SBI Money Market Funds : Investment in Debt & Money Market Securities - Apr 2016

SBI Money-Market Funds

This product is suitable for investors who are seeking:

Investment in debt and money- market securities

Regular income for short term

Low risk

Disclaimer: Investors should consult their financial advisors if in doubt whether this product is suitable for them.

SBI Premier Liquid Fund

SBI Ultra Short Term Debt Fund

Why Money Market Funds?

• To manage short term cash surplus of investors

• To provide optimal returns with moderate levels of risk & high liquidity

•Suitable for investors having investment horizon even as low as one day

•Ideal for investors who have a short-term investment horizon and low risk appetite

• Limits in holdings & maturities clearly defined

• Investments are made only in high quality money market instruments

•Clearly defined investment universe & asset allocation

•All disclosures & portfolios publicly available on a monthly basis

Liquidity

Investor SuitabilityLow Risk

Transparency

Monetary Tools & Money Market Instruments

Main Policy Tools

Liquidity Adjustment Facility (LAF) : Auction process by which banks borrow from ( at repo rate) or lend to (reverse repo rate) RBI to guide overnight call rates

Cash Reserve Ratio (CRR): Mandatory Cash balance maintained by banks with RBI (3%-20% of Net Demand and Time Liabilities – NDTL), currently 4.00%

Statutory Liquidity Ratio (SLR) : Balance of NDTL held by banks in safe and liquid assets (e.g. government securities, cash , gold) ; currently 22%

Open Market Operations (OMO) : purchases / sales of government securities in the market to regulate (soak or inject) liquidity in the system

Money Market Funds – Investment Universe

Treasury Bills (T-Bills) : discount securities auctioned by RBI ; Tenors ranging 91 days to 1year

Certificates of Deposit (CDs) : issued by banks and financial institutions ; Tenors: 7 days-1 year

Commercial Paper (CPs) : unsecured notes issued by corporates and financial institutions to fund their working capital requirements ; umbrella limit set by RBI ; Tenors: 7 days-1 year

Collateralized Borrowing and lending Obligations (CBLO) : discounted instruments with 1 day – 1 year maturity collateralized by Government securities placed with Clearing Corporation of India (CCIL)

Reverse Repos : transactions engaged on overnight basis with market participants collateralized by GSecs, T-Bills, AA-rated Bonds , currently 6.00%

Fund Manager: Mr. Rajeev Radhakrishnan Inception Date: 24-Nov-2003 AUM : INR 31111.13 Crs.


Purpose: Addressing cash management requirements of large corporates and institutions.

Composition : A low risk product invested in a diversified selection of high quality issues (CPs and CDs) with a maturity lesser than or up to 91 days. Minimum P1 short term rating for portfolio holdings.

Current Outlook: Incremental exposures have been taken in non MTM papers. While liquidity conditions have eased over the month, money market yields have broadly remained elevated as compared to overnight fixings as NBFC rates remained high on account of demand for IPO funding, reducing overall buying appetite.

Benchmark : CRISIL Liquid Fund Index

Risk controls Over limits in assets ; Maturity by issuer; Risk diversification and Liquidity.

CD; 19.54

CP; 67.20

NCD; 0.61 T-Bills; 8.21

Short Term De-

posits; 11.97

NCA/CBLO/Reverse Repo; -7.52

Ratings breakdown Percentage

AA+ 0.1%

SOV,AAA and Equivalent 95.4%

NCA(Incl. Cash,Deposits) 4.5%


Data as on March 31,2016

Past performance may or may not be sustained in future. Returns (in %) up to 30 days are simple annualized and returns other than since inception are absolute, calculated for Regular plan, growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/-. Additional benchmark as prescribed by SEBI for short-term debt schemes is used for comparison purposes.

