SBI Magnum Constant Maturity Fund
Date Published: May 3, 2023
FUND FACTS
|
Nature |
Open ended |
Fund Manager |
Mr. Dinesh Ahuja |
|
Allotment Date |
30-Dec-2000 |
Benchmark Index |
NIFTY 10 yr Benchmark G-Sec Index |
|
NAV (Rs.) |
51.85 ( 13-Dec-2022 ) |
Corpus (Rs.in Crs.) |
844.20 ( Nov-2022 ) |
|
Investment Objective |
To provide returns to the investors generated through investments predominantly in Government securities issued by the Central Government and/or State Government such that the Average Maturity of the portfolio is around 10 years. |
||
PORTFOLIO COMPOSITION
An open-ended Debt Scheme investing in government securities having a constant maturity of around 10 years. A relatively high interest rate risk and relatively low credit risk. The fund has 96.52% of its net assets invested into debt, balance 3.48% in other instruments. It may be observed that the Quarterly Average AUM of the fund for the end of September 2022 is Rs. 205.37 crores.
| Top 10 Holdings (% in N.A) | Nov -22 | Ratings |
|---|---|---|
| 7.26 GOI Aug 22 2032 | 57.35 | Sovereign |
| 6.1 GOI Jul 12 2031 | 18.62 | Sovereign |
| 6.67 GOI Dec 15 2035 | 15.06 | Sovereign |
| GOI | 1.88 | Sovereign |
| GOI | 1.82 | Sovereign |
| 7.54 GOI May 23 2036 | 1.80 | Sovereign |
| Month End | Equity % | Debt % | Others % | Scheme % Returns |
|---|---|---|---|---|
| 30.11.2022 | - | 37.59 | 62.41 | -6.01 |
| 31.10.2022 | - | 40.22 | 59.78 | -1.93 |
| 30.09.2022 | - | 44.32 | 55.68 | 3.78 |
| 31.08.2022 | - | 33.43 | 66.57 | 3.84 |
| 29.07.2022 | - | 65.83 | 34.17 | 0.16 |
| 30.06.2022 | - | 21.01 | 78.99 | 1.70 |
| 31.05.2022 | - | 42.90 | 57.10 | 6.22 |
| 29.04.2022 | - | 62.12 | 37.88 | -3.35 |
| 31.03.2022 | - | 62.12 | 37.88 | 8.13 |
| 28.02.2022 | - | 65.90 | 34.10 | 8.20 |
| 31.01.2022 | - | 40.20 | 59.80 | 2.78 |
| 31.12.2021 | - | 47.60 | 52.40 | 1.08 |
| Load Details and Other Parameters as on 30.11.2022 | |
|---|---|
| Entry Load: | N i l |
| Exit Load: | N i l |
| Modified Duration (Days): | 2500.25 |
| Average Maturity (Days): | 3606.2 |
| Macaulay Duration (Days): | 2591.S |
| Expense Ratio (Current) | - |
| Regular | 0.63 ( 19-0ec-2022 ) |
This product is suitable for investors who are seeking: -Regular income and capital growth for medium to long Term -Investment in government securities having a constant maturity of around 10 years
Risk of this scheme in terms of Standard deviation of monthly returns (using last 3 years data) is lower than the peer group of Debt: Gilt with 10 year Constant Duration, while the Sharpe ratio of this scheme is higher than the peer group of Debt: Gilt with 10 year Constant Duration. Pls see the table called "Risk Measures (%) ".
| Risk Measures % | ||||||
|---|---|---|---|---|---|---|
| Mean | Std Dev | Sharpe | Sortino | Beta | Alpha | |
| SBIMagnum Constant Mtrty Reg | 4.96 | 3.71 | 0.36 | 0.47 | 0.83 | -0.48 |
| CCILAll Sovereign Bond - TRI | 5.8 | 4.23 | 0.52 | 0.72 | - | - |
| Debt: Gilt with 10 year Constant Duration | 4.61 | 3.86 | 0.25 | 0.34 | 0.84 | -0.84 |
| Rank within category | 3 | 1 | 3 | 3 | 3 | 3 |
| Number of funds in category | 5 | 5 | 5 | 5 | 5 | 5 |
| The Risk measures have been calculated using calendar month returns for the last three years.As on 30-Nov-2022 | ||||||
| Source : Value Research | ||||||
Monthly SIP and Lumpsum vis-à-vis Benchmark:
Note:Performance is on November 30, 2022. (2) Returns are calculated on the basis of annual compounding. The returns of the fund in both modes (ie. Monthly and Lumpsum) across various time periods witnessed with mixed noticeable variations.
PERFORMANCE:In Exhibit 3, the scheme has outperformed the benchmark index in 1 month, 6 Months, 1 year and 5 years. Ten-year constant maturity funds are always invested in either the prevailing 10-year g-sec or multiple g-secs with maturity that averages to 10 years, in order to replicate the yield and price performance of the benchmark gilt. These passive funds also charge lower expenses than actively managed gilt funds. Gilt funds carry no credit risk. But when interest rates in the market rise, the prices of older bonds in the market sink. The longer the maturity of the bond, the more the hammering it takes from rate increases. Funds that own 10-year g-secs are highly open to such declines, because of their long tenure and high price sensitivity
PEER COMPARISON
