102510  |  INF789F01661  |  5 star  |  Bronze

NAV

$ 38.04

1-Day Total Return

0.03
%
INR | NAV as of 12/15/2017 10:30:00 AM | 1-Day Return as of 15 Dec 2017

TTM Yield

0.00%

Load

0.00

Total Assets

7.4 bil

Expenses

0.92%

Fee Level

--

Turnover

1,542%

Status

Open

Min. Inv.

5,000

30-Day SEC Yield

--

Category

Intermediate Government Bond

Credit Quality/Interest Rate Sensitivity

--
Author
Morningstar's Take | 17/10/2017
by Kavitha Krishnan

A skilled and experienced portfolio manager, a relatively low expense ratio, and a stable process stand out about this fund. Further, the fund’s focus on investing with a view to protect its downside as opposed to generating top-quartile performance results in a consistent performance that remains marginally above average across market cycles. Our positive opinion on the consistency with which the fund is run and the skillful execution of the strategy leads us to assign a Morningstar Analyst Rating of Bronze on this fund.

Amandeep Singh Chopra has been managing funds since 2006 and has been at the helm of this strategy since February 2012. While Chopra’s leadership capabilities stand out, there is a key-person risk associated with him. He heads the fixed-income desk at UTI and has been managing this fund since 2012. Chopra is supported by two other portfolio managers with an average experience of around nine years. The analyst team consists of an economist who tracks the domestic and the international macro factors. While we have conviction in the manager and the expertise that he brings to the processes within the fund house, we are wary of the lack of experience in the analyst team.

The Gilt L/T fund invests in a combination of government securities and state-development loans with duration positioning being based on the team’s macroeconomic research and its views on the interest-rate-directional movements. The team constantly tracks the markets to ensure it is invested in the most liquid papers that ensure tradability. Investments in state development loans are used as a tactical tool to generate additional alpha and can tend to vary significantly. The fund tends to actively trade in gilts to generate alpha and can invest a significant portion of its portfolio in a single sovereign paper.

Overall, we think that the strategy is well placed to maintain consistency in its performance profile over the long term with the exception of periods that are characterised by volatility and market uncertainties that favour short-term investing.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

The fund’s average maturity can tend to fluctuate; currently runs a higher average maturity as compared to peers.

People

Chopra brings a lot of experience to the table and is amongst the most senior members on the team.

Parent

UTI has a strong backing from T.Rowe Price, but certain aspects could be improved in our opinion.

Process

The team’s research capability and ability to position themselves across yield curves drives the strategy’s success.

Performance

The fund has delivered a consistent performance with the exception of markets characterised by extreme volatility.

Price

The fund’s expense ratio is lower as compared with its category average.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission.

For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

For Registered users only indicates the feature is available for Registered users only.
Top
Mutual Fund Tools
Feedback