7 Days 15 Days 30 Days31-Mar-2015 To 31-

Mar-201631-Mar-2014 To

31-Mar-201528-Mar-2013 To

31-Mar-2014 Since Inception

SA Returns (%) Absolute Returns (%) CAGR Returns (%)

PTP Returns (INR)

SBI Premier Liquid Fund 14.56 11.11 9.59 8.21 8.93 9.41 7.83 19,765Crisil Liquid Fund Index (Scheme Benchmark) 14.43 10.94 9.82 8.06 8.98 9.54 7.70 19,543Crisil 1 year T-Bill Index (Additional Benchmark) 7.17 6.90 6.97 7.69 8.74 5.84 6.42 17,539

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception0123456789

10


Crisil Liquid Fund Index (Scheme Benchmark)

Crisil 1 year T-Bill Index (Additional Benchmark)

Fund Manager: Mr. Rajeev Radhakrishnan Inception Date: 27-Jul-2007 AUM : INR 9399.16 Crs.


Purpose: Aiming to offer an incremental return over liquid funds due to moderate exposure to MTM assets. These are ideal solutions for investors with investment horizon greater than three months.

Composition: The fund invests in a broad array of money market and debt instruments having residual maturity up to one year, taking slightly higher interest rate risk compared to liquid funds.

Current Outlook: In view of the revised liquidity management framework, which entails significant liquidity infusion over time, the short term money market and bond curve could ease further. Accordingly the portfolio would have a positioning closer to the higher cap in terms of average maturity

Benchmark: CRISIL Liquid Fund Index

Risk controls: Over issuers’ quality; Risk dispersion processes and liquidity

31.08

19.87

2.571.13

35.59

1.492.18

2.13 3.95

CD

CP

Dated Govt Securities

MF Units

NCD

T-Bills

ZCB

Short Term Deposits

NCA/CBLO/Reverse Repo

Ratings breakdown Percentage

Below AA+ 6.3%

AA+ 8.5%

SOV,AAA and Equivalent 79.2%

NCA(Incl. Cash,Deposits) 6.1%


Data as on March 31, 2016

Past performance may or may not be sustained in future. Returns (in %) other than since inception are absolute, calculated for regular plan, growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10,000/- Additional benchmark as prescribed by SEBI for short-term debt schemes is used for comparison purposes.

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception

Absolute Returns (%)



CAGR Returns (%)

PTP Returns (INR)

SBI Ultra Short Term Debt Fund 8.48 9.14 9.26 7.98 19,472Crisil Liquid Fund Index (Scheme Benchmark) 8.06 8.98 9.54 7.61 18,910Crisil 1 year T-Bill Index (Additional Benchmark) 7.69 8.74 5.84 6.27 16,960

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception0123456789

10


Crisil Liquid Fund Index (Scheme Benchmark)

Crisil 1 year T-Bill Index (Additional Benchmark)

Key Metrics


SBI Ultra-short Term Debt Fund

YTM7.79% 7.84%

Average Maturity0.10 years 0.68 years

Modified Duration

0.09 years 0.60 years

Expense Ratio*0.28 (Reg.) 0.41(Reg.)

0.21 (Dir.) 0.35 (Dir.)

Data as on April 30, 2016

*Average for the month of April, 2016

Product Features

SBI Premier Liquid Fund SBI Ultra Short Term

Debt Fund SBI Debt Fund Series

Load Structure Entry Load Nil Nil Nil

Exit Load/CDSC Nil Nil Nil

Transaction Cut offSubscription 2.00 P.M# 3.00 P.M 3.00 P.MRedemption 3.00 P.M 3.00 P.M 3.00 P.M

Taxation*Dividend

Distribution Tax Individual/HUF & NRI 28.84% 28.84% 28.84%Others 34.61% 34.61% 34.61%

Capital Gains Short Term (equal to or below 3 years) At marginal tax rate of the investorsLong Term (above 3 years) 20.00% with indexation benefit

*All tax rates are exclusive of surcharge (10%) & Cess (3%); # Funds have to be wired before this time

