Follow up note to the NFO of AXIS Short Term Plan
Thank you all for investing & supporting the NFO of AXIS Short Term Plan which closed on January 20’2010. The said NFO collected a decent sum of close to Rs.300 crs. As was discussed with most of our investors, 50% of these funds are already invested in 2-5 year corporate bonds & balance 50% is invested in CPs/CDs & cash.
As per the offer document, of the above, upto 30% of the portfolio will stay invested in less than one year maturities. Also, the Fund Manager has taken a tactical call of investing another 20% (out of the allocation earmarked in CP/CD as the same was giving higher carry than parking under CBLO) of the portfolio in medium term debt of 2-5 year segment post the Credit Policy Review tomorrow. If the RBI hikes benchmark rates, he will be able to capture that higher carry.
Inspite of the fact that only 50% of the portfolio is invested in corporate NCDs of 2-5 years, the said portfolio has captured a very decent yield of 6.29% with average maturity of close to 1.75 years. Post the policy, the Fund Manager hopes to increase the Average Maturity to 2 years with gross yield between 6.50% to 6.75%.
Current attributes:
|
|
INSTRUMENT |
RATING |
% |
|
1 |
NCDs |
AAA |
44.13% |
|
2 |
CDs |
P1+/A1+/PR1+ |
36.83% |
|
3 |
CPs |
A1+/P1+ |
10.38% |
|
4 |
ZERO COUPON |
AAA |
5.41% |
|
5 |
CASH |
|
3.24% |
|
|
|
|
100% |
|
GROSS YIELD |
6.29% |
|
AVG MATURITY |
1.75 YRS |
RETURNS SINCE INCEPTION I.E. FROM JAN 20 TO JAN 27: 6.73% p.a.
Leave a Comment