FUND UPDATE

[Pages:61]April 2019

FUND UPDATE

YOUR INVESTMENT PERFORMANCE

CONTENTS

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

INDIVIDUAL FUNDS

MARKET OUTLOOK

FUND PERFORMANCE OF ULIP FUNDS

PRODUCT - FUND MATRIX

CLASSIC OPPORTUNITIES FUND (ULIF-033-16/12/09-CLAOPPFND-107)

FRONTLINE EQUITY FUND (ULIF-034-17/12/09-FRLEQUFND-107)

DYNAMIC FLOOR FUND II (ULIF-035-17/12/09-DYFLRFND2-107)

BALANCED FUND (ULIF-037-21/12/09-BALKFND-107)

KOTAK OPPORTUNITIES FUND (ULIF-029-02/10/08-OPPFND-107)

KOTAK AGGRESSIVE GROWTH FUND (ULIF-018-13/09/04-AGRGWTFND-107)

GUARANTEE FUND (ULIF-048-05/02/10-GRTFND-107)

MONEY MARKET FUND (ULIF-041-05/01/10-MNMKKFND-107)

KOTAK DYNAMIC GROWTH FUND (ULIF-012-27/06/03-DYGWTFND-107)

DYNAMIC FLOOR FUND (ULIF-028-14/11/06-DYFLRFND-107)

KOTAK DYNAMIC BALANCED FUND (ULIF-009-27/06/03-DYBALFND-107)

KOTAK DYNAMIC BOND FUND (ULIF-015-15/04/04-DYBNDFND-107)

KOTAK DYNAMIC GILT FUND (ULIF-006-27/06/03-DYGLTFND-107)

KOTAK DYNAMIC FLOATING RATE FUND (ULIF-020-07/12/04-DYFLTRFND-107)

PEAK GUARANTEE FUND I (ULIF-049-14/02/10-PKGRTFND1-107)

Click on the Fund Name for details

2

KOTAK GUARANTEED GROWTH FUND (ULIF-013-27/06/03-GRTGWTFND-107)

7

KOTAK GUARANTEED BALANCED FUND (ULIF-010-27/06/03-GRTBALFND-107)

10

PENSION CLASSIC OPPORTUNITIES FUND (ULIF-042-07/01/10-PNCLAOPFND-107)

12

KOTAK PENSION OPPORTUNITIES FUND (ULIF-032-17/07/09-PNOPPFND-107)

13

PENSION FRONTLINE EQUITY FUND (ULIF-044-11/01/10-PNFRLEQFND-107)

14

PENSION GUARANTEE FUND (ULIF-038-21/12/09-PNGRTFND-107)

15

KOTAK PENSION GROWTH FUND (ULIF-030-07/01/09-PNGWTFND-107)

16

KOTAK PENSION FLOOR FUND (ULIF-031-13/07/09-PNFLRFND-107)

17

PENSION FLOOR FUND II (ULIF-043-08/01/10-PNFLRKFND2-107)

18

KOTAK PENSION BALANCED FUND (ULIF-011-27/06/03-PNBALFND-107 )

19

PENSION BALANCED FUND II (ULIF-046-24/01/10-PNBALFND2-107)

20

KOTAK PENSION BOND FUND (ULIF-017-15/04/04-PNBNDFND-107)

21

KOTAK PENSION GILT FUND (ULIF-008-27/06/03-PNGLTFND-107)

22

KOTAK PENSION FLOATING RATE FUND (ULIF-022-07/12/04-PNFLTRFND-107)

23

PENSION MONEY MARKET FUND II (ULIF-039-28/12/09-PNMNMKFND-107)

24

KOTAK ADVANTAGE MULTIPLIER FUND II (ULIF-026-21/04/06-ADVMULFND2-107)

25

DISCONTINUED POLICY FUND (ULIF-050-23/03/11-DISPOLFND-107)

26

GROUP FUNDS

Click on the Fund Name for details

KOTAK GROUP DYNAMIC FLOOR FUND (ULGF-015-07/01/10-DYFLRFND-107)

KOTAK GROUP BALANCED FUND (ULGF-003-27/06/03-BALFND-107)

KOTAK GROUP BOND FUND (ULGF-004-15/04/04-BNDFND-107)

KOTAK GROUP GILT FUND (ULGF-002-27/06/03-GLTFND-107)

KOTAK GROUP FLOATING RATE FUND (ULGF-005-07/12/04-FLTRFND-107)

KOTAK GROUP MONEY MARKET FUND (ULGF-001-27/06/03-MNMKFND-107)

45

KOTAK GROUP SECURE CAPITAL FUND (ULGF-016-12/04/11-SECCAPFND-107)

