January - Tata AIA Life Insurance

Tata AIG Apex Return Lock-in-FundFundAssure, Investment Report, January 2011Fund DetailsInvestment Objective : Objective is to use the participation in anactively managed well diversified equity portfolio of large cap companies togenerate capital appreciation and use high credit quality debt instruments tolock-in that capital appreciation.Fund ManagerNAV as on 31 Jan, 11 : `11.63The Highest Nav recordedon reset date is : `12.76Benchmark :Debt Investment StyleInvestment StyleValue Blend Growth SizeFund Performance: Mr. Saravana KumarCorpus as on 31 Jan, 11 : `272.38 Crs.Credit QualityHigh Mid LowEquity Investment StyleInterest RateSensitivityHighLargeMidSmallPERIOD DATE NAV-NAVChangeLast 1 Month 31-Dec-10 12.50 -6.93%MidLowPortfolioInstrument Industry % of NAVEquity 61.19Infosys Technologies Ltd IT - Software 5.44Reliance Industries Ltd Refineries 4.71ICICI Bank Ltd Banks 4.13State Bank Of India Banks 3.25ITC Ltd Tobacco Products 3.22HDFC Bank Banks 3.01Larsen And Toubro LtdSector AllocationCapital Goods-Non Electrical Equipment 2.80Oil & Natural Gas Corp Ltd Crude Oil & Natural Gas 2.01Mahindra And Mahindra Ltd Automobile 1.83HDFC Ltd Finance 1.76Other Equity 29.03Instrument Industry % of NAVCorporate Bonds 32.61National Housing Bank 2018 AAA 5.52Nabard -ZCB - 2019 AAA 3.688.84% Power Grid 2019 AAA 3.607.60% HDFC 2017 AAA 3.4210.60% IRFC 2018 AAA 3.408.90% Power Grid 2019 AAA 3.078.97% PFC 2018 AAA 2.189.90% HDFC 2018 AAA 1.918.84% Power Grid 2018 AAA 1.808.80% PFC 2019 AAA 1.6211.00% PFC 2018 AAA 1.339.07% RECL 2018 AAA 1.09Cash Bank & Others 6.20Total 100.00The fund would be predominantly invested in equity at inception, wherein the dynamic asset allocation mechanism allocates the portfolio between equity anddebt. This dynamic asset allocation is based on the performance of equity markets and movements in interest rates. The equity allocation may be reallocated todebt if the equity markets or interest rates fall , to safeguard the guarantee.Over time, the asset mix will predominantly shift to debt to protect the guarantee. This dynamic asset allocation process will drive the returns generated by theApex Return Lock-in Fund.As the fund would be invested in equity and debt at various times during the tenure of the policy, its performance could be looked atvis a vis the performance of a balanced fund (invested in both debt and equity). The dynamic asset allocation shifts the allocation of the fund from an equity biasto a debt bias,overtime. This would mean that the Guaranteed NAV would not mimic the highest level of the equity market ,over the period the guarantee isapplicable.Any unexpected and sharp falls in equity market and/ or interest rates, during the period the guarantee is applicable, may trigger the allocation tocompletely move towards debt, to protect the highest NAV achieved prior to the fall. Overall, it is an ideal fund for an investor who wants to take advantage ofhigh returns in a positive market scenario while safe-guarding the investment during any downturn.BanksIT - SoftwareRefineriesAutomobileTobacco ProductsCapital Goods-Non ElectricalEquipmentPharmaceuticalsSteel5.38%4.49%3.22%2.80%2.71%2.68%7.52%13.26%Asset Allocation61.19%6.20%32.61%EquityCorporate BondsCash Bank & OthersLast 3 Months 29-Oct-10 12.39 -6.13%Last 6 Months 30-Jul-10 11.41 1.96%Power Generation &DistributionFinance2.65%2.60%Last 1 Year 29-Jan-10 10.57 10.03%Since Inception 10-Jun-09 10.00 9.62%Note : The investment income and prices may go down as well as up. “SinceInception” period returns are calculated as per CAGR.Others13.86%Corporate Bonds32.61%Cash Bank & Others6.20%0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%Equity FundsDebt FundsHybrid Funds