You are on page 1of 15

ANNUAL INVESTMENT REPORT

2016-2017
I INVESTMENT STRATEGIES AND RISK CONTROL MEASURES

Investment strategies of different Unit Linked Funds are prescribed in the Investment Management Mandate of
each fund. The asset allocation mix is as per mandate offered to policyholders.

Company has internal limits in place apart from regulatory limits for each unit linked fund. There is a process of credit
monitoring for investments in corporate bonds. Fund returns, asset composition, portfolio yield, modified duration of
fixed income investments and rating distribution of corporate bonds is monitored every month in the meeting of Asset
Liability Management Committee

2
MARKET DEVELOPMENTS, ECONOMIC SCENARIO AND CHANGES IN
II
FUNDAMENTAL AFFECTING THE INVESTMENT

GDP decelerates in FY17:

India’s GDP in first three quarters grew by 7.2% which is lower by 0.50% as compared to last year and for full year,
growth may be around 7%. This year’s growth was primarily driven by higher government consumption in accordance
with higher government revenue expenditure. Importantly, a decline in fiscal allocation towards investments has
reflected in contraction in fixed capital formation. Demonetization largely contributed to multi-decade low credit
growth and sharp run down in real estate activities. Now, the focus of government is to improve the overall
consumption activity by spending towards 7th pay commission, MNREGA etc. In FY18, the government is
concentrating towards reviving rural consumption which has been slackening for last couple of years.

Revival of global economy is helping export growth:

Overall trade activity in FY17 remained weak, however, it has marginally recovered in last quarter. Revival in US &
European economies has aided in improving the exports. With relatively higher global commodity prices, the overall
trade activity is likely to improve. Foreign portfolio flows augmented in last quarter and overall equity flows had been
strong. Fixed income flows remained tepid during the year.

Inflationary momentum swayed by demonetisation:

Consumer price inflation moderated to an average of 4.5% in FY17 as compared to 4.9% in FY16 due to high volatility in
some of the food components. Again, demonetisation along with seasonality impacted the overall headline inflation.
The government is putting in all efforts to keep inflation under control and we expect inflation to range between
4%-5% except deviations at short intervals.

RBI signalled neutral policy stance:

Near-term uncertainties related to impact of crude & commodity prices, implementation of HRA component of 7th
pay commission & GST on inflation has forced RBI to change policy stance from accommodative to neutral. Efforts
made by government to control inflation would help RBI to act favourably on policy rate front after a pause. Till then,
10-year government securities rate may remain broadly between 6.50% to 7%. Crisil composite bond fund index, a
benchmark for fixed income markets has given 11% return during FY’17.

Equity markets buoyed with high liquidity:

Robust FII flows in Mar’17 and higher investor participation post the demonetisation led to a sharp rally in the Equity
markets. This rally is also supported by global market buoyancy. During the year, Nifty has given 19% returns. India’s
trailing PE at 23 times is significantly higher than long-term average multiple.

3
III FUND DETAILS

Equity Growth Fund (SFIN Code:ULIF04111/01/08EQOPP135)

Exposure (more than 3% of AUM) Equity Growth in % of AUM Equity Growth Sector (more than 5% of AUM) Equity Growth

ICICI BANK 3.36% Cash 2.26% Chemicals 9.78%

INFOSYS 4.84% Fixed 0.00% Civil Engineering 8.15%

LARSEN & TOUBRO 5.40% Equity 97.74% Computr, Consult. & Activts 5.48%

STATE BANK OF INDIA 4.00% Financial Services 19.09%

Motor Vehicle 5.53%

Pharma 8.86%

Transport Equipmt 10.84%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Equity Growth 22.72% 18.55% 4.84% 3.94% 12.37% 11.02% 14.74% 12.72% 13.30% 11.62% 10.32% 8.19%

*Benchmark refers to Nifty 50

Equity Growth Fund – Pension (SFIN Code:ULIF04111/01/08EQOPP135)

Exposure (more than 3% of AUM) Equity Growth in % of AUM Equity Growth Sector (more than 5% of AUM) Equity Growth

