An Open Ended Low Duration Debt Scheme Investing In Instruments Such That The Macaulay Duration Of The Portfolio Is Between 6 To 12 Months A relatively high interest rate risk and moderate credit risk ID: 1038863
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1. Axis Treasury Advantage Fund(An Open Ended Low Duration Debt Scheme Investing In Instruments Such That The Macaulay Duration Of The Portfolio Is Between 6 To 12 Months. A relatively high interest rate risk and moderate credit risk)
2. Fixed Income Market Update2
3. Sticky inflation, but trending lowerInflation below 7%3Source: RBI, Kotak Institutional Equities, Axis MF Research. Data as of 15th November 2022
4. Domestic recovery robust on all major parametersIndia on a Strong Wicket4Source: CLSA, Kotak Institutional Equities, CMIE, Axis MF Research. Data as of 31st October 2022Domestic Activity Remains RobustConsumer Sentiment Picking UpCapacity Utilization Above Long Term Averages
5. Path to normalization, we are in phase 3RBI’s Thought processSource: RBI, Axis MF Research5Positive Real RatesThe commentary from the RBI indicates a stated intention to get the real rates above long term inflation levelsReduce System LiquiditySystem liquidity buffers kept in place as economic uncertainity looms large. Current liquidity ~Rs 42lakh CrReversing Policy ActionMost of the covid related policy action has been reversedIntended ResultThe RBI aims to achieve twin objectives of tackling inflation while supporting growth.Change in Policy FocusThe RBI has moved its policy focus from growth to inflation. The RBI is also likely to reverse much of the policy accommodation in a steady manner to cool inflation risks
6. Rates are biased upwards and expected to harden over next 12-18 monthsPotential opportunity for reinvestment themeShort Duration papers will likely get repriced significantly above their current levelsMoney market and short bond segment will be benefitted from reinvesting at higher yieldsLonger duration bonds will face a negative MTM impactAttractive play on rising yieldsReinvestment8Chart displayed only for illustration purposes. Assumed bonds will be held to maturity. Axis AMC/Axis MF does not guarantee returns on any products.
7. Target Actively managed strategies and focus on reinvestmentMoney Markets9Money markets have moved higher as system liquidity has been normalized through VRRR and fine tuning operationsWith inflation above the RBI threshold, rates are expectedly rising to price in higher risk premiumMTM impact on money markets will be limited due to the low duration. However as you keep reinvesting you collect higher YTMWe believe rising rates are here to stay. RBI is likely to keep shifting the yield curve higher gradually so as to avoid any liquidity shocks to the economySource: Bloomberg, Axis MF Research. Data as on 31st Oct 2022Yields given above is based on the market data as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities.
8. Discipline is the keyPortfolio Construction10DIVERSIFICATIONCREDIT PLAY DIFFERENT FROM DURATION PLAYVALUATIONCautious at selecting sectorsDiversifying the exposure to manage potential riskStrict issuer/rating limitsPure accrual play with buy and hold approachNo active duration call in lower rated papersLook at credit exposure only during favorable valuation scenario
9. Tight Duration Range (3 years)Stringent credit reviewControl credit risk through diversification and strict limits on issuer weighting based on ratingRisk Mitigation FrameworkRisk Management11Strategy followed is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets.
10. Introducing Axis Treasury Advantage Fund(An Open Ended Low Duration Debt Scheme Investing In Instruments Such That The Macaulay Duration Of The Portfolio Is Between 6 To 12 Months. A relatively high interest rate risk and moderate credit risk)Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. Please refer to Scheme Information Document (SID) for detailed asset allocation and investment strategy.
11. An IntroductionAxis Treasury Advantage Fund13High quality & low-risk strategy with an endeavor to generate stable returns. It aims to capture opportunities in the yield curve spreads in the short duration segment.The fund tracks corporate bond v/s Money market instruments spreads closely while making its allocations. The portfolio stance is expected to benefit from its lower maturity profile and active reinvestment strategy Portfolio exposure remains mainly in favor of higher rated instruments within the 6 months to 1.5 year band.
