Investment newsletter September 2017 - Bharti AXA Life€¦ · September 2017 – Review Indian ......

Investment

newsletter

September

2017

9600.00

9900.00

10200.00

30800.00

31900.00

33000.00

1-Se

p-17

8-Se

p-17

15-S

ep-1

7

22-S

ep-1

7

29-S

ep-1

7

Nift

y 50

S&P

BSE

Sen

sex

S&P BSE Sensex Nifty 50 Index

-5300

0

5300

1-S

ep-1

7

8-S

ep-1

7

15-S

ep-1

7

22-S

ep-1

7

29-S

ep-1

7

Rs. in

Cro

res

Institutional Flows in EquitiesFII (investment through stock exchange)

MF

2.57%

2.11%

2.07%

-0.83%

-0.92%

-1.16%

-1.51%

-1.78%

-2.21%

-2.44%

-3.38%

-3.74%

-3.95%

S&P BSE HC

S&P BSE METAL

S&P BSE AUTO

S&P BSE CD

S&P BSE CG

S&P BSE IT

S&P BSE Bankex

S&P BSE Teck

S&P BSE Oil & Gas

S&P BSE Power Index

S&P BSE Realty

S&P BSE PSU

S&P BSE FMCG

September 2017 – Review

Indian equity markets ended the month in the negative. Newsflow around sustained geopolitical concerns between the

U.S. and North Korea and concerns on near term economic growth of country weighed on sentiments. Capital outflows by

foreign funds following the U.S. Federal Reserve’s announcement to wind down its stimulus measures, and Fed’s

indication of another interest rate hike by end of the year also adversely affected markets.Investors turned apprehensive

that the government’s plan to stem economic slowdown could hamper fiscal deficit. Likely increase in fiscal deficit on

expectations of probable fiscal stimulus measures by the government weighed on sentiment. Key benchmark indices S&P

BSE Sensex and Nifty 50 went down 1.41% and 1.30% to close at 31,283.72 and 9,788.60, respectively. S&P BSE

MidCap fell 0.67%, while S&P BSE Small Cap gained 0.76%.

According to data from the National Securities Depository Ltd, foreign portfolio investors were net sellers of domestic

stocks worth Rs. 19,973.64 crore in Sep (investment route through stock exchange) compared with net sale of Rs.

15,935.61 crore recorded in the previous month. Domestic mutual funds remained net buyers in the equity segment to the

tune of Rs. 15,825.84 crore in Sep. Markets witnessed pressure in the wake of persistent geopolitical concerns between

the U.S. and North Korea, which prompted investors to move

to safe haven assets. In India, service sector data of August

came in weak due to perceived GST impact. Nikkei India

Services PMI Index declined for a second month in a row to

47.5 in August. However, losses were restricted on positive

development between India and China during the BRICS

Summit. Sustained investment by domestic institutional

investors also helped the market. Although buying interest

was restricted after retail inflation climbed to a five-month high in Aug 2017. India’s wholesale price index-based inflation

grew to 3.24% YoY, prompted by higher prices of fuel and food. Capital outflows by foreign funds following the U.S.

Federal Reserve’s announcement to wind down its stimulus measures also dampened sentiment. Fed’s indication that

another interest rate hike could occur added to the woes. Investors turned apprehensive that the government’s plan to

stem economic slowdown could adversely affect fiscal deficit.

On the BSE sectoral front, most of the indices closed in the red. S&P BSE FMCG, down 3.95%, was the highest loser,

followed by S&P BSE PSU (-3.74%), S&P BSE Realty (-3.38%), S&P BSE Power (-2.44%), S&P BSE Oil & Gas (-2.21%).

Gainers consisted of S&P BSE Healthcare (2.57%), S&P BSE Metal (2.11%) and S&P BSE Auto (2.07%). Telecom

Monthly Equity Roundup – September 2017

Outlook

Reduction in rural stress and recovery in rural demand are likely to key drivers for growth, along with the consistency of urban consumption demand. In the long term, India could see steady growth on the back of improvement in rural economy, rising government expenditure and higher disposable income in the hands of the consumers. With strong demographic dividend that India is seeing, economic growth and demand conditions in the country could remain strong for a long period of time, which augurs well for investment in equities. As per the preliminary estimates released by RBI, household financial savings rate increased to 8.10% of Gross National Domestic Income in FY17 from 7.80% in FY16. Going forward, further improvement in the area could prove to be good for the markets. Persisting geopolitical concerns involving North Korea have already hindered market movements across the world.

Regulatory Authority of India lowering termination fee hit telecom stocks. Banking sector was down 1.51%. Buying interest

was seen in healthcare sector as valuations appeared attractive. Pharma stocks also performed well on upbeat corporate

announcements.

Global Economy:

U.S. markets gained following a series of upbeat economic data. Market sentiment received further support after the

impact of Hurricane Irma did not turn out to be as severe as many had predicted. Also, the treasury secretary announced

that tax reform is expected to be accomplished by the end of 2017. However, the Fed left interest rates unchanged, in line

with market expectations, but it kept room for another rate hike this calendar year, restricting market gains. European

markets mostly closed in the positive terrain after the European Central Bank (ECB) chief expressed optimism over

economic recovery and said that policymakers are more confident that inflation will converge at the target eventually.

Investor sentiment boosted further after survey data from the European Commission showed that eurozone economic

confidence strengthened in Sep 2017. Sentiment got further support after a global rating agency raised Portugal's credit

rating to investment grade with a stable outlook. Gains were extended after eurozone inflation climbed to a four-month

high in Aug 2017, as initially estimated.

Economic Update

Current Account Deficit expanded to $14.3 billion in Q1FY18 Data from the Reserve Bank of India (RBI) showed that India’s Current Account Deficit (CAD) expanded to $14.3 billion (2.4% of GDP) in Q1 of FY18 from $3.4 billion (0.6% of GDP) in the preceding quarter and $0.4 billion (0.1% of GDP) in the same quarter of the previous fiscal. CAD widened on YoY basis due to higher trade deficit driven by a larger increase in merchandise imports relative to exports.

