uti medium term fund · 2021. 2. 17. · diversified portfolio of bonds (37.83%), g-secs (54.11%)...
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UTI Medium Term Fund
UTI Mutual Fund | January 2021
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully
Macroeconomic linkages key to market growth
%Interest Rates &
INRInflation
Global Liquidity &
Capital Flows
GDP & Fiscal Consolidation
Macroeconomic Environment & Fixed Income markets
CPI softened to 6.93% in November’2020 from 7.61% in October’2020
The CPI print softened mainly due to lower food inflation print. Food inflation for November’20200 came in
at 8.83% compared to 10.09% in October’2020
Core inflation rose to 5.51% in November’2020 from 5.46% in October’2020
Inflation
Interest Rates
Global Liquidity &
Capital Flows
GDP & Fiscal
Consolidation
Monetary Policy Committee (MPC) maintained accommodative stance and kept the rates unchanged at 4%
They announced few developmental and regulatory policy which includes on Tap TLTRO – Extension of Sectors
and Synergy with ECLGS 2.0, facilitating More Efficient Liquidity Management for Regional Rural Banks (RRBs)
etc.
US Federal Reserve has maintained the rates at 0.25% and mentioned that they will continue with its bond
purchases and the array of lending and liquidity programs
Bank of Japan left rates unchanged at -0.1% while maintaining a 10yr JGB yield target at 0.00%.
ECB maintained deposit facility rate to -0.5% and kept main refinancing operations & marginal lending rate
unchanged at 0% & 0.25% respectively
Bank of England (BoE) maintained the policy rate at 0.1% and mentioned that it does not intend to tighten
monetary policy until significant progress is being made in eliminating spare capacity
Indian economy witnessed a contraction of 7.5% in the Q2FY21 as compared to a contraction of 23.9%
in the Q1FY21 and a growth of 4.4% in the same period of the previous year.
All the sectors witnessed contraction in economic activity barring the manufacturing sector, agriculture
sector and electricity, gas, water supply and other utility services sector.
Index of Industrial Production (IIP) grows first time in current fiscal to 3.6% in November’2020 from 0.5% in
September 2020 (revised)
Based on data available till December 2020. SLR - Statutory Liquidity Ratio, JGB; Japan Government Bond; ECB – European Central Bank
How will key economic factors play out
Some improvement seenGrowth
Some softening seenInflation
Likely to be in surplusLiquidity
Significant breach expected as India’s fiscal deficit
reached 109% of the full-year target in the first five
monthsFiscal Deficit
AccommodativeRBI Policy%
Our Fixed Income Team
Amandeep Chopra
Head of Fixed Income
MBA
Total Exp: 28 yrs
Siddhay Saikar
AFM & Research Analyst
MBA
Total Exp: 14 yrs
Details of the investment team as on December 31, 2020
Sudhir Agarwal
Fund Manager
MBA & CFA
Total Exp: 15 yrs
Ritesh Nambiar
Fund Manager
MBA, CFA & FRM
Total Exp: 15 yrs.
Sunil Patil
Fund Manager
MFM & M.Com
Total Exp: 31 yrs.
Amit Sharma
Fund Manager
CA,FRM
Total Exp: 12 yrs.
Subhradeep Mitra
Research Analyst
MBA (Finance)
Total Exp: 8 yrs
Pratik Jain
Research Analyst
MBA (Finance)
Total Exp: 7 yrs
Manish Joshi
Fund Manager
MSc, MFM
Total Exp: 23 yrs
Shilpita Guha
CIO
MSc (Economics), MBA
Total Exp: 31 yrs
Rahul Aggarwal
Portfolio Manager
BE, MBA (Finance)
Total Exp: 15 yrs
Suraj Bafna
Portfolio Analyst
MBA (Fiannce)
Total Exp: 10 yrs
Ravi Agarwal
Research Analyst
CFA,CA
Total Exp: 8 yrs
Mutual Funds
PMS, Retirement Solution & Offshore
Research & Portfolio Analyst
Vaibhavi Kamat
Research Analyst
MBA,CFA, FRM
Total Exp: 10 yrs
Ayushi Rathore
Research Analyst
CA
Total Exp: 2 yrs
Fund
OverviewWhy
InvestPerformance
Portfolio
DetailsKey
Highlights
UTI Medium Term Fund
Key Highlights
Type of scheme
An open ended medium term debt
scheme investing in instruments such
that the Macaulay duration of the
portfolio is between 3 years and 4
years.
Investment objective
The investment objective of the scheme is to generate reasonable income by investing in debt &
money market securities such that the Macaulay duration of the portfolio is between 3 to 4 years.
However there can be no assurance that the investment objective of the Scheme will be
achieved. The Scheme does not guarantee / indicate any returns.
Fund Manager
Amandeep Chopra
Ritesh Nambiar
Benchmark
CRISIL Medium
Term Debt Index
Load Structure
Entry Load: Not Applicable
Exit Load: < = 365 Days :1.00%
> 365 Days : NIL
Minimum investment amount
Rs. 5,000 and in multiples of Re.1
thereof. Subsequent min. investment Rs.
1000 and in multiples of Re.1 thereof
%
About the Fund Manager
Key Highlights
Fund ManagerMr. Ritesh Nambiar (Bachelors in Management Studies (BMS) from
Mumbai University CFA, FRM, Masters in Management Studies (MMS)
[Finance] from Mumbai University). He joined UTI in 2008. Prior to joining
UTI, he has 3 years of experience in CRISIL and TransMarket Group
Research. In UTI he has worked in Department of Securities Research and
is presently in Department of Fund Management - Debt
Ritesh Nambiar
Total Exp: 15 yrs.