12. Portfolio CharacteristicsAverage Maturity1.05 YearsMacaulay Duration0.72 YearsModified Duration0.70 YearsYield to Maturity^7.45%31st Oct 2022Fund PositioningAllocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. ^The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus. #High Rated Papers refers to instruments which are rated AAA/A1+ & equivalent or G-sec. Average for the last 1 yearAllocation to High Rated Papers#81.0%Allocation to G-Sec7.9%Duration in the range of 1 year14
13. Portfolio Exposure15Source: ACEMF. Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. Please refer to Scheme Information Document (SID) for detailed asset allocation and investment strategy. Data As on 31st Oct 2022Corporate BondsG-SecMoney Market Instruments31st Oct 2022NOT UPDATED BECAUSE LINK FILE IS MISSING
14. 31st Oct 2022Performance16Past performance may or may not be sustained in future. Different plans have different expense structure. Devang Shah is managing the scheme since 7th June 2016 and he manages 12 schemes & Aditya Pagaria is managing the scheme since 13th August 2016 and he manages 10 schemes. Please click on link https://www.axismf.com/cms/sites/default/files/Statutory/Annexure_Without%20Direct%20Plan.pdf to view the performance of other schemes currently managed by the fund manager. Returns greater than 1 year are Compounded Annual Growth Rates (CAGR). Face Value per unit is Rs 1,000. Note: In case you require physical copy of this document request you to kindly take the printout to review the fund managers performance of other schemes managed by him from the above link given.1 Year 3 Year5 Year Since InceptionInceptionCAGR(%)Current Value of investment of Rs. 10,000CAGR(%)Current Value of investment of Rs.10,000CAGR(%)Current Value of investment of Rs. 10,000CAGR(%)Current Value of investment of Rs. 10,000Axis Treasury Advantage Fund - Regular Plan - Growth9-Oct-093.84%10,3865.08%11,6036.23%13,5307.43%25,513NIFTY Low Duration Debt Index B-I (Benchmark)4.11%10,4135.21%11,6496.18%13,5007.58%25,974NIFTY 1 Year T-Bill Index (Additional Benchmark)3.31%10,3334.64%11,4595.71%13,1996.41%22,509
15. Disclaimers & Risk Factors17
16. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them 18Product Labelling
17. Past performance may or may not be sustained in future. Calculations are based on Regular Plan - Growth Option NAV and Direct Plan - Growth Option NAV, as applicable. Face Value per unit: 1,000/- for Axis Liquid Fund, Axis Treasury Advantage Fund, Axis Money Market Fund, Axis Overnight Fund and Axis Banking & PSU Debt Fund, Rs. 1/- for Axis Gold ETF, Axis AAA Bond Plus SDL ETF - 2026 Maturity, Rs. 10/- for Axis Nifty ETF, Axis Healthcare ETF, Rs. 100/- for Axis Banking ETF, Axis Technology ETF and Rs. 10/- for all other schemes. Different plans have different expense structure.#Scheme Performance may not be strictly comparable with that of its additional benchmark in view of hybrid nature of the scheme.Data As on 31st Oct 2022.Devang Shah is managing Axis Liquid Fund, Axis Dynamic Bond Fund, Axis Gilt Fund, Axis Strategic Bond Fund and Axis Short Term Fund since 5th November,2012, Axis Credit Risk Fund, Axis Money Market Fund and Axis Arbitrage Fund since inception and Axis Treasury Advantage Fund and Axis Regular Saver Fund and all Axis Fixed Term Plans since 7th June, 2016 (since inception date for Axis Fixed Term Plans launched after 7th June, 2016) and Axis Corporate Debt Fund since July 13th, 2017.Aditya Pagaria is managing Axis Ultra short-term Fund since inception and Axis Liquid Fund, Axis Treasury Advantage Fund, Axis Banking & PSU Debt Fund since 13th August, 2016, Axis Overnight Fund since inception, Axis Money Market Fund, Axis Floater Fund and Axis AAA Bond Plus SDL ETF - 2026 , Maturity since inception. Axis Gold ETF and Axis Gold Fund since 9th November, 2021.Performance disclaimer19
18. Data updated As on 31st Oct 2022Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Statutory Details and Risk Factors20
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