Post on 29-Dec-2015
4
Key Events: Indian Fixed Income Markets – Mar’13
India’s current account deficit (CAD) widened from 5.4% in the July-September quarter to a record high of 6.7% of GDP in the October-December quarter, driven
mainly by huge trade deficit.
India’s current account deficit (CAD) widened from 5.4% in the July-September quarter to a record high of 6.7% of GDP in the October-December quarter, driven
mainly by huge trade deficit.
Core Inflation was sharply lower at 3.79%. CPI came at 10.91% in Feb-13 as against 10.79% in the previous month. IIP for the month of January-13 rose by 2.4% as
against -0.5% in December-12.
Core Inflation was sharply lower at 3.79%. CPI came at 10.91% in Feb-13 as against 10.79% in the previous month. IIP for the month of January-13 rose by 2.4% as
against -0.5% in December-12.
The 10 year benchmark yield drifted upwards from 7.87% to 7.96% as RBI guided limited room for further easing.
The 10 year benchmark yield drifted upwards from 7.87% to 7.96% as RBI guided limited room for further easing.
Money market rates eased during the month. The 3 months PSU CDs fell from 9.52% to 8.82%. One year segment was quite volatile and touched a high of 9.35%
and closed the month at 8.80%.
Money market rates eased during the month. The 3 months PSU CDs fell from 9.52% to 8.82%. One year segment was quite volatile and touched a high of 9.35%
and closed the month at 8.80%.
Liquidity continued to remain in the negative zone in March similar to previous month. LAF average for the month was negative of INR 957 billion as compared to
negative of INR 1098 billion in previous month.
Liquidity continued to remain in the negative zone in March similar to previous month. LAF average for the month was negative of INR 957 billion as compared to
negative of INR 1098 billion in previous month.
RBI, in the mid-quarter monetary policy, reduced the Repo rate by 25bps to 7.50% from 7.75%. CRR was kept unchanged at 4%.
RBI, in the mid-quarter monetary policy, reduced the Repo rate by 25bps to 7.50% from 7.75%. CRR was kept unchanged at 4%.
5
Looking Ahead
Liquidity deficit will likely stabilize at the current levelsLiquidity deficit will likely stabilize at the current levels
Benchmark 10 Yr G-Sec rate will take cues from IIP, CPI and WPI dataBenchmark 10 Yr G-Sec rate will take cues from IIP, CPI and WPI data
The money markets rates has eased in the new quarter and will likely stay at the current levels
The money markets rates has eased in the new quarter and will likely stay at the current levels
6
Interest Rate Movement
Source: Bloomberg
Mid Quarter monetary policy review March 2013 : Repo rate is at 7.50%, Reverse Repo at 6.50% and Cash Reserve Ratio (CRR) at 4.00%.
Mid Quarter monetary policy review March 2013 : Repo rate is at 7.50%, Reverse Repo at 6.50% and Cash Reserve Ratio (CRR) at 4.00%.
RBI has cut interest rate in consecutive quarters by cutting Repo & Reverse repo by 25 basis points.
RBI has cut interest rate in consecutive quarters by cutting Repo & Reverse repo by 25 basis points.
8
Taurus Dynamic Income Fund
Taurus Dynamic Income Fund aims to generate optimal returns with healthy liquidity through active management
of the portfolio.
Taurus Dynamic Income Fund aims to generate optimal returns with healthy liquidity through active management
of the portfolio.
The scheme endeavors to optimize returns for the investors by re-balancing the portfolio which dynamically tracks
interest rate movements.
The scheme endeavors to optimize returns for the investors by re-balancing the portfolio which dynamically tracks
interest rate movements.
The fund plays on the shift/shape of yield curve to generate superior returns
The fund plays on the shift/shape of yield curve to generate superior returns
The scheme philosophy is to achieve a consistent and steady return, with low volatility, for investors.
The scheme philosophy is to achieve a consistent and steady return, with low volatility, for investors.
9
Investment Strategy
The duration of the portfolio has been decreased as compared to the previous month as we bought down the exposure of
high duration government securities.
The duration of the portfolio has been decreased as compared to the previous month as we bought down the exposure of
high duration government securities.
Continuing the strategy of trading in gilts as opportunity arises with the judicious mix of corporate bonds to
enhance .
Continuing the strategy of trading in gilts as opportunity arises with the judicious mix of corporate bonds to
enhance .
Will play on the shift/structure of the yield curve and the credit spread.
Will play on the shift/structure of the yield curve and the credit spread.
Increased allocation to corporate bonds during the month with a view to play the anticipated spread
compression
Increased allocation to corporate bonds during the month with a view to play the anticipated spread
compression
10
Distinctive features of Taurus Dynamic Income Fund
Has the flexibility to mimic a Short Term Income Fund in a rising interest rate scenario & thereby aiming to preserve
capital.
