NFO Period: Aug 27, 2013 to Sep 10, 2013

Global StableGlobal StableAn Open Ended Fund of Funds Scheme

E Q U I T Y F U N D

Fundamentally Strong

Diversification BenefitsDividends

Global Stable EquitiesGlobal Businesses

Consistent Earnings

Contents

Why invest outside India?1

Is it a good time to invest in developed world equity?2

The product – ICICI Prudential Global Stable Equity Fund3

2

WHY INVEST OUTSIDE INDIA?

3

Perspectives on Global investing

4

Asset ClassPerspective

CurrencyPerspective

BusinessAccess

Perspective

CountryRisk

Perspective

5

• Indian equities have shown extreme performance in recent past.• Like Indian equities, global equities as an asset class, offer investment opportunities.

CY2006 CY2007 CY2008 CY2009 CY2010 CY2011 CY2012Jan–July

2013

India India UK India Sweden US India Japan

Sweden Germany Canada Sweden India UK Germany US

Germany Australia Swiss Netherland Germany Japan Swiss

Australia Canada US Australia US Swiss France Netherland

Australia Canada Canada Netherland Netherland

France Netherland Sweden Canada Australia UK

Swiss US France US UK Australia Swiss Sweden

Canada UK France Netherland Sweden US France

Netherland France Japan UK France France Australia

US Swiss Germany Swiss Swiss Germany Sweden Germany

UK Sweden Netherland Germany Japan Japan UK Canada

Japan Japan India Japan Australia India Canada India

India India UK India Sweden US India Japan

Sweden Germany Canada Sweden India UK Germany US

Germany Australia Swiss Netherland Germany World Avg Japan Swiss

Australia Canada US Australia US Swiss France Netherland

World Avg World Avg Australia Canada Canada Netherland Netherland World Avg

France Netherland Sweden World Avg World Avg Canada Australia UK

Swiss US France US UK Australia Swiss Sweden

Canada UK World Avg France Netherland Sweden US France

Netherland France Japan UK France France World Avg Australia

US Swiss Germany Swiss Swiss Germany Sweden Germany

UK Sweden Netherland Germany Japan Japan UK Canada

Japan Japan India Japan Australia India Canada India

BetterPerforming

WorsePerforming

Source: Bloomberg, The ranking is based on equity market performance which is calculated using individual MSCI Country & World Indices

Winners keep rotatingAsset ClassPerspective

Source: Bloomberg, Data as on 31/07/2013 6

Have Indian investors diversified?

• Indian equity represents ~2% of the world’s equity assets!• The size of the untapped pool for Indian investors is too large to ignore

35.9%

7.7%

6.3%5.3%5.6%

3.4%

5.4%

3.0%

2.5%2.2%

20.9%

Countrywise share of World Market Cap

US

Japan

UK

China

Hong Kong

Canada

France

Germany

Switzerland

Australia

India

Others < 2%

35.9%

7.7%

6.3%5.3%

5.6%

3.4%

5.4%

3.0%

2.5%2.2%

1.8%

20.9%

Asset ClassPerspective

7Source: Bloomberg. Correlation is a statistical measure of how two securities/indices move in relation to each other. Correlation is on returns for period from 01/01/2003 to 31/07/2013. Returns are calculated using MSCI Country & World Indices.

Low correlation

• Investment in Global equities compliments Indian equities by offering low correlation and diversification benefits

0.42

0.280.37 0.41 0.40

0.29

0.41 0.40 0.43 0.41 0.40

0.000.100.200.300.400.500.600.700.800.901.00 Correlation of Daily Returns with Indian Equities

0.42

0.280.37 0.41 0.40

0.29

0.41 0.40 0.43 0.41 0.40

0.000.100.200.300.400.500.600.700.800.901.00

Asset ClassPerspective

• Trade point of view: Currency of a high growth country tends to depreciate, as rising incomes lead to demand for foreign goods and hence demand for foreign currency (USD)

• Economic point of view: Currency of a high inflation economy tends to depreciate as it erodes purchasing power and the same (imported) goods cost more

• Flow point of view: Currency of a country having low/negative real interest rate tends to depreciate as funds flow from low real rate to high real rate economies

8Source: Bloomberg, Data as on 31/07/13

Weakening INR is structural and fundamental

0

10

20

30

40

50

60

70

INR

INR/USDJul-73 Jul-77

INR

Jul-81 Jul-85 Jul-89 Jul-93 Jul-97 Jul-01 Jul-05 Jul-09 Jul-13

CurrencyPerspective

9

Businesses not available in India

• Does Indian equity market offer the avenue to invest in a company which runs the world’s largest chain of discount stores?

