Debt Market Outlook 2014-15, Reliance Regular Savings Fund–Debt Plan(Growth option) – Mr. Prashant Pimple (CIO, Reliance Mutual Fund – Debt)
MINUTES OF MEETING
|Venue||Board room, Chandigarh office||Date||November 25, 2014|
|Subject||Debt Market Outlook 2014-15, Reliance Regular Savings Fund –Debt Plan – Growth option||Time||1730 Hrs|
|Discussion with Mr. Prashant Pimple (Chief Investment Officer, Reliance Mutual Fund – Debt)||Duration||45 mins|
|Internal||Iqbal Singh, Anuj Singla, Pankaj Sharma, Jagjit Singh, Akaljot Singh|
|External||Mr. Prashant Pimple|
So, India can reduce rates, and US can increase rates and Bps gap can reduce for some time.
Question Answer Session
Q1 Iqbal Singh: RRSF Debt: Mod. Duration 6.78 and YTM is 8.81. Your opinion on which side we should take the call ? Further Nil exit load on Reliance income fund relative to RRSF. What was the criteria ?
A: Mr. Prashant: Reliance Income fund has no exit load because it is playing on duration and good exposure to Gsec. RRSF debt portfolio is illiquid and playing on accrued income with credit spread.(YTM-10.55%) Its papers are not sold so easily. Hence lock in is there.
Q2 Iqbal Singh: What is the rationale behind Edison Utility Works, or Pune Infoport etc., which are large percentages of your portfolio but not big names and not rated ?
A: Mr. Prashant: Edison is an exposure to the Zee group. Pune Infoport is an exposure to Blackstone (Express Towers at Nariman Point).
Underlying assets are very strong even if names are not known. Loans against shares. Locked in at 13-13.5%. Our average rating is AA. We have flexibility to go upto A.
Café Coffee Day is a lending to its owner. Similarly lent to Mindtree.
Purely Loans against Shares (LAS) operations. Have not done anything in which the cover is less than 2.
Q Iqbal Singh: Out of Dynamic Bond Fund and Income Fund how should we allocate ?
A Mr. Prashant: Keep 60% in Dynamic Bond Fund and 40% in Income Fund
Q Iqbal Singh: Dynamic Bond Fund started on Nov 15, 2004, since Inception IRR 6.7% ?
A Prashant: It was earlier started as NRI fund and got merged to dynamic bond fund in 2009.
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