Has the flexibility to mimic a Short Term Income Fund in a rising interest rate scenario & thereby aiming to preserve
capital.
Has the ability to generate superior returns of a Long term Income Fund in a declining interest rate scenario by
increasing the duration of the portfolio.
Has the ability to generate superior returns of a Long term Income Fund in a declining interest rate scenario by
increasing the duration of the portfolio.
Fund Manager may take advantages of shift of the yield curve / credit spreads by initiating trading strategies.
Fund Manager may take advantages of shift of the yield curve / credit spreads by initiating trading strategies.
11
Why Invest in Taurus Dynamic Income Fund?
Benign interest rate environmentBenign interest rate environment
As a tactical allocation in an investor’s debt portfolio to take advantage of benign/falling interest rates
As a tactical allocation in an investor’s debt portfolio to take advantage of benign/falling interest rates
The scheme will be a pure rate play theme, focusing on liquid securities and trading on them
The scheme will be a pure rate play theme, focusing on liquid securities and trading on them
12
Who should invest in Taurus Dynamic Income Fund?
Suitable for investors with moderate risk profile and investment horizon of over 6 months
Suitable for investors with moderate risk profile and investment horizon of over 6 months
Suitable for investors seeking higher returns than those offered by Short Term Bond Funds and are prepared for
some short-term fluctuations.
Suitable for investors seeking higher returns than those offered by Short Term Bond Funds and are prepared for
some short-term fluctuations.
Want to be part of high quality debt portfolio at the current attractive yields
Want to be part of high quality debt portfolio at the current attractive yields
Concerned about Stock Market volatility – looking to de-risk the portfolio with a bond fund
Concerned about Stock Market volatility – looking to de-risk the portfolio with a bond fund
13
Portfolio (as on 31st Mar’13)
Sr.No. Company Name % of Scrip (AUM)
Corporate Bond 1 Export Import Bank Of India 11.202 Hindalco Industries Limited 8.813 Steel Authority Of India Limited 8.724 Rural Electrification Corporation Limited 8.725 Power Finance Corporation Limited 8.616 Power Grid Corporation Of India Limited 8.59
Total - Corporate Bond 54.66 Certificate Of Deposit 1 Oriental Bank Of Commerce 21.992 South Indian Bank Limited 5.54 Total - Certificate Of Deposit 27.52 Government Bond 1 8.97% GOI 9.182 8.33% GOI 2026 8.78 Total - Government Bond 17.95 Cblo 1 Clearing Corporation Of India Limited 5.24 Total - CBLO 5.24 Treasury Bill 1 91 Days Tbill 0.43 Total - Treasury Bill 0.43
1 Cash & Cash Receivables -5.80 Total 100.00
14
Key Features
Particulars Taurus Dynamic Income FundType of Fund Open ended Income Scheme
Investment Objective
To generate optimal returns with high liquidity through active management of the portfolio by investing in Debt and Money Market Instruments. However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns
Date of Allotment 14th Feb'11Fund Managers Fund Manager - Mr. Rahul Pal and Co-Fund Manager - Mr. Kapil PunjabiBenchmark Index CRISIL Composite Bond Fund IndexPlan Regular plan & Direct Plan
Options GrowthDividend - Payout, Reinvestment & Sweep. Dividend would be declared every quarter, subject to the availability of distributable surplus
Dividend History (FY 2012-13)Rs 0.253 per unit-Jun'12, Rs 0.2595 per unit-Sept'12, Rs 0.2159 per unit-Dec'12,Rs .0.3179 per unit-Mar '13
AAUM (Mar'13) Rs 58.85 CrsNAV-Regular Plan (31st Mar'13)
Growth 12.2476Dividend 10.2872
NAV-Direct Plan (31st Mar'13)
Growth 12.2687Dividend 10.2960
Average Maturity (Mar'13) 7.21 yrs
Load StructureEntry Load NilExit Load
1% if exited/switched out before 1 year and Nil if exited/switched out after 1 year
Performance (31st Mar 13) *
PeriodReturns
NAVCrisil Composite Bond
Fund IndexCrisil 10 year Gilt Index
Mar 30, 2012 to Mar 30, 2013
9.60% 9.24% 11.25%
Since Inception 10.01% 8.58% 7.27%
past performance is no guarantee of future result and may not be sustained in future
Mutual Fund Investments are subject to market risk, please read all scheme related documents carefully
15
Performance of Other Schemes Managed by the Fund Manager
