UNIFI UMBRELLA AIF

UNIFI UMBRELLA AIF: BLEND FUND 2

Fund Snapshot

Investment Strategy

Objective – Focus on uncovering one-of-a-kind investment opportunities that regularly deliver higher (risk-adjusted) returns while also preserving capital.

Creating value necessitates a mental model that goes beyond the obvious. It necessitates a methodical mindset capable of sifting through reams of data and absorbing just the information that is important to identifying value-adding opportunities. This may be compared to looking for a needle in a haystack metaphorically. The investment approach for this fund will seek to select the greatest possibilities from among the following themes.

Spin-Off:

In a single corporate structure with several enterprises, the value of the individual pieces is frequently less than the value of the whole. A de-merger of various enterprises frees up the financial and management resources needed for each company to flourish. The spin-off fund invests in situations where enterprises have a good chance of realising their full growth potential and attracting a fair market valuation.

BC-AD:

Unorganized enterprises make up a large sector of India’s economy, accounting for around 35% of the country’s GDP. Over the next decade, as the economy increases from $ 2.6 trillion to $ 5 trillion, it will face social, technological, scale, legal, taxes, and regulatory changes. These changes are expected to put unorganised companies in certain industries’ current business strategies to the test. As a result, well-established organised firms in such areas will gain market share while boosting margins, potentially resulting in extremely high earnings growth. The BC-AD fund was designed to profit from the impending transfer of market share from unorganised to organised players.

DVD:

Despite evident growth possibilities, a few parts of the market are mispriced, resulting in equities trading at a substantial discount to their real worth. The reasons could range from most analysts’ lack of understanding of a business to low relative market cap and liquidity, as well as a lack of correlation to benchmark indices. DVD invests in such companies and takes advantage of market inefficiencies.

HoldCo:

Rather than being strategic investment firms, many holding companies are run as a group holding companies. This leads to a continual discount in their valuations, but such discounts are not permanent. The Holdco fund seeks out core firms with excellent fundamentals and large valuation discounts that are projected to narrow as the regulatory landscape changes and value convergence occurs in a rising market.

APJ 20:

Markets, as usual, favour a few industries that have performed well in the past while ignoring the rest. Few areas, such as speciality chemicals and precision manufacturing, are less well-known, but they have become globally competitive and have access to growing market potential. APJ20 invests in companies that have evolved and are well-positioned to benefit from such opportunities.

Green Fund:

The green fund focuses its investments on firms that produce products and services that improve the environment by lowering carbon emissions and/or allowing for more efficient use of natural resources. The sectors identified for establishing the portfolio in the framework of this strategy are emission control, energy efficiency, water management, and waste management.

Insider Shadow Fund:

The Insider Shadow Fund invests in corporations that have repurchased their own stock or in companies whose promoters have purchased extra stock at market prices. This move reflects their belief in the company’s growth prospects or underlying value, which is not reflected in the stock price at the time. The idea is to profit from the market’s eventual balancing of the value-price mismatch.

Fund Structure

Subscriptions and New Investments:

This is an open-ended fund having a subscription period of one year. The deadline for dealing will be April 1, 2022. The funds must be received by March 28, 2022.

Redemptions:

New clients that invest in 2022 will have a redemption opportunity in March 2023, followed by March of the following years. All redemptions communicated prior to the 30th of March will be processed on the basis of the 31st of March NAV, with pay-outs occurring within 7 working days.

Management Fee & Additional Return Calculation:

The Management Fee will be charged on a monthly basis, based on the NAV at the end of the month. Every year on March 31st, the applicable extra return is due. After applying the applicable hurdle rate and high-water mark, an additional return will be charged on a pre-tax NAV basis.

Tax implications:

Tax is paid at the fund level, and customer returns are on a post-tax basis. Gains on the sale of AIF shares are taxed at the applicable capital gains rates. Interest income, dividends, and other fees are assessed at their current rates.

Background:

Unifi Capital oversees seven bottom-up equity strategies that sift through possibilities across the market spectrum. The mission for all of the funds is to invest in opportunities that result from a combination of emerging topics, corporate activities, and, of course, the attractiveness of core fundamentals. From an absolute standpoint, the goal of all the funds under administration is to generate superior risk-adjusted returns.

The Blended Portfolio Strategy selects companies from Unifi’s portfolio of companies across each of the seven unique funds. In effect, the goal is to invest in “the best of our best” while also lowering the investor’s switching costs and effort when switching between excellent possibilities at any given time.