Fiscal deficit touched 96.1% of the budget estimate for the period from Apr to Aug of 2017

Government data showed India’s fiscal deficit touched 96.1% (Rs. 5.25 lakh crore) of the budget estimate (Rs. 5.47 lakh crore) for the period from Apr to Aug of 2017. The fiscal deficit in the corresponding period of the previous year stood at 76.4%. Net tax receipts were at Rs. 3.41 lakh crore during the first five months of FY18. Government total spending stood at Rs. 9.50 lakh crore while capital spending rose to Rs. 1.10 lakh crore from Rs. 91,332 crore in the corresponding period of FY17. Revenue deficit stood at Rs. 4.31 lakh crore compared with Rs. 3.25 crore a year ago.

Trade deficit widened to $11.64 billion in Aug 2017 Government data showed that India’s exports grew 10.29% on a yearly basis to $23.82 billion in Aug 2017 from $21.60 billion in the same period of the previous year on account of rise in shipments of engineering, petroleum and chemicals, which grew 19.53%, 36.56% and 32.41%, respectively. Imports too grew 21.02% to $35.46 billion in Aug from $29.30 billion in the year-ago month due to rise in inward shipments of gold and silver, which grew 68.90% and 106.83%, respectively. As a result, trade deficit in Aug 2017 widened to $11.64 billion from $7.71 billion during the same period of the previous year.

Retail inflation grew 3.36% in Aug 2017

Government data showed that retail inflation grew 3.36% in Aug 2017 from 2.36% in the previous month, marking a five-month high. Retail inflation for Aug 2016 came in at 5.05%. The consumer food price index expanded 1.52% in Aug compared with a contraction of 0.36% in the previous month and an expansion of 5.91% in the same month of the previous year.

IIP grows 1.2% YoY in Jul 2017 Government data showed that the Index of Industrial Production (IIP) expanded 1.2% YoY in Jul 2017, as against a 0.2% fall (revised downwards from a fall of 0.1% reported earlier) in Jun 2017. The Indices of Industrial Production for electricity, mining and manufacturing activities grew 6.5%, 4.8% and 0.1%, respectively. According to use-based classification, indices for capital goods, intermediate goods and consumer durables declined 1%, 1.8% and 1.3%, respectively, on a YoY basis in Jul.

Fixed Income Overview

Particulars Sep-17 Aug-17 Sep-16 Exchange Rate (Rs./$) 65.36 64.02 66.66

WPI Inflation (In %) 2.60 3.24 1.36

10 Yr Gilt Yield (In %) 6.67 6.53 6.96

5 Yr Gilt Yield (In %) 6.66 6.50 6.88

5 Yr Corporate Bond Yield (In %) 7.22 7.12 7.45 Source: Reuters, Bharti AXA Life Insurance

Bond yields rose after retail inflation increased to a five-month high in Aug 2017 that increased concerns that the

Monetary Policy Committee (MPC) might not consider easing interest rates in the near term. Market sentiment was further

dampened after the U.S. Federal Reserve (Fed) kept interest rates unchanged in its monetary policy review but indicated

a rate-hike in the near term. Media reports of increased borrowing by the Indian government from Oct 2017 to Mar 2018

also added to the losses.Yield on the 10-year benchmark bond (6.79% GS 2027) rose 13 bps to close at 6.66% from the

previous month’s close of 6.53%. During the month, bond yields moved within a wide range of 6.48% to 6.71%.

Bond yields fell initially as lower than expected domestic economic growth for the Jun quarter of FY18 fuelled hopes of

interest rate-cuts in the near future from the Monetary Policy Committee (MPC). However, the trend reversed soon amid

worries of escalating geopolitical tensions between the U.S. and North Korea after the latter tested an advanced hydrogen

bomb for a long-range missile. Profit-booking also added to the losses. Market participants exercised caution as they

remained on the sidelines awaiting cues on the country’s near-term policy rate action and the outcome of European

Central Bank’s (ECB) and U.S. Federal Reserve’s monetary policy review, which was due later in the month. Losses were

extended as fresh supply of debt securities following the weekly debt auctions weighed on market sentiment. Lack of fresh

domestic triggers also kept trading activity subdued in the domestic debt market. Bond yields rose further after retail

inflation rose to a five-month high in Aug 2017, which increased concerns that MPC might not consider easing interest

rates in the near term. Meanwhile, the Reserve Bank of India (RBI) announced the second open market sale of

government securities on Sep 28, 2017, to absorb excess liquidity from the banking system resulting out of

demonetization that further added to the losses.

On the macroeconomic front, India’s fiscal deficit touched 96.1% (Rs. 5.25 lakh crore) of the budget estimate (Rs. 5.47

lakh crore) for the period from Apr to Aug of 2017. The fiscal deficit in the corresponding period of the previous year stood

at 76.4%. Current Account Deficit (CAD) expanded to $14.3 billion (2.4% of GDP) in Q1 of FY18 from $3.4 billion (0.6% of

GDP) in the preceding quarter and $0.4 billion (0.1% of GDP) in the same quarter of the previous fiscal. Retail inflation or

Consumer Price Index (CPI) based inflation grew 3.36% in Aug 2017 from 2.36% in the previous month, marking a five-

month high. Retail inflation for Aug 2016 came in at 5.05%. Wholesale Price Index (WPI) based inflation increased 3.24%

YoY in Aug 2017 from 1.88% in the previous month and 1.09% in the same month of the previous year. Index of Industrial

Production (IIP) expanded 1.2% YoY in Jul 2017, as against a 0.2% fall (revised downwards from a fall of 0.1% reported

Monthly Debt Roundup – September 2017

Outlook

Bond yields moving ahead will be impacted by a slew of domestic factors namely liquidity management by RBI, incoming

inflation data and other key macroeconomic fundamentals. The benchmark 10-year G-Sec yields rose by about 5 bps after

MPC kept interest rates on hold in its fourth bi-monthly monetary policy review and indicated that domestic inflationary

pressures may increase in the second half of 2017. Bond yields moving ahead are likely to be range bound as MPC may

keep its monetary policy on hold for the time being. RBI has calibrated its liquidity management measures by conducting

reverse repo auctions and open market sale of government securities through open market operations in order to suck out

the excess liquidity from the banking system post demonetization. With the beginning of the festive season, the demand of

fund is also likely to go up. Thus, liquidity surplus may come down going forward, which may lead to an uptick in domestic

bond yields.

