Flow of the presentation

Size: px

Start display at page:

Download "Flow of the presentation"

Dinah Wright
5 years ago
Views:

1 1

2 Flow of the presentation Content Slide Nos Taurus MIP Advantage 3 & 4 Debt/Fixed Income perspective 5 to 8 Equity- perspective 9 to 12 Gold perspective 13 to 16 Details of Taurus MIP Advantage 17 to 22 About Taurus Mutual Fund 23 to 28 Risk Factors/ Disclaimer 29 & 30 2

3 Taurus MIP Advantage 3

Taurus MIP Advantage*: MIP with the 'Gold' Difference

a normal MIP does, Taurus MIP Advantage takes exposure

65 to 95% Equity: 0 to 25% Gold ETFs : 5 to 25% *Monthly

4 Taurus MIP Advantage*: MIP with the 'Gold' Difference Besides the traditional exposure to Debt & Equity which a normal MIP does, Taurus MIP Advantage takes exposure to Gold (through Gold ETFs) Multi Asset Product Debt : 65 to 95% Equity: 0 to 25% Gold ETFs : 5 to 25% *Monthly Income is not assured and is subject to availability of distributable surplus. The term Advantage has been used in terms of asset allocation and not in terms of returns/yield. 4

5 Debt/Fixed Income : Expected to provide Stability & Regular Income 5

6 Indian Fixed Income Markets - Overview Key Events of December Money market rates moved up during the month due to increased liquidity shortfall. The 3 months PSU CDs touched 9.96% level and closed the month at 9.45%. One year segment also moved up during the month from 9.70% levels to touch high of 10% and ended the month at 9.65%. Fiscal deficit during the period Apr 11-Nov 11 stood at 85.6% of budgeted estimate, sharply higher than 48.9% of BE in the same period last year owing to weak revenue growth and higher outlays towards subsidies. The government has announced an additional borrowing of Rs. 40,000 cr via dated securities during Jan 12-Mar 12 and Rs. 50,000 cr via T-bills. Key Economic Data - Headline WPI inflation was 9.11% YoY in Nov 11, sharply lower than last months 9.73%. This was expected as food inflation eased off due to seasonal factors and high base effect. Core inflation rose marginally to 7.90% from 7.63% in Oct 11. Indian Rupee fell to record lows against USD in Dec 11 as uncertainty with regards to European sovereign crisis increased, pushing up USD globally. INR closed at 53.49, after touching an all time low of 54.28, depreciating 1.44% during the month. 6

7 Movement of 10 year G-Sec & AAA Bond year G-Sec Bond Yield AAA Corporate Bond Yield Source : Bloomberg, as on 31 st Dec 11 7

8 Indian Fixed income Market - Outlook Rising interest rates have eroded the returns of investors of Income/ Bond funds having longer maturity Investors who have traditionally only looked at very safe investments have seen erosion in their purchasing power due to inflation remaining high With inflation showing signs of easing, Market expects that interest rates have peaked out and there is possibility of CRR cut in forthcoming Credit Policy G-Sec market may remain volatile, based on increased government borrowings and expectations of rate cut. Benchmark 10 year is likely to trade in range of 8.15%-8.30% Global events specially Debt crisis in Europe could still prove to be a dampener In the current scenario, role of asset allocation products with low co-relation assumes importance 8

9 Equity : Provides the ability to generate the extra return 9

Market Wrap Indian Mutual funds (Equity) have changed their position and were net buyers in volatile markets. Mutual funds bought net Rs 580.1 Cr. Annual Inflation in India for Nov 11 came at 9.