Head of Fixed Income Mr. Amandeep Singh Chopra is a graduate from St. Stephens College,
Delhi and an MBA from FMS, Delhi. Prior to joining UTI he has worked with
Aaina Exports Ltd. as a production co-ordinator and at Stenay Ltd. as a
Quality Control Inspector. He has been with UTI AMC since 1994 and has
been responsible for increasing the asset value in some of the select
funds. He has achieved CPR1 and CPR2 ranking for several funds as a
Fund Manager. Three of his funds namely UTI Liquid Cash Plan, UTI Liquid
Cash Plan-Institutional and UTI Bond Fund has been awarded CNBC TV-18
Crisil Mutual Award. Presently, he is functioning as the Head of Fixed
Income.
Amandeep Chopra
Total Exp: 28 yrs
Fund Overview
About the Scheme
• UTI Medium Term Fund invests indiversified portfolio consisting of debt
& money market instruments alongwith tactical allocation to governmentsecurities.
• The scheme primarily invests incorporate bonds with the aim togenerate accrual in come while
capital appreciation would likely begenerated through durationmanagement and change in credits
Portfolio Quants
High
Medium
Low
Long Mid Short
Average Maturity
Cre
dit Q
ua
lity
Risk and Maturity Profile
Modified
Duration:
3.34 Yrs.
YTM:
5.75%
Average
Maturity:
4.26 Yrs
AUM
Rs. 86 Crs
Data as on December 31, 2020
Top 10 Holdings
The scheme maintains a welldiversified portfolio of bonds(37.83%), G-Secs (54.11%) andcash & equivalents (8.06%)
Modest exposure of 11.57% inAA- & below rated papers
The average maturity of thefund has been increased from4.20 yrs in Nov’2020 to 4.26 yrsin Dec’2020
No investment in Realty andLAS
There is no borrowing in thefund
Portfolio Details
Portfolio Snapshot
Data as on December 31, 2020. A segregated portfolio for Vodafone Idea and Yes Bank Ltd. was created on 17th Feb’2020 and 6th March’2020
Portfolio Composition (%) Credit Profile (%)
Portfolio Details
Average Maturity (Years)
Data as on December 31, 2020
Why invest in UTI Medium Term Fund?
Potential to generate
superior risk adjusted
returns from both interest
income and capital gains
A well-diversified portfolio
of government securities
and debt instruments with
a portfolio duration of 3 to
4 years
Aims to benefit from
narrowing of credit
spreads
1
2
3
Who should invest?
Investors who
have moderate
risk appetite with a
longer investment horizon
Investors seeking to build
their long term debt
portfolio
Investors seeking to
do asset allocation
across various asset
classes
Overview of Fund Performance
Assuming that all payouts during the period have been reinvested in the units of the scheme at the immediate ex-div NAV Past performance may or may not be
sustained in future. *Additional Benchmark. Source: ICRA MFI Explorer. Since Inception returns for fund performance is calculated from 31-Mar-15; Since Inception
returns for SIP is calculated from 01-Apr-15. The performance of the scheme is affected to the extent of the segregated portfolio. Past performance may or may
not sustain in the future. Different plans have a different expense structure. The performance details provided herein are of regular plan growth option as of
December 31, 2020. Mr. Amandeep Chopra and Mr. Ritesh Nambiar l is managing the scheme since June 2015
Fund Performance (Growth of Rs. 10,000) Fund Performance (%)
SIP Performance (Rs. 10,000 invested every month) SIP Performance (%)
Performance of other schemes managed by Fund Managers
Source: ICRA MFI Explorer. Data as on 31-December-20. Past performance may or may not sustain in the future. Mutual Fund investments are subject to market risks,
read all the scheme related documents carefully.
Impact on NAV due to Segregation of Portfolio
Product Labeling
The product is suitable for investors who are seeking:*
• Reasonable income over the medium to long term
• Investment in Debt & Money Market Instruments*Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
UTI Medium Term FundRISKOMETER
Thank You
REGISTERED OFFICE: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management
Company Ltd (Investment Manager for UTI Mutual Fund) Email: [email protected] . (CIN-U65991MH2002GOI137867). For more information, please
contact the nearest UTI Financial Centre or your AMFI/NISM certified UTI Mutual Fund Independent Financial Advisor (IFA) for a copy of the
Statement of Additional Information, Scheme Information Document and Key Information Memorandum cum Application Form.
Disclaimers: The information on this document is provided for information purposes only. It does not constitute any offer, recommendation or
solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any
prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in
any illustration. Users of this document should seek advice regarding the appropriateness of investing in any securities, financial instruments or
investment strategies referred to on this document and should understand that statements regarding future prospects may not be realized.
The recipient of this material is solely responsible for any action taken based on this material. Opinions, projections and estimates are subject
to change without notice.
UTI AMC Ltd is not an investment adviser, and is not purporting to provide you with investment, legal or tax advice. UTI AMC Ltd or UTI Mutual
Fund (acting through UTI Trustee Company Pvt. Ltd) accepts no liability and will not be liable for any loss or damage arising directly or
indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including
any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document,
its contents or associated services, or due to any unavailability of the document or any part thereof or any contents or associated services.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.