46

KOTAK GROUP SHORT TERM BOND FUND (ULGF-018-18/12/13-SHTRMBND-107)

47

AK(UONLTNGAEFKX-0UG1R9RE-O04U/P07P/R1U7D-KEGNPT FFFUNNDD-107)

48

DANISCNELAXUIMRER

49

DISCLAIMER

50

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

51 52 53 594 60

01

MARKET OUTLOOK

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

Month Gone By ? Markets Month Gone By ? Markets (period ended March 31,2019)

20.0% 15.0% 10.0%

5.0% 0.0% -5.0% -10.0% -15.0% -20.0%

11.6%

Market Indicators (Mar 19)

15.5%

10.1%

9.1%

0.1%

-8.7%

1mth 1yr 5yr (CAGR)

Indian equities (7.7%) broke out on the upside from the narrow range bound trading in the previous 3-4 months due to renewed foreign inflows, sentiment boost from opinion polls ahead of general elections tilting further in favour of incumbent government, de-escalation in geopolitical tensions between India and Pakistan and optimism over US-China trade negotiations. However on the global front, China saw industrial output growth coming in at 17-yr lows,Theresa May failed to pass a Brexit deal through British parliament as the deadline for Mar 29 UK exit approached, US treasury yields slipped to 2017 levels on recessionary concerns in late March and the Fed continued to maintain a pause on its rate action with dovish policy moves. Nifty Mid-cap 50 and Small cap 50 indicies outperformed Nifty by 2.5% and 5.7% respectively.

10 year benchmark yields were down 6bps in March to 7.35%. INR appreciated 2.4% to the month at 69.16/$ and was the best performing Emerging Market(EM) currency in March. Moderations in external pressures as trade deficit narrowed considerably in February coupled with notable foreign net equity inflows post resurgence in global liquidity supported INR.

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

02

MARKET OUTLOOK

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

Flows Foreign Institutional Investors (FIIs) continued their buying trend in March to record inflows of USD4.8bn in Indian equities. YTD, FIIs recorded net inflows of USD 7.1bn. DIIs were net equity sellers with outflow of USD 2bn. YTD, DII outflows are at USD1.8bn. Mutual funds broke their streak of net inflows after 31 consecutive months of net buying. Mutual funds sold USD1.0bn of equities in March, highest net selling since Mar-16. YTD, mutual funds are net equity buyers at USD 0.3bn while other

DIIs are net equity sellers at USD 2.1bn. FIIs recorded net inflows in debt markets at USD2.2bn in March. YTD, FIIs remain net byuers at USD 0.6bn in debt markets.

CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY 18 YTD CY19

30.0

29.3

25.0

20.0

15.0

10.0

5.0

-

-5.0

-10.0

-15.0

Net FII Flows (USD b)

26.2

- 13.0 Net DII Flows (USD b)

15.9 7.1 0.6 - 1.8

- 4.4 - 6.9

Net FII Debt (USD b)

Economy

Feb-19

CPI

2.6%

Jan-19

IIP

1.3%

Jan-19 2.1%

Dec-18 2.7%

Dec-18 2.2%

Nov-18 0.5%

Index for Industrial Production for January moderated significantly to 1.3% versus 2.7% in December due to slowing growth in manufacturing(1.3% versus 2.7), electricity (0.8% versus 4.5%) and capital goods (-3.2% versus 5.9%). Construction witnessed the strongest growth of all major sectors, 7.9% in January, but this was still significantly slower than the 10% seen in December.

Consumer Price Index (CPI) soft patch reversed in February with headline print rising above expectations to 2.6% versus 2.1% in January while core inflation fell by 0.1pp to 5.3%. The increase in CPI was driven by moderation in food deflation with food & beverage CPI coming in at -0.1% (versus -1.3% in January). February WPI accelerated to 2.93% pushed by jump in prices of food and fuel products, recovering from 10-month lows of 2.76% in January.

Trade deficit for February came in surprisingly low at USD 9.6bn, best since Sep 2017 with exports rising 2.4% and imports falling 5.4%. YoY import growth worsened across all categories, with 7 of the major 9 categories in negative territory.

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

03

MARKET OUTLOOK

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

Equity Market Outlook

Deal activity gathered momentum in March with 15 deals totalling USD5.5bn with the key ones being the IPO of Embassy Office Parks REIT (USD689mn) and OFS of HDFC Life Insurance (USD522mn) and ICICI Pru Life (USD248mn).

Events impacting markets

? Earnings- The consensus expectations are that of greater than 20% earnings growth in FY20. However, it is believed that some of the economic data points are suggesting that growth is slowing down which can impact earnings negatively.

