Is your fixed income portfolio adapting to rising interest rates? Time to put your fixed income investments in motion with ICICI Prudential All Seasons Bond Fund.

1. Inertia is the tendency to do nothing; remain unchanged. Isaac Newton spoke about it, even
placed it up right at the top spot in his Laws of Motion. But Inertia does not actually mean to do
nothing at all. Rather, it is to resist change. There is a difference.
Trees may appear to be doing nothing at all, but they do change a lot as the seasons pass.
Trees, therefore, are not inert.
Just like trees, there are aspects of money that appear inert but are constantly changing.
Consider traditional investment avenues like term deposits, where interest rates have
nosedived in the last couple years since the start of the Covid-19 pandemic. Ideally, a low rate
of return should push investors seeking interest income to chase better avenues; in other
words, term deposits as a percentage of total deposits should fall. But data shows no change
in investor behavior. Traditional investment avenues continue to retain investors even if interest
rates are changing.
We can fairly say that, although investors themselves
are dynamic and aware of markets, their investment
decisions may appear inert.
August 2022
A Note on ICICI Prudential All Seasons Bond Fund
Putting Fixed Income in Motion

2. Being inert or unchanged rarely works in anyone’s favor. To thrive requires change, and this
applies even for fixed income investments, which, as the name might suggest – are fixed (and
therefore, largely, inert).
We figured this investor inertia more than 8 years ago and tried to devise a solution that could
put wheels on fixed income investments, and possibly, make it more adaptive to changing
situations.
The outcome – ICICI Prudential All Seasons Bond Fund.
2-Apr-14
14.04
17-Aug-22
29.62
As the name might suggest, the Scheme enjoys dual flexibility in its asset allocation -
across duration and across credit ratings.
Although the Scheme started in 2010, its flexible model began
later. And as the line chart shows, the journey has been overall
a smooth one.
It is also necessary that we
acknowledge the speed bumps on
the way, as these have helped us
improve our understanding of fixed
income markets. NAV of the Scheme
Introduction
Putting Fixed Income in Motion

3. Dynamic Duration Management:
The Scheme invests across maturity buckets to avoid over-exposure to any one segment of the yield
curve. This approach is suitable for the ‘all-seasons’ theme of the Scheme as bond yields tend to
move differently in different time periods. Here is a visual representation of the active duration
management of the Scheme as seen by movements in its modified duration.
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
0
1
2
3
4
5
6
7
8
9
10
Jul-14
Jan-15
Jul-15
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
10-Yr
G-sec
yields
(%)
Modified
Duration
(In
Yrs)
Modified Duration vs 10-yr G-sec yield
Modified Duration (In Yrs) 10-Yr G-Sec Yields
Good credit risk management: In the past, Credit risk events such as defaults by high-rated
NBFCs had spooked the bond markets, subsequently resulting in rise in yields in spread assets (AA &
below rated corporate bonds). During this period, we saw many credit risk debt instruments post
negative returns in a short span. But our SLR (Safety, Liquidity, Returns) framework helped us take
calculated risks without compromising on the safety or liquidity of the Scheme. Here is a view of the
corporate securities portfolio of the Scheme as on July 31, 2022.
For the complete portfolio, please refer to the monthly factsheet.
Three Reasons to Choose ICICI Prudential All Seasons Bond Fund
Putting Fixed Income in Motion

4. Flexible Asset Allocation: Similar to active duration management, the Scheme actively
juggles exposure to different credit ratings and sovereign securities. It has the flexibility to move
across different classes of fixed-income securities with an aim to capture the right risk-to-reward
opportunities. The Scheme’s portfolio is also well diversified across sectors and companies to
avoid concentration.
0
20
40
60
80
100
Jan-16
Jul-16
Jan-17
Jul-17
Jan-18
Jul-18
Jan-19
Jul-19
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jul-22
Asset
Allocation
(%)
AAA and Equivalent Sovereign Securities TREPS & Net Current Assets AA and Equivalent
Summary: We have learnt that change is good, even essential, in a dynamic world.
And as already witnessed by our track record, matching the aforesaid philosophy to fixed-
income investments can yield surprisingly good outcomes. This is why we continue to
believe in ICICI Prudential All Seasons Bond Fund as a suitable fit for longer duration fixed
income investment. Lastly, it is an all seasons product that is suitable for entry in any
period or situation, and thus suitable for staggered investments as well.
Three Reasons to Choose ICICI Prudential All Seasons Bond Fund
Putting Fixed Income in Motion

5. ICICI Prudential All Seasons Bond Fund is suitable for investors who
are seeking*:
(An open ended dynamic debt scheme investing across duration. A
relatively high interest rate risk and moderate credit risk.)
•All duration savings
•A debt scheme that invests in debt and money market
instruments with a view to maximize income while maintaining
optimum balance of yield, safety and liquidity
*Investors should consult their financial advisors if in doubt about
whether the product is suitable for them.
Scheme Riskometer
As per SEBI Circular dated, June 07, 2021; the Potential risk class (PRC) matrix based on
interest rate risk and credit risk.
Potential Risk Matrix for the Scheme:
Please note that the Risk-o-meter(s) specified above will be evaluated and updated on a monthly basis. The above riskometers are as on July 31, 2022. Please refer to
https://www.icicipruamc.com/news-and-updates/all-news for more details..
Mutual Funds investments are subject to market risks, read all scheme related documents carefully.
In preparation of the material contained in this document, ICICI Prudential Asset Management Company Limited (the AMC) has used information that is publicly
available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the AMC
and/or its affiliates and which may have been made available to the AMC and/or to its affiliates. 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. 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, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence
in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers,
directors, personnel and employees, shall not be liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary,
consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any
decision taken on this material. All figures and other data given in this document are dated and the same may or may not be relevant in future. 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 ICICI
Prudential Mutual Fund. The sector(s)/stock(s) mentioned in this communication do not constitute any recommendation of the same and ICICI Prudential Mutual Fund
may or may not have any future position in these sector(s)/stock(s). Past performance may or may not be sustained in the future. The portfolio of the scheme is
subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors.
Potential Risk Class
Credit Risk Relatively Low
(Class A)
Moderate
(Class B)
Relatively High
(Class C)
Interest Rate Risk
Relatively Low
(Class I)
Moderate
(Class II)
Relatively High
(Class III) B-III
Disclaimers and Risk-o-meter
Putting Fixed Income in Motion