DSP BlackRock Strategic Bond Fund
An open-ended Income Scheme
January 2015
An open-ended Income Scheme suitable for invest...
DSP BlackRock Strategic Bond Fund : Asset Growth
-
250
500
750
1,000
1,250
1,500
1,750
2,000
2,250
2,500
2,750
3,000
Dec-1...
DSP BlackRock Strategic Bond Fund: Modified Duration
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Dec-13
Jan-14
Feb-14
Mar-14...
DSP BlackRock Strategic Bond Fund: Asset Allocation
4
-20%
0%
20%
40%
60%
80%
100%
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-...
DSP BlackRock Strategic Bond Fund: Credit Rating Profile
5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-13
Jan-14
Feb-1...
Our View of Various Fixed Income Asset Classes: 7 Jan 15
Asset Class Current Level Near Term View
3M T-Bill 8.40% pa 8.35%...
Our Current Strategy & Positioning: 7 Jan 15
7
Positioning: We are positioned to benefit from a gradual decline in governm...
What could go wrong?
8
RISK IMPACT
Geo Political Risk Sudden emergence of geo political risks may dampen sentiment and res...
1M Annualized Performance of Various Fixed Income Fund
Categories
8.34%
8.63%
9.21%
10.21%
9.35%
8.13%
8.98%
7.20%
7.06%
1...
1M Annualized Holding Period Return of Different Asset Classes
A Monthly Comparison
8.58%
9.01%
9.49%
9.76%
13.48%
16.75%
...
Disclaimer
11
In the preparation of the material contained in this presentation, DSP BlackRock Investment Managers Pvt. Lt...
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DSP BlackRock Strategic Bond Fund

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DSP BlackRock Strategic Bond Fund

An open-ended Income Scheme suitable for investors seeking*
1. Income over a medium-term investment horizon

2. Investment in money market and debt securities

3. Low risk (Blue)

*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.

Note : Risk may be represented as :
(Blue) : Investors understand that their principal will be at low risk
(Yellow) : Investors understand that their principal will be at medium risk
(Brown) : Investors understand that their principal will be at high risk

Published in: Economy & Finance, Business
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DSP BlackRock Strategic Bond Fund

