ICICI Prudential Enhanced Dynamic Equity Fund – CATEGORY III AIF

ICICI Prudential Enhanced Dynamic Equity Fund Cat III AIF intends to predominantly invest in equity and equity related securities with an aim to achieve long term capital appreciation in accordance with the Applicable Laws. To limit downside risk of the portfolio, ICICI Prudential Enhanced Dynamic Equity Fund Cat III AIF shall also adopt various derivative strategies under long/ short investment strategy. The FUND may invest a certain portion in debt instruments.

In the event, the Scheme undertakes any derivative exposure, the Scheme may invest in mutual funds, government securities and such other liquid assets of higher quality as cash-equivalent funds, to provide margin money for derivative trading.

ICICI Prudential Enhanced Dynamic Equity Fund Cat III AIF will invest in securities as permissible under the Regulations.

The Investment Manager shall consider the following aspects for identifying the stocks and may aim to invest in:

• stocks with growth prospects which would be available at modest relative valuations given certain financial measurements such as their price-to-earnings, price-to-book, growth and margin ratios, etc.;
• Portfolio Entities that have high return on capital/return on equity, operating leverage, high free cash flow/free cash flow yield, low debt/equity ratio and other fundamental parameters; or
• Portfolio Entities that have considerable competitive advantages but which have been impacted owing to valuation mismatch arising on account of business cyclicality, special situations, or mispricing by the market forces.

Notwithstanding the above, the Investment Manager may adopt other proactive, defensive or opportunistic strategies in order to meet the Investment Objective. Both long and short exposures may be held in specific stocks, basket of stocks and various indices.

ICICI Prudential Enhanced Dynamic Equity Fund Cat III AIF shall employ a research based, fundamentally driven, bottom-up research process for undertaking Portfolio Investments as per its Investment Objective.

The investments by ICICI Prudential Enhanced Dynamic Equity Fund Cat III AIF will consist of the following strategies:

• Long Only Equity Strategy
• Debt Strategy
• Derivatives Strategy

The proportion of positions in the above allocation may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. In the event of allocation falling outside the limits specified in the above allocation table, the key investment team will review and rebalance the same within 30 days from the date of such deviation.