10 Market Wrap Indian Mutual funds (Equity) have changed their position and were net buyers in volatile markets. Mutual funds bought net Rs Cr. Annual Inflation in India for Nov 11 came at 9.11% compared with 9.73% for the previous month (above market estimate of 8.9%). IIP for the month of Nov 11 grew by 5.9% compared to revised negative 4.1% in the previous month. Manufacturing grew by 6.6%, Mining contracted by negative 4.4% while Electricity grew by 14.6%. There was sharp improvement in Consumer goods growth which grew by 13.1%. Indirect Tax collection for the first 9month of FII grew by 16.1% to Rs 2.86 lakh crores to achieve 72.7% of budget estimate. FII Investments in past 5 years: 10

1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Historical Movement of Nifty Index 7000 6000 5000 4000 3000

11 Returns & Historical Movement of Nifty Index Source : Bloomberg, as on 31 st Dec 11 Nifty Movement 11

12 Outlook Equity markets are sensing breather from initial signs of US recovery and potential stability in European markets. Apart from global events, domestic events would hold the key for directional move in current quarter. Significant events in the current quarter, to begin with January Credit Policy, February Sate Assembly Elections and Union Budget 2013 are expected to keep markets volatile in the coming months. While we believe that near term outlook will be dependent on quarterly earnings and January credit policy, long term outlook is clearly underpinned by outlook of assembly election and direction provided by the Union Budget. Markets would be closely watching concrete policy action of the Government post missed opportunities in last many years and resultant economic slowdown. Any sense of containing fiscal deficit and proactive policies should boost market sentiments

13 Gold: Provides hedge against inflation & financial/ economic crisis 13

14 Ascent of Gold as an Investment Option Unlike other commodities, gold has been regarded as a monetary asset since it's physical consumption is restricted to jewellery. Gold has been regarded as a hedge against inflation as the purchasing power of 1 kilo of gold has stayed fairly constant over decades despite steady rise in inflation. Ever since the credit crisis of 2008, Gold has been on an upswing and has seen the longest rally in the last 9 decades. Gold acts as a hedge against US Dollar. Gold is considered to be Safe Haven during turbulent times for e.g. the recent global financial crisis. Rising demand and declining supply of Gold is expected to keep the prices high. 14

15 Gold Price Upsurge The gold price has maintained an upsurge in the recent years as globally it is being regarded as a safe haven by Central Banks & Investors Gold Price Movement (USD/Oz) Source : Bloomberg, as on 31 st Dec 11 15

16 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Hedge against financial turmoil Historically, Gold has underperformed equities but in the last 1, 3 & 5 years, gold has out performed BSE Sensex in India as this was the period of global financial turmoil Sensex Sensex Gold Commodity Gold Comm Source : Bloomberg, as on 31 st Dec 11 16

Investment Strategy of Taurus MIP Advantage Debt Exposure (65 to 95%) : Investment in GOI Securities/ Debt & Money Market Instruments of high quality & varying maturities.

17 Investment Strategy of Taurus MIP Advantage Debt Exposure (65 to 95%) : Investment in GOI Securities/ Debt & Money Market Instruments of high quality & varying maturities. The fund will change the Average Maturity of the Debt portfolio depending upon the market conditions. Gold ETFs (5 to 25%): Exposure to Gold will be through Gold ETFs only. % Exposure to Gold will depend upon Geo-political scenario, Global Financial stability, and seasonal demand pattern in India and Rupee/USD exchange rate. Equity & Equity related instruments (0 to 25%): Exposure to equity will be to provide the necessary kicker to generate alpha for the portfolio by bottom-up stock selection. 17

18 Taurus MIP Advantage Portfolio Portfolio as on 31 st Dec 11 18

89% Equity 9.70% Commercial Paper 8.37% Government Bond 8.

