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Taurus Ultra Short Term Bond Fund Outlook & Strategy Name Of Scheme Taurus Ultra Short Term Bond Fund An open end debt scheme. This Product is suitable for investors who are seeking* Short term capital Riskometer appreciation and current income with high liquidity & low volatility. Investment in Debt/Money Market Instruments. Investors understand that their principal will be at moderately low risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them 2 Dec-2016
Macroeconomic Overview Fiscal Deficit April November, 2016 @ 85.8% of Budgeted Estimate (BE) vs 87% in previous year Widened from 79.3% of BE in first 7 months on account of reduced revenue. RBI Monetary Policy Policy rates kept unchanged- Repo rate @ 6.25%. Withdraws incremental CRR introduced earlier on increased NDTL post demonetization. Committed to keep neutral liquidity. Emphasized risk of stickiness in core inflation and uncertainty in global market Trade Deficit @ $13 bn (Nov) vs $10.16 bn (Oct) Exports grew to $20 bn(+2.3% YoY) Imports grew at faster pace to $33 bn (+10.40% YoY) WPI based inflation @3.15% YoY (Nov) vs 3.39% YoY (Oct) IIP @-1.9% YoY (Oct) vs +0.7% YoY (Sep) Consumer Durable, Manufacturing and mining Contracted Unfavorable base effect, 9.9% YoY growth in Oct 2015 3 Fiscal Deficit April November, 2016 @ 85.8% of Budgeted Estimate (BE) vs 87% in previous year Widened from 79.3% of BE in first 7 months on account of reduced revenue.
Fixed Income - Rates System Liquidity Average surplus liquidity (LAF) in Dec @ INR 1.43 lakh crores vs INR 1.48 lakh crores (Nov) Month end surplus (LAF) Dec @ INR 1.43 lakh crores surplus vs INR 34,804 crores (Nov) Average CBLO rate @ 6.03% (Dec) vs 6.14% (Nov) RBI hiked the MSS limit to 6 lakh crores from 30,000 crores in order to absorb the excess liquidity via cash management bill (CMB) aroused due to demonetization. The outstanding CMBs as on 30 December is INR 5.22 lakh crores. Mar-17 Jun-17 Sep-17 1 Year T-Bill 6.18% 6.29% 6.31% 6.33% Certificate od Deposit 6.24% 6.43% 6.45% 6.57% 3 Year 5 Year 10 Year G-Sec 6.38% 6.56% 6.51% Corporate Bonds (AAA) 6.97% 7.24% 7.40% 4
Fixed Income Outlook System Liquidity Liquidity will be in comfortable zone. Active RBI intervention to suck out surplus liquidity via CMB, Reverse repo window will continue in order to keep neutral liquidity Money Market Rates Liquidity situation to remain benign, hence rates of CD and manufacturing CP to be well supported. Post Demonetization NBFC s are under pressure, expect spread of NBFC CP over CD s to widen. Long Term Rates Considering FII s outflow from emerging markets, shrinking spreads between US and India treasury yields, unclear durability of Demonetisation impact on Growth, we expect long term rates to be range bound with an upward bias. Post US election and Fed rate hike emerging market yields have been under pressure, now market will keenly wait for Trump policies announcement for further direction Domestic Bond market will also take cues from upcoming IIP, CPI & WPI prints 5
Interest Rate Movement Monetary Policy Dec-16 : Repo rate is at 6.25%, Reverse Repo at 5.75% and Cash Reserve Ratio (CRR) at 4.00%. 9.00 India Interest Rate Chart 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Mar-13 May-13 Jun-13 Jul-13 Aug-13 Sept'13 Oct'13 Nov'13 Dec'13 Jan '14 Feb '14 Mar'14 Apr'14 May'14 June'14 July'14 Aug'14 Sept'14 Oct'14 Nov'14 Dec'14 Jan '15 Feb'15 Mar'15 Repo Reverese Repo CRR April'15 May'15 June'15 July'15 Aug'15 Sept'15 Oct-15 Nov'15 Dec'15 Jan'16 Mar'16 Aug'16 Sept'16 Oct'16 6 Source: Bloomberg