• Can you invest in the world’s largest social network company which is part of the Fortune 500 list?

• Would you want to invest in the world’s largest software company, but don’t know how to invest, since it is not listed in India?

• Do you think that use of computers will proliferate and microchip stocks will gain, but don’t know how to take exposure to the world’s largest microchip company?

• Looking at the global spends on defense, do you think companies in defense and aerospace would do well, but don’t know how to invest in such companies?

BusinessAccess

Perspective

Source: Jefferies, Data as on 31/07/2013. The above is not an exhaustive list of risks. 10

India has inherent risks which need to be addressed

• Risk of high Current Account Deficit

• Risk of eroding purchasing power

• Risk of high dependence on energy

import bill

• Political and economic risks

Allocation to multi-currency assets helps mitigate most of these risks

-4

-3

-2

-1

0

1

2

3

4

5

6

-40

-20

0

20

40

60

80

100

India's Current Account Balance

CAD (in USD bn) CAD (as % of GDP) - RHS

-4

-3

-2

-1

0

1

2

3

4

5

6

-40

-20

0

20

40

60

80

100USD bn % of GDPIndia's Current Account Balance

CAD (in USD bn) CAD (as % of GDP) - RHS

CountryRisk

Perspective

IS IT A GOOD TIME TO INVEST INTO DEVELOPED WORLD EQUITY?

11

Source: Bloomberg, EU – European Union, Data as on 31/07/2013

• Major global economies and regions are experiencing improving growth

• A falling unemployment rate augurs well for economic outlook for these global majors

Economic Fundamentals

12

US, 7.4UK, 7.8

Japan, 3.9

Switzerland, 2.9

Canada, 7.1

0

2

4

6

8

10

12

Jan-03 Jul-04 Jan-06 Jul-07 Jan-09 Jul-10 Jan-12 Jul-13

Unemployment Rate (%)

US, 7.4UK, 7.8

Japan, 3.9

Switzerland, 2.9

Canada, 7.1

0

2

4

6

8

10

12Unemployment Rate (%)

EU, -0.3

-20

-15

-10

-5

0

5

10

15

US, 1.7UK, 1.4

GDP Growth (% QoQ)

Jun-

03

Jun-

04

Jun-

05

Jun-

06

Jun-

07

Jun-

08

Jun-

09

Jun-

10

Jun-

11

Jun-

12

Jun-

13

Jan-03 Jul-04 Jan-06 Jul-07 Jan-09 Jul-10 Jan-12 Jul-13

Japan, 4.1

Sentiment

13Source: Bloomberg, EU – European Union, Data as on 31/07/2013

• Buoyancy in consumer confidence, which has shown improvement from its 2008 lows, could improve demand and aid faster recovery

• Purchasing managers seemed to be more positive on the economic outlook

Purchasing Managers Index (Range 1 to 100)

US, 52.3UK, 54.6

EU, 50.3Japan, 50.7

0

10

20

30

40

50

60

70

80

90

100

Jan-0

6Ju

l-06

Jan-0

7Ju

l-07

Jan-0

8Ju

l-08

Jan-0

9Ju

l-09

Jan-1

0Ju

l-10

Jan-1

1Ju

l-11

Jan-1

2Ju

l-12

Jan-1

3Ju

l-13

Consumer Confidence Index

0

20

40

60

80

100

120

Jan-

05

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3 -120

-100

-80

-60

-40

-20

0

US (LHS) Japan (LHS) Euro Zone (RHS)

• Contrary to popular perception that less growth potential is the “new normal”, US corporate profits are in line with previous trends

• The so called deleveraging US consumer is spending even more than in 2007

Corporate Health and Consumer Spending in US

14Source: Citi Research. Data as available on 31/07/2013

US Corporate Profits Real Personal Consumption Expenditures (SAAR, Bil.Chn.2005$)

• Most global equities offer higher dividend yields vs G-sec indicating valuations are still attractive after the recent run-up

• Markets like US are outperforming traditional high beta markets like EM due to the ability to generate high Free Cash Flow margins

Valuation

15Source: Citi Research. Data as available on 31/07/2013

Government Bond Yield vs Equity Dividend Yield Global Non-Financial Listed Companies Free Cash Flow

Is past performance an indication of future?