Operational procedures – New Corporate Customers: KYC Compliance

KYC Application Form

Mandatory Inclusions

Submission of the KYC Form

Letter of KYC Compliance

Mandatory execution of KYC Form by authorized signatories. Application Forms available with SBI FM offices across the country. Forms can also be downloaded from following link :http//www.sbimf.com/Downloads/Forms.aspx

1. Copy of PAN Card (Serves as Proof of Identity and is issued by Indian Income Tax Dept)

2. Copy of Company’s Balance Sheet for the last two financial years (to be submitted every year)

3. Copy of Company’s latest share holding structure duly certified by Company Secretary/Whole Time Director/MD (to be submitted every year)

4. Photograph, POI (Person of Indian Origin Card) POA (Proof of Address), PAN and DIN (Director Identification Number) of Directors

5. Photograph, POI, POA, PAN of individual promoters holding control – either directly or indirectly;

6. Copies of the Memorandum and Articles of Association and Certificate of Incorporation;

7. Copy of the Board Resolution for investment in securities market; 8. List of Authorized signatories with specimen signatures

Application form submitted to SBI FM office will be forwarded to CDSL ventures Limited (CVL) , a company authorized to handle KYC Compliance process

Subject to completion of all the documents, KYC compliance letter is sent by CDSL Ventures Limited (CVL), within 15 days. In case of any queries regarding the KYC compliance, please contact our sales team

Subscription & Redemption Process New Customer

RedemptionInitial Subscription Subsequent PurchasesExecution of SBI MF Forms Available with SBI MF offices across the country or can be downloaded from the following SBIMF linkhttp://www.sbimf.com/Downloads/Forms.aspx

Subscription Forms executed by authorized signatories

Subscription Form executed by authorized signatories

Redemption Form executed by authorized signatories

Attachments

– Copy of Memorandum & Articles of Association - attested by Company Secretary

– List of Authorized Signatories - attested

– Copy of Board Resolution approving investing in mutual funds - attested

– Copy of PAN Card

Wire transfer instructions

Submission of Forms

Subscription Form , attached documents and wire transfer instructions submitted to SBI MF Office

Subscription Form and wire transfer instructions submitted to SBI MF Office

Redemption Form submitted to SBI MF Office

Cut-off Time 2.00 p.m.*/3.00 p.m.# 2.00 p.m.*/3.00 p.m.# 3.00 p.m.

Allotment of Units

- Units allotted end of day of transfer of clear funds

- Applicable NAV would be T-1 for SPLF* and T for other products

- Account Statement mailed by SBI MF T+2

- Units allotted end of day of transfer of clear funds

- Applicable NAV would be T-1 for SPLF and T for other products.

- Account Statement mailed by SBI MF T+2

Redemption

- Units redeemed end of day - Applicable NAV will be T for

all the funds- Proceeds wired to client’s

account T+1# Funds have to be wired before this time; * Only applicable for SBI Premier Liquid Fund (SPLF)

Performance of other schemes managed by Mr. Rajeev Radhakrishnan

Managing since June, 2008

31-Mar-2015 To 31-Mar-2016

31-Mar-2014 To 31-Mar-

2015

28-Mar-2013 To 31-Mar-2014

Since Inception




CAGR Returns

(%)

PTP Returns (INR)

SBI Magnum Children’s Benefit Plan - Growth 6.86 28.49 9.24 10.06 38,679CRISIL MIP Blended Index (Scheme Benchmark) 5.67 16.45 6.52 N.A. N.A.

Crisil 10 year Gilt Index (Additional benchmark) 7.97 14.57 -0.96 6.51 24,342

Managing since June, 2008

31-Mar-2015 To 31-Mar-

2016

31-Mar-2014 To 31-Mar-

2015

28-Mar-2013 To 31-Mar-

2014

Since Inception




CAGR Returns

(%)

PTP Returns (INR)

SBI Short Term Debt Fund - Growth 8.07 10.27 7.86 6.53 17,325CRISIL Short Term Bond Fund Index (Scheme Benchmark) 8.47 10.33 8.86 8.08 19,637Crisil 1 Year T-Bill Index (Additional benchmark) 7.69 8.74 5.84 6.27 16,960

