May 2021

UNIFI High Yield Fund

A discretionary fund focusing on event arbitrage and fixed income investment opportunities in capital markets
with an endeavor to generate net post tax returns of 3% p.a*1 over the rate of core inflation. The objective is to
consistently generate superior compounded annual returns than conventional fixed income instruments with
uncompromising emphasis on capital preservation.
Fund Details
Key Performance Data
Launch Date:

Pre-Tax / Post-Tax Return for the month of May 2021 1.22% / 0.78% 4 April 2013

Scheme Corpus
Absolute Pre-Tax / Post-Tax Return for FYTD 2022 2.17% / 1.39%
INR 8.22 bn

Pre-Tax *2
/ Post-Tax CAGR Return since inception 14.04% / 9.01% Firm AUM
INR 76.02 bn
Pre-Tax Return Attribution for May 2021 Investment Manager:
Average Exposure in May 2021
Unifi Capital Pvt Ltd.
Fixed Income (Debt)* 75.6% Fixed Income (Debt) 0.91%
Minimum Investment:
INR 10 million
Event Arbitrage 8.0% Event Arbitrage 0.17%
Custodian

Directional Calls 1.3% Directional Calls 0.09% HDFC Bank

Valuation
Cash / (Leverage) 15.1% Cash / (Leverage) 0.05% S&P CRISIL

*- As on 31-May-21, Wt.Avg Maturity of this Auditors:

segment is 1.51 yrs with a carry yield of 11.80%.
Total 1.22%
M/s.K.S.Jagannathan & Co

Lawyer:
Maturity Profile Liquidity Profile
Anand Sashidharan Law Firm
> 3 Yrs
Reporting:
6% < 1M
< 1W 16% Monthly NAV & Quarterly Review
19%

Subscriptions:
Monthly
1M - 1Y > 3M 40% 1W - 1M
19% 31% Redemptions:
Monthly with 45 days’ notice
1 - 3Yrs
56% 1M - 3M Fees:
13%
1% fixed and 20% performance
over and above the hurdle rate of
< 1M 1M - 1Y 1 - 3Yrs > 3 Yrs < 1W 1W - 1M 1M - 3M > 3M 10% per annum

* 1 Denotes the intent of the fund on a best effort basis and should not be construed as any sort of assurance.
* 2 Pre-Tax profits and returns include certain tax efficient investments undertaken by the Fund in order to enhance the Post-Tax Returns of the Unit
Holders. Accordingly, the Post-Tax returns have been grossed up using the Maximum Marginal tax rate of 35.88% (applicable to majority of our Unit
Holders) to reflect their respective Pre-Tax yields. Post-Tax returns are the net returns after all expenses, fees and taxes.

1 Private and Confidential – Circulation to Unit Holders only

May 2021
Monthly Pre-Tax returns since inception (in %)
YTD
Returns April May June July Aug Sep Oct Nov Dec Jan Feb Mar

FY14 0.92 1.56 -0.70 1.60 1.02 0.87 1.18 1.07 2.84 0.79 2.20 0.95 14.40

FY15 1.15 1.43 1.22 1.44 1.13 1.20 1.14 1.36 1.48 1.28 1.38 1.83 16.82

FY16 0.92 1.14 0.75 1.58 1.26 0.87 1.24 0.82 1.31 1.12 0.59 2.51 14.67

FY17 1.00 1.14 0.83 1.24 1.10 1.38 0.79 1.28 0.77 0.90 0.80 1.97 13.70

FY18 1.59 0.32 1.00 1.15 1.42 2.25 0.90 1.40 0.80 0.63 0.81 1.60 14.47

FY19 0.65 0.31 0.41 0.84 0.92 0.22 0.64 0.71 1.02 0.84 0.85 3.01 10.75

FY20 0.49 1.15 0.66 0.93 0.89 0.72 0.94 1.35 1.03 1.23 1.22 1.87 13.18

FY21 0.34 0.55 0.82 1.27 1.36 1.87 1.68 1.95 1.42 1.02 0.89 0.72 14.48

FY22 0.95 1.22 2.17

Returns & Risk Analysis Time Period Returns (%)

Average Monthly Return 1.13% 3 months 2.92%
CAGR 14.38% 6 months 6.39%
Largest Monthly Gain 3.01% 12 months 16.29%
Largest Monthly Loss -0.70% Avg. rolling 12 months 14.45%
% of positive Months 98.98% 3 years CAGR 13.42%
Standard Deviation (Annualised) 1.84% 5 years CAGR 13.54%