ICICI BANK 3.41% Cash 1.03% Chemicals 9.92%

INFOSYS 4.48% Fixed 0.00% Civil Engineering 8.27%

LARSEN & TOUBRO 5.49% Equity 98.97% Computr, Consult. & Activts 5.13%

STATE BANK OF INDIA 4.06% Financial Services 19.40%

Motor Vehicle 5.62%

Pharma 9.12%

Transport Equipmt 11.01%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Equity Growth Pension 22.65% 18.55% 4.67% 3.94% 12.19% 11.02% 14.61% 12.72% 13.16% 11.62% 16.93% 15.09%

*Benchmark refers to Nifty 50

4
III FUND DETAILS

Nifty Index Fund (SFIN Code:ULIF04411/01/08NINDEX135)

Exposure (more than 5% of AUM) Nifty Index in % of AUM Nifty Index Sector (more than 5% of AUM) Nifty Index

HDFC BANK 7.53% Cash 0.77% Coke & Petrol Products 8.50%
HOUSING DEVELOPMENT Fixed 0.00% Computr, Consult. & Activts 13.19%
6.14%
FINANCE CORPN
Equity 99.23% Financial Services 31.84%
INFOSYS 6.05%
Motor Vehicle 5.35%
ITC 7.10%
Pharma 5.67%
RELIANCE INDUSTRIES 6.40%
Tobacco Products 7.10%

Transport Equipmt 5.75%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Nifty Index 18.12% 18.55% 3.73% 3.94% 10.87% 11.02% 12.98% 12.72% 11.76% 11.62% 6.55% 8.19%

*Benchmark refers to Nifty 50

5
III FUND DETAILS

Midcap Fund (SFIN Code:ULIF06824/11/09MIDCAP135)

Exposure (more than 3% of AUM) Midcap in % of AUM Midcap Sector (more than 5% of AUM) Midcap

BHARAT ELECTRONICS 2.13% Cash 5.42% Chemicals 12.69%

BHARAT FORGE 2.38% Fixed 0.00% Civil Engineering 6.08%

CBLO 2.67% Equity 94.58% Financial Services 9.58%

GODREJ CONSUMERS PRODUCTS 2.06% Pharma 9.03%

INDIAN HOTELS CO.LTD. 2.33% Transport Equipmt 6.33%

MOTHERSON SUMI SYSTEMS 2.37%

PETRONET L N G 2.78%

POWER GRID CORPN. OF INDIA 2.19%

STATE BANK OF INDIA 2.32%

VOLTAS 2.06%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Midcap 28.62% 34.85% 9.48% 15.00% 28.87% 25.92% 28.89% 23.46% 22.42% 17.41% 15.32% 12.09%

*Benchmark refers to Nifty Free Float Midcap 100

Midcap Fund - Pension (SFIN Code:ULIF06924/11/09MIDCAPPEN135)

Exposure (more than 2% of AUM) Midcap Pension in % of AUM Midcap Pension Sector (more than 5% of AUM) Midcap Pension

BHARAT ELECTRONICS 2.23% Cash 1.20% Chemicals 13.30%

BHARAT FORGE 2.49% Fixed 0.00% Civil Engineering 6.03%

GODREJ CONSUMERS PRODUCTS 2.15% Equity 98.80% Financial Services 10.04%

INDIAN HOTELS CO.LTD. 2.45% Non Metal 5.14%

MOTHERSON SUMI SYSTEMS 2.48% Pharma 9.47%

PETRONET L N G 2.91% Transport Equipmt 6.63%

POWER GRID CORPN. OF INDIA 2.30% Warehosuing 5.24%

STATE BANK OF INDIA 2.43%

VOLTAS 2.16%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Midcap Pension 29.11% 34.85% 9.20% 15.00% 28.76% 25.92% 29.28% 23.46% 22.65% 17.41% 14.80% 12.09%

*Benchmark refers to Nifty Free Float Midcap 100

6
III FUND DETAILS

Pure Fund (SFIN Code:ULIF07205/08/10PURE135)

Exposure (more than 5% of AUM) Pure in % of AUM Pure Sector (more than 5% of AUM) Pure

