UTI Treasury Advantage Fund - UTI Mutual Fund |May 2019 Private & Confidential For internal circulation only
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UTI Treasury Advantage Fund
UTI Mutual Fund |May 2019
Private & Confidential
For internal circulation only
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully
Macroeconomic linkages key to market growth
%
Interest Rates & Global GDP & Fiscal
Inflation Liquidity &
INR Consolidation
Capital Flows
Macroeconomic Environment & Fixed Income markets
Mar CPI Inflation @ 2.86% came in higher than 2.57% in Feb; Core CPI at 5% was lower than 5.3% in Feb
Inflation CPI trajectory likely to remain subdued (below 4%) in the near-term
MPC cuts repo rate by 25 bps to 6.25%
Interest Rates & INR Inflation forecast lowered to 2.8% for Q4FY19, 3.2-3.4% in H1FY20 (from 3.8-4.2% in Dec policy) and 3.9% in
Q3FY20
US FOMC kept rates unchanged at 2.5% in Mar’19 policy. The Fed now pencils in no hikes for 2019 and end to
the balance sheet reduction by Sep’19
Global Liquidity & Bank of Japan cut its growth forecasts from 1% to 0.9%. On inflation, from a forecast of 1.6% by 2020
Capital Flows ECB kept the main refinancing operations rate and marginal lending rates unchanged at 0% & 0.25%
respectively.
Q3FY19 reflects pan out of growth headwinds; Q3FY19 GVA at 6.3% and GDP at 6.6%
Nominal GDP (11%) indicated positive deflator, higher investments, lower Government consumption, higher
GDP & Fiscal private consumption; a narrower net exports deficit
Consolidation India’s fiscal deficit for Apr-Feb 2019 came in at Rs. 8.51 lakh crore, or 134.2% of the budgeted target for FY19
against 120.3% a year earlier
Center’s slippage evident: revised FD/GDP target of 3.4% for FY19 and 3.4% for FY20
Based on data available till Apr 2019
How will key economic factors play out
Growth No substantial improvement
Inflation Within Comfort
Liquidity Micro Management by RBI
Fiscal Deficit Tight Walk
% RBI Policy Pro-growth post inflation target
Fixed Income:
Current Market Outlook
Yields rose following rise in global crude oil prices, which escalated concerns over widening current account
deficit. Moreover, fall in Indian rupee against U.S. dollar further pushed up yields
In between, losses in bonds were restricted on hopes of a normal monsoon, which also gave comfort on the
future inflation front. In addition, country’s core inflation fell to 5.1% for Mar 2019 compared with 5.4% in prior
month. These factors aided the demand for bond
Bond yields rose again as market participants were cautious over MPC’S Apr 2019 meeting minutes for
guidance on interest rate movement.
However, at the end, losses were limited following Reserve Bank of India's (RBI) surprise announcement of
conducting an open market operation purchases worth Rs. 25000 crore in May 2019
Expectations of more rate cuts cannot be ignored in the near-term. Although liquidity conditions continue to
remain tight, will have to see whether RBI’s continuous effort to infuse liquidity through open market operations
keeps the situation balanced
Result of Lok Sabha elections in May is likely to be a key event for the bond market. In addition to the above-
mentioned factors, bond yield trajectory may be dictated by global crude oil prices, movement of the rupee
against the greenback and stance adopted by foreign institutional investors.
In such a scenario, funds having a combination of higher income accrual and short to medium
5 term duration would provide a good investment opportunity for the investors
Our Fixed Income Team
Amandeep Chopra
Head of Fixed Income
MBA
Total Exp: 26 yrs
With UTI MF: 26 yrs
Mutual Fund
Sudhir Agarwal Ritesh Nambiar Sunil Patil Amit Sharma
Fund Manager Fund Manager Fund Manager Fund Manager
MBA & CFA MBA, CFA & FRM MFM & M.Com CA,FRM
Total Exp: 13 yrs Total Exp: 13 yrs. Total Exp: 29 yrs. Total Exp: 11 yrs.
With UTI MF: 10 yrs With UTI MF: 11 yrs With UTI MF: 29 yrs With UTI MF: 11 yrs
Manish Joshi
Retirement
Shilpita Guha Rahul Aggarwal
Solution &
Offshore
Fund Manager Portfolio Manager
CIO
PMS,
MSc, MFM BE, MBA (Finance)
MSc (Economics), MBA
Total Exp: 22 yrs Total Exp: 10 yrs
Total Exp: 30 yrs
With UTI MF: 22 yrs With UTI MF: 3 yrs
With UTI MF: 30 yrs
Research &
Meghna Shah
Economist
Subhradeep Mitra Pratik Jain
Economist
Research Analyst Research Analyst
MBA (Finance),
MA (Economics)
MBA (Finance) MBA (Finance)
Total Exp: 10 yrs Total Exp: 7 yrs Total Exp: 6 yrs
With UTI MF: 4 yrs With UTI MF: 1 Yr With UTI MF: 1 Yr
Data as of Apr’19
UTI Treasury Advantage Fund Key Fund Portfolio Why Performance Highlights Overview Details Invest
Key Highlights
Type of scheme
An open ended low duration debt
scheme investing in instruments
Load Structure
Entry Load: Not Applicable
such that the Macaulay duration of Fund Manager
the portfolios is between 6 months Exit Load: NIL
Sudhir Agrawal
and 12 months
%
Benchmark
CRISIL Low
Minimum investment amount Duration Debt
Investment objective Rs. 10,000 and in multiples of Re.1 Index
The investment objective is to generate thereof. Subsequent min. investment Rs.
reasonable income for its investors consistent 1000 and in multiples of Re.1 thereof
with high liquidity by investing in a portfolio of
debt & money market instruments.
