SBI Aeon Alpha

Fund Snapshot

UNIQUE FEATURE

100% Cash/money market securities to 100% Equity and Equity-Related Instruments: any financial instrument that the portfolio manager thinks appropriate. The Portfolio Manager may invest in derivatives or any other instrument, including units of mutual fund schemes, as may be determined by the Portfolio Manager and as may be approved from time to time by SEBI, the RBI, or other regulatory authorities. The portfolio manager could take part in the securities lending programme as well.

The portfolio’s investment goal is to provide long-term capital growth by purchasing thoroughly researched stocks.

The goal of the investment approach and strategy is to produce profits through investments in both core and satellite businesses:

Core:

The core portion of the portfolio will invest in high-quality stocks with a long-term perspective and a long-term conviction on the part of the fund manager. Three major things will primarily influence this:Business, management, and

Satellite:

The portfolio’s satellite component is built based on tactical prospects. According to the following criteria, it will have a relative return framework:

1. Gradual Fundamental Modification
2. Growing Expectations in the Market
3. Technical Propulsion
4. Comparative Values

Instruments related to debt and equity as well as cash and money market securities that are approved by regulators and the Client’s investing guidelines. Utilization of any financial instruments, within the parameters set forth by the Client’s investment rules, as the Portfolio Manager sees fit. The Portfolio Manager may invest in derivatives or any other instrument that the Regulatory Authority that applies to the Client may from time to time authorize, including Units of Schemes of Mutual Funds and as the Portfolio Manager may determine.

What to BUY?

In a world of generally low growth, low inflation, and low rates, the last decade has been all about deflationary assets.
Bond proxies performed well in equities (Consumer stocks for example). Is it possible that this will alter in the following decade if growth and inflation return?

When to BUY?

Another choice that aids in both drawdown reduction and return improvement, however it is more difficult to choose!

An All-Weather Portfolio Strategy –

Active Cash Management –

• • A backup plan in the event that opportunities aren’t available.
  • Aims to prevent drawdown
  • Assists in avoiding forced purchases
  • Allocation range of 0% to 35% of entire portfolio

CORE Holdings –

• • A backup plan in the event that opportunities aren’t available.
  • Aims to prevent drawdown
  • Assists in avoiding forced purchases
  • Allocation range of 0% to 35% of entire portfolio

SATELLITE Holdings –

• • Concentrate on tactical opportunities for the medium term.
  • Clearly defined departure plan leading in a greater turnover percentage
  • Relative return with a “high risk – high reward” expectation
  • Range of allocation: up to 50% of the equity part

Why us?

• Proven track record as part of the SBI FM ecosystem
• The stable staff of 52 experts with an average of 14 years of experience
• Portfolio managers with an average of 20+ years of experience

Why this product?

1. An all-weather solution
2. Active cash calls
3. Core and Satellite strategy
4. Expected lower drawdown during turbulent periods

High Conviction – Concentrated portfolio

CORE –

The core portion of the long portfolio would be the most important. The portfolio will invest in high-quality equities with a long-term outlook, as determined by the fund management.

Three essential aspects will primarily influence this:

1. business,

2. management, and

3. valuations.

Fee Structure –

Option 1 –

Fixed Investment Management Fee –

A Fixed management fee of 2.5% per annum (% of average monthly AUM p.a.) of the value of the Portfolio. Additional applicable taxes shall be charged on the amount of fees Recurring operational expenses will be in addition to the above fees

Option 2 –

Fixed Investment Management Fee – Nil

Performance Linked Fee –

Fee as a percentage of the Average AUM   are Performance fee will be charged at 33% of the excess returns over and above the hurdle rate, net of charges on higher watermark framework

Hurdle Rate are Annualised performance of NIFTY 50 TRI Index

Higher watermark are Performance fee for subsequent years will be payable on the gains, made during the year, over and above the higher watermark as at the start of the year.