? LokSabha Elections- Dates & Opinion polls: Latest trends in opinion polling conducted by ABP News and India TV ahead of general elections in April & May indicated seats swinging towards the NDA alliance. Markets have been reacting positively to these developments with March marking the beginning of the pre-election rally. EC announced the polling dates for 17th Lok Sabha to be conducted in 7 phases from 11 April to 19 May with results to be announced on 23 May.

? GST Council Meet- The GST council approved transition plan for new tax rates for housing sector. The developers of residential projects which are incomplete as on March 31 will have the option to either choose the old structure with Input Tax Credit (ITC) or to shift to the new 5% and 1% rates without ITC.

Nifty P/B

Peak

6.4

Min

Average

6

3.6

3.7

4

2.3

2

Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Source: NSE

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

04

MARKET OUTLOOK

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

Equities can react in the coming months based on following events

? Investors focus over next 2 months will be increasingly towards the outcome of national election likely to be held in April ? May 2019. Formation of stable government can be critical to attract more foreign money in the country.

? There is increasing talk of the globe slowing down in the coming year. In that backdrop, there has been downward pressure on the US and global bond yields, which has essentially meant that money has started to look for more opportunities in the emerging markets. If the slowdown actually hits the world, country like India whose growth could also slow, will still offer the best growth and could see meaningful inflows from emerging market funds, something that was witnessed in this March itself.

? Over the last couple of months, several macro variables have undergone a reset in India. These include lower crude oil prices and hence the currency trend, appointment of the new RBI Governor, lower than expected inflation trajectory and G-Sec yields dropping from the peak. Corporate asset quality stress also appears to have peaked out and there are visible signs of large ticket asset resolutions under the Bankruptcy Code. All of this bodes well for India.

? Ongoing Trade War tussle between the United States and China can have repurcussions for the global trade and markets. Both the sides seem to be unrelenting in their stance as of now, However since the US has a massive trade deficit with China, it has found more absolute value of goods on which they have applied tariffs. If the issue escalates more, global Gdp growth will also be impacted negatively

? Geopolitical tensions and lingering risks of large supply disruptions led by US sanctions on Iran adds upward risk bias to oil. However, the US also wants lower Oil prices and it remains to be seen if countries like Saudi Arabia can pump more oil to keep oil prices in check

? For earnings recovery, a recovery in overall capital formation cycle would be a key factor apart from growth in consumption. While the key driver for capex in the economy would continue to be public spend, the private capex cycle should also benefit from three years of low average lending rates, better corporate profitability, easier availability of credit from the banking system, higher equity raising from a buoyant market, more FDI into manufacturing and infrastructure and a renewed focus on housing. Public capex growth is likely to remain healthy with a focus on roads, rural development and affordable housing.

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

05

MARKET OUTLOOK

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

Debt Market Outlook

10.0% 9.0%

8.9%

8.9%

8.0%

7.0% 6.0% 6.2%

5.0%

4.0%

7.9% 7.4%

6.2%

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Source: Bloomberg

10-Year India G-Sec Yield (%)

Debt markets were in a bullish mode during the month as the 10 year benchmark G-sec rallied from 7.41% to 7.35%.

RBI raised USD5 bn through foreigh currency swap for liquidity management. This helped RBI to inject INR345 bn during March. Selling pressure emerged in G-sec market due to this announcement, as it will reduce the OMO's in the near future.

Central government borrowing for first half of 2019-20 was announced and this was at INR4.42 trn via dated securities. State developments loans (SDL) supply would be to the tune of INR1.1 trn.

Appreciation in INR and fall in US treasury yields after dovish Fed commentary helped keep the G-sec yields around 7.35% levels. Altough brent crude oil prices rose by ~USD2 during the month, concerns over a slowdown in global economic growth reduced market participants worry over steep rising of crude oil prices.

Low CPI prints and benign commodity prices would help RBI to cut rates during the year. The 10yr benchmark G-sec could trade in a range of 7.00-7.50% in the near term

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

06

FUND PERFORMANCE OF ULIP FUNDS

Market Outlook Fund Performance

Contents Individual Funds

Group Funds

Funds available with insurance plans launched on & post Sept. 1, 2010.

