Calculation Everyday including Saturdays, Sundays & Holidays

Liquidity Sales / Repurchase at NAV on every Business Day.

Minimum Investment Rs. 1 Crore (Instititional), Rs. 10,000/- (Retail)

NAV As on May 31, 2009

Baroda Pioneer Liquid Fund - Daily Dividend 10.0606

Baroda Pioneer Liquid Fund - Dividend 13.2525

Baroda Pioneer Liquid Fund - Growth 15.4665

Baroda Pioneer Liquid Fund - Inst Plan - Daily Div 10.0063

Baroda Pioneer Liquid Fund - Inst Plan - Growth 10.1914

Average AUM INR 343,680.30 (lacs)

Fund Management Team Head Fixed Income - Alok Sahoo,

Fund Manger - Hetal Shah

Rating “Credit Risk Rating mfA1+” by ICRA*

Holding as on May 31, 2009Name of Instruments Ratings / % to Net Industry AssetsMONEY MARKET INSTRUMENTSCertificate of Deposit** Bank of India P1+ 4.48 Syndicate Bank PR1+ 2.56 Syndicate Bank PR1+ 2.56 Allahabad Bank A1+ 2.20 IDBI Bank A1+ 1.91 Punjab National Bank PR1+ 1.29 IDBI Bank A1+ 1.28 Union Bank of India P1+ 1.03 Canara Bank P1+ 0.65 Vijaya Bank PR1+ 0.65 State Bank of Hyderabad A1+ 0.39 UCO Bank P1+ 0.26Total 19.26Commercial Paper** Reliance Capital A1+ 3.91 Tata Capital P1+ 3.90 Tata Motors Finance A1+ 2.55SBI Cards & Payment Services P1+ 1.92 Sundaram Finance P1+ 1.30 ICICI Securities P1+ 1.30 SBI Cards & Payment Services P1+ 1.30 GE Capital Services India P1+ 1.30 Tata Capital A1+ 1.28 SBI Cards & Payment Services P1+ 1.27 IDBI Home Finance A1+ 0.90 Deutsche Postbank Home Finance P1+ 0.65 Bajaj Auto Finance P1+ 0.65 Exim Bank of India P1+ 0.65 Reliance Capital A1+ 0.64 Reliance Capital A1+ 0.64 Reliance Capital A1+ 0.64 Reliance Capital A1+ 0.64Total 25.44Bonds & NCD’s L&T FRN P1+ 2.62 Reliance Capital FRN A1+ 2.62 Bajaj Auto Finance P1+ 1.96 Turquoise Investments & Finance P1+ 1.31 Piramal Healthcare A1+ 1.31 Shriram Transaport Finance F1+(ind) 1.31 Bajaj Auto Finance P1+ 1.31 Piramal Healthcare A1+ 1.31 Shriram Transaport Finance F1+(ind) 1.31 Birla Global Finance FRN A1+ 0.92 Birla Global Finance FRN A1+ 0.92 Piramal Healthcare A1+ 0.65 TGS Investment & Trade A1+ 0.65 Birla TMT Holdings P1+ 0.65Total 18.85Fixed Deposit IDBI Bank Fixed Deposit 3.92ING Vysya Bank Fixed Deposit 2.22 ING Vysya Bank Fixed Deposit 1.57 ICICI Bank Fixed Deposit 1.41 ING Vysya Bank Fixed Deposit 1.05ING Vysya Bank Fixed Deposit 0.78Total 10.95Cash & Cash Equivalent CBLO / Reverse Repo Investments 25.85 Net Receivables / Payables -0.35Total 25.50GRAND TOTAL 100.00 All corporate ratings are assigned by rating agencies like CRISIL; CARE; ICRA; FITCH. **Thinly traded/Non traded securities and illiquid securities as defined in SEBI Regulations and Guidelines.

Baroda Pioneer Liquid FundMay 31, 2009

investment objective performance – institutional plan growth option

rating allocation of liquid fund

Please note that past performance may or may not be sustained in future.Performance of dividend plan for investor would be net of dividend distribution tax as applicable.

To generate income with a high level of liquidity by investing in a portfolio of money market and debt securities.

“Credit Risk Rating mfA1+” by ICRA*