• In a Post-crisis world a repetition of large out performance may be less likely

• Since economies experience cycles of out & under performance, global exposure has its merits

16Source: J.P. Morgan, FactSet, and Dataquery

402.6%

200.4% 174.6%

95.9%

33.7%

-12.4%

97.7%

6.1%

-7.6%

25.5%

-2.7%-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Since Jan 2003

Since Jan 2004

Since Jan 2005

Since Jan 2006

Since Jan 2007

Since Jan 2008

Since Jan 2009

Since Jan 2010

Since Jan 2011

Since Jan 2012

Since Jan 2013

Market Performance of Major Economies as on July 31, 2013World

US

Japan

UK

France

Australia

Sweden

India

402.6%

200.4% 174.6%

95.9%

33.7%

-12.4%

97.7%

6.1%

-7.6%

25.5%

-2.7%50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Since Jan 2003

Since Jan 2004

Since Jan 2005

Since Jan 2006

Since Jan 2007

Since Jan 2008

Since Jan 2009

Since Jan 2010

Since Jan 2011

Since Jan 2012

Since Jan 2013

Market Performance of Major Economies as on July 31, 2013World

US

Japan

UK

France

Australia

Sweden

India

17

Global Stable Equity FundGlobal Stable Equity FundAn Open Ended Fund of Funds Scheme

The Product

• Long term wealth creation solution• An open-ended fund of funds scheme that seeks to provide adequate returns by investing in the units of

one or more overseas mutual fund schemes, which have the mandate to invest globally* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

HIGH RISK(BROWN)

This product is suitable for investors who are seeking*:

(BLUE) investors understand that their principal will be at low risk

(YELLOW) investors understand that their principal will be at medium risk

(BROWN) investors understand that their principal will be at high risk

Note: Risk may be represented as:

The Product Structure

18

INDIA LUXEMBOURG GLOBALLY

InvestorGlobal

Equities

ICICI Prudential Global Stable Equity Fund

(IPGSEF)

Nordea1 - Global Stable Equity Fund -

Unhedged(Referred to as

‘Underlying Fund’)

• What it intends to achieve?

– Seeks to invest in stable companies globally • with a view to outperform the market over a full market cycle

• with roughly two-thirds the volatility of the MSCI World Index*

• How it aims to achieve this?

– “Stability”: Seeks to identify universe of lower risk, stable companies based on fundamental factors

– “Surprise Radar”: Validate that the above analysis which is based on historical factors, can be expected to maintain its relevance in the future

– Utilize proprietary valuation models to identify attractively valued stocks and construct a 100-120 stock portfolio

The Underlying Fund: Investment Overview

19* Excess return and volatility numbers are only targets. There is no guarantee that these targets will be achieved.

20

Stocks often behave like people…

……the more successful and popular they are the more ups and downs they experience in their lives.

Stress is guaranteed, but not a happy ending!

The Underlying Fund: The Philosophy

How does the fund pick stable return equities?

• Concentrate on absolute performance

• Look for ordinary “boring stories”

• Stable management

• Stable business model

• Stable profits

21

The alternative – stable return equities

The Underlying Fund: The Philosophy

Often unattractive when measured against a benchmark but appealing from an absolute return standpoint

The Underlying Fund: What are stable equities?

221Earnings before interest, taxes, depreciation and amortisation.�2A valuation figure calculated as a company's current share price divided by its earnings per share.

A stable price performance alone is not enough

The Fund looks for as low a price volatility as possible

Past volatility may provide information on future volatility!

P/E = Price-earnings ratio2

A high ratio can give rise to high risks.

The Fund looks for companies with a stable earnings and dividend trend

Financial variables can be smoothed out. The Fund therefore looks for stability in transparent variables such as cashflow and EBITDA1

Price = Earnings * P/E ratio

Broad Basis:The stability analysis takes in a total of five criteria: �Price,

Earnings, Dividends, EBITDA and Cashflows

The Underlying Fund: Investment Process

23

4th step

3rd step

1st stepQuarterly

Stable Equities Portfolio (100-120 stocks)

•3100 StocksData Integrity ScreensQuarterly

Liquidity Screens

Stability Screens

Valuation Screens & Fundamental verificationWeekly

Quarterly

Risk control

5000+ stocks

3,600

3,000

350 2nd step

4th step

3rd step

1st stepQuarterly

Stable Equities Portfolio (100-120 stocks)

•3100 StocksData Integrity Screens

Quarterly

Liquidity Screens

Stability Screens

Valuation Screens & Fundamental verificationWeeklyR

ecur

ring

proc

ess

Quarterly

Risk control

5000+ stocks

3,600

3,000

350 2nd step2nd step

Daily

The Underlying Fund: Holdings

24As on July 31, 2013

Country WeightUnited States 55.42Japan 9.24United Kingdom 8.19France 5.91Switzerland 4.22Canada 4.04Spain 3.09Others 8.40Net Liquid Assets 1.49Total 100.00

