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Axis Income Fund
* Strategy followed is based on the current market conditions and is subject to changes depending on the
fund manager’s view of the markets.
$ Average allocation to non-AAA rated instruments
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Positioning
• Positioned as a medium term corporate bond fund
• Core book in corporate bonds
Way Forward
• Opportunity seen in AA/A segment
• Until Sep-Oct ‘16, the fund had invested ~10-12% in non - AAA rated
instruments$. Since then, this allocation has been increased to 50% over a
period of time
Source: Bloomberg. Data from Feb 28th, 2014 to Feb 28th, 2017 3
AAA Yields down sharply
AAA Yields down sharply, incremental opportunities in AA and A
segment
Incremental opportunities in AA
and A segment
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10
11
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Feb-14 Feb-15 Feb-16 Feb-17
3 Year AAA Coporate Bond
-
10
20
30
40
50
60
70
80
90
100
Feb-14 Feb-15 Feb-16 Feb-17
Spread 3 Year AA over AAA
Portfolio Repositioning : gradually allocating towards non-AAA segment
Strategy followed & Target Range is based on the current market conditions and is subject to changes depending on the fund manager’s view of
the markets
Rating Aug-16 Feb-17 Target
Sovereign/ AAA & equivalent$ 56.5% 47.7% 20%- 30%
AA+/- 34.4% 42.2% 40% - 50%
A+/- 9.1% 10.1%
20% - 30%
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Risk Management
Strategy followed is based on the current market conditions and is subject to changes depending on the fund manager’s view of the
markets.
• Tight Maturity Range (3-5 years)
• Stringent credit review
• Control credit risk through diversification and strict limits on issuer weighting
based on rating
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Diversified across ratings and sectors
Data is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets.
Data is based on the portfolio as on January 31st, 2017
*Excluding sovereign/G-Sec $AAA & Equivalent includes AAA/A1+-rated papers.
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47.7%
1.8%
25.2%
15.2%
10.2%
Credit Profile
Sovereign/ AAA & equivalent$ AA+ AA AA- A+
39%
16%
10%
5%
5%
4%
3% 2%
2% 2%
Sector Mix*
Finance Power
Cement Gas
Construction Telecom - Services
Non - Ferrous Metals Media & Entertainment
Trading Healthcare Services
Highly diversified corporate bond portfolio with tight position limits
Data is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets.
Please refer to the factsheet/ visit www.axismf.com for full portfolio details of the scheme
Top 10 Non- AAA exposures
Company Rating % exposure
Tata Motors Finance Ltd. CRISIL AA 4.40
Birla Corporation Ltd. ICRA AA 4.38
Muthoot Finance Ltd. CRISIL AA 4.36
Tata Power Company Ltd. CRISIL AA- 4.22
Adani Power Ltd. BWR AA-(SO) 3.53
Hinduja Leyland Finance Ltd. CARE A+ 3.50
Hindalco Industries Ltd. CRISIL AA- 3.22
Hansdeep Industries & Trading Co. Ltd. CARE AA(SO) 3.12
PVR Ltd. CRISIL AA- 2.35
Edelweiss Commodities Services Ltd. CARE AA 2.31
Top 10 Non-AAA constitute 35.4 percent of the portfolio
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Fixed Income Funds – Positioning in the short/medium space
Positioning Typical Maturity
Range Portfolio Quality
Axis Short Term Fund Short Term Corporate Bond Fund
with quality bias 1 to 3 years >85% in AAA
Axis Fixed Income Opportunities
Fund
Short Term Corporate Bond Fund
with upto 70% in sub-AAA 2 to 5 years 30% - 40% in AAA
Axis Income Fund Medium Term Corporate Bond Fund 3 to 5 years
20% - 30% in AAA
.
Strategy followed is based on current market conditions and is subject to changes depending on the fund manager’s view of the markets.
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Change - Current Portfolio v/s 3 months ago
Strategy followed is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets.
Data is based on the portfolio as on Nov 30th, 2016 and Feb 28th , 2017
Rating Current
(Feb-17)
3 months ago
(Nov-16) Change
Sovereign/ AAA & equivalent$ 47.7% 56.5% -8.8%
AA+ 1.8% 1.8% 0.0%
AA 25.2% 19.1% 6.1%
AA- 15.2% 13.5% 1.7%
A+ 10.2% 9.1% 1.1%
Mod D YTM
Current 3.1 yrs 8.56%
3 months ago 4.0 yrs 8.00%
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Performance as on 30th December 2016
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Annexure Annexure for returns of schemes managed by fund manager (as on December 30th 2016)
Past performance may or may not be sustained in future. Calculations are based of Growth Option NAV. Since inception returns are
calculated on Rs. 10 invested at inception. Performance data of top 3 and bottom 3 schemes based on last one year performance of all the
schemes managed by the Fund Manager as on December 30, 2016 is disclosed. Above data excludes returns of Fixed Maturity Plans and
schemes which have not completed a year. Investors are requested to consult their financial, tax and other advisors before taking any
investment decision(s).. #Scheme Performance may not be strictly comparable with that of its additional benchmark in view of hybrid nature of
the scheme. 11
Annexure Annexure for returns of schemes managed by fund manager (as on December 30th 2016)
Past performance may or may not be sustained in future. Calculations are based of Growth Option NAV..Since inception returns are
calculated on Rs. 10 invested at inception. Performance data of top 3 and bottom 3 schemes based on last one year performance of all the
schemes managed by the Fund Manager as on December 30, 2016 is disclosed. Above data excludes returns of Fixed Maturity Plans and
schemes which have not completed a year. Investors are requested to consult their financial, tax and other advisors before taking any
investment decision(s). #Scheme Performance may not be strictly comparable with that of its additional benchmark in view of hybrid nature of
the scheme.
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Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the
purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not
choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any
investment decision(s).
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability
restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk
Factors: Axis Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.
This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither
Axis Mutual Fund, Axis Mutual Fund Trustee Ltd. nor Axis Asset Management Company Ltd., its Directors or associates shall be liable for any
damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is
made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make
modifications and alterations to this statement as may be required from time to time.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Source of Data: Bloomberg, RBI, ACEMF
Data as on February 28th, 2017.
Statutory Details and Risk Factors
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