sbi short term debt fund : an open ended debt fund - apr 2016

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SBI Short Term Debt Fund

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Page 1: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

SBI Short Term Debt Fund

Page 2: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

This product is suitable for investors who are seeking:

Investment in debt and money- market securities

Regular income for short term

Low risk

Disclaimer: Investors should consult their financial advisors if in doubt whether this product is suitable for them.

SBI Short Term Debt Fund

Page 3: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Scheme Highlights

Options Growth & Dividend

Plans Regular Plan & Direct Plan

Dividend Declaration of dividends on a weekly, fortnightly and monthly basis with reinvestment/payout facilities.

Minimum Investment Rs. 5000 & in multiples of Rs. 1 thereafter

FacilitiesSIP, STP, SWP facilities available

Minimum Application- Rs.1000/week for 6 weeks, Rs.500/month for 12 months, Rs.1000/month for 6 months, Rs. 1500/quarter

Exit Load 0.25% for exit within 90 days from the date of allotment

Page 4: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Short Term Fund positioning

Short Term Bond Fund lies in between Liquid /Ultra Short term Funds & Long Term Bond Funds in terms of risk/return positioning

Liquid Funds

Short Term Bond Funds

Long Term Bond Funds

Dynamic Bond Fund

Ultra Short Term Bond Funds

Duration profile

Yiel

d

Page 5: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Portfolio Analysis

Data as on April 30, 2016

Issuer % Of NAV

GOVERNMENT OF INDIA 21.69

POWER FINANCE CORPORATION LTD 9.02

RURAL ELECTRIFICATION CORP LTD 7.01

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 6.63

LIC HOUSING FINANCE LTD 5.77

ICICI BANK LTD 4.33

SP JAMMU UDHAMPUR HIGHWAY LIMITED 3.84

CORPORATION BANK 3.68

SHRIRAM TRANSPORT FINANCE CO. LTD. 3.59

TATA MOTORS LTD 3.19

Total 68.75

Top 10 Holdings

Ratings Breakdown % of NAV 

Below AA+ 4.93

AA+ 11.04

SOV,AAA and Equivalent 77.16

NCA(Incl. Cash,Deposits) 6.87

9.64 2.16

22.53

55.61

3.20 6.87 CD

CP

Dated Govt Securities

NCD

ZCB

NCA/CBLO/Reverse Repo

Page 6: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Performance Report

Data as on March 31, 2016

Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for regular plan, growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/- Additional benchmark as prescribed by SEBI for short-term debt schemes is used for comparison purposes.

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception

Absolute Returns (%) CAGR Returns (%) PTP Returns (INR)

SBI Short Term Debt Fund 8.07 10.27 7.86 6.53 17,325Crisil Short Term Bond Fund Index (Scheme Benchmark) 8.47 10.33 8.86 8.08 19,637Crisil 1 year T-Bill Index (Additional Benchmark) 7.69 8.74 5.84 6.27 16,960

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception0

2

4

6

8

10

12

SBI Short Term Debt Fund

Crisil Short Term Bond Fund Index (Scheme Benchmark)

Crisil 1 year T-Bill Index (Additional Benchmark)

Page 7: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Investment Objective: To provide investors with an opportunity to generate regular income through investments in a portfolio comprising of debt instruments which are rated not below investment grade by a credit rating agency and money market instruments.

Type of Instrument % of netassets

Risk profile

Debt securities including money-market instruments and debtDerivatives

65-100 Low toMedium

Securitized Debt 0-35 Medium

Scheme Highlights

Average Maturity: Portfolio average maturity is capped at 3 years. Average maturity is tactically maintained within the boundary range.

May-15

Jun-15

Jul-15 Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

0

1

2

3

4

5

2.91 2.74 2.892.64

2.99 2.812.54 2.53 2.68 2.7

2.95 2.85

Average Maturity over last 12 months

Page 8: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Trends in short term rates

Source: Bloomberg as on April 30, 2016

Less volatility is expected in short-term rates in the near term as RBI has engaged in active liquidity management.

May-14

May-14

Jun-14

Jun-14Jul-1

4

Aug-14

Aug-14

Sep-14

Oct-14

Oct-14

Nov-14

Nov-14

Dec-14Jan

-15Jan

-15

Feb-15

Mar-15

Mar-15

Apr-15

Apr-15

May-15

Jun-15

Jun-15Jul-1

5

Aug-15

Aug-15

Sep-15

Sep-15

Oct-15

Nov-15

Nov-15

Dec-15

Dec-15Jan

-16

Feb-16

Feb-16

Mar-16

Apr-16

Apr-16

6

7

8

9

10

11

12

MIBOR 91 Days T-bill 3 Month CD Rate 12 Month CD Rate

Page 9: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Narrowing Spreads Between the Long term and the Short term Bonds

Source: Bloomberg as on April 30, 2016

Corporate bond spreads have recently corrected to lower levels

May-14May

-14Jun

-14Jul-14Au

g-14

Aug-1

4Sep

-14Oct-

14Nov

-14Nov

-14Dec-

14Jan

-15Feb

-15Feb

-15Mar-

15Ap

r-15

May-15May

-15Jun

-15Jul-15Au

g-15

Aug-1

5Sep

-15Oct-

15Nov

-15Nov

-15Dec-

15Jan

-16Feb

-16Feb

-16Mar-

16Ap

r-16

7

8

9

10

11

AAA Yield Curve

1 Year AAA 3 Year AAA

Perc

enta

ge

Page 10: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

The portfolio would be invested in mark to market securities, with exposure to non mark to market securities kept largely for liquidity requirements and on a tactical basis .

The Portfolio in normal cases to have higher maturity / duration & mark to market component vis-à-vis liquid & ultra short term funds.

