Aditya Birla Sun Life Asset Management Company Pte. Ltd *

Debt

India Dynamic Bond Fund (IDBF)

Investment Objective

  • India Dynamic Bond Fund’s (IDBF) objective is to take exposure to high quality debt and money market instruments issued by Indian companies through investment in an India domiciled diversified Fixed Income fund.

  • To generate optimal returns with high liquidity through active management of the portfolio by investing in Debt and Money Market Instruments

Investment Approach of ABSL DBF

1

Optimize returns for investors by dynamically tracking interest rate movements

2

Capture positive price movements and minimize the impact of adverse price movements

3

The fund invests in high quality corporate debt, government securities & money market instruments.

Investment Strategy

Dynamic Strategy

Effectively moves from duration to accrual and back to respond a rapidly changing interest rate environment.

Total Returns Strategy

Dual benefit of interest income and capital gains.

Top Down Strategy
  • Duration
  • Sector
  • Yield Curve
Bottom Up Strategy
  • Credit Analysis
  • Quantitative Research
  • Trading

Offers an unique blend of top-down and bottom up approach to consistently delivery superior risk adjusted returns.

Fixed Income Markets

Safety
Liquidity
Returns
Credit Risk Assessment
  • Follow the weakest-link theory for key risks like Business Risk, Financial Risk and Management (integrity & capability)
Investment Process
Macro Research
Domestic

Growth (Lead Indicators, Cyclical Drivers, Structural Drivers),

Inflation (Lead Indicators, Output Gap, Global Commodity Prices)

Global

Risk Appetite (Volatility, Credit Spreads & CDS. High Beta Currencies)

Fundamentals (Leverage, Central Bank Policy, Growth & Inflation)

Risk Management
Security level > Portfolio Level > Firm level
Investment objectives

Risk tolerance /
Investment Horizon

Asset Allocation

G Secs / Bonds / Securitized Papers

Portfolio construction &
Management

Yields / Spreads / Credit Profile

Execution

Dealing speed / Costs /
Limits monitoring

Performance Evaluation

Returns analysis /
Tracking & monitoring

Micro Research
Credit Risk Framework:

Business Sector / Industry, Market Position, Operating Efficiency

Financial Past Financials, Projections, Financial Flexibility, Accounting Quality

Management Integrity, Risk Appetite, Competence

Credit Review & Tracking
Credit Analysis > Risk and Investment Committees > Investment Universe
Risk Management
Security level > Portfolio Level > Firm level
Credit Review & Tracking
Credit Analysis > Risk and Investment Committees > Investment Universe