Why Taurus Ultra Short Term Bond Fund? Investment strategy made keeping in mind the interest rate scenario and prevailing liquidity condition. Emphasis on superior credit rating & credit quality of the portfolio. The fund would endeavour to offer consistent return. Superior alternative to Fixed deposits of banks as it provides better liquidity and potential for higher post-tax returns. Suitable for investors with investment horizon of 30 days and more. 7
Scheme Details (as on 31 st Dec 2016) Particulars Type of Scheme Investment Objective Asset Allocation Pattern Benchmark Index Remarks An open end debt scheme To generate returns with higher liquidity and low volatility from a portfolio of money market and debt instruments. However, there is no assurance that the investment objective of the scheme will be realised. Money market & debt instruments which have residual maturity and re-pricing tenor not exceeding one year : 50%-100% Debt Instruments which have residual and repricing tenor exceeding one year : 0%-50% Crisil Liquid Fund Index Particulars Average Maturity (31/12/2016) NAV (31/12/2016)-Regular Plan (Super Inst) NAV (31/12/2016)-Direct Plan (Super Inst) AAUM (Dec'16) AUM as on (31st Dec'16) Modified Duration 0.07 Portfolio Yield 7.86 Remarks 0.07 years Growth - 1932.42 Growth - 1953.07 Rs 68.52 Crs Rs 73.18 Crs Expense Ratio (Dec'16) Direct :-0.30% Regular :-0.95% Date of Inception December 1, 2008 Category Plan Options Liquid plus category Super Institutional Plan-Regular(Existing) & Super Institutional Plan-Direct Growth and Dividend Dividend Option Daily & Weekly Reinvestment and Sweep Minimum Application Amount Growth and Weekly Dividend Reinvestment option : Rs 5000/- and in multiple of Re 1 thereof,daily Dividend Reinvestment option : Rs 100000 /- and in multiple of Re 1 thereof 8 Retail and Institutional plans have been discontinued for fresh subscription / additional purchase / switch-in with effect from October 01, 2012
Portfolio as on 31 st Dec 2016 SI NO Company Name Industry / Rating % of Scrip (AUM) Certificate of Deposits 1 Punjab & Sind Bank [ICRA]A1+ 7.62 2 IndusInd Bank Ltd. CRISIL A1+ 7.61 TOTAL - CERTIFICATE OF DEPOSITS 15.23 Commercial Papers - 3 KEC International Ltd. IND A1+ 16.23 4 Ballarpur Industries Ltd. IND A1 12.28 5 Bilt Graphic Paper Products Ltd. IND A1 6.80 6 Small Industries Development Bank of India CRISIL A1+ 6.80 7 Reliance Jio Infocomm Ltd. CARE A1+ 6.79 8 Aadhar Housing Finance Ltd. CRISIL A1+ 6.78 9 Edelweiss Commodities Services Ltd. CRISIL A1+ 6.77 10 Bilt Graphic Paper Products Ltd. IND A1 4.75 11 Reliance Jio Infocomm Ltd. CARE A1+ 1.90 12 Bilt Graphic Paper Products Ltd. IND A1 0.68 TOTAL - COMMERCIAL PAPERS 69.78 CBLO - 13 The Clearing Corporation of India Ltd. 18.88 TOTAL - CBLO 18.88 Treasury Bills - 14 182 DAY T-BILL Sovereign 0.83 TOTAL - TREASURY BILLS 0.83 15 CASH & CASH RECEIVABLES (4.72) TOTAL 100.00 9 Sovereign, 0.81 Cblo, 18.89 A1, 24.52 Current Assets, (4.72) A1+, 60.50 A1+ A1 Cblo Sovereign Current Assets Portfolio classification as per Rating %
Fund Managers Comments Liquidity continued to be in comfortable zone in December with average liquidity surplus (LAF) of INR 1.43 lakh crores compared to 1.48 lakh crores surplus in November. RBI hiked the MSS limit to 6 lakh crores from 30,000 crores to absorb the excess liquidity aroused due to demonetization. The outstanding Cash Management Bills (CMBs) as on 30 December is INR 5.22 lakh crores. Liquidity surplus will continue during the month, we expect RBI to continue its neutral liquidity stance and will continue to suck surplus liquidity via CMB. The three-month CD closed the month at 6.22%, up ~22bps from last month s closing, as the expectation of rate cut was not met in policy which resulted in yields moving upward. We intend to tweak the maturity of the portfolio depending upon the liquidity situation, maintaining a judicious balance between bank and non-bank assets. 10.