Sector WeightHealth Care 26.03Information Technology 13.17Consumer Staples 12.91Telecommunication Services 9.00Energy 8.10Financials 7.76Consumer Discretionary 7.54Utilities 7.16Others 8.33Total 100.00

Top 10 Securities WeightMicrosoft 2.66KDDI 2.52Aflac 2.30Novartis 2.28Wal-Mart Stores 2.27Chevron 2.22Total Petrochemicals 2.21Vinci 2.20Stryker 2.19Johnson & Johnson 2.15

The Underlying Fund: Sector changes overtime

25As on July 31, 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Sector Distribution

Financials

Energy

Utilities

Info Tech

Health Care

Cons Staples

Cons Disc

Telecom Services

Industrials

Materials

Jan 2006 Jul 2006 Jan 2007 Jul 2007 Jan 2008 Jul 2008 Jan 2009 Jul 2009 Jan 2010 Jul 2010 Jan 2011 Jul 2011 Jan 2012 Jul 2012 Jan 2013 Jul 2013

IPGSEF: Investment Overview

26

• An open ended Fund of Funds scheme

• The scheme will primarily invest in

• units/shares of Nordea 1 - Global Stable Equity Fund - Unhedged (N1-GSEF-U)

• and/or any other overseas mutual fund schemes

• Benchmarked against the MSCI World Net Return Index

• Investment expertise of Nordea Investment Fund S.A. managing the “Stable Returns” strategy since 2006

27

IPGSEF: Investment Overview

India Day T9.00 AM –3.00 PM (IST)

Investors submit request for purchase or redemption of units at official acceptance points

India Day T+59.00 AM –3.00 PM (IST)

Monies for redemption request will be credited to Investor Account post

conversion into INR

India Day T and T+1Before 7.00 PM (IST)

Based on availabled funds / investment report, the fund manager shall place purchase / sell order with Nordea

India Day T+3 and T+49.00 AM –3.00 PM (IST)

Settlement of deals based on the purchase / sell trade executed. FX rate will be fixed by the FM for sell orders on receipt of USD in our account (T+4) and accordingly funds will be wired from USD account to INR account

India Day T+29.00 AM –3.00 PM (IST)

FX rate will be fixed by the FM for purchase orders and accordingly funds will be remitted to the custodian for wire to USD account

Scheme Features

Options Direct Plan – Growth Option; Direct Plan – Dividend Option;Regular Plan – Growth Option; Regular Plan – Dividend Option

Dividend payout and reinvestment facility available

Minimum Application Amount Rs 5,000 (plus in multiple of Re.1)

Minimum Additional Rs 1,000 (plus in multiple of Re.1)Application Amount

Minimum Redemption Amount Rs. 500 (plus in multiple of Re. 1)

Entry Load Not Applicable

Exit Load For redemption/switch-out of units upto 3 months (includingthe last day of the third month) from the date of allotment

For redemption/switch-out of units after 3 months butbefore 18 months from the date of allotment

For redemption/switch-out of units after 18 monthsfrom the date of allotment

Nil

Benchmark Index MSCI World - Net Return Index

3% of the applicable NAV1% of the applicable NAV

28

Note: Investors may please note that they will be bearing the expenses of this Scheme in addition to the expenses of the underlying Schemes in which this Scheme makes investment.

Disclaimers

Disclaimer: ICICI Prudential Asset Management Company Limited (the AMC) has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the AMC and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice and carefully read the scheme information document. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in domestic and foreign laws, regulations and taxes and changes in competition in the industry. All data/information used in the preparation of this material is dated and may or may not be relevant any time after the issuance of this material. The AMC takes no responsibility of updating any data/information in this material from time to time.The sector(s)/stock(s)/companies referred in this document do not constitute any recommendation of the same and underlying Scheme (viz. N1-GSEF-U) may or may not have any future position in these sector(s)/stock(s)/ companies. Past performance may or may not be sustained in the future.Investors may note that currently, the Scheme intends to invest in the units/shares of Nordea 1 – Global Stable Equity Fund – Unhedged (N1 – GSEF - U). The Scheme may also invest in one or more other overseas mutual fund schemes, with similar investment policy / fundamental attributes and risk profile and is in accordance with the investment strategy of the Scheme. Investors are requested to refer the SID of the Scheme for detail.The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not be liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on this material.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

29

30

Note

31

Note