6.00%

6.40%

6.80%

7.20%

1 2 3 4 5 6 7 9 10 15

Yield Curve

YTM

Source: ReutersPeriod

earlier) in Jun 2017. Trade deficit in Aug 2017 widened to $11.64 billion from $7.71 billion during the same period of the

previous year.

On the liquidity front, the overnight call rate traded significantly below the policy repo rate for most of the month under

review, which ranged from 5.83% to 5.98% and reflected that liquidity remained at comfortable levels during the month

under review. Data from RBI showed that banks’ net average lending to the central bank through the LAF window stood at

Rs. 13,038.57 crore in Sep 2017, compared with the previous month’s average lending of Rs. 10,836.68 crore. Banks’

average borrowings under the Marginal Standing Facility (MSF) window also stood at Rs. 2,983.22 crore in Sep 2017

from the previous month’s average borrowing of Rs. 943.50 crore.

To suck out excess liquidity in the banking sector, the central bank conducted variable reverse repo auctions of various

tenors. Average net absorption of liquidity by RBI through variable repo rate and reverse repo auctions stood at Rs.

25,563.86 crore in Sep 2017 compared with Rs. 31,749.85 crore in Aug 2017. Furthermore, RBI conducted OMO (open

market operations) sale auctions to suck out excess liquidity from the banking system for a notified amount of Rs. 20,000

crore for which the whole amount was accepted. After taking into account the entire gamut of LAF, MSF, term repo

auction, and reverse repo auction, OMO and market stabilisation scheme the average net absorption of liquidity by RBI

stood at Rs. 38,276.29 crore in Sep 2017, compared with Rs. 39,923.09 crore in Aug 2017. RBI conducted auctions of 91-

, 182-, and 364-days Treasury Bills for a notified amount of Rs. 66,000 crore in Sep 2017 compared with Rs. 82,000 crore

in the previous month.

Corporate Bond:

Yield on gilt securities increased across maturities in the range of 2 bps to 19 bps barring 1- and 2-year paper, which fell

34 bps and 2 bps, respectively. Yield on corporate bonds increased across maturities in the range of 2 bps to 10 bps

barring 6-year paper, which closed steady and 7-year paper, which fell 1 bps. Difference in spread between AAA

corporate bond and gilt contracted across 4- to 10-year maturities in the range of 6 bps to 20 bps and expanded across

the remaining segment in the range of 5 bps to 39 bps barring 3-year paper, which closed steady.

Global

On the global front, market participants remained wary of escalating geopolitical tensions between the U.S. and North

Korea and political uncertainty in Germany following the outcome of its election results. The U.S. Fed kept interest rates

unchanged it its monetary policy review but indicated another rate hike in the near term. In addition, the Fed stated that it

will gradually start reducing its $4.5 trillion balance sheet by $10 billion per month from Oct 2017. The ECB kept key rates

and its quantitative easing programme unchanged but indicated changes (tapering) to its easing programme may be

announced in Oct 2017. The Bank of England in its monetary policy review also kept interest rates on hold in its monetary

policy review but indicated at a rate hike and some withdrawal of monetary stimulus in the coming months. The Bank of

Japan too maintained status quo on its monetary policy while maintaining its upbeat view of the economy.

1 Month 6 Months 1 year 2 years 3 years Since Inception Asset Class

Fund -0.99 11.89 19.31 15.73 13.25 12.40 Equity

Benchmark -1.39 7.15 14.70 12.11 8.66 10.79 Govt SecuritiesBenchmark: Nifty 100,*Inception Date- 24 Aug 2006, <1yr ABS & >=1yr CAGR Corporate Bond

Money Market/Cash

Total

Instrument Asset Mix (F&U)

Equity

Govt Securities

91.77 Corporate Bond

HDFC BANK LTD 6.48 Money Market/Cash

RELIANCE INDUSTRIES LTD 6.16

MARUTI UDYOG LTD 5.38

VEDANTA LIMITED 5.08

INDUSIND BANK LTD 4.88

HDFC LTD 4.01

EICHER MOTORS LTD 3.74

ITC LTD 3.64

LARSEN & TOUBRO LTD 3.14

INFOSYS TECHNOLOGIES LTD 2.16

OTHERS 47.10

Money Market/Cash 8.23

Total 100.00

Name of Fund Manager - Amit Sureka

Grow Money FundULIF00221/08/2006EGROWMONEY130

--

--

--

91.77

Modified Duration

--

--

Exposure (%)

91.77

8.23

8.23

NAV

36.6443

Asset Allocation

100

Actual

-

0 - 40

AUM

33437.10

--

--

2997.83

36434.91

80 - 100

-

24.69

9.57

9.18

7.87

6.15

5.04

4.30

3.64

3.14

3.06

15.13

0 5 10 15 20 25 30

Financial And InsuranceActivities

Manufacture Of Basic Metals

Manufacture Of Coke AndRefined Petroleum Products

Manufacture Of MotorVehicles, Trailers And Semi-…

Manufacture Of OtherTransport Equipment

Manufacture Of Chemicals AndChemical Products

Computer Programming,Consultancy And Related…

Manufacture Of TobaccoProducts

Civil Engineering

Manufacture Of Other Non-Metallic Mineral Products

Others

Fund Performance

Sector Allocation % To Fund

Fund Performance Asset Class Wise Exposure

Investment Objective: To provide long term capital appreciation by investing across a diversified high quality equity portfolio.

Security Name % To Fund

Other Funds Managed By fund Manager: Build India Fund, Build India Pension Fund,Grow Money Pension Fund,Grow Money Pension Plus,Grow Money Plus.


