SBI Short Term Debt Fund This product is suitable for investors who - PowerPoint PPT Presentation

SBI Short Term Debt Fund

This product is suitable for investors who are seeking:  Investment in debt and money- market securities  Regular income for short term  Low risk SBI Short Term Debt Fund Disclaimer: Investors should consult their financial advisors if in doubt whether this product is suitable for them.

Scheme Highlights Options Growth & Dividend Plans Regular Plan & Direct Plan Declaration of dividends on a weekly, fortnightly and monthly basis with Dividend reinvestment/payout facilities. Rs. 5000 & in multiples of Rs. 1 thereafter Minimum Investment SIP , STP , SWP facilities available Facilities Minimum Application- Rs.1000/week for 6 weeks, Rs.500/month for 12 months, Rs.1000/month for 6 months, Rs. 1500/quarter Exit Load 0.25% for exit within 45 days from the date of allotment

Short Term Fund positioning Duration profile Dynamic Bond Fund Long Term Bond Funds Short Term Bond Funds Yield Ultra Short Term Bond Funds Liquid Funds Short Term Bond Fund lies in between Liquid /Ultra Short term Funds & Long Term Bond Funds in terms of risk/return positioning

Portfolio Analysis Top 10 Holdings CD 0.47 2.52 1.35 CP Issuer % Of NAV 7.87 9.73 GOVERNMENT OF INDIA 26.00 Dated Govt Securities 29.65 HOUSING DEVELOPMENT FINANCE NCD CORPORATION LIMITED 8.70 48.41 T-Bills POWER FINANCE CORPORATION LTD 7.81 LIC HOUSING FINANCE LTD 7.42 ZCB CORPORATION BANK 5.30 NCA/CBLO/Reverse Repo STATE GOVERNMENT OF RAJASTHAN 3.65 FULLERTON INDIA CREDIT COMPANY LTD 3.59 Ratings Breakdown % of NAV ICICI BANK LTD 3.54 Below AA+ 5.66 AA+ 5.99 RURAL ELECTRIFICATION CORP LTD 3.40 SOV,AAA and Equivalent 80.48 TATA MOTORS LTD 3.33 NCA(Incl. Cash,Deposits) 7.87 Total 72.74 Data as on August 31, 2016

Performance Report 12 SBI Short Term Debt Fund - Reg Plan - 10 Growth 8 6 Scheme Benchmark: - Crisil Short Term Bond Fund Index 4 2 Additional Benchmark: - Crisil 1 Yr T-Bill Index 0 30-Jun-2015 to 30-Jun- 30-Jun-2014 to 30-Jun- 28-Jun-2013 to 30-Jun- 2016 2015 2014 Since Inception 30-Jun-2015 to 30- 30-Jun-2014 to 30- 28-Jun-2013 to 30- Jun-2016 Jun-2015 Jun-2014 PTP Returns Absolute Returns (%) CAGR Returns (%) (INR) SBI Short Term Debt Fund 8.75 9.02 7.73 6.59 17,681 Crisil Short Term Bond Fund Index (Scheme Benchmark) 8.94 9.56 8.81 8.11 20,070 Crisil 1 year T-Bill Index (Additional Benchmark) 7.67 8.54 5.93 6.30 17,267 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. Data as on June 30, 2016

Scheme Highlights Investment Objective : To provide investors with % of net Risk Type of Instrument an opportunity to generate regular income assets profile through investments in a portfolio comprising of Debt securities including money- 65-100 Low to market instruments and debt Medium debt instruments which are rated not below Derivatives investment grade by a credit rating agency and money market instruments. Securitized Debt 0-35 Medium Average Maturity over last 12 months 5 Average Maturity: Portfolio average maturity is capped at 3 years. Average maturity is 4 tactically maintained within the boundary 2.99 2.81 2.95 2.85 2.77 2.93 2.87 2.88 range. 3 2.54 2.53 2.68 2.70 2 1 0

Trends in short term rates 12 MIBOR 91 Days T-bill 3 Month CD Rate 12 Month CD Rate 11 10 9 8 7 6 Less volatility is expected in short-term rates in the near term as RBI has engaged in active liquidity management. Source: Bloomberg as on August 31, 2016

Narrowing Spreads Between the Long term and the Short term Bonds AAA Yield Curve 11 1 Year AAA 3 Year AAA 10 Percentage 9 8 7 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Corporate bond spreads have recently corrected to lower levels Source: Bloomberg as on August 31, 2016

Current Investment Approach  The portfolio would be invested in mark to market securities, with exposure to non mark to market securities kept largely for liquidity requirements and on a tactical basis .  The Portfolio in normal cases to have higher maturity / duration & mark to market component vis-à-vis liquid & ultra short term funds.  Investments in scheme suitable for investors having investment horizon of at least 3 months to a year.  Over the next 3-6 months, inflation is expected to decline significantly supported largely by softening food prices. This along with RBI’s neutral liquidity stance and rate cut expectation could result in further spread contraction across the curve. The scheme would maintain a predominantly AAA /AA+ focus on credit.  The scheme would maintain a predominantly AAA /AA+ focus on credit, while taking selective exposure to non AAA bonds with a rating floor of AA-.