CBLO 6.28% Cash 10.59% Chemicals 12.67%

GAIL INDIA 5.08% Fixed 0.00% Coke & Petrol Products 13.19%

HERO MOTOCORP 5.12% Equity 89.41% GILT 6.28%

MARUTI SUZUKI INDIA 7.61% Motor Vehicle 7.61%

RELIANCE INDUSTRIES 5.45% Non Metal 5.38%

Pharma 12.77%

Transport Equipmt 10.03%

Warehosuing 7.14%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Pure 24.61% 17.33% 12.70% 7.04% 22.04% 11.56% 21.88% 13.92% 16.82% 12.12% 10.18% 7.38%

*Benchmark refers to Nifty 50 Shariah

7
III FUND DETAILS

Aggressive Asset Allocator Fund (SFIN Code:ULIF04811/01/08AGGRESSIVE135)

Exposure (more than 3% of AUM) Aggressive in % of AUM Aggressive Sector (more than 5% of AUM) Aggressive

7.59%GOI2029 M-20/03/2029 6.91% Cash 11.89% Chemicals 8.33%

CBLO 10.39% Fixed 6.91% Civil Engineering 7.41%

Equity 81.20% Financial Services 15.74%

GILT 17.30%

Pharma 6.84%
Transport Equipmt 8.51%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Aggressive Asset Allocator 20.89% 16.68% 5.68% 5.37% 11.13% 11.08% 11.79% 25.50% 9.94% 9.49% 11.38% 10.26%

*Benchmark refers to 75% Nifty 50+ 25% CRISIL Composite Bond Index from 31st Mar’14 and 50% Nifty 50 + 50% CRISIL Composite Bond Index
up to 31st Mar’14

Moderate Asset Allocator Fund(SFIN Code:ULIF04911/01/08MODERATE135)

Exposure (more than 5% of AUM) Moderate in % of AUM Moderate Sector (more than 5% of AUM) Moderate
8.27% TAMILNADU STATE Cash 14.73% Electrity,Gas,Steam AC Suply 17.53%
DEVELOPMENT LOAN M-23/12/2025
8.18%
Fixed 58.03% Financial Services 38.67%
8.40% NUCLEAR POWER
8.16%
CORPORATION OF INDIA M-28/11/2028 Equity 27.24% GILT 18.80%
9.30% POWER GRID CORP.
8.31%
M-04/09/2024
NCD % of AUM Moderate
9.34% RURAL ELECTRIFICATION
CORPORATION M-25/08/2024
8.32%
AAA 49.85%
9.36% IDFC BANK M-21/08/2024 Grand Total 49.85%
(FORMERLY KNOWN AS IDFC)
8.33%

9.39% POWER FINANCE


CORPORATION M-27/08/2024
8.35%

9.47% LIC HOUSING FINANCE


M-23/08/2024
8.38%

CBLO 10.62%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Moderate Asset Allocator 13.67% 12.95% 7.10% 8.22% 10.61% 11.21% 10.63% 25.35% 9.52% 9.33% 9.97% 9.48%

*Benchmark refers to 25% Nifty 50 + 75% CRISIL Composite Bond Index from 31st Mar’14 and 37.5% Nifty 50 + 62.5% CRISIL Composite Bond
Index up to 31st Mar’14

8
III FUND DETAILS

Cautious Asset Allocator Fund (SFIN Code:ULIF05011/01/08CAUTIOUS135)

Exposure (more than 5% of AUM) Cautious in % of AUM Cautious Sector (more than 2% of AUM) Cautious

7.61% GOI2030 M-09/05/2030 9.70% Cash 11.32% Financial Services 2.50%

7.68% GOI M-15/12/2023 9.76% Fixed 75.68% GILT 83.32%

8.15%GOI2022-M-11/06/2022 9.91% Equity 13.01%

8.24% GOI M-10/11/2033 10.07%

8.26% ANDHRA PRADESH STATE


5.92%
DEVELOPMENT M-24/12/2024

8.28% GOI M-21/09/2027 10.07%

8.35%GOI2022-M14/05/2022 9.99%

8.60% GOI 2028 M-02/06/2028 10.26%

CBLO 7.64%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Cautious Asset Allocator 11.49% 12.02% 7.40% 8.94% 10.28% 11.24% 10.04% 25.03% 9.35% 9.02% 9.08% 8.24%

*Benchmark refers to 12.5% Nifty 50 + 87.5% CRISIL Composite Bond Index from 31st Mar’14 and 18.75% Nifty 50 + 81.25% CRISIL Composite Bond
Index up to 31st Mar’14