Fund -0.61 12.62 21.58 16.45 15.07 18.65 Equity 98.18

Benchmark -1.09 7.57 16.30 13.73 10.25 16.56 Govt SecuritiesBenchmark: Nifty 500,*Inception Date- 10 Dec 2008, <1yr ABS & >=1yr CAGR Corporate Bond


Total


Equity 98.18Govt Securities


MARUTI UDYOG LTD 6.60 Money Market/Cash 1.82




HDFC BANK LTD 3.79


YES BANK LTD 2.55

HERO HONDA MOTORS LTD 2.46

INDIAN OIL CORP LTD 2.19

TATA STEEL LTD 2.15

OTHERS 62.06


Total 100.00

Name of Fund Manager - Ajit Motwani

--

AUM

0 - 40

--

Modified Duration

--

Growth Opportunities Pension Fund

--

--

Asset Allocation

80 - 100

ULIF00814/12/2008EGRWTHOPRP130

Exposure (%)

100

Actual

NAV

45.0695

665.79

--

--

678.13

-

-

12.34

22.14

9.79

8.97

8.32

6.50

5.89

3.62

3.45

3.31

2.87

23.31

0 5 10 15 20 25


Manufacture Of MotorVehicles, Trailers And Semi-…



Manufacture Of ChemicalsAnd Chemical Products


Manufacture Of MachineryAnd Equipment N.E.C.

Manufacture Of FabricatedMetal Products, Except…

Manufacture Of ElectricalEquipment

Civil Engineering

Others

Fund Performance



Investment Objective: To provide long term capital appreciation by investing in stocks across all market capitalization ranges (Large, Mid or small)


Other Funds Managed By fund Manager: Growth Opportunities Plus, Growth Opportunities, Growth Opportunities Pension Plus.


Fund -1.01 11.78 19.69 16.07 13.15 7.50 Equity 92.67

Benchmark -1.39 7.15 14.70 12.11 8.66 5.32 Govt SecuritiesBenchmark: Nifty 100,*Inception Date- 03 Jan 2008, <1yr ABS & >=1yr CAGR Corporate Bond


Total


Equity 92.67

Govt Securities


RELIANCE INDUSTRIES LTD 6.18 Money Market/Cash 7.33

HDFC BANK LTD 6.06




HDFC LTD 3.94

ITC LTD 3.67




OTHERS 49.21


Total 100.00


0 - 40

--

Grow Money Pension Fund

--

--

--

Asset Allocation

80 - 100

-

-

ULIF00526/12/2007EGROWMONYP130

Exposure (%)

100

Actual

--

NAV

20.2296

Modified Duration

AUM

5239.72

--

--

414.30

5654.02

24.55

9.77

9.35

8.50

6.12

5.27

4.55

3.67

3.22

2.78

14.91

0 5 10 15 20 25 30




Manufacture Of Motor Vehicles,Trailers And Semi-Trailers

Manufacture Of Other TransportEquipment

Manufacture Of Chemicals AndChemical Products



Civil Engineering


Others

Fund Performance





Other Funds Managed By fund Manager: Build India Fund,

Build India Pension Fund,Grow Money Fund, Grow Money Pension Plus,Grow Money Plus.


Fund -0.95 12.26 20.27 16.37 13.85 12.10 Equity


Money Market/Cash

Total


Equity

Govt Securities







HDFC LTD 3.62



ITC LTD 3.27

BAJAJFINLTD 2.26

OTHERS 47.42


Total 100.00

Name of Fund Manager

--

213.23

2397.88Modified Duration

--

--

-

-

0 - 40

80 - 100

Asset Allocation

--

NAV

24.3160

Grow Money Pension Plus Fund

--

--

AUM

2184.64

--

ULIF01501/01/2010EGRMONYPLP130

Exposure (%)

91.11

8.89

100

Actual

91.11

8.89

24.27

10.54

9.11

7.48

5.54

4.70

4.26

3.44

3.27

2.95

15.55

0 5 10 15 20 25 30


Manufacture Of BasicMetals


Manufacture Of MotorVehicles, Trailers And…




Civil Engineering



Others




Fund Performance


Other Funds Managed By fund Manager: Build India Fund, Build India Pension Fund,Grow Money Fund,Grow Money Pension Fund, Grow Money Plus.


Fund -0.68 12.22 20.26 15.56 14.84 19.04 Equity


Money Market/Cash

Total


Equity

Govt Securities


MARUTI UDYOG LTD 6.29 Money Market/Cash


HDFC BANK LTD 4.56




YES BANK LTD 2.75

HDFC LTD 2.43



OTHERS 59.20


Total 100.00


--

--

170.00

3.67

4630.13

--

Asset Allocation

80 - 100

-

-

NAV

46.4323

0 - 40

Growth Opportunities Fund

--

--

--

--

AUM

Modified Duration

4460.13

ULIF00708/12/2008EGROWTHOPR130

Exposure (%)

96.33

3.67

100

Actual

96.33

23.70

9.10

8.76

8.18

6.61

4.76

3.69

3.06

2.73

2.63

23.12

0 5 10 15 20 25









Civil Engineering


Others

Fund Performance



Investment Objective: To provide long term capital appreciation by investing in stocks across all market capitalization ranges (Large, Mid or small).


Other Funds Managed By fund Manager: Growth Opportunities Plus, Growth Opportunities Pension Fund,Growth Opportunities Pension Plus.


Fund -0.84 12.20 20.80 15.93 14.82 12.71 Equity


Money Market/Cash

Total


Equity

Govt Securities




HDFC BANK LTD 4.58



YES BANK LTD 2.69


ITC LTD 2.38

HDFC LTD 2.37


OTHERS 59.14


Total 100.00


AUM

19493.10

--

--

773.76

20266.88

--

3.82

--

--

Asset Allocation

Actual

Exposure (%)

96.18

--

Growth Opportunities Plus FundULIF01614/12/2009EGRWTHOPPL130

25.3061

NAV

--

Modified Duration 100

96.18

3.82

80 - 100

0 - 40

-

-

23.76

9.23

8.26

8.04

6.44

4.88

3.77

3.61

2.80

2.55

22.84

0 5 10 15 20 25









Civil Engineering


Others

Fund Performance





Other Funds Managed By fund Manager:Growth Opportunities,

Growth Opportunities Pension Fund,Growth Opportunities Pension Plus.


