Ultra Short Term Funds - UST

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1 Ultra Short Term Funds - UST Oct 2016

2 Ultra Short Term Funds Ultra-short Term funds are Mutual Fund Schemes that maintains low duration and generally invest in fixed income securities with extremely short maturities They invest in a range of money market and debt instruments with short term maturities Key Benefits : The ultra short term category funds provide cash management and short term (up to 3 12 months) investment solutions to investors Aims to deliver higher risk adjusted yield in short term periods due to relatively longer maturities than liquid funds

3 RMF Advantage : UST Schemes Conservative Ultra Short Term Fund Reliance Money Manager Fund Rated ICRA AAA mfs A low duration, high grade UST fund Ideal Alternate to Liquid Funds Aggressive Ultra Short Term Fund Reliance Medium Fund Rated ICRA AAA mfs A longer maturity, high yield UST variant focusing on roll down/steepening benefits at shorter end of the curve

4 Distinct Positioning of UST & Short Term Funds The above credit & duration profile for the schemes is proposed and may vary according to the market conditions

5 Reliance Money Manager Fund Conservative Ultra Short Term Fund - Positioned as high grade & low duration fund - Conservative approach to credit risk & duration - Less volatile due to relatively high credit profile & low duration - Source of Returns Predominantly accrual Investment Strategy - Predominantly invests in 2-6 month money market assets with some allocation to 9-18 month assets - A major part of the portfolio gets allocated in the 0-9 months bucket % allocation is made in relatively higher carry assets of 9-18 months, which would give the portfolio, carry advantage and roll down benefit over a 3-6 month period. - Portfolio duration would be maintained between days Conservative Ultra Short Term Fund Superior Investment Option To Liquid Funds - Allocation towards high yielding assets aims to provide moderate yield pick up over liquid funds - Low duration keeps a check on the volatility front, hence providing better risk adjusted returns than liquid funds Suitability - Ideal for investors seeking higher returns than that offered by liquid funds with low volatility - Ideal investment horizon should be 2-6 months

6 Portfolio Attributes Oct 2016 Quantitative Factors AUM (Rs. Crs) 17,961 Weighted Average Maturity Modified Duration 352 Days 313 Days Weighted Average YTM 7.40%* * For the entire portfolio, weighted average YTM, i.e. including other receivables is 7.20% Asset Allocation Money Market Instruments 28.16% Corporate Debt 64.89% Floating Rate Note 1.41% Gsec (Incl SDLs) 0.67% Cash & Other Receivables 4.88% Rating Profile AAA/A1+/SOV 81.60% AA+ 8.80% AA 6.55% AA- & below 3.05%

7 Combination Of High Credit Profile + Low Duration Relatively less volatile fund w.r.t other UST Funds by maintaining low credit risk and duration

8 Managed By Amit Tripathi / Anju Chhajer Inception Date 20 th March 2007 Benchmark Crisil Liquid Fund Index Exit Load Nil Minimum Investment : Daily Dividend Option- Rs.10,000 & in multiples of Re. 1 thereafter Weekly Dividend Option- Rs.5,000 & in multiples of Re. 1 thereafter Plans & Options Other Plans and Options- Rs.500 & in multiples of Re. 1 thereafter Existing Plan & Direct Plan - Growth Option - Dividend Option (Payout & Reinvestment) - Daily (Reinvestment Only)/Weekly/Monthly/Quarterly Frequency

9 Reliance Medium Term Fund A longer maturity, high yield UST fund which invests predominantly in debt instruments with some allocation to money market instruments as well, of maturities mainly varying from 6-24 months Positioning The duration of the fund would be in the range of 300 to 500 days, serving investors with an investment horizon of 3 9 months Focuses on roll/down and steepening benefits at the shorter end of the curve with bulk of the investments in 6-24 month high grade liquid assets Focus Expectation of lower yields going forward, accompanied by a steeping of the yield curve will create value for investors in Reliance Medium Term Fund

10 Portfolio Attributes Oct 2016 Quantitative Factors AUM (Rs. Crs) Asset Allocation Money Market Instruments 12.55% Weighted Average Maturity 1.58 Yrs Corporate Debt 72.09% Modified Duration * For the entire portfolio, weighted average YTM, i.e. including other receivables is 7.40% 1.32 Yrs Weighted Average YTM 7.61% GSecs (Incl. SDLs) 8.10% PTC 2.31% Cash & Other Receivables 4.95% Maturity Profile 0 6 months 24.56% 6 months 2 yrs 43.33% Above 2 yrs 32.11% Rating Profile AAA/A1+/SOV 72.13% AA % AA & Below 16.85%

11 Performance of Reliance Medium Term Fund Simple Annualized Rolling Returns from 1 st Nov st Oct Months 6 Months 9 Months Reliance Medium Term Fund Direct Reliance Medium Term Fund - Regular

12 Managed By Amit Tripathi / Anju Chhajer Inception Date 14 th September 2000 Benchmark Crisil Short Term Bond Fund Index 0.50% if redeemed/switched out on or before completion of 7 days Exit Load from date of allotment of units Nil thereafter Minimum Investment : Growth Plan: Rs. 1,000 & in multiples of Re. 1 thereafter Dividend Plan: Rs. 5,000 & in multiples of Re. 1 thereafter Plans & Options Existing Plan & Direct Plan - Growth Option - Dividend Option (Payout & Reinvestment) - Adhoc Option - Daily (Reinvestment Only)/Weekly/Monthly/Quarterly Frequency

13 Disclaimer Scheme Specific Risk Factors: Trading volumes and settlement periods may restrict liquidity in equity and debt investments. Investment in Debt is subject to price, credit, and interest rate risk. The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The NAV may also be subjected to risk associated with investment in derivatives, foreign securities or script lending as may be permissible by the Scheme Information Document. The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent thirdparty sources, which are deemed to be reliable. It may be noted that since RCAM has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; RCAM does not in any manner assures the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RCAM s views or opinions, which in turn may have been formed on the basis of such data or information. The Sponsor, the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such data or information. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given are fair and reasonable, to the extent possible. This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully

14 Thank You