SBI Money-Market Funds
Transcript of 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 Suitability Low 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 22164.15 Crs.
SBI Premier Liquid Fund
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: In view of seasonality in cash demand and current tight term spreads, incremental exposure has been made in non-mark to market securities over the last month.
Benchmark : CRISIL Liquid Fund Index
Risk controls Over limits in assets ; Maturity by issuer; Risk diversification and Liquidity.
Ratings breakdown Percentage
SOV,AAA and Equivalent 101.51%
NCA(Incl. Cash, Deposits) -1.51%
CD, 9.18
CP, 70.71
NCD, 1.13
T-BILLS, 20.49
Short Term Deposits,
16.35
CBLO/Reverse Repo, -
18.63
NCA, 0.77
SBI Premier Liquid Fund
Data as on September 30,2016
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 Days 30-Sep-2015 to 30-
Sep-2016 30-Sep-2014 to
30-Sep-2015 30-Sep-2013 to
30-Sep-2014 Since Inception
SA Returns (%) Absolute Returns (%) CAGR
Returns (%)
PTP Returns (INR)
SBI Premier Liquid Fund 7.12 6.88 6.80 7.85 8.56 9.30 7.82 20,503
Crisil Liquid Fund Index (Scheme Benchmark) 7.75 7.15 7.01 7.69 8.56 9.49 7.69 20,267 Crisil 1 year T-Bill Index (Additional Benchmark) 12.41 9.46 7.89 7.36 8.86 8.35 6.49 18,207
0123456789
10
30-Sep-2015 to 30-Sep-2016
30-Sep-2014 to 30-Sep-2015
30-Sep-2013 to 30-Sep-2014
Since Inception
SBI Premier Liquid Fund - Reg Plan -Growth
Scheme Benchmark: - Crisil LiquidFund Index
Additional Benchmark: - Crisil 1 Yr T-Bill Index
Fund Manager: Mr. Rajeev Radhakrishnan Inception Date: 27-Jul-2007 AUM : INR 12273.43 Crs.
SBI Ultra Short Term Debt Fund
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: Incrementally maturity was reduced over the last month post the policy rate cut. This was on account of market pricing in expected easing in CPI and in view of near term risks surrounding both global rates as well as incremental tightness in domestic liquidity.
Benchmark: CRISIL Liquid Fund Index
Risk controls: Over issuers’ quality; Risk dispersion processes and liquidity
Ratings breakdown Percentage
Below AA+ 7.32
AA+ 7.49
SOV,AAA and Equivalent 82.96
NCA(Incl. Cash,Deposits) 2.23
25.27
20.19
3.49
45.41
1.54 1.85 0.76 1.48
CD
CP
Dated Govt Securities
NCD
T-BILLS
ZCB
CBLO/Reverse Repo
NCA
SBI Ultra Short Term Debt Fund
Data as on September 30, 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.
30-Sep-2015 to 30-Sep-2016
30-Sep-2014 to 30-Sep-2015
30-Sep-2013 to 30-Sep-2014
Since Inception
Absolute Returns (%)
CAGR Returns (%)
PTP Returns (INR)
SBI Ultra Short Term Debt Fund 8.28 9.09 9.42 8.00 20,274
Crisil Liquid Fund Index (Scheme Benchmark) 7.69 8.56 9.49 7.61 19,610
Crisil 1 year T-Bill Index (Additional Benchmark) 7.36 8.86 8.35 6.35 17,606
0123456789
10
30-Sep-2015 to30-Sep-2016
30-Sep-2014 to30-Sep-2015
30-Sep-2013 to30-Sep-2014
Since Inception
SBI Ultra Short Term Debt Fund - Reg Plan -Growth
Scheme Benchmark: - Crisil Liquid Fund Index
Additional Benchmark: - Crisil 1 Yr T-Bill Index
Key Metrics
SBI Premier Liquid Fund
SBI Ultra-short Term Debt Fund
YTM 6.63% 7.19%
Average Maturity
0.10 years 0.65 years
Modified Duration
0.09 years 0.59 years
Expense Ratio*
0.15 (Reg.) 0.42 (Reg.)
0.09 (Dir.) 0.33 (Dir.)
Data as on October 31, 2016
*Average for the month of October, 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 off
Subscription 2.00 P.M# 3.00 P.M 3.00 P.M
Redemption 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 investors
Long 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
Redemption Initial Subscription Subsequent Purchases
Execution of SBI MF Forms
Available with SBI MF offices across
the country or can be downloaded
from the following SBIMF link
http://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
30-Sep-2015 to 30-Sep-
2016
30-Sep-2014 to 30-Sep-
2015
30-Sep-2013 to 30-Sep-
2014
Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns
(INR)
SBI Magnum Children’s
Benefit Plan - Growth 19.39 8.44 36.35 10.58 43,501
CRISIL MIP Blended
Index (Scheme
Benchmark) 11.17 10.72 15.45 N.A. N.A.
Crisil 10 year Gilt Index
(Additional benchmark) 11.11 13.76 6.85 6.78 26,082
Managing since June,
2008
30-Sep-2015 to 30-Sep-
2016
30-Sep-2014 to 30-Sep-
2015
30-Sep-2013 to 30-Sep-
2014
Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns
(INR)
SBI Short Term Debt
Fund - Growth 9.06 9.81 9.43 6.74 18,207
CRISIL Short Term
Bond Fund Index
(Scheme Benchmark) 9.31 9.90 10.12 8.22 20,659
Crisil 1 Year T-Bill
Index (Additional
benchmark) 7.36 8.86 8.35 6.35 17,606
Managing since
November, 2013
30-Sep-2015 to 30-Sep-
2016
30-Sep-2014 to 30-Sep-
2015
30-Sep-2013 to 30-Sep-
2014
Since Inception
Absolute Returns (%)
CAGR Returns
(%)
PTP Returns (INR)
SBI Treasury Advantage
Fund - Growth 8.40 9.22 9.96 8.32 17,468
CRISIL 1 year CD Index
(Scheme Benchmark) 7.86 9.80 9.10 N.A. N.A.
Crisil 1 Year T-Bill Index
(Additional benchmark) 7.36 8.86 8.35 6.61 15,628
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
30-Sep-2015 to 30-Sep-
2016
30-Sep-2014 to 30-Sep-
2015
30-Sep-2013 to 30-Sep-
2014
Since Inception
SA Returns (%)
Absolute Returns (%)
CAGR
Return
s (%)
PTP
Return
s (INR)
SBI Magnum
Insta-Cash Fund
– Growth Plan 7.38 7.01 6.89 7.88 8.58 9.30 7.41 34,623 CRISIL Liquid
Fund Index
(Scheme
Benchmark) 7.75 7.15 7.01 7.69 8.56 9.49 N.A. N.A. Crisil 1 Year T-
Bill Index
(Additional
benchmark) 12.4 9.46 7.89 7.36 8.86 8.35 6.59 30,303
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 Munot CFA, 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 61793000 Fax: +91 22 67425687
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Email: [email protected]
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