Fund -0.97 12.23 20.30 16.39 13.84 12.21 Equity


Money Market/Cash

Total


Equity

Govt Securities







HDFC LTD 3.90


ITC LTD 3.47



OTHERS 47.59


Total 100.00


7.25

Exposure (%)

92.75

7.25

Grow Money Plus FundULIF01214/12/2009EGROMONYPL130

--

Modified Duration

AUM

--

Asset Allocation

24.5581

NAV 100

12439.80

--

--

973.10

13412.92

--

Actual

92.75

--

--

80 - 100

0 - 40

-

-

24.61

10.13

9.07

8.56

5.99

5.48

4.32

3.47

3.22

2.77

15.12

0 5 10 15 20 25 30









Civil Engineering


Others

Fund Performance





Other Funds Managed By fund Manager: Build India Fund, Build India Pension Fund,Grow Money Fund,Grow Money Pension Fund, Grow Money Pension Plus.


Fund -0.65 12.82 21.26 16.26 15.28 13.57 Equity


Money Market/Cash

Total


Equity

Govt Securities




HDFC BANK LTD 4.98



YES BANK LTD 2.77



KOTAK MAHINDRA BANK LTD 2.41

HDFC LTD 2.21

OTHERS 58.48


Total 100.00


--

NAV

26.5824

--

--

142.27

3651.50

-

3.90

100

3.90

-

0 - 40

Actual

96.10

Asset Allocation

--

--

80 - 100

Modified Duration

Growth Opportunities Pension Plus Fund ULIF01801/01/2010EGRWTHOPLP130

AUM

3509.23

--

--

Exposure (%)

96.10

23.80

8.47

8.29

8.09

6.68

4.47

3.91

3.46

3.40

2.84

22.68

0 5 10 15 20 25








Civil Engineering



Others

Fund Performance




Security Name % to Fund

Other Funds Managed By fund Manager:Growth Opportunities, Growth Opportunities Pension Fund,Growth Opportunities Plus.


Fund -1.12 10.91 20.36 16.06 13.77 10.27 Equity


Money Market/Cash

Total


Equity

Govt Securities









ICICI BANK LTD 2.79

HDFC LTD 2.71


OTHERS 53.48


Total 100.00


Modified Duration

Asset Allocation

1176.02

--

100

--

80 - 100

Build India Pension FundULIF01704/01/2010EBUILDINDP130

1132.33

--

43.69

-

Actual

--

AUM

--

--

Exposure (%)

96.29

3.71

NAV

0 - 20

3.710 - 20

--21.2401

96.29

24.50

10.55

10.15

7.24

6.22

5.16

3.85

3.67

2.29

2.01

20.63

0 5 10 15 20 25 30








Civil Engineering

Retail Trade, Except OfMotor Vehicles And…

Manufacture OfPharmaceuticals,Medicinal…

Others

Fund Performance




Investment Objective: To provide long term capital appreciation, through exposure to equity investments in Infrastructure and allied sectors,

and by diversifying investments across various sub-sectors of the infrastructure sector.

Other Funds Managed By fund Manager: Build India Fund, Grow Money Fund,Grow Money Pension Fund,Grow Money Pension Plus, Grow Money Plus.


Fund -1.32 10.58 20.65 16.23 13.82 11.55 Equity

Benchmark -1.39 7.15 14.70 12.11 8.66 10.43 Govt SecuritiesBenchmark: Nifty 100,*Inception Date- 15 Feb 2010, <1yr ABS & >=1yr CAGR Corporate Bond

Money Market/Cash

Total

Asset Allocation


Equity

Govt Securities


RELIANCE INDUSTRIES LTD 6.98 Money Market/Cash

HDFC BANK LTD 6.72





HDFC LTD 2.92


ICICI BANK LTD 2.45

ITC LTD 2.41

OTHERS 54.07


Total 100.00


101.76

Exposure (%)

96.62

3.38

100

Actual

96.62

3.380 - 20

AUM

--

--

80 - 100

-

Build India FundULIF01909/02/2010EBUILDINDA130

2906.77

--

--

0 - 20

3008.53Modified Duration

23.0225 --

--

--

NAV

24.31

11.35

9.94

7.26

6.14

4.72

4.04

3.73

2.41

2.09

20.64

0 5 10 15 20 25 30








Civil Engineering


Manufacture OfPharmaceuticals,Medicinal…

Others

Fund Performance




Investment Objective: To provide long term capital appreciation, through exposure to equity investments in Infrastructure and allied sectors,

and by diversifying investments across various sub-sectors of the infrastructure sector.

Other Funds Managed By fund Manager: Build India Pension Fund,

Grow Money Fund,Grow Money Pension Fund,Grow Money Pension Plus, Grow Money Plus.

Asset Class

1 Month 6 Months 1 year 2 years 3 yearsSince Inception Asset Class

Fund 0.00 8.34 14.34 12.36 11.82 10.17 Equity 3134.71 46.71

Benchmark -0.60 5.65 10.98 10.78 9.75 9.16 Govt Securities 1684.77 25.11

Corporate Bond 1375.82 20.50

Money Market/Cash 515.43 7.68

Total 6710.73 100

29.3386 5.50

Instrument

Equity 46.71 Equity

VEDANTA LIMITED 3.65 Govt Securities

Indusind Bank Ltd 3.62 Corporate Bond

AVENUE SUPERMARTS LIMITED 2.69 Money Market/Cash



HDFC Bank Ltd 1.98

ITC LTD 1.59


Yes Bank Ltd 1.42

HDFC LTD 1.41

Others 24.10

Govt Securities 25.11

8.15% GOI 2026 6.38

6.68% GOI 2031 5.13

7.59% GOI 2029 3.84

8.6% GOI 2028 2.06

7.35% GOI 2024 1.86

8.3% GOI 2040 1.82

8.08% GOI 2022 1.05

7.8% GOI 2021 1.01

7.16% GOI 2023 0.96

8.13% GOI 2022 0.39

Others 0.62

Corporate Bond 20.50

9.55% HINDALCO 27/06/2022 4.34

10.25% RGTIL 22/08/2021 3.78

9.6% EXIM 07/02/2024 3.66

7.59% PNB HOUSING FINANCE LTD 27/07/2022 3.49

7.6% Axis Bank Ltd 20/10/2023 1.82

10.4% RPT LTD 18/07/2021 1.32

9.6% HDB Fin Services Ltd 22/03/2023 1.15 Name of Fund Manager - Sandeep Nanda

12% INDIAINFOLINEFINSER 30/09/2018 0.93

9.5% SBI 04/11/2020 0.02


Total 100

NAV

Exposure (%)