Since InceptionName of the Scheme and Benchmarks 31/03/2012-
31/03/201331/03/2011-31/03/2012
31/03/2010-31/03/2011
Returns Value of Rs 10000
Inception Date Fund Managers
Taurus Liquid Fund - Retail 8.50% 9.14% 6.61% 6.63% 15,258 31st Aug'06
Fund Mangers- Kapil Punjabi &
Co- Fund Manager - Rahul Pal
Crisil Liquid Fund Index 8.17% 8.44% 6.21% 7.07% 15,677 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 5.77% 14,468 Taurus Liquid Fund - Inst 9.29% 9.46% 6.69% 5.77% 12,878 26th Sept'08Crisil Liquid Fund Index 8.17% 8.44% 6.21% 6.95% 13,536 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 6.06% 13,038 Taurus Liquid Fund - Superinst 9.39% 9.56% 5.34% 5.35% 12,646 26th Sept'08Crisil Liquid Fund Index 8.17% 8.44% 6.21% 6.95% 13,536 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 6.06% 13,038 Taurus Ultra Short Term Fund- Retail 9.12% 9.43% 6.80% 7.52% 13,682 1st Dec'08
Fund Mangers- Kapil Punjabi &
Co- Fund Manager - Rahul Pal
Crisil Liquid Fund Index 8.17% 8.44% 6.21% 6.80% 13,293 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 5.70% 12,709 Taurus Ultra Short Term Bond Fund-Inst 9.80% 9.84% 6.90% 7.83% 13,858 1st Dec'08Crisil Liquid Fund Index 8.17% 8.44% 6.21% 6.80% 13,293 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 5.70% 12,709 Taurus Ultra Short Term Bond Fund-Superinst 9.90% 9.95% 7.01% 7.98% 13,939 1st Dec'08Crisil Liquid Fund Index 8.17% 8.44% 6.21% 6.80% 13,293 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 5.70% 12,709 Taurus Short Term Income Fund 10.29% 10.02% 7.20% 6.27% 20,280 18th Aug'01
Fund Manger- Rahul Pal & CO Fund Manger - Kapil Punjabi
Crisil Short Term Bond Fund Index 9.05% 8.28% 5.12% 6.27% 20,263 CRISIL 1 Year T- Bill 8.33% 6.59% 3.86% 5.67% 18,988 Taurus Gilt Fund 5.12% 6.27% 3.16% 4.15% 16,037 18th Aug'01
I Sec Composite Index 11.64% 6.79% 6.41% 7.29% 22,640
CRISIL 10 Year Gilt Index 11.25% 2.43% 4.61% 7.50% 23,183
past performance is no guarantee of future result and may not be sustained in futureMutual Fund Investments are subject to market risk, please read all scheme related documents carefully
17
Why Taurus Mutual Fund?It's a fund house on the move…
• Product basket comprises of 7 Equity Funds, 1 ELSS, 5 Fixed Income Funds and 1 Monthly Income Plan besides FMPs’.
• Taurus Liquid Fund and Taurus Ultra Short Term Bond Fund rated as AAAmfs by CRISIL for credit quality of the portfolio***.
• Taurus Dynamic Income Fund is rated as AAAmfs by CARE Ratings for credit quality of the portfolio ****.
• Taurus MIP Advantage has been ranked as Five Star Fund by ICRA Online in the category of ‘Open Ended Marginal Equity’ schemes for its 1 year performance till December 31, 2011**.
• Taurus Mutual Fund has been rated 4th Best Fund House in the Country by Business Today, dated April 01, 2012.*
• Professional Service Providers:
Registrar & Transfer Agent : Karvy Computershare Pvt Limited
Custodian: HDFC Bank Limited
Fund Accountant : Deutsche Investor Services Pvt Limited
18
Our Schemes
Our SchemesOur Schemes
EQUITYEQUITY DEBT DEBT
• Taurus Starshare• Taurus Bonanza Fund• Taurus Discovery Fund• Taurus Infrastructure Fund• Taurus Ethical Fund• Taurus Tax Shield (ELSS)• Taurus Nifty Index Fund • Taurus Banking & Financial Services Fund
• Taurus Short Term Income Fund • Taurus Ultra Short Term Bond Fund• Taurus Dynamic Income Fund• Taurus Liquid Fund • Taurus Gilt Fund • Taurus MIP Advantage•Taurus FMP Schemes
19
Board of Directors of Taurus AMC
Mr. J. P. Kundra - Former MD, State Bank of India
Mr. M.G. Gupta - Former Addl Controller General of Accounts, Govt. of India
Maharaja Jai Singh – From the Royal family of Jaipur / Hotelier
Mr. Lalit Bhasin - Promoter Director
Mr. Vijay Sood – Former Chief Executive –India, Credit Agricole Indosuez
Mr. R K Gupta- MD, Former MD-PNB Mutual Fund
20
Senior Management Personnel
Mr. Waqar Naqvi: Chief Executive (AICWA, MBA, 20 years exp)
Mr. Sanjay Parikh: Chief Operations Officer(CA, CFA, 21 years exp)
Mr. Sadanand Shetty: Sr. Fund Manager-Equity(M.Com, PGDFA, 18 yrs exp)
Mr. Rahul Pal: Head- Fixed Income (B.Com, C.A., 11 years exp)
Mr. Jude Abraham: Head Institutional Sales (B.A., PGDBM, 13 years exp)
Mr. Ramesh Kabra : Head- Product Development & Marketing (B.Sc., M.A. (Eco), 32 yrs exp)
21
Fund Manager's Profile
Mr. Rahul Pal - VP & Head (Fixed Income) -B.Com & C.A.