The graph hereunder shows the returns earned by Unifi HYF compared with lines that represent core inflation as well as our
target i.e. core inflation + real returns of 3% post tax. [RBI measures core inflation as CPI excluding Food & Fuel]

HYF Monthly Post Tax Returns (In %) HYF Post Tax Returns Core Inflation + 3% Core Inflation

2.50
200 203.32
2.00

180 1.50
193.53

160 152.18 1.00

0.50
140
0.00

120
-0.50

100 -1.00

2 Private and Confidential – Circulation to Unit Holders only

May 2021
Exposure Summary

Top 10 holdings % Type Sector Res.Tenor

Northern Arc Limited 5.57% Debt – NCD NBFC - Diversified 11 months

Five Star Business Credit 5.25% Debt - MLD MSME Finance 1.5 years

IndusInd Bank 4.54% Debt – Perp Commercial Bank 2.2 years

Indostar Capital Finance 4.39% Debt-NCD Vehicle Finance 16 months

Chola Finance 4.38% Debt - Perp NBFC - Diversified 1 year

Krazybee Limited 4.16% Debt – NCD Consumer Finance 16 months

Finova Capital 3.80% Debt – MLD MSME Finance 1.8 years

Chaitanya Finance 3.75% Debt – MLD Micro Finance 1.1 years

Kogta Finance 3.72% Debt – MLD Vehicle Finance 1.4 years

Samasta Finance (IIFL) 3.68% Debt - MLD Micro Finance 1.6 years

Total 43.24%

• The balance 56.76% of our HYF portfolio is held in 29 different debt, arbitrage, equity investments and liquid funds.

Segments % of Portfolio Key Constituents

Powergrid Invits, Brookfield REITs Embassy REITs &

Listed Hybrid, Equity Arbitrage & Cash 22%
Liquid MFs.

Cholamandalam, Indusind, Muthoot Finance, Vedanta,

Highly Liquid Debt (AAA & AA) 24%
TVS Credit Services & Indostar.

Investments in Emerging NBFCs – periodical amortising

High Yield Debt (A & BBB) 54% structure. [47% of this portfolio is getting redeemed within
the next 12 months]

Total 100%

3 Private and Confidential – Circulation to Unit Holders only

May 2021

Fixed Income Investments Rating Summary – As Liquidity Profile % of portfolio

on May 31, 2021 Less than 1 week 15.61
AAA & AA 22%
Between 1 week & 1 month 30.98
A 40%
Between 1 month & 3 months 13.00
BBB 16% Greater than 3 months 40.41
Total 78% Total 100.00

Conflict of Interest disclosure as specified by SEBI AIF Regulations, 2012

Purchases and Sale of Investments

The Investment Manager (Unifi Capital) takes investment decisions for other clients’ funds including proprietary in addition
to Unifi High Yield Fund (HYF). Hence, there could be situations where an identified investment opportunity has to be
initiated in various funds including Unifi HYF. Typically, in such cases, the orders are placed simultaneously for all the
funds subject to availability of cash and limits. At the execution level, the orders are processed in tranches and the order of
execution for various funds is changed every tranche to ensure any conflict of interest in assigning priorities is negated. For
example – If the first tranche order is executed for Fund A first and Fund B second, then the second tranche order will be
done for Fund B first and Fund A second. The same approach is followed during Sale of Investments as well.

Investments in Associate Companies

Such transactions will always be at arm’s length. The pricing and conditions will be market-driven. Specific approvals from
clients have been taken for initiating such investments and appropriate disclosures would be made periodically as per
regulations. Currently, Unifi HYF has no investments in Associate Companies.

Purchases from / Sales to Associate Companies

From time to time, Unifi HYF engages in secondary market Investment purchases / sales with Associate companies or Other
Funds managed by the Fund Manager. In all the cases, the pricing is completely market-driven without any adjustments /
compromises or whatsoever.

Valuation Methodology

The month end NAV pertaining to the fund and its unitholders is independently computed by the fund accounting division
of HDFC bank. For the listed / traded instruments, they consider the month end closing price of NSE and BSE. S&P Crisil
provides them the valuation of unlisted / non-traded listed instruments on a T-2 days’ basis.

4 Private and Confidential – Circulation to Unit Holders only