January - Tata AIA Life Insurance

Tata AIG Apex Plus Return Lock-in-FundFundAssure, Investment Report, January 2011Fund DetailsInvestment Objective : The investment objective for Apex Plus ReturnLock-in Fund is to use the participation in an actively managed well diversifiedequity portfolio of large cap companies to generate capital appreciation anduse high credit quality debt instruments to lock-in that capital appreciation.Fund ManagerNAV as on 31 Jan, 11 : `10.62The Highest Nav recordedon reset date is : `11.80Benchmark : -Corpus as on 31 Jan, 11: Mr. Saravana Kumar: `42.85 Crs.Debt Investment StyleCredit QualityHigh Mid LowEquity Investment StyleInvestment StyleInterest RateSensitivityHighMidLowValue Blend Growth SizeLargeMidSmallPortfolioInstrument Industry % of NAVEquity 70.97Infosys Technologies Ltd IT - Software 6.55Reliance Industries Ltd Refineries 5.68ICICI Bank Ltd Banks 4.47State Bank of India Banks 3.82ITC Ltd Tobacco Products 3.79HDFC Bank Banks 3.70Larsen and Toubro LtdSector AllocationCapital Goods-Non Electrical Equipment 3.16Oil & Natural Gas Corp Ltd Crude Oil & Natural Gas 2.27HDFC Ltd Finance 2.20Instrument Industry % of NAVAxis Bank Ltd Banks 2.03Other Equity 33.30Corporate Bonds 25.638.70% PFC 2020 AAA 11.108.80% Power Grid 2020 AAA 5.148.75% Reliance Industries Ltd 2020 AAA 4.548.95% HDFC Ltd 2020 AAA 2.548.93% NTPC 2021 AAA 2.31Cash Bank & Others 3.40Total 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 - SoftwareRefineriesAutomobile6.46%5.61%8.65%15.12%Asset Allocation70.97%25.63%EquityCorporate BondsTobacco Products3.79%Cash, Bank & OthersFinance2.98%3.40%Capital Goods-NonElectrical EquipmentPower Generation &Distribution3.16%3.47%Steel3.33%Pharmaceuticals3.23%Others15.17%Corporate Bonds25.63%Cash Bank & Others3.40%0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%Equity FundsDebt FundsHybrid Funds