sbi short term debt fund - sbi mutual fund leaflet and... · sip, stp, swp facilities available...
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SBI Short Term Debt Fund
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
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
Facilities
SIP, 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 45 days from the date of allotment
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
Yie
ld
Portfolio Analysis
Data as on August 31, 2016
Issuer % Of NAV
GOVERNMENT OF INDIA 26.00
HOUSING DEVELOPMENT FINANCE
CORPORATION LIMITED 8.70
POWER FINANCE CORPORATION LTD 7.81
LIC HOUSING FINANCE LTD 7.42
CORPORATION BANK 5.30
STATE GOVERNMENT OF RAJASTHAN 3.65
FULLERTON INDIA CREDIT COMPANY LTD 3.59
ICICI BANK LTD 3.54
RURAL ELECTRIFICATION CORP LTD 3.40
TATA MOTORS LTD 3.33
Total 72.74
Top 10 Holdings
Ratings Breakdown % of NAV
Below AA+ 5.66
AA+ 5.99
SOV,AAA and Equivalent 80.48
NCA(Incl. Cash,Deposits) 7.87
9.73 1.35
29.65
48.41
0.47 2.52
7.87
CD
CP
Dated Govt Securities
NCD
T-Bills
ZCB
NCA/CBLO/ReverseRepo
Performance Report
Data as on June 30, 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.
30-Jun-2015 to 30-Jun-2016
30-Jun-2014 to 30-Jun-2015
28-Jun-2013 to 30-Jun-2014
Since Inception
Absolute Returns (%) CAGR Returns (%) PTP Returns
(INR)
SBI Short Term Debt Fund 8.75 9.02 7.73 6.59 17,681
Crisil Short Term Bond Fund Index
(Scheme Benchmark) 8.94 9.56 8.81 8.11 20,070
Crisil 1 year T-Bill Index (Additional
Benchmark) 7.67 8.54 5.93 6.30 17,267
0
2
4
6
8
10
12
30-Jun-2015 to 30-Jun-2016
30-Jun-2014 to 30-Jun-2015
28-Jun-2013 to 30-Jun-2014
SBI Short Term Debt Fund - Reg Plan -Growth
Scheme Benchmark: - Crisil Short TermBond Fund Index
Additional Benchmark: - Crisil 1 Yr T-BillIndex
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 net assets
Risk profile
Debt securities including money- market instruments and debt Derivatives
65-100 Low to Medium
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. 2.99
2.81 2.54 2.53
2.68 2.70 2.95 2.85 2.77
2.93 2.87 2.88
0
1
2
3
4
5
Average Maturity over last 12 months
Trends in short term rates
Source: Bloomberg as on August 31, 2016
Less volatility is expected in short-term rates in the near term as RBI has engaged in active liquidity
management.
6
7
8
9
10
11
12 MIBOR 91 Days T-bill 3 Month CD Rate 12 Month CD Rate
Narrowing Spreads Between the Long term and the Short term Bonds
Source: Bloomberg as on August 31, 2016
Corporate bond spreads have recently corrected to lower levels
7
8
9
10
11Sep-1
4
Oct-
14
Nov-1
4
Dec-1
4
Jan-1
5
Feb-1
5
Mar-
15
Apr-
15
May-1
5
Jun-1
5
Jul-
15
Aug-1
5
Sep-1
5
Oct-
15
Nov-1
5
Dec-1
5
Jan-1
6
Feb-1
6
Mar-
16
Apr-
16
May-1
6
Jun-1
6
Jul-
16
Aug-1
6
Percen
tag
e
AAA Yield Curve
1 Year AAA 3 Year AAA
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.
Over the next 3-6 months, inflation is expected to decline significantly supported largely by softening food prices. This along with RBI’s neutral liquidity stance and rate cut expectation could result in further spread contraction across the curve. The scheme would maintain a predominantly AAA /AA+ focus on credit.
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
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
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 Munot CFA, 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
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
30-Jun-
2015 to 30-Jun-2016
30-Jun-2014 to 30-Jun-
2015
28-Jun-2013 to 30-Jun-
2014
Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns
(INR)
SBI Ultra-short Term Debt
Fund - Growth 8.40 8.98 9.25 7.98 19,857
CRISIL Liquid Fund Index
(Scheme Benchmark) 7.90 8.77 9.68 7.62 19,265
Crisil 1 Year T-Bill Index
(Additional benchmark) 7.67 8.54 5.93 6.30 17,267
Managing since
November, 2013
30-Jun-2015 to 30-Jun-2016
30-Jun-2014 to 30-Jun-2015
28-Jun-2013 to 30-Jun-2014
Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns (INR)
SBI Treasury Advantage
Fund - Growth 8.53 9.26 9.76 8.30 17,096
CRISIL 1 year CD Index
(Scheme Benchmark) 8.26 9.19 7.82 N.A. N.A.
Crisil 1 Year T-Bill Index
(Additional benchmark) 7.67 8.54 5.93 6.55 15,328
Managing since June,
2008
30-Jun-2015 to 30-Jun-2016
30-Jun-2014 to 30-Jun-
2015
28-Jun-2013 to 30-Jun-2014
Since Inception
Absolute Returns (%
CAGR Returns
(%)
PTP Returns
(INR)
SBI Magnum Children’s
Benefit Plan - Growth 15.04 9.76 26.39 10.33 41,023
CRISIL MIP Blended
Index (Scheme
Benchmark) 8.63 11.05 8.28 N.A. N.A.
Crisil 10 year Gilt Index
(Additional benchmark) 10.03 11.76 -2.47 6.53 24,807
Managing since
May, 2010
7 Days
15 Days
30 Days
30-Jun-2015 to 30-Jun-2016
30-Jun-2014 to 30-Jun-2015
28-Jun-2013 to 30-Jun-2014
Since Inception
SA Returns (%)
Absolute Returns (%) CAGR
Returns
(%)
PTP
Retur
ns
(INR)
SBI Magnum Insta-
Cash Fund – Growth
Plan 7.66 7.59 7.58 8.10 8.77 9.61 7.41 34,019 CRISIL Liquid Fund
Index (Scheme
Benchmark 8.20 7.47 7.82 7.90 8.77 9.68 N.A. N.A.
Crisil 1 Year T-Bill
Index (Additional
benchmark) 7.64 7.22 7.40 7.67 8.54 5.93 6.57 29,720
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 61793000
Fax: +91 22 67425687
Call: 1800 425 5425
SMS: “SBIMF” to 56161
Email: [email protected]
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www.sbimf.com Website
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