Performance Update

Helios India Rising Portfolio

Market Outlook
September was another soft month for global equity markets. Most major global indices ended in the red: the NASDAQ, S&P500, DAX, Hang Seng, Nikkei
225, and Shanghai Composite shed 5.8%, 4.9%, 3.5%, 3.1%, 2.3%, and 0.3%, respectively, through September. Indian headline indices, however, closed in
the green: the NIFTY50, 500, and MIDCAP50 gained 2.0%, 3.8%, and 2.2%, respectively, through the month. This month of outperformance has brought the
local currency YTD return of the NIFTY500 (11.9%) in-line with that of the S&P500 (11.7%). The continued rally in the midcap space has brought the YTD
return of NIFTYMIDCAP50 to 32.7%. From a sector perspective, Energy, Infrastructure, and Auto stocks rallied the most delivering index returns of 6.2%,
5.0%, and 3.3%, respectively, while FMCG, Bank, and IT stocks lagged with index returns of 1.0%, 1.4%, and 2.0%, respectively.

Key developments during the month:

1 MONTH
JP Morgan announced its decision to include Indian government bonds in its STRATEGY
emerging market debt index from June 2024.
RETURNS %
The Fed announced a hawkish pause at its latest FOMC meeting and reaffirmed
its intent to hold interest rates higher for longer. Reaffirmation of its “Higher for Helios India Rising Portfolio 1.84
Longer” stance pushed 10-year treasury bond yields above 4.5%.
Core inflation continued to moderate in the US, falling 30bps to 4.35%, but BSE 500 - TRI 2.11
headline inflation rose 50bps to 3.7% on account of elevated oil prices.
The European Central Bank raised its deposit rate to 4%.
While Chinese industrial production and retail sales grew 4.5% and 4.6%, significantly ahead of expectations of 3.7% and 2.5%, respectively,
signs of trouble in the economy persist; prices for new homes fell 30bps MoM and exports and imports declined 8.8% and 7.3%, respectively.
Brent crude prices rallied 12% through the month to close at $98/bbl.

In foreign exchange markets, the INR gained against most foreign currencies through the month. It gained 3.0%, 3.7%, 1.7%, and 0.8% against the Euro,
British Pound, Japanese Yen, and Renminbi. September was a month in which the US Dollar appreciated relative to most foreign currencies and the Dollar
Index reached 106.7, the highest level seen in CY23; accordingly, the INR depreciated 0.4% against the USD. YTD movements against the Renminbi, Euro,
British Pound, Japanese Yen, and US Dollar stand at 4.1%, 0.6%, -1.5%, 11.9%, and -0.2%, respectively.

While headline index returns were positive through the month, these came amidst an environment of muted institutional flows. After three consecutive
months of FII inflows, FIIs turned net sellers through September and trimmed their positions by $1.7 billion. These outflows were more than offset by DII
inflows of $2.4 billion. Aggregate institutional inflows for the month amounted to $700 million. On a YTD basis, FII and DII inflows stand at $15.2 billion and
$15.6 billion, respectively.

On the domestic economy front, we continue to see positive news coming in. GDP growth through 1QFY24 was estimated to be 7.8%. Consumer price
inflation, both headline and core, moderated 60bps and 10bps to 6.8% and 4.8%, respectively. Wholesale price inflation, both headline and core, stayed in
negative territory for the fifth consecutive month at -0.5% and -1.8%, respectively. The latest print of supply-side economic indicators suggest that the
economy is firmly in expansionary territory; IIP, Manufacturing, and Services PMI numbers came in at 5.7%, 58.6, and 60.1.

From a portfolio perspective, we continue to remain negative on export-oriented sectors. The US Federal Reserve’s emphatic affirmation of its “Higher for
Longer” stance and continuing deterioration in the Chinese economy suggest an increasing likelihood of a global economic slowdown in the offing.
Accenture’s recently reported results and management commentary indicate that caution amongst IT services customers is here to stay for the next 2-3
quarters. In addition to being negative on export-oriented sectors, we also remain apprehensive on broad-based consumption. Domestic rural
consumption remains a worry. Given this backdrop, we are cautious on Indian IT, global commodities, and local FMCG plays. On the other hand, consistent
growth opportunities are emerging in the domestic infrastructure sector given the government’s CapEx push. This has led us to increase our exposure to
the E&C companies and Utilities during the month.

#
Period 1 Month 3 Month 6 Month 1 Year 2 Year 3 Year Since Inception
Helios India Rising Portfolio 1.84% 7.63% 27.13% 19.55% 7.81% 21.63% 24.18%
BSE 500 TRI 2.11% 5.49% 19.39% 17.48% 8.47% 24.28% 25.27%
#Inception date of the Portfolio: 16th Mar 2020

Note:
(i) The above returns have been calculated using Time Weighted rate of return (TWRR). While computing returns of Investment Approach under which the Client account is managed, all clients falling under said
Investment Approach during the relevant period have been taken into consideration. Performance data for Portfolio Manager is not verified by SEBI or any other regulatory authorities.
(ii) All investments including cash and cash equivalents are considered for calculation of returns.
(iii) Returns for individual client may differ depending on time of entry in the Portfolio. Past performance may or may not be sustained in future.
(iv) Performance for 2 yr, 3 yr, and Since inception doesn't accurately reflect portfolio's equity investment performance as Helios PMS did not have a segregated liquid strategy till August 2021, resulting in funds
received for STP being treated as cash component for aggregate performance calculation as per regulatory reporting standards diluting the actual portfolio performance; read here for details
https://helioscapital.in/understanding-pms-returns/
(v) In July 2021, Helios PMS introduced a liquid portfolio strategy to enable short-term cash parking for systematic transfer to the Equity strategy. Existing investors' STP-related cash balances were transferred to
the liquid PMS between August 2021 and October 2021

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