Investments in scheme suitable for investors having investment horizon of at least 3 months to a year.

Scheme investments to be made in Money market, Corporate Debt Including securitised debt and Sovereign securities etc.

The scheme has maintained a higher average maturity closer to the upper cap of 3 yrs. In view of the revised liquidity management framework, which entails significant liquidity infusion over time, the short term money market and bond curve could ease further. Accordingly the portfolio would have a positioning closer to the higher cap in terms of average maturity. The scheme would maintain a predominantly AAA /AA+ focus on credit, while taking selective exposure to non AAA bonds with a rating floor of AA-.

Current Investment Approach

Page 11: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Focus on consistent above average risk adjusted returns

– Fundamental research based approach and focus on risk management to generate consistent above average returns

Fundamental research based approach

– Capturing inefficiencies in the Fixed income markets that give rise to multiple sources of alpha through disciplined risk taking

Focus on risk management

– Risk management is crucial to achieving the investment objective and is an integral part of portfolio management.

Identifying multiple sources of alpha

– Sharper focus on credit research: credit cycles will be shorter and lack of liquidity pose another challenge.

Focus on Fundamental Research & Risk Management

Page 12: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Biographies

Navneet Munot joined SBI Funds Management as Chief Investment Officer in December 2008. He brings with him over 15 years of rich experience in Financial Markets. In his previous assignment, he was the Executive Director & Head - multi - strategy boutique with Morgan Stanley Investment Management.Prior to joining Morgan Stanley Investment Management, he worked as the CIO - Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Navneet had been associated with the financial services business of the group for over 13 years and worked in various areas such as fixed income, equities and foreign exchange. Navneet is a postgraduate in Accountancy and Business Statistics and a qualified Chartered Accountant. He is also a Charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM Charter holder of Global Association of Risk Professionals (GARP).

Navneet MunotCFA, Chief Investment Officer

Rajeev joined SBIFM as a fixed income portfolio manager in 2008. He currently heads the Fixed Income desk at the AMC. Prior to joining SBIFM, Rajeev was Co-Fund Manager for Fixed Income with UTI Asset Management for seven years. Rajeev is an Engineering graduate and holds a Masters degree in finance from Mumbai University. He is also a charter holder of the CFA Institute, USA

Rajeev Radhakrishnan CFA, Head of Fixed Income

Page 13: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Performance of other schemes managed by Mr. Rajeev Radhakrishnan

Past performance may or may not be sustained in the future. Returns (in %) other than since inception are absolute calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10, 000/-. Additional benchmark as prescribed by SEBI for long-term and short-term debt schemes is used for comparison purposes only. Performance calculated for regular plan.

Managing since June, 2008  

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-

2015

28-Mar-2013 To 31-Mar-

2014

Since Inception

Absolute Returns (%) CAGR Returns

(%)

PTP Returns (INR)

SBI Ultra-short Term Debt Fund - Growth 8.48 9.14 9.26 7.98 19,472

CRISIL Liquid Fund Index (Scheme Benchmark)

8.06 8.98 9.54 7.61 18,910Crisil 1 Year T-Bill Index (Additional benchmark) 7.69 8.74 5.84 6.27 16,960

Managing since November, 2013 

31-Mar-2015 To 31-Mar-

2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception

Absolute Returns (%)

CAGR Returns

(%) PTP Returns

(INR)

SBI Treasury Advantage Fund - Growth 8.69 9.73 9.09 8.32 16,779CRISIL 1 year CD Index (Scheme Benchmark) 8.54 9.32 8.34 N.A. N.A.

Crisil 1 Year T-Bill Index (Additional benchmark)

7.69 8.74 5.84 6.52 15,055

Managing since June, 2008

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-

2015

28-Mar-2013 To 31-Mar-2014

Since Inception

Absolute Returns (%

CAGR Returns

(%)

PTP Returns (INR)

SBI Magnum Children’s Benefit Plan - Growth 6.86 28.49 9.24 10.06 38,679CRISIL MIP Blended Index (Scheme Benchmark) 5.67 16.45 6.52 N.A. N.A.

Crisil 10 year Gilt Index (Additional benchmark) 7.97 14.57 -0.96 6.51 24,342

Managing since May, 2010

7 Days 15 Days

30 Days

31-Mar-2015 To 31-Mar-

2016

31-Mar-2014 To 31-Mar-

2015

28-Mar-2013 To 31-Mar-2014

Since Inception

SA Returns(%) Absolute Returns (%)

CAGR Returns

(%)

PTP Retur

ns (INR)

SBI Magnum Insta-Cash Fund – Growth Plan 13.51 10.50 9.35 8.22 8.93 9.57 7.40 33,370CRISIL Liquid Fund Index (Scheme Benchmark 14.43 10.94 9.82 8.06 8.98 9.54 N.A. N.A.Crisil 1 Year T-Bill Index (Additional benchmark) 7.17 6.90 6.97 7.69 8.74 5.84 6.55 29,190

Page 14: SBI Short Term Debt Fund : An Open Ended Debt Fund - Apr 2016

Disclaimer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. Neither SBI Funds Management Private Limited, nor any person connected with it, accepts any liability arising from the use of this information. The recipient of this material should rely on their investigations and take their own professional advice

SBI Funds Management Private Limited(A joint venture between SBI and AMUNDI)

Registered Office:9th Floor, Crescenzo, C-38 & 39, ‘G’ Block,Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

Board line: +91 22 61793000Fax: +91 22 67425687

Call: 1800 425 5425

SMS: “SBIMF” to 56161

Email: [email protected]

Visit us @ www.facebook.com/SBIMF

www.sbimf.com Website

Visit us @ www.youtube.com/user/sbimutualfund