Returns As On 31st March 2019

Classic Opportunities Fund (AUM: ` 4,25,182.10

Lakhs)

Frontline Equity Fund

(AUM: ` 73,372.41

Lakhs)

Dynamic Floor Fund II (AUM:

` 62,555.44 Lakhs)

Balanced Fund (AUM: ` 15,021.88

Lakhs)

Guarantee Fund (AUM: ` 3,201.09

Lakhs)

Kotak Dynamic Bond

Fund (AUM: ` 1,01,601.26

Lakhs)

Kotak Dynamic Gilt Fund (AUM:

` 5,892.93 Lakhs)

1 month

7.8

8.1

4.6

5.3

4.2

2.4

1.7

3 months

6.4

7.2

4.3

5.0

3.8

2.5

1.9

6 months

6.8

7.5

7.9

7.5

5.2

8.4

8.6

1 year

7.2

10.4

8.8

9.1

9.0

7.9

8.7

2 years

8.9

10.3

7.5

8.4

8.4

6.1

6.6

3 years

13.9

14.4

10.0

11.1

9.8

7.7

8.0

4 years

8.7

9.5

7.0

8.3

6.8

7.5

7.7

5 years

15.3

14.9

9.2

12.2

9.0

9.2

9.7

6 years

15.5

15.4

8.4

12.1

8.3

8.2

8.4

7 years

14.4

14.2

8.5

11.7

8.4

8.7

8.9

10 years

n.a

n.a

n.a

n.a

n.a

8.6

8.2

Inception

12.0

11.1

7.3

9.9

7.9

8.4

7.5

Kotak Dynamic Floating Rate Fund (AUM: ` 2,223.79

Lakhs)

0.8 2.0 4.9 6.3 5.8 6.4 6.6 7.3 8.0 8.1 7.5 7.4

Money Market Fund

(AUM: ` 43,563.87

Lakhs)

0.7 1.8 3.6 6.9 6.6 6.8 7.1 7.4 7.6 7.9 n.a 7.5

Discontinued Policy Fund

(AUM: ` 25,408.31

Lakhs)

0.5 1.6 3.2 6.3 6.1 6.2 6.5 6.9 7.2 7.5 n.a 7.6

Funds available with insurance plans launched Prior to Sept. 1, 2010.

Returns As On 31st March 2019

Kotak Opportunities Fund (AUM: ` 83,588.83 Lakhs)

Kotak Aggressive Growth Fund (AUM: ` 26,940.93

Lakhs)

Kotak Dynamic Growth Fund (AUM: ` 6,010.75 Lakhs)

Dynamic Floor Fund (AUM: ` 93,014.69 Lakhs)

Kotak Dynamic Balanced Fund (AUM: ` 1,947.57 Lakhs)

1 month

7.9

7.7

6.9

4.7

5.9

3 months

6.3

6.5

6.3

4.4

5.5

6 months

6.4

6.6

8.3

8.0

8.3

1 year

6.4

10.3

10.2

8.6

9.7

2 years

8.1

10.2

9.3

7.3

8.6

3 years

13.2

14.1

12.7

9.6

11.3

4 years

7.9

8.9

8.8

6.9

8.5

5 years

14.6

14.4

13.3

9.0

12.3

6 years

14.8

15.0

13.6

8.2

12.3

7 years

13.7

13.8

12.8

8.1

11.8

10 years

17.5

16.0

13.4

8.5

12.3

Inception

16.6

15.7

14.2

9.2

13.0

Returns As On 31st March 2019

Peak Guarantee Fund I (AUM: ` 1,517.27 Lakhs)

Kotak Guaranteed Growth Fund (AUM:

` 61,936.31 Lakhs)

Kotak Guaranteed Balanced Fund

(AUM: ` 7,826.17 Lakhs)

Pension Classic Opportunities Fund (AUM: ` 10,616.97

Lakhs)

Kotak Pension Opportunities Fund

(AUM: ` 2,114.40 Lakhs)

Pension Frontline Equity Fund (AUM:

` 2,392.31 Lakhs)

Pension Guarantee Fund (AUM: ` 9,526.07 Lakhs)

1 month

0.5

5.6

4.9

7.9

7.8

8.3

4.2

3 months

1.2

5.3

4.8

6.5

6.2

7.7

3.8

6 months

2.6

7.8

8.0

6.8

6.3

8.2

5.3

1 year

5.7

9.2

9.2

7.2

6.3

11.1

9.0

2 years

7.4

8.2

7.9

8.9

8.1

10.5

8.4

3 years

9.0

11.1

10.6

14.0

13.1

14.5

9.9

4 years

6.1

8.4

8.4

8.7

7.9

9.5

6.9

5 years

8.4

11.8

11.4

15.5

14.5

15.0

9.1

6 years

7.7

11.2

10.6

15.7

14.6

15.5

8.3

7 years

7.9

10.8

10.4

14.5

13.6

14.3

8.5

10 years

n.a

10.9

10.5

n.a

n.a

n.a

n.a

Inception

7.1

13.0

11.9

12.4

11.3

12.0

7.3

AS ON 31st MARCH 2019

MONTHLY UPDATE APRIL 2019 | (based on last business day)

07

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