Focus on Fundamental Research & Risk Management  Focus on consistent Fundamental research based approach and focus on – above average risk risk management to generate consistent above adjusted returns average returns  Fundamental Capturing inefficiencies in the Fixed income markets – research based that give rise to multiple sources of alpha through approach disciplined risk taking  Focus on risk Risk management is crucial to achieving the – management investment objective and is an integral part of portfolio management.  Identifying multiple Sharper focus on credit research: credit cycles will be – sources of alpha shorter and lack of liquidity pose another challenge.

Biographies Rajeev Radhakrishnan Navneet Munot CFA, Head of Fixed Income CFA, Chief Investment Officer Navneet Munot joined SBI Funds Management as Rajeev joined SBIFM as a fixed income portfolio Chief Investment Officer in December 2008. He manager in 2008. He currently heads the Fixed brings with him over 15 years of rich experience in Income desk at the AMC. Prior to joining SBIFM, Financial Markets. In his previous assignment, he was Rajeev was Co-Fund Manager for Fixed Income the Executive Director & Head - multi - strategy with UTI Asset Management for seven years. boutique with Morgan Stanley Investment Rajeev is an Engineering graduate and holds a Management. Masters degree in finance from Mumbai Prior to joining Morgan Stanley Investment University. He is also a charter holder of the CFA Management, he worked as the CIO - Fixed Income Institute, USA 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).

Performance of other schemes managed by Mr. Rajeev Radhakrishnan Since Inception Since Inception 30-Jun- 30-Jun-2014 28-Jun-2013 30-Jun- 30-Jun- 28-Jun- 2015 to 30- to 30-Jun- to 30-Jun- 2015 to 2014 to 2013 to Jun-2016 2015 2014 30-Jun- 30-Jun- 30-Jun- Managing since June, Managing since 2016 2015 2014 2008 November, 2013 CAGR PTP Absolute Returns (%) CAGR Returns Returns Absolute PTP Returns Returns (%) (INR) Returns (%) (INR) (%) SBI Ultra-short Term Debt SBI Treasury Advantage Fund - Growth 8.40 8.98 9.25 7.98 19,857 Fund - Growth 8.53 9.26 9.76 8.30 17,096 CRISIL Liquid Fund Index CRISIL 1 year CD Index (Scheme Benchmark) (Scheme Benchmark) 8.26 9.19 7.82 N.A. N.A. 7.90 8.77 9.68 7.62 19,265 Crisil 1 Year T-Bill Index Crisil 1 Year T-Bill Index (Additional benchmark) (Additional benchmark) 7.67 8.54 5.93 6.30 17,267 7.67 8.54 5.93 6.55 15,328 Since Inception 30-Jun- 30-Jun- 28-Jun- 30-Jun- 30-Jun-2014 28-Jun- Since Inception 2015 2014 to 2013 to 2015 to to 30-Jun- 2013 to 7 15 30 to 30- 30-Jun- 30-Jun- 30-Jun- 2015 30-Jun- Days Days Days Jun- 2015 2014 Managing since June, 2016 2014 Managing since 2016 2008 May, 2010 CAGR PTP Absolute PTP Returns Returns CAGR Returns (% SA Returns Retur (%) (INR) Absolute Returns (%) Returns (%) ns (%) (INR) SBI Magnum Children’s Benefit Plan - Growth SBI Magnum Insta- 15.04 9.76 26.39 10.33 41,023 Cash Fund – Growth Plan 7.66 7.59 7.58 8.10 8.77 9.61 7.41 34,019 CRISIL MIP Blended CRISIL Liquid Fund Index (Scheme Index (Scheme Benchmark) 8.63 11.05 8.28 N.A. N.A. Benchmark 8.20 7.47 7.82 7.90 8.77 9.68 N.A. N.A. Crisil 1 Year T-Bill Crisil 10 year Gilt Index Index (Additional (Additional benchmark) benchmark) 10.03 11.76 -2.47 6.53 24,807 7.64 7.22 7.40 7.67 8.54 5.93 6.57 29,720 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.