The manager aims to invest in the most liquid corporate bonds and the most traded G-Sec papers with a view to minimise portfolio risks
Portfolio manager Amandeep Singh Chopra, has over 22 years of experience with UTI. He heads the fixed income desk at UTI and has been managing this fund since 2012.
Investment approach
The investment approach is primarily driven based on a top-down macro approach and duration views are based on the interest rate directional movements. Allocation towards government securities, corporate bonds and state development loans on the other hand are based on their relative spreads. The manager aims to invest in the most liquid corporate bonds and the most traded G-Sec papers with a view to minimise portfolio risks. The fund is run with a lot of focus on risk management measures.
The fund’s average maturity can tend to fluctuate significantly based on the manager’s views of the interest rate directional movements. The fund can go down to about two years on the lower side, resembling a short-term fund and up to about 20 years at the longer end of the curve.
Issuer selection is based on fundamental analysis of the risk/return profile. The credit team works closely with the in-house equity team to leverage research on aspects like the company's strategy and its financial data (balance sheet strength, cash flow generation, and so on). The internal credit ratings process is based on the credit team’s evaluation of an issuer for its creditworthiness and ability to meet their debt obligations.
Amandeep has shepherded this funded brilliantly through market cycles. Investors who are looking to take exposure to interest rate views and don’t mind some interim volatility can look to invest in this fund. The fund has beaten its peer group over a five-year trailing period.
Portfolio composition
More than 80% of the fund’s underlying portfolio comprises AAA rated securities, which indicates the highest level of security. Some of the corporate bonds the fund has invested in are: Rural Electrification Corporation, Reliance Utilities And Power, Idea Cellular, Jorabat Shillong Expressway, Export-Import Bank Of India and Syndicate Bank.
KNOW YOUR MF
Fund name
UTI Dynamic Bond
Fund Size
Rs 1,360 crore
Inception Date
June 16, 2010
Morningstar Rating
Overall Four Stars
Minimum Investment
Rs 10,000
Morningstar Analyst Rating-Bronze (please check the PDF for the symbol)
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