Aditya BSL Short Term
Fixed-Income Stats
M
aneesh Dangi heads the fixed income
team at Aditya Birla Sun Life AMC
and is also the co-CIO at the AMC. He has
15+ years of experience in research and
fund management and has been with
Aditya BSL AMC since 2006. Dangi is an
experienced portfolio manager and we
view his in-depth understanding of the
macro-economy as being an advantage.
The fund house runs one of the largest
teams on the Fixed Income side, consisting
of a 12-member analyst team. This includes
four portfolio managers who also double
up as analysts. Analysts too take on dual/
multiple roles based on their expertise.
The fund typically invests in high quality
debt papers and has not taken active
credit bets in the past. The issuer-selection
process on the corporate bond side is
extremely detailed and based on a well-
defined set of processes. The team relies
on their internal ratings and processes as
opposed to external credit rating agencies.
Given their focus on quality and liquidity,
analysts tend to undertake an in-depth
evaluation of the management, corporate
governance practices, financial standing
of the issuers, liquidity, and risk. Overall,
the investment process seems robust,
given the manager’s focus on conducting
competitor analysis, scenario analysis,
and client profiling that form important
aspects of the process. The core of the
strategy lies in a combination of taking a
duration view based on the interest rate
directional movements and taking some
credit bets in high quality corporate bonds
at the shorter end of the yield curve. In line
with its philosophy, the strategy allocates
a portion of its assets to G-Secs and State
Development Loans (SDL) in addition to
investing in high quality debt papers. Dangi
can vary his allocation towards these
based on their valuations and relative
spreads. The execution of the strategy
is reflected in the fund’s noteworthy
performance. The fund has remained a
consistent performer over the years.
Performance Relative to Peer Group
Top Quatile
2nd Quartile
3rd Quartile
Bottom Quartile
Peer Group (5-95%): Open End Funds - India - Short-Term Bond
Calculation Benchmark: None
11.0
9.0
7.0
5.0
3.0
YTD
2016
2015
2014
2013
2012
India Fund Short-Term Bond
Aditya BSL Short Term Reg Gr
Trailing Returns
Data Point: Return Calculation Benchmark: None
YTD 1 Year 3 Years 5 Years 10 Years 15 Years
Aditya BSL Short Term
Reg Gr 6.19 7.69 9.05 9.21 8.67 8.09
India Fund Short-Term
Bond 4.86 6.10 7.21 7.45 7.32 6.74
Portfolio Date: 10/31/2017
-
2.4
8.1
-
AAA
Average Eff Duration
Average Eff Maturity
Average Coupon
Average Price
Average Credit Quality
Risk-Reward
Time Period: 11/1/2012 to 10/31/2017
12.0
Investment Strategy
Aditya BSL
Short Term
Reg Gr
8.0
4.0
0.0
0.0 0.3 0.6 0.9 1.2 1.5 1.8
Top Holdings
India Fund
Short-Term
Bond
Portfolio
Weighting (%)
8.40% Govt Stock 2024
Power Finance
Corporation Ltd.
ONGC Petro Additions Ltd.
Rural Electrification
Corporation Ltd.
Aditya BSL Cash Plus Dir Gr
Reliance Jio Infocomm
Limited
8.83% Govt Stock 2023
Tata Sons Ltd.
Mahindra & Mahindra
Financial Services Ltd
6.84% Govt Stock 2022
2.52
1.96
1.93
1.91
1.87
1.76
1.23
1.20
1.20
1.09
Key Information
Morningstar Category
India Fund
Short-Term Bond
Fund Size (`)
209
Inception Date
3/3/1997
Annual Report Net Expense Ratio 0.32
Morningstar Rating Overall
****
Manager Name
Multiple
Minimum Investment(`)
1,000
Data Source: Morningstar India
www.outlookmoney.com December 2017 Outlook Money
29