Under the revised mandate of corporate bond funds, the fund will invest minimum 80% in corporate bonds rated AA + and above
The Aditya Birla Sun Life Corporate Bond is one of the oldest debt schemes with a proven track record. It has been in existence since 1997.
The fund is managed by Maneesh Dangi, who heads the fixed income desk at Aditya BSL AMC. Dangi is also the co-chief investment officer at the fund house. He has extensive experience of over 15 years in research and fund management and has been with Aditya Birla Sun Life since January 2006. Dangi is an experienced portfolio manager and we view his in-depth understanding of the macroeconomy (local as well as global markets) as being an advantage. He is ably supported by an experienced team of fund managers and analysts.
Investment strategy
The fund typically invests in high quality debt papers and has not taken active credit bets in the past. The issuer-selection process on the corporate bond side is extremely detailed and based on a well-defined set of processes. Overall, the investment process seems robust, given the manger’s focus on conducting competitor analysis, scenario analysis and client profiling that form important aspects of the process. Given their focus on quality and liquidity, analysts tend to undertake an in-depth evaluation of the management, corporate governance practices, financial standing of the issuers, liquidity and risk. In our view, the research process at the AMC is very detailed.
Portfolio composition
The fund has traditionally invested into highly rated corporate bonds, with some allocation towards government securities. Under the revised mandate of corporate bond funds, the fund will invest minimum 80% in corporate bonds rated AA + and above.
This fund has been a consistent performer over the years with low volatility. This is further aided by the fact that the fund has one of the lowest expense ratios in the category. This would be a suitable low risk option for investors looking to make investments for a one to three year horizon.
Currently, some of corporate bonds in the fund’s portfolio belong to highly rated companies such as ONGC, NABARD, Tata Sons, Power Finance Corporation and HDFC.
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The fund typically invests in high quality debt papers and has not taken active credit bets in the past. The issuer-selection process on the corporate bond side is extremely detailed and based on a well-defined set of processes. Overall, the investment process seems robust, given the manger’s focus on conducting competitor analysis, scenario analysis and client profiling that form important aspects of the process. Given their focus on quality and liquidity, analysts tend to undertake an in-depth evaluation of the management, corporate governance practices, financial standing of the issuers, liquidity and risk. In our view, the research process at the AMC is very detailed.)
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