19 Taurus MIP Advantage Sector Allocation Zero Coupon Bond 5.32% Cash and Cash Receivables & CBLO 2.41% Gold ETF 9.89% Equity 9.70% Commercial Paper 8.37% Government Bond 8.83% Certificate of Deposit 38.49% Corporate Bond 16.99% Portfolio as on 31 st Dec 11 19

20 Benefits of Taurus MIP Advantage Diversification is in multi assets with very low co-relation that ensures stability and potential to deliver superior risk adjusted return. Historically gold has negative co-relation with equities. It has been considered to be an hedge against inflation and financial crisis and is an ideal diversifier for any portfolio. Suitable for all market conditions as Fund Managers have flexibility to rebalance the portfolio in varying market scenarios. More tax efficient compared to other fixed income instruments. Dividend is tax free while long term capital gains is taxed at 10% (plus education cess) without indexation benefit or 20% (plus education cess) with indexation benefit. The taxation rates may undergo changes as & when proposals of DTC get implemented. Provides flexibility of regular income / Capital appreciation 20

21 Who should invest in Taurus MIP Advantage??? Investors looking to have exposure to 3 asset classes as part of asset reallocation / diversification. Investors who prefer stable but moderate growth with Return potential higher than a pure Fixed Income product. Investors looking to regular income flows by making a lump sum investment. Investors who have so far not looked at Gold as an investment option (except buying gold in the form of jewellery). Addresses the needs of a retail investor who wants gold exposure but does not have a demat account. Institutions / Corporate willing to enhance their treasury return with a little additional risk. 21

22 Taurus MIP Advantage Key Features 22

23 Taurus MIP Advantage Key Features (Contd) 23

24 About Taurus Mutual Fund 24

25 Why Taurus Mutual Fund? It's a fund house on the move Product basket comprises of 6 Equity Funds, 1 ELSS, 5 Fixed Income Funds and one Monthly Income Plan besides FMPs and Interval Fund. Taurus Liquid Fund rated as AAAf by CRISIL and Taurus Ultra Short Term Bond Fund rated as AAAf by CRISIL & CARE for credit quality of the portfolio. Two equity funds 'Taurus Tax Shield' and 'Taurus Infrastructure Fund' bagged the prestigious Business World Best Mutual Funds Awards for the year Professional Service Providers: Registrar & Transfer Agent : Karvy Computershare Pvt. Ltd Custodian: HDFC Bank Ltd Fund Accountant : Deutsche Investor Service Limited *past performance is no guarantee of future results.

Taurus Short Term Income Fund Taurus Ultra Short Term Bond Fund Taurus Dynamic Income Fund Taurus

26 Our Schemes Our Schemes EQUITY Taurus Starshare Taurus Bonanza Fund Taurus Discovery Fund Taurus Infrastructure Fund Taurus Ethical Fund Taurus Tax Shield (ELSS) Taurus Nifty Index Fund DEBT Taurus Short Term Income Fund Taurus Ultra Short Term Bond Fund Taurus Dynamic Income Fund Taurus Liquid Fund Taurus Gilt Fund Taurus FMP Schemes Taurus MIP Advantage Taurus FMP Schemes & Interval Fund 26

27 Board of Directors of Taurus AMC Mr. J. P. Kundra - Former MD, State Bank of India Mr. M.G. Gupta - Former Addl Controller General of Accounts,Govt. of India Maharaja Jai Singh From the Royal family of Jaipur / Hotelier Mr. Lalit Bhasin - Promoter Director Mr. Vijay Sood - Ex Investment Banker, HSBC (Asia Pacific) Mr. R K Gupta- MD, Former MD-PNB Mutual Fund 27

28 Senior Management Personnel Waqar Naqvi: Chief Executive (AICWA, MBA, 20 years exp) Sanjay Parikh: Chief Operations Officer(CA, CFA, 20 years exp) Sadanand Shetty: Sr. Fund Manager-Equity(M.Com, PGDFA, 17 years exp) Rahul Pal: Head- Fixed Income (B.Com, C.A., 10 years exp) Jude Abraham: Head Institutional Sales (B.A., PGDBM, 12 years exp) V. Sasidhar : Head-Customer Service (M.Com, 23 years exp) Nazish Ahmed : Head- Marketing(M.Com, MBA, 12 years exp) Ramesh Kabra : Head- Product Development (B.Sc., M.A. (Eco), 31 years exp) 28