0 - 40

Benchmark: Nifty 100=45%, Crisil Composite Bond Fund Index=55%,*Inception Date- 21 Aug 2006,

<1yr ABS & >=1yr CAGR

Asset Allocation

0 - 40 7.68

0 - 50

25.11

46.71

Actual

Modified Duration

0 - 60

Save and Grow Money FundULIF00121/08/2006BSAVENGROW130

20.50

AUM

AUM

Asset Allocation

Asset Mix (F&U)

Exposure (%)Fund Performance

Debt Ratings Profile

Debt Maturity Profile (%To Fund)

21.94 9.89

4.66 3.49 3.18

2.69 2.30 1.94 1.64 1.60

13.88

0 5 10 15 20 25

Financial And Insurance…Manufacture Of Basic Metals

Manufacture Of Coke And…Housing Finance

Manufacture Of Motor…Retail Trade, Except Of…

Manufacture Of Chemicals…Manufacture Of Other Non-…

Civil EngineeringManufacture Of Other…

Others


0.93 15.39

29.29

0.00

50.00

0-1 Yrs 1-3 Yrs 3-5 Yrs >5 Yrs

Investment Objective: To provide steady accumulation of income in medium to long term by investing in high quality debt papers and government securities and a limited

opportunity of capital appreciation. This would be more of a defensively managed fund.

Fund Performance Asset Class ( % To Fund)


Other Funds Managed By fund Manager: Build N Protect Fund Series 1,Safe Money Fund,Safe Money Pension Fund, Save N Grow Money PensionFund,Steady Money Fund,Steady Money Pension Fund,True Wealth Fund

AAA & Eq 33%

AA & Below 12%

Sovereign 55%

1 Month 6 Months 1 year 2 years 3 years SI Asset Class

Fund -0.40 7.51 13.05 11.59 11.72 9.09 Equity

Benchmark -0.60 5.65 10.98 10.78 9.75 6.12 Govt Securities

Corporate Bond

Money Market/Cash

Total

Instrument

Equity 46.01 Equity

Indusind Bank Ltd 3.98 Govt Securities

MARUTI UDYOG LTD 3.40 Corporate Bond

RELIANCE INDUSTRIES LTD 2.90 Money Market/Cash

Kotak Mahindra Bank Ltd 2.52

HDFC Bank Ltd 2.37

Shree Cement Ltd 2.04

HDFC LTD 1.98

Hindustan Petroleum Corp Ltd 1.89



Others 21.31


8.15% GOI 2026 4.96

8.6% GOI 2028 3.88

6.97% GOI 2026 2.68

8.3% GOI 2040 2.19

8.13% GOI 2022 1.45

7.35% GOI 2024 0.90

8.2% GOI 2025 0.24


9.55% HINDALCO 27/06/2022 8.28

10.25% RGTIL 22/08/2021 6.04

7.59% PNB HOUSING FINANCE LIMITED 27/07/2022 4.46

9.6% EXIM 07/02/2024 3.67

7.6% Axis Bank Ltd 20/10/2023 3.34

10.4% RPT LTD 18/07/2021 2.42

9.5% SBI 04/11/2020 0.09


Total 100.00

Name of Fund Manager - Sandeep Nanda

0 - 60 46.01

AUM Exposure (%)

ActualAsset Mix (F&U)

Benchmark: Nifty 100=45%, Crisil Composite Bond Fund Index=55%,*Inception Date- 03

Jan 2008, <1yr ABS & >=1yr CAGR

148.61

85.63 9.39

Save and Grow Money Pension Fund ULIF00426/12/2007BSNGROWPEN130

0 - 50

16.29

100NAV

23.3434

Asset Allocation

0 - 40

4.87

Modified Duration 912.24

0 - 40

28.31

9.39

46.01419.76

16.29

28.31258.24

Fund Performance



AAA & Eq 45%

AA & Below 19%

Sovereign 36%

23.87 12.33

6.28 4.86 4.46

3.16 1.82 1.74 1.38 1.33

13.09

0 5 10 15 20 25 30

Financial And Insurance…Manufacture Of Basic Metals

Manufacture Of Coke And…Manufacture Of Motor…

Housing FinanceManufacture Of Other Non-…

Manufacture Of Other…Civil Engineering

Manufacture Of Tobacco…Computer Programming,…

Others


22.75

21.85

21

22

23


Investment Objective:To provide steady accumulation of income in medium to long term by investing in high quality debt papers and government securities and a

limited opportunity of capital appreciation. This would be more of a defensively managed fund.



Other Funds Managed By fund Manager:Build N Protect Fund Series 1, Safe

Money Fund,Safe Money Pension Fund,Save N Grow Money Fund,Steady Money Fund,Steady Money Pension Fund,True Wealth Fund


Fund 0.27 6.10 8.76 9.48 8.81 2.53 Equity

Benchmark -- -- -- -- -- -- Govt Securities

Corporate Bond

Money Market/Cash

Total

Instrument

Equity 29.85 Equity

MARUTI UDYOG LTD 4.94 Govt Securities

Yes Bank Ltd 3.85 Corporate Bond

Power Grid Corp Ltd 3.05 Money Market/Cash

Indusind Bank Ltd 2.95

HDFC Bank Ltd 2.05

Bajaj Finserv Limited 1.33

VETO SWITCHGEARS AND CABLES LTD 1.04


BHARTI INFRATEL LIMITED 0.82


Others 8.11


8.12% GOI 2020 19.19

8.79% MAH SDL 2021 16.51

8.91% MAH SDL 2022 5.53

8.94% GUJ SDL 2022 5.51

8.15% GOI 2022 5.45

8.6% MAH SDL 2021 5.45

8.27% GOI 2020 4.18

8.79% GOI 2021 2.61

7.8% GOI 2020 2.34

7.8% GOI 2021 1.82

Others 0.05


Total 100


Modified Duration

3.19

*Inception Date- 11 Oct 2010, <1yr ABS & >=1yr CAGR

AUM

0 - 100

0 - 100

Asset Allocation

1.50

100

--

True Wealth Fund

Exposure (%)