Performance of the Fund (as on 31 st Dec 16 Regular & Direct Plan- Growth) Name of the Scheme and Benchmarks 31/12/2015 to 31/12/2016 31/12/2014 to 31/12/2015 31/12/2013 to 31/12/2014 Returns Since Inception Value of Rs 10000 Taurus Ultra Short Term Bond Fund-Superinst 7.72% 9.20% 9.57% 8.49% 19,328 Crisil Liquid Fund Index 7.50% 8.23% 9.21% 7.59% 18,074 CRISIL 1 Year T- Bill 7.29% 8.22% 8.56% 6.48% 16,615 Inception Date 1st Dec'08 Fund Managers Fund Manager- Archit shah Name of the Scheme and Benchmarks 31/12/2015 to 31/12/2016 31/12/2014 to 31/12/2015 31/12/2013 to 31/12/2014 Returns Since Inception Value of Rs 10000 Taurus Ultra Short Term Bond Fund- Direct Plan Superinst 8.33% 9.43% 9.74% 9.39% 14,321 Crisil Liquid Fund Index 7.50% 8.23% 9.21% 8.48% 13,852 CRISIL 1 Year T- Bill 7.29% 8.22% 8.56% 7.46% 13,338 Inception Date 1st Dec'08 Fund Managers Fund Manager- Archit shah 11 past performance is no guarantee of future result and may not be sustained in future Mutual Fund Investments are subject to market risks, read all scheme related documents carefully
Performance of other Funds Managed by the Fund Managers (as on 31 st Dec 16 Regular Plan-Growth) Since Inception Name of the Scheme and Benchmarks 31/12/2015 to 31/12/2016 31/12/2014 to 31/12/2015 31/12/2013 to 31/12/2014 Returns Value of Rs 10000 Inception Date Fund Managers Taurus Short Term Income Fund 7.71% 8.91% 9.80% 6.95% 28,121 Crisil Short Term Bond Fund Index 9.85% 8.66% 10.47% 7.01% 28,370 CRISIL 1 Year T- Bill 7.29% 8.22% 8.56% 6.09% 24,823 Taurus Dynamic Income Fund 7.27% 7.54% 8.72% 7.79% 15,552 Crisil Composite Bond Fund Index 12.94% 8.63% 14.31% 9.43% 16,993 CRISIL 10 Year Gilt Index 14.97% 7.39% 14.14% 8.12% 15,834 18th Aug'01 14th Feb'11 Fund Manager- Archit shah Taurus Liquid Fund - Regular-Superinst 7.76% 8.50% 9.23% 7.05% 17,312 26th Crisil Liquid Fund Index 7.50% 8.23% 9.21% 7.68% 18,404 Sept'08 CRISIL 1 Year T- Bill 7.29% 8.22% 8.56% 6.66% 17,045 12 past performance is no guarantee of future result and may not be sustained in future Mutual Fund Investments are subject to market risks, read all scheme related documents carefully
Performance of other Funds Managed by the Fund Managers (as on 31 st Dec 16 Direct Plan-Growth) Since Inception Name of the Scheme and Benchmarks 31/12/2015 to 31/12/2016 31/12/2014 to 31/12/2015 31/12/2013 to 31/12/2014 Returns Value of Rs 10000 Inception Date Fund Managers Taurus Short Term Income Fund- Direct Plan 8.07% 9.28% 9.93% 9.36% 14,304 Crisil Short Term Bond Fund Index 9.85% 8.66% 10.47% 9.29% 14,269 01st Jan'13 CRISIL 1 Year T- Bill 7.29% 8.22% 8.56% 7.46% 13,338 Taurus Dynamic Income Fund- Direct Plan 8.17% 8.15% 9.16% 7.11% 13,156 Crisil Composite Bond Fund Index 12.94% 8.63% 14.31% 9.72% 14,485 CRISIL 10 Year Gilt Index 14.97% 7.39% 14.14% 8.55% 13,877 Taurus Liquid Fund - Direct Plan 7.84% 8.57% 9.29% Superinst 8.78% 14,008 Crisil Liquid Fund Index 7.50% 8.23% 9.21% 8.48% 13,855 CRISIL 1 Year T- Bill 7.29% 8.22% 8.56% 7.47% 13,344 01st Jan'13 01st Jan'13 Fund Manager- Archit shah 13
About Taurus Mutual Fund 14 14