9
III FUND DETAILS

Income Fund (SFIN Code:ULIF04211/01/08INCOME135)

Exposure (more than 4% of AUM) Income in % of AUM Income Sector (more than 5% of AUM) Income

9.25% TATA SONS M-19/06/2019 4.65% Cash 6.99% Electrity,Gas,Steam AC Suply 5.94%
9.44% KOTAK MAHINDRA Fixed 93.01% Financial Services 63.64%
4.51%
PRIME M-29/09/2017
Equity 0.00% GILT 8.47%
9.51% LIC HOUSING
4.67% Other Financial Services 6.00%
FINANCEM-24/07/2019
9.56% HDB FINANCIAL
4.51%
SERVICES M-08/09/2017 Duration Income
NCD % of AUM
9.61% RURAL ELECTRICATION
4.63% INCOME AA 4.59%
CORP. M-03/01/2019
1.83 AA+ 3.01%

AAA 77.49%

Grand Total 85.10%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Income 7.91% 9.10% 7.59% 8.78% 8.64% 9.29% 8.52% 9.17% 8.46% 9.16% 8.03% 8.33%

*Benchmark refers to CRISIL Short Term Bond Fund Index

Income Fund - Pension (SFIN Code:ULIF05619/02/09INCOMEPEN135)

Exposure (more than 5% of AUM) Income Pension in % of AUM Income Pension Sector (more than 5% of AUM) Midcap Pension

7.63% TELANGANA SPECIAL Cash 8.38% Electrity,Gas,Steam AC Suply 3.26%


STATE DEVELOPMENT LOAN 31.05%
M-07/03/2023 Fixed 91.62% Financial Services 12.65%

7.83% GOI2018-M11/04/2018 Equity 0.00% GILT 76.51%


25.35%
Other Financial Services 3.20%
8.15% RAJASTHAN SPECIAL STATE
DEVELOPMENT LOAN 16.11%
M-23/06/2021
Duration NCD % of AUM Income Pension
9.30% AXIS BANK M-27/01/2018 6.24%
PINCOME AAA 9.75%

2.64 Grand Total 9.75%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Income Pension 7.26% 9.10% 7.42% 8.78% 7.73% 9.29% 7.84% 9.17% 7.89% 9.16% 7.58% 8.13%

*Benchmark refers to CRISIL Short Term Bond Fund Index

10
III FUND DETAILS

Bond Fund (SFIN Code:ULIF04011/01/08BOND135)

Exposure (more than 5% of AUM) Bond in % of AUM Bond Sector (more than 5% of AUM Bond

6.93% ULTRATECH CEMENT Cash 12.93% Financial Services 15.97%


5.11%
M-25/11/2021
Fixed 87.07% GILT 71.54%
7.48% HDFC M-18/11/2019 5.24%
Equity 0.00% Non Metal 5.11%
7.88% PUNJAB STATE
DEVELOPMENT LOAN 10.91%
M-01/03/2027 Duration NCD % of AUM Bond
7.96% TELANGANA SPECIAL Bond AA 0.05%
STATE DEVELOPMENT LOAN 5.31%
M-07/03/2032 5.36 AAA 23.86%
8.06% UTTARAKHAND STATE Grand Total 23.92%
DEVELOPMENT LOAN 5.60%
M-15/06/2026
8.19% RAJASTHAN SPECIAL
STATE DEVELOPMENT LOAN 5.55%
M-23/06/2026
8.21% HARYANA SPECIAL STATE
DEVELOPMENT LOAN 5.42%
M-31/03/2024
CBLO 8.39%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Bond 10.94% 11.09% 8.85% 9.65% 11.34% 11.27% 8.31% 9.50% 8.69% 9.46% 7.48% 8.13%

*Benchmark refers to 12.5% Nifty 50 + 87.5% CRISIL Composite Bond Index from 31st Mar’14 and 18.75% Nifty 50 + 81.25% CRISIL Composite Bond
Index up to 31st Mar’14

11
III FUND DETAILS

Monthly Guaranteed Interest Fund (SFIN Code: ULIF04511/01/08MIA135)

Exposure (more than 3% of AUM) MGIF in % of AUM MGIF Sector (more than 3% of AUM) MGIF