  1. 1. DSP BlackRock Strategic Bond Fund An open-ended Income Scheme January 2015 An open-ended Income Scheme suitable for investors seeking*  Income over a Medium to Long term investment horizon  Investment in Actively Managed Portfolio of money market and debt securities  Low risk (Blue) *Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them. Note : Risk may be represented as : (Blue) : Investors understand that their principal will be at low risk (Yellow) : Investors understand that their principal will be at medium risk (Brown) : Investors understand that their principal will be at high risk
  2. 2. DSP BlackRock Strategic Bond Fund : Asset Growth - 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 2 Rs.Crore Source: Internal
  3. 3. DSP BlackRock Strategic Bond Fund: Modified Duration - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 3 ModifiedDuration(Years) Source: Internal
  4. 4. DSP BlackRock Strategic Bond Fund: Asset Allocation 4 -20% 0% 20% 40% 60% 80% 100% Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Cash & Equivalent Money Market Assets Bonds & NCDs G Sec Source: Internal
  5. 5. DSP BlackRock Strategic Bond Fund: Credit Rating Profile 5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Cash & Equivalent G Sec A+ AA- AA AA+ AAA A1+ A2+ Source: Internal
  6. 6. Our View of Various Fixed Income Asset Classes: 7 Jan 15 Asset Class Current Level Near Term View 3M T-Bill 8.40% pa 8.35% - 8.40% pa 3M Bank CD 8.45% pa 8.40% - 8.45% pa 12M T-Bill 8.20% pa 8.15% - 8.20% pa 12M Bank CD 8.60% pa 8.50% - 8.60% pa 3Y AAA PSU Bond 8.60% pa 8.60% - 8.70% pa 5Y AAA PSU Bond 8.60% pa 8.60% - 8.70% pa 10Y Government Bond (New) 7.86% pa 7.80% - 8.00% pa INR 63.18 per USD 62-64 per USD 6 Please read the disclaimer on slide no.11 Source: Internal
  7. 7. Our Current Strategy & Positioning: 7 Jan 15 7 Positioning: We are positioned to benefit from a gradual decline in government bond yields in the near term Asset Type Bias Rationale Money Market Assets • We expect 3M and 12M money market rates to be steady in the near-term • We expect 3M CD to touch 8.50% and 12M CD to touch 8.60% in the near-term • CD T-Bill spreads have narrowed considerably • We expect spreads to remain stable or widen in the near-term G Sec • We are bullish on 5-15Y government bonds • We expect benchmark 10Y government bond yield to touch 7.50% in 2015 • We expect government bond yield curve to turn steeper going forward • With recent decline in crude oil prices and emergence of deflationary headwinds, prospects of a rate cut has increased sharply • We expect the RBI to announce first rate cut by February / March 2015 Corporate Bonds • Corporate bond yields have outperformed Government bonds in the last 3 months amid higher demand from the FIIs • We expect credit spreads to widen from their current level • Corporate bond supply has dwindled ahead of rate cut expectations • Recent increase in volatility in EM bonds may result in marginal underperformance of corporate bonds Source: DSP BlackRock Estimates Please read the disclaimer on slide no.11
  8. 8. What could go wrong? 8 RISK IMPACT Geo Political Risk Sudden emergence of geo political risks may dampen sentiment and result in outflows from the Emerging Markets Increase in Currency Volatility Rising US Dollar has put pressure on G7 & EM Currencies We expect EM Currencies to exhibit a declining trend in the near term. Weak EM Currency trend may result in outflows from EM bonds. Source: DSP BlackRock Estimates
  9. 9. 1M Annualized Performance of Various Fixed Income Fund Categories 8.34% 8.63% 9.21% 10.21% 9.35% 8.13% 8.98% 7.20% 7.06% 10.15% 15.11% 12.46% 8.52% 10.08% 6.51% 3.47% 11.85% 28.89% 21.97% 17.91% 15.10% 9.24% 3.45% 11.74% 36.46% 27.02% 28.13% 19.34% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 6 Month Average Ultra Short Term (31 Funds) Short (24 Funds) Income (15 Funds) G-Sec (18 Funds) 9 This slide exhibits average 1M Annualized Performance of various schemes under fixed income categories across several Mutual Funds. The aforesaid calculation has been done based on Simple annualized return. These figures do not have any correlation whatsoever with the returns/performance of any of the schemes of DSP BlackRock Mutual Fund. Source: Internal
  10. 10. 1M Annualized Holding Period Return of Different Asset Classes A Monthly Comparison 8.58% 9.01% 9.49% 9.76% 13.48% 16.75% 22.64% 25.18% 33.65% 22.98% 8.23% 8.46% 8.23% 8.23% 8.97% 7.98% 7.21% 25.18% 25.85% 23.46% 0% 5% 10% 15% 20% 25% 30% 35% 40% 3M TBILL 3M CD 12M TBILL 12M CD 2Y AAA 3Y AAA 5Y AAA 10Y GOI 10Y AAA 10Y SDL November-14 December-14 10 This slide exhibits average Annualized Holding Period Return of different asset classes for the months of November 2014 and December 2014. The aforesaid calculation has been done based on Simple annualized return. These figures do not have any correlation whatsoever with the returns/performance of any of the schemes of DSP BlackRock Mutual Fund. Source: Internal, Bloomberg
  11. 11. Disclaimer 11 In the preparation of the material contained in this presentation, DSP BlackRock Investment Managers Pvt. Ltd. (the AMC) has used information that is publicly available, including information developed in-house. Information gathered and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation. We have included statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally. All figures and other data mentioned in this presentation (unless otherwise specified) are as on 7 January 2015 and the same may or may not be relevant in future. The data or figures mentioned in this presentation shall not be construed as indicative yields/returns of any of the Schemes of DSP BlackRock Mutual Fund. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of DSP BlackRock Mutual Fund. Past performance may or may not be sustained in the future. For scheme specific risk factors and more details, please read the Scheme Information Document, Statement of Additional Information and Key Information Memorandum of the Scheme, available at www.dspblackrock.com Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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