Our Schemes Our Schemes EQUITY DEBT LIQUID Taurus Starshare - Diversified Multi-Cap Fund Taurus Infrastructure Fund - Thematic Fund Taurus Ethical Fund - India's 1st actively managed diversified Equity Fund based on the principles of Shariah Taurus Banking & Financial Services Fund - An Open-Ended Sectoral Equity Scheme Taurus Bonanza Fund - Diversified Large-Cap Focus Fund Taurus Discovery Fund - Mid & Small-Cap Focus Fund Taurus Nifty Index Fund - Investing in securities of the Nifty 50 in the same proportion Taurus Tax Shield - Equity Linked Tax Saving 15 Taurus Short Term Income Fund - Bond Fund Taurus Ultra Short Term Bond Fund - Debt Fund Taurus Dynamic Income Fund - An open ended income scheme Taurus Liquid Fund - Liquid Fund Note:- This bring to your notice that we are winding up the Taurus MIP Advantage Fund as per the regulation of SEBI w.e.f 01st July'2016 their will be no further investment in scheme 15
Board of Directors of Taurus AMC Mr.Lalit Bhasin Promoter Director Mr.J.P Kundra Former MD, (State Bank of India) Mr.M.G. Gupta Former Additional Controller General Accounts, Govt. of India Maharaja Jai Singh Royal Family of Jaipur/Hotelier Mr. Harbans Lal. Associate Director Former CGM, (State Bank of India) Mr. R K Gupta Md, Former MD-PNB Mutual Fund 16
Senior Management Personnel Mr.Waqar Naqvi Chief Executive (AICW A, MBA, 24 years Exp) Mr.Amarjeet Singh Chief Financial Officer (B.com Chartered Accountant 13 years exp) Mr.Dheeraj Singh Head of Investments PGDBM-IIM Bangalore, B.E (Hons) 14 years exp Mr. Sadanand Shetty Sr. Fund Manager-Equity (M.Com, PGDFA, 21 years exp) Mr. Archit Shah Fund Manager-Fixed Income (CFA, PGDBM in Finance,6.5 years exp) Mr.Jude Abraham Vp & National Head-Institutional Sales, Product & Marketing (B.A, PGDBM,15 years exp) Mr.Kamal Mehta Head Retail Sales (IFAs & NDs) (MBA in Marketing, 15 years exp) 17
Fund Manager s Profile Mr. Archit Shah Fund Manager (CFA,PGDBM in Finance, 6.5 year exp). Prior Joining Taurus Asset Management Co. Ltd on 19/12/2011 Archit had an experience of 2.5 years and was associated with the organization like Crisil and I Peritus Solution & Services Pvt Ltd. as Fixed Income Analyst. Manages Taurus Ultra Short Term Bond Fund, Taurus Liquid Fund, Taurus Dynamic Income Fund, Taurus Short Term Income Fund & Taurus MIP Advantage Fund (Debt Portion) 18
Statutory Details Scheme Nature : Taurus Ultra Short Term Bond Fund is an open-end debt scheme. Scheme Objective is to generate returns with higher liquidity and low volatility from a portfolio of money market and debt instruments. Allocation: Money market & Debt instruments which have residual maturity & pricing tenor not exceeding 1 yr : 50%-100% ; Debt Instruments which have residual maturity & pricing tenor exceeding 1 yr: 0% -50% Statutory Details: Taurus Mutual Fund has been constituted as a Trust under the Indian Trust Act, 1882 Sponsor: HB Portfolio Ltd. Trustee: Taurus Investment Trust Company Ltd., (CIN: U65990MH1993PLC072984) Investment Manager: Taurus Asset Management Company Ltd. (CIN: U67190MH1993PLC073154) 19
Risk Factors & 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. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. 20
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