Worked with Sundaram BNP Paribas Mutual Fund as Fund. Manager (Fixed Income) for 6 years and with IDBI in Fixed Income for 3 years. Total work ex of over 10 years. Manages Taurus Short Term Income Fund, Taurus Dynamic Income Fund, Taurus Gilt Fund, Taurus MIP Advantage and is Co-Fund Manager for Taurus Liquid Fund & Taurus Ultra Short Term Bond Fund
Mr. Kapil Punjabi – Fund Manager (Fixed Income) – MBA & BBA in Finance from Mumbai University
He has worked with Edelweiss Asset Management Company Limited as Fixed Income Fund Manager for 2 years and 6 months. Total work experience of more than 6 years. Manages Taurus Liquid Fund, Taurus Ultra Short Term Bond Fund and is the Co-Fund Manager for Taurus Short Term Income Fund, Taurus Dynamic Income Fund, Taurus Gilt Fund & Taurus MIP Advantage
22
Risk Factors & Disclaimer
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
Any information contained in this presentation does not constitute and shall be deemed not to constitute an advice, an offer to sell / purchase or as an invitation or solicitation to do so for any security of any entity and further, Taurus AMC / sponsors / employees / directors shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising from the use or access of any information that may be displayed in this presentation from time to time. Recipients of the information contained herein should exercise due care and caution and read the offer document (including if necessary, obtaining the advice of tax / legal / accounting / financial / other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained herein.
Editorial opinions expressed in this presentation are not necessarily those of Taurus AMC or any of their officers, employees, personnel, directors and the above-said do not accept responsibility for the editorial content and make no representation as to the accuracy, completeness or reliability of the editorial content and hereby disclaim any liability with regard to the same. The material contained in this presentation cannot be reproduced or quoted anywhere without express written consent of Taurus AMC.
**ICRA Online Rating Methodology: The rank is an outcome of an objective and comparative analysis against various parameters, including: risk adjusted return, fund size, sector concentration, average maturity, credit indicator and liquidity analysis. The ranking methodology did not take into account loads imposed by the Fund. There were 41 schemes considered in ‘Open Ended Marginal Equity’ category for the ranking exercise. The rank is neither a certificate of statutory compliance nor any guarantee on the future performance of Taurus MIP Advantage Fund.
Ranking Source & Publisher: ICRA Online Limited
***Detailed methodology of CRISIL credit quality rating is available at www.crisil.com
**** Detailed methodology of CARE Rating credit quality is available at www.careratings.com
*Business Today Rating Methodology: The universe of mainstream funds were only considered. This meant exclusion of niche and peripheral categories and fund categories which are fairly commoditized by their very design. The Universe: Equity: Large & Mid Cap, Equity: Large Cap, Equity: Mid & Small Cap, Equity: Multi Cap, Equity: Tax Planning, Equity: Infrastructure, Hybrid: Equity-oriented, Hybrid: Debt-oriented Conservative, Hybrid: Debt-oriented Aggressive, Hybrid: Arbitrage, Hybrid: Asset Allocation, Debt: Income, Debt: Short Term, Excluded Categories: Debt: FMP, Debt: Gilt Medium & Long Term, Debt: Gilt Short Term, Debt: Liquid, Debt: Ultra Short Term, Equity: Banking, Equity: FMCG, Equity: International, Equity: Others, Equity: Pharma, Equity: Technology, Gold: Funds, Hybrid: Others. The exercise was based on the quarterly performance over the past 5-years (20 quarters). Each quarterly performance of a fund was assigned a quartile rank in their respective categories. Best Fund House - The fund house with relatively highest top quartile performance was adjudged the best. Fund companies with less than Rs 500 crore asset under management and companies which started in the past five-year were not considered.