ULIF02104/10/2010BTRUEWLTHG130

68.65

NAV

11.9063

29.85

68.65

2892.37

6652.51

--

145.83

9690.71

-

0 - 100

--

1.50

Actual

29.85

Asset Mix (F&U)

Fund Performance



100%

Sovereign

12.16 4.94

1.55 1.22 1.04 0.79 0.76 0.68 0.56 0.50

5.65

0 5 10 15

Financial And…Manufacture Of Motor…

Manufacture Of Basic…Manufacture Of…

Manufacture Of Coke…Retail Trade, Except Of…

Manufacture Of…Manufacture Of Other…Manufacture Of Paper…Manufacture Of Other…

Others


6.53

62.07

0.05 0

100


Investment Objective:To provide the highest daily NAV guarantee during the tracking period, subject to a minimum NAV of Rs. 12, at maturity by investing in a

mix of fixed income securities, money market instruments and diversified high quality equities in such a manner so as to meet the highest NAV guarantee on

maturity. We would also use equity and fixed income derivatives as permitted by IRDA from time to time.


Other Funds Managed By fund Manager: Build N Protect Fund Series 1,Safe Money Fund,Safe Money Pension Fund, Save N Grow Money Fund,Save N Grow Money PensionFund, Steady Money Fund,Steady Money Pension Fund



Fund -0.42 4.30 7.69 9.3 10.74 8.52 Equity

Benchmark 0.04 4.43 7.94 9.69 10.64 7.83 Govt Securities

Corporate Bond

Money Market/Cash

Modified Duration Total

Instrument

Govt Securities 39.04 Equity

8.15% GOI 2026 10.22 Govt Securities

6.68% GOI 2031 9.95 Corporate Bond

8.6% GOI 2028 4.70 Money Market/Cash

6.35% GOI 2024 4.00

7.8% GOI 2021 3.10

8.08% GOI 2022 2.91

7.35% GOI 2024 2.59

8.2% GOI 2025 0.79

8.3% GOI 2040 0.76


7.6% Axis Bank Ltd 20/10/2023 7.24

9.55% HINDALCO 27/06/2022 7.19

9.6% EXIM 07/02/2024 6.15

7.59% PNB HOUSING FINANCE LIMITED 27/07/2022 5.38

7.71% L&T Finance Limited 08/08/2022 4.63

9.81% POWER FIN CORP 07/10/2018 3.78

9.6% HDB Fin Services Ltd 22/03/2023 3.30

10.25% RGTIL 22/08/2021 3.29

10.4% RPT LTD 18/07/2021 1.02

12% INDIAINFOLINEFINSER 30/09/2018 0.96

Others 0.06


Total 100.00


--

1698.15

43.01

17.95

Asset Mix (F&U)

Exposure (%)

43.01

17.95

AUM

39.04

0 - 40

-

Steady Money FundULIF00321/08/2006DSTDYMOENY130

--

39.04

100

5.02

NAV24.7369

Benchmark: CRISIL Composite Bond Fund Index,*Inception Date- 05 Sep 2006, <1yr

ABS & >=1yr CAGR

4350.19

--

Actual

40 - 60

20 - 80

1870.99

781.06

0.96 3.78

27.58

49.72

0

10

20

30

40

50

60


Fund Performance

Debt portfolio % To Fund


Debt Maturity Profile (% To Fund)

AAA & Eq 37%

AA+ & Eq 6%

AA & Below 10%

Sovereign 47%

Investment Objective:To provide steady accumulation of income in medium to long term by investing in corporate bonds and government securities.

Fund Performance Asset Allocation


Other Funds Managed By fund Manager: Build N Protect Fund Series 1, Safe Money Pension Fund,Save N Grow Money Fund, Save N Grow Money Pension Fund,Safe Money Fund, Steady Money Pension Fund,True Wealth Fund

22.35

7.19

5.38

0 5 10 15 20 25



Housing Finance



Fund -0.21 3.40 6.34 8.23 10.04 6.38 Equity

Benchmark -3.46 0.09 0.72 4.42 6.15 4.76 Govt Securities

Benchmark: 7 Years G-Sec*,*Inception Date- 19 May 2009, <1yr ABS & >=1yr CAGR Corporate Bond

Money Market/Cash

Total






8% GOI 2026 5.33


Total 100.00


--

97.3560 - 100

-

0 - 40

100331.29

5.4516.7840

NAV

--

0 - 20 2.65

2.65

Actual

--

--

Modified Duration

Build n Protect Series 1 FundULIF00919/05/2009BBUILDNPS1130

Exposure (%)

--

97.35

AUM

--

322.51

8.78

97.35

0

20

40

60

80

100

120


Fund Performance




100%

Sovereign

Investment Objective: To protect investments at maturity through steady accumulation of income by investing in government securities while seeking to provide a limited opportunity

for capital appreciation by investing in equities.



Other Funds Managed By fund Manager: Safe Money Fund, Safe Money Pension Fund, Save N Grow Money Fund, Save N Grow Money Pension Fund, Steady Money Fund, Steady Money Pension Fund, True Wealth Fund


Fund 0.04 2.67 5.70 6.26 6.74 6.95 Equity


Corporate Bond

Money Market/Cash

Total

Instrument


182 D TB 30/11/2017 24.74 Govt Securities

329 D TB 12/03/2018 15.66 Corporate Bond

182 D TB 16/11/2017 8.20 Money Market/Cash

364 D TB 17/08/2018 4.70

182 D TB 02/11/2017 3.73


POWER FIN CORP CP 15/11/2017 9.01

INDIABULLS HOUSING FINANCE LTD. CP 28/06/2018 8.83

JM FINANCIAL PRODUCTS LTD CP 23/10/2017 8.22

L&T FINANCE CP 04/06/2018 7.88

HERO FINCORP LTD CP 20/07/2018 3.92


Total 100.00


-

Exposure (%)

5.11

AUM

--

1380.56

Asset Mix (F&U) Actual

100Modified Duration

916.65

123.83

2421.04

Benchmark: CRISIL Liquid Fund Index,*Inception Date- 08 Jul 2009, <1yr ABS & >=1yr CAGR

0 - 40

17.3878

NAV0.34

40 - 60

0 - 60 37.86

5.11

--

57.02

Safe Money FundULIF01007/07/2009LSAFEMONEY130

--

57.02

37.86

Fund Performance


Investment Objective:To provide capital protection through investment in low-risk money-market & short-term debt instruments with maturity of 1 year or lesser.