7.83% GOI2018-M11/04/2018 11.31% Cash 25.55% Financial Services 63.14%


8.00% POWER FINANCE Fixed 74.45% GILT 23.04%
7.51%
CORPORATION M- 22/10/2018
Equity 0.00%
9.50% STATE BANK OF BIKANER
5.15%
& JAIPUR M-26/04/2017
Duration NCD % of AUM MGIF
CBLO 11.73%
MGIF AAA 15.08%

0.98 Grand Total 15.08%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

MGIF 7.60% - 7.75% - 7.90% - 7.99% - 8.02% - 7.92% -

Guaranteed Return Fund – 3 (SFIN Code:ULIF05911/01/08GRF3135)

Exposure (more than 5% of AUM) GRF-3 in % of AUM GRF-3 Sector (more than 5% of AUM) GRF-3

9.50% CANARA BANK Cash 43.23% Financial Services 56.77%


56.77%
M-28/06/2019
Fixed 56.77%

Equity 0.00%

Duration

GRF-3

2.22

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

GRF-3 6.65% - 6.85% - 6.73% - 6.76% - 6.99% - 6.62% -

12
III FUND DETAILS

Guaranteed Return Fund – 5 (SFIN Code: ULIF06211/01/08GRF5135)

Exposure (more than 5% of AUM) GRF-5 in % of AUM GRF-5 Sector (more than 5% of AUM) GRF-5
9.50% CANARA BANK Cash 32.49% Financial Services 62.52%
6.81%
M-30/12/2019
Fixed 67.51%
9.75% STATE BANK OF BIKANER
7.61% Equity 0.00%
& JAIPUR M-30/12/2019

Duration NCD % of AUM GRF-5

GRF-5 AA 1.64%

2.53 AAA 16.54%

Grand Total 29.96%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

GRF-5 7.91% - 7.69% - 8.53% - 7.91% - 8.14% - 7.34% -

Guaranteed Return Fund – 5 - Pension (SFIN Code: ULIF06724/11/09GRF5PEN135)

Exposure (more than 5% of AUM) GRF-5 Pension in % of AUM GRF-5-Pension Sector (more than 3% of AUM) GRF-5 Pension
8.95% LIC HOUSING Cash 22.75% Electrity,Gas,Steam AC Suply 3.33%
5.44%
FINANCEM-15/09/2020
Fixed 77.25% Financial Services 69.31%
9.00% INDIAN OVERSEAS BANK
7.76% Equity 0.00%
M-30/12/2019
9.00% STATE BANK OF MYSORE
6.90%
M- 30/12/2019 Duration NCD % of AUM GRF-5 Pension
9.25% STATE BANK OF PATIALA PGR5 AA 2.64%
6.47%
M-30/12/2019
2.80 AAA 20.39%
9.25% SYNDICATE BANK
6.47% Grand Total 23.02%
M-30/12/2019
9.75% STATE BANK OF BIKANER
8.63%
& JAIPUR M-30/12/2019

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

GRF-5 Pension 7.57% - 7.42% - 8.22% - 7.68% - 7.96% - 7.18% -

13
III FUND DETAILS

Discontinued Policy Fund (SFIN Code: ULIF07301/07/10DISCON135)

Exposure (more than 5% of AUM) Discontinued in % of AUM Discontinued Sector (more than 5% of AUM) Discontinued

7.99%GOI2017-M09/07/2017 80.73% Cash 19.27% GILT 100.37%


CBLO 19.63% Fixed 80.73%

Equity 0.00%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Discontinued Policy 6.26% - 6.74% - 7.21% - 7.46% - 7.50% - 6.34% -

Unclaimed Fund (SFIN Code: ULIF07628/05/15UNCLAIM135)

Exposure (more than 5% of AUM) Unclaimed in % of AUM Unclaimed Sector (more than 3% of AUM) Unclaimed

CBLO 99.28% Cash 100.00% GILT 99.28%

Fixed 0.00%

Equity 0.00%

1 Year 2 Year 3 Year 4 Year 5 Year Inception


Fund Name (Annualized)
Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark Fund Benchmark

Unclaimed 5.90% - - - - - - - - - 4.81% -

14
THANK YOU