29 Fund Managers of Taurus MIP Advantage Rahul Pal- VP & Head (Fixed Income)- B.Com & C.A. Worked with Sundaram BNP Paribas Mutual Fund as Fund Manager (Fixed Income) for 6 years and with IDBI in Fixed Income for 3 years. Total work ex of over 10 years. Manages Taurus Ultra Short Term Bond Fund, Taurus Short Term Income Fund and Taurus MIP Advantage (Debt Portion) and Taurus Dynamic Income Fund. Sadanand Shetty- VP & Sr. Fund Manager-Equity- M.Com, PGDFA He has a total work ex of 17 years. His last assignment was with Kotak Securities as VP & Portfolio Manager -Equity for 5 years & 8 months. He has also worked with Soc Gen in Institutional equities for 4 years, Newscorp owned Indya.com Pvt. Ltd. for 2 years, Principal Capital Markets Ltd. as VP-Investments for 2 years and Capital Markets Publishers Pvt. Ltd. as an analyst for 3 years. 29

30 Risk Factors Risk Factors: All Investments in mutual funds and securities are subject to market risks and the NAV of the schemes may go up or down depending upon the factors and forces affecting the securities market. There can be no assurance that schemes investment objectives will be achieved. The past performance of the Mutual Fund is not indicative of the future performance of the schemes. The Sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution of Rs.2 Lakh made towards setting up of the Mutual Fund. Taurus MIP Advantage is only the name of the scheme and does not in any manner indicate the quality of the scheme or its future prospects or returns. There is no guarantee or assurance as to any return on investment of the unit holders. The investments made by the schemes are subject to external risks on transferring, pricing, trading volumes, settlement, etc. of securities. Please read the Scheme Information Document / Statement of Additional Information / Key Information Memorandum of all schemes before investing. Statutory Details: Taurus Mutual Fund has been constituted as a Trust under the Indian Trust Act, Sponsor: HB Portfolio Ltd. Trustee: Taurus Investment Trust Company Limited Investment Manager: Taurus Asset Management Company Limited 30

31 Disclaimer Any information contained in this presentation does not constitute and shall be deemed not to constitute an advice, an offer to sell / purchase or as an invitation or solicitation to do so for any security of any entity and further, Taurus AMC / sponsors / employees / directors shall not be liable for any loss, damage, liability whatsoever for any direct or indirect loss arising from the use or access of any information that may be displayed in this presentation from time to time. Recipients of the information contained herein should exercise due care and caution and read the offer document (including if necessary, obtaining the advice of tax / legal / accounting / financial / other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained herein. Editorial opinions expressed in this presentation are not necessarily those of Taurus AMC or any of their officers, employees, personnel, directors and the above-said do not accept responsibility for the editorial content and make no representation as to the accuracy, completeness or reliability of the editorial content and hereby disclaim any liability with regard to the same. The material contained in this presentation cannot be reproduced or quoted anywhere without express written consent of Taurus AMC. **Businessworld India's Best Mutual Funds Awards methodology : F or Equity Tax Planning category, all funds compliant with Section 80C of the IT Act were included. Data for the past 3 years were considered. Methodology used to rank them is based on risk-adjusted returns but widened to take a composite measure of the returns a fund generates and the risk it takes. For Best turnaround manager: Funds that moved from D10 decile in end-2008 to D1 in end-2009 were taken, after which they were ranked on scale of change in their one-year returns. For complete details on the methodology please refer to 31

32 Thank You 32

Taurus Ultra Short Term Bond Fund Outlook & Strategy January 2012

1 2 Taurus Ultra Short Term Bond Fund Outlook & Strategy January 2012 Taurus Ultra Short Term Bond Fund Taurus Ultra Short Term Bond Fund 3 Indian Fixed Income Markets 4 Key Events of December 2011 : Money