However there can be no assurance that the
investment objective of the Scheme will be
achieved. The Scheme does not guarantee /
indicate any returns.
Key Highlights
About the Fund Manager
Fund Manager Mr Sudhir Agrawal joined UTI AMC in 2009. He is a CFA Charter
holder from The CFA Institute, USA. He also holds a Post Graduate
Sudhir Agrawal
Diploma in Management and a Masters in Commerce. He has
Total Exp: 13 yrs previously worked with CARE (Credit Analysis and Research Ltd.),
With UTI MF: 10 yrs
Transparent Value LLC and Tata Asset Management Company Ltd
in different roles. He is presently Fund Manager for UTI Treasury
Advantage Fund, UTI Ultra Short Term Fund, UTI Banking & PSU Fund,
UTI Floater Fund, UTI Corporate Bond Fund and UTI Short Term
Income Fund.
Fund Overview
About the Scheme Risk and Maturity Profile Portfolio Quants
• A low duration fund which invests in
quality debt and money market High
Credit Quality
instruments(predominantly in YTM:
securities/instruments being rated as 9.17%
AAA/A1+)to provide consistently Medium
stable returns with low volatility over
the short-term.
Modified Average
Low Duration: Maturity:
• Scheme aims to offer a moderate 198 Days 201 Days
level of defence against volatile debt
markets. In terms of risk-return matrix,
Long Mid Short
it is less risky than short-term category
AUM
of funds, as the duration of the fund Average Maturity Rs. 5,220 crs.
would be in the range of 6 to 12
months.
Data as on 30th Apr’19Portfolio Details
Top 10 Holdings
Portfolio Commentary
The scheme maintains a well diversified portfolio of debt & money market instruments
currently spread across 31 securities to provide high liquidity.
73.91% of portfolio has been invested in AAA, Sovereign & equivalent instruments
The average maturity of the fund has been reduced from 432 days in Mar’19 to 201 days
in Apr’19
The scheme has invested taken a exposure of 17.29% in NBFCs
Data as on 30th Apr’19Portfolio Details
Portfolio Composition (%) Credit Profile (%)
Average Maturity (Days)
Data as on 30th Apr’19Why invest in UTI Treasury Advantage Fund?
A well diversified portfolio
with the duration in range
of 6 months to 12 months
2
Predominantly
invests in money
market & debt 1
instruments with the
aim to
generate regular
income
3 Probability of capital
erosion is low and Interest
rate risk is sought to be
minimized by maintaining
a duration of less than 1
yearWho should invest?
Investors looking Investors looking to Investors who are
towards steady augment their returns from looking for
returns and other than the systematic transfer
liquidity over the conventional fixed income plan to equity
near term avenues like banks, FDs, oriented schemes
post office deposits and
bonds etcOverview of Fund Performance
Fund Performance (Growth of Rs. 10,000) Fund Performance (%)
SIP Performance (Rs. 10,000 invested every month)
SIP Performance (%)
Assuming that all payouts during the period have been reinvested in the units of the scheme at the immediate ex-div NAV Past performance may or may not be
sustained in future. *Additional Benchmark. Returns< 1Year are Simple Annualised and ≥1 Year are Compounded Annualised; Source: ICRA MFI Explorer. Data as on
30-Apr-19 Since Inception returns for fund performance is calculated from 24-Apr-07; Since Inception returns for SIP is calculated from 01-May-09Product Labeling UTI Treasury Advantage Fund The product is suitable for investors who are seeking:* • Reasonable income consistent with high liquidity over short term • Investment in Debt & Money Market instruments *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Thank You REGISTERED OFFICE: UTI Tower, ‘Gn’ Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Ltd (Investment Manager for UTI Mutual Fund) Email: invest@uti.co.in . (CIN-U65991MH2002GOI137867). For more information, please contact the nearest UTI Financial Centre or your AMFI/NISM certified UTI Mutual Fund Independent Financial Advisor (IFA) for a copy of the Statement of Additional Information, Scheme Information Document and Key Information Memorandum cum Application Form. Disclaimers: The information on this document is provided for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movements in rates or prices or any representation that any such future movements will not exceed those shown in any illustration. Users of this document should seek advice regarding the appropriateness of investing in any securities, financial instruments or investment strategies referred to on this document and should understand that statements regarding future prospects may not be realized. The recipient of this material is solely responsible for any action taken based on this material. Opinions, projections and estimates are subject to change without notice. UTI AMC Ltd is not an investment adviser, and is not purporting to provide you with investment, legal or tax advice. UTI AMC Ltd or UTI Mutual Fund (acting through UTI Trustee Company Pvt. Ltd) accepts no liability and will not be liable for any loss or damage arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any defect, error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any unavailability of the document or any part thereof or any contents or associated services. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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