Asset Class Wise Exposure

Other Funds Managed By fund Manager: Build N Protect Fund Series 1, Safe Money Pension Fund, Save N Grow Money Fund, Save N Grow Money Pension Fund, Steady Money Fund, Steady Money Pension Fund, True Wealth Fund.


94.89

0

20

40

60

80

100



P1+ & Eq 40%

Sovereign 60%


20.02

8.83

0 5 10 15 20 25


Housing Finance


Fund 0.44 2.72 5.83 6.30 6.78 6.91 Equity


Corporate Bond

Money Market/Cash

Total

Instrument


182 D TB 30/11/2017 33.89 Govt Securities

364 D TB 17/08/2018 12.99 Corporate Bond

329 D TB 12/03/2018 3.50 Money Market/Cash

182 D TB 02/11/2017 3.41


INDIABULLS HOUSING FINANCE LTD. CP 28/06/2018 8.13

POWER FIN CORP CP 15/11/2017 6.79

L&T FINANCE CP 04/06/2018 6.53

JM FINANCIAL PRODUCTS LTD CP 23/10/2017 5.11

HERO FINCORP LTD CP 20/07/2018 4.87


Total 100.00


0 - 40

Modified Duration 292.07

Benchmark: CRISIL Liquid Fund Index,*Inception Date- 08 Jul 2009, <1yr ABS & >=1yr CAGR

Exposure (%)

--

53.78

31.44

14.78

AUM

14.78

Safe Money Pension FundULIF01107/12/2009LSAFEMONYP130

--

157.09

91.82

43.17

Actual

--

53.78

100NAV17.3438 0.39

31.44

Asset Mix (F&U)

-

40 - 60

0 - 60

85.22

0

20

40

60

80

100


Fund Performance




Investment Objective:To provide capital protection through investment in low-risk money-market & short-term debt instruments with maturity of 1 year or lesser.



P1+ & Eq 37%

Sovereign 63% Other Funds Managed By fund Manager: Build N Protect Fund Series 1,

Safe Money Fund,Save N Grow Money Fund, Save N Grow Money Pension Fund,Steady Money Fund, Steady Money Pension Fund,True Wealth Fund.

16.51

8.13

0 5 10 15 20


Housing Finance



Fund 0.11 4.35 7.56 9.09 10.58 8.31 Equity


Corporate Bond

Money Market/Cash

Total

Instrument





8.83% GOI 2023 5.62

8.08% GOI 2022 5.09

8.15% GOI 2026 4.95

7.16% GOI 2023 4.02

7.35% GOI 2024 3.45

8.2% GOI 2025 3.14

8.13% GOI 2022 0.15


9.6% HDB Fin Services Ltd 22/03/2023 8.07

10.4% RPT LTD 18/07/2021 6.47

10.25% RGTIL 22/08/2021 6.45

7.6% Axis Bank Ltd 20/10/2023 5.95

9.55% HINDALCO 27/06/2022 4.73

9.6% EXIM 07/02/2024 1.63

9.5% SBI 04/11/2020 0.42


Total 100.00


ActualAsset Mix (F&U)

Modified Duration

-

5.76

--

371.33

230.50

81.74

683.57

Steady Money Pension FundULIF00626/12/2007DSTDYMONYP130

--

54.32

33.72

11.96

Benchmark: CRISIL Composite Bond Fund Index,*Inception Date- 03 Jan 2008, <1yr ABS & >=1yr

CAGR

Exposure (%)AUM

33.72

11.96

--

54.32

21.7818

NAV 100

40 - 60

20 - 80

0 - 40

23.32

64.72

0

10

20

30

40

50

60

70


Fund Performance




Investment Objective:To provide steady accumulation of income in medium to long term by investing in corporate bonds and government securities.



AAA & Eq 33%

AA & Below 5%

Sovereign 62%

Other Funds Managed By fund Manager: Build N Protect Fund Series 1, Safe Money Fund,Safe Money Pension Fund,Save N Grow Money Fund, Save N Grow Money Pension Fund,Steady Money Fund, True Wealth Fund.

16.07

4.73

0 5 10 15 20




Disclaimers: 1.This Investment Newsletter is for information purpose only and should not be construed as financial advice, offer,

recommendation or solicitation to enter into any transaction. While all reasonable care has been ensured in preparing this newsletter,

Bharti AXA Life Insurance Company limited or any other person connected with it, accepts no responsibility or liability for errors of facts or

accuracy or opinions expressed and Policyholder should use his/her own discretion and judgment while investing in financial markets. 2.

The information contained herein is as on 30th September 2017. 3. Past performance of the funds, as shown above, is not indicative of

future performance or returns. 4. Grow Money Fund, Save n Grow Money Fund, Steady Money Fund, Growth Opportunities Fund, Grow

Money Pension Fund, Save n Grow Money Pension Fund, Steady Money Pension Fund, Growth Opportunities Pension Fund, Build n Protect

Fund Series 1, Safe Money Fund, Safe Money Pension Fund, Grow Money Plus, Grow Money Pension Plus, Growth Opportunities Plus,

Growth Opportunities Pension Plus Fund, Build India Pension, Build India Fund and True Wealth Fund are only the names of the funds

and do not indicate its expected future returns or performance. 5. ABS=Absolute Return, CAGR=Compounded Annual Growth Rate 6.

Sector allocations as shown in the newsletter are only for presentation purpose and do not necessarily indicate industry exposure.

Bharti AXA Life Insurance Company Limited. (IRDA Regn.No. 130),Regd. Address: 6th Floor, Unit- 601 & 602,

Raheja Titanium, Off Western Express Highway, Goregaon (East), Mumbai- 400 063.

Toll free: 1800 102 4444

SMS SERVICE to 56677 (We will be in touch within 24 hours to address your query),

Email: [email protected], www.bharti-axalife.com

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