Managing since November, 2013

31-Mar-2015 To 31-Mar-

2016

31-Mar-2014 To 31-Mar-2015

28-Mar-2013 To 31-Mar-2014

Since Inception

Absolute Returns

(%)Absolute

Returns (%)Absolute

Returns (%)CAGR

Returns (%)

PTP Returns (INR)

SBI Treasury Advantage Fund - Growth 8.69 9.73 9.09 8.32 16,779CRISIL 1 year CD Index (Scheme Benchmark) 8.54 9.32 8.34 N.A. N.A.

Crisil 1 Year T-Bill Index (Additional benchmark)

7.69 8.74 5.84 6.52 15,055

Past performance may or may not be sustained in the future. Returns (in %) other than since inception are absolute calculated for growth option and in INR are point-to-point (PTP) returns calculated on a standard investment of 10, 000/-. Additional benchmark as prescribed by SEBI for long-term and short-term debt schemes is used for comparison purposes only. Performance calculated for regular plan.

Managing since May, 2010

7 Days 15 Days

30 Days

31-Mar-2015 To 31-Mar-

2016

31-Mar-2014 To 31-Mar-

2015

28-Mar-2013 To 31-Mar-2014

Since Inception

SA Returns(%) Absolute Returns (%)

CAGR Returns

(%)

PTP Retur

ns (INR)

SBI Magnum Insta-Cash Fund – Growth Plan 13.51 10.50 9.35 8.22 8.93 9.57 7.40 33,370CRISIL Liquid Fund Index (Scheme Benchmark 14.43 10.94 9.82 8.06 8.98 9.54 N.A. N.A.Crisil 1 Year T-Bill Index (Additional benchmark) 7.17 6.90 6.97 7.69 8.74 5.84 6.55 29,190

Biographies

Navneet Munot joined SBI Funds Management as Chief Investment Officer in December 2008. He brings with him over 15 years of rich experience in Financial Markets. In his previous assignment, he was the Executive Director & Head - multi - strategy boutique with Morgan Stanley Investment Management.Prior to joining Morgan Stanley Investment Management, he worked as the CIO - Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Navneet had been associated with the financial services business of the group for over 13 years and worked in various areas such as fixed income, equities and foreign exchange. Navneet is a postgraduate in Accountancy and Business Statistics and a qualified Chartered Accountant. He is also a Charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM Charter holder of Global Association of Risk Professionals (GARP).

Navneet MunotCFA, Chief Investment Officer

Rajeev joined SBIFM as a fixed income portfolio manager in 2008. He currently heads the Fixed Income desk at the AMC. Prior to joining SBIFM, Rajeev was Co-Fund Manager for Fixed Income with UTI Asset Management for seven years. Rajeev is an Engineering graduate and holds a Masters degree in finance from Mumbai University. He is also a charter holder of the CFA Institute, USA

Rajeev Radhakrishnan CFA, Head of Fixed Income

Disclaimer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This presentation is for information purposes only and is not an offer to sell or a solicitation to buy any mutual fund units/securities. These views alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions and estimates included here constitute our view as of this date and are subject to change without notice. Neither SBI Funds Management Private Limited, nor any person connected with it, accepts any liability arising from the use of this information. The recipient of this material should rely on their investigations and take their own professional advice

SBI Funds Management Private Limited(A joint venture between SBI and AMUNDI)

Registered Office:9th Floor, Crescenzo, C-38 & 39, ‘G’ Block,Bandra Kurla Complex, Bandra (E), Mumbai - 400 051

Board line: +91 22 61793000Fax: +91 22 67425687

Call: 1800 425 5425

SMS: “SBIMF” to 56161

Email: [email protected]

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www.sbimf.com Website

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SBI Money Market Funds : Investment in Debt & Money Market Securities - Apr 2016

Economy & Finance

Transcript of SBI Money Market Funds : Investment in Debt & Money Market Securities - Apr 2016