cr-bpdf-march-23Canara Robeco Banking and PSU Debt Fund

Canara Robeco Banking and PSU Debt Fund

1. Canara Robeco Banking and PSU Debt Fund
An open-ended debt scheme predominantly investing in debt instruments of banks,
public sector undertakings, public financial institutions and municipal bonds. Relatively
high interest rate risk and moderate credit risk
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
May’2024

2. Canara RobecoBanking and PSU Debt Fund
*Investorsshouldconsulttheirfinancialadvisersifindoubtaboutwhethertheproductissuitable
Thisproductissuitableforinvestorswhoareseeking*
•Income/Capitalappreciationovershorttomediumterm
•InvestmentindebtandmoneymarketinstrumentsissuedbyBanks,PublicSectorUndertakings
(PSUs),PublicFinancialInstitutions(PFIs)andMunicipalBonds
Gilt Fund -An open-ended debt scheme investing in government securities across maturity

3. TABLE OF CONTENTS
FIXED
INCOME
MARKET
REPORT
CARD
ABOUT
CANARA
ROBECO
CANARA
ROBECO
BANKING &
PSU DEBT
FUND
INVESTORS
SUITABILITY
SCHEME
FEATURES

4. FIXED
INCOME
MARKET
REPORT
CARD
ABOUT
CANARA
ROBECO
CANARA
ROBECO
BANKING &
PSU DEBT
FUND
INVESTORS
SUITABILITY
SCHEME
FEATURES

5. Fixed Income Market Report Card
Economic Recovery
Bond Yields to stabilize
External Situation –CAD and Currency
01
02
03
04
RBI Focus on Inflation Control while keeping growth in mind
Note:TheopinionsexpressedonthisslidearethefundmanagementviewsofCanaraRobecoAsset
ManagementregardingtheCurrenteconomicsituation.TheviewoftheFundManagersshouldnotbe
construedasinvestmentadvice.Investorsshouldconsulttheirfinancialadvisersifindoubtaboutwhetheran
investmentrecommendationissuitableforthem.

6. FIXED
INCOME
MARKET
REPORT
CARD
ABOUT
CANARA
ROBECO
CANARA
ROBECO
BANKING &
PSU DEBT
FUND
INVESTORS
SUITABILITY
SCHEME
FEATURES

7. Canara Robeco Fixed Income -
Investment Philosophy
Safety-MostImportantFilterInAnInvestmentDecision
Minimizecreditrisk
MajorityofInvestmentinaboveAA/A1+ratedassets
Independentcreditresearch
Duediligencetoevaluateaborrower'sabilityandwillingnessto
repaythedebtontime
Emphasisonstrongparentage
De-risktheportfolioondowngrades
StrictadherencetoregulatorylimitsandcontrolledthroughBloomberg
systemonrealtimebasis
Liquidity-CoretoourInvestmentPhilosophy
Asset-liabilitymatchandstresstest
Return-AimtomaximizereturnsbyfollowingaDisciplined
InvestmentProcess
Note: The above is only for general understanding purposesand should not be construed as CRAMC
investment policy or portfolio construction process.

8. Risk Officer responsible for ongoing Risk
Management
Bloomberg POMS
Risk Management Committee
Limit & Control Structure
Review
–Dedicated Risk Management Team
—Riskprofilingofportfolios
—Limitonactivebets
—SectorexposureLimit
—Trackingerror
—RatioVaR
—Limitonilliquidinvestments
—InstrumentexposureLimits
Risk Process Flow
Monitoring
—Riskrulesembeddedinfrontofficesystem
—Weeklyreportsgeneration&circulation
—Liquidityprofileofportfolios
—ExceptionreportingRMC
—RMCisupdatedwithchangesintheregulatory/
investmentenvironment
—Limit&ControlStructuresreviewed,
modifications/additionsmadeasrequired
Final Portfolio
Note: The above is only indicative in nature and should not be construed as CRAMC Risk Management Policy or
Process. There is no assurance or guarantee that the investment objective of the scheme will be achieved.

9. Proactive Credit Risk Management
ItistobenotedthatasaFundHouse,CanaraRobecoAMCdidnothaveanyexposuretothe
issuersatthetimeoftheirdefaultduringthecreditcrisisperiodof2018-2020.

10. Stringent Risk Management –Key to superior risk
adjusted return across interest rate cycles
OptimalDiversificationamongsectorstoachieveconsistencyinreturns.
Maintainingaconservativeportfoliothroughexposuretohighcreditquality
issuerswithlowcreditriskprofile.
Givenourexpertiseinmanagingdebtportfolioswithhighcreditqualitypapers
andwithlowcreditrisk,weplanforaNewFundOfferintheBanking&PSU
Category.
01
02
03
04
Riskcontrolprocesstomanagerisksthroughtoolssuchasissuer/sectorlimits,
Liquiditytracking,managingportfolioconcentrationandWeightedaverage
maturitytoensurethattheportfolioliquidityismaintained.
Note: The above is only indicative in nature and should not be construed as CRAMC Risk Management Policy or
Process. There is no assurance or guarantee that the investment objective of the scheme will be achieved.

11. FIXED
INCOME
MARKET
REPORT
CARD
ABOUT
CANARA
ROBECO
CANARA
ROBECO
BANKING &
PSU DEBT
FUND
INVESTORS
SUITABILITY
SCHEME
FEATURES

12. Presenting :
Canara Robeco
Banking and PSU
Debt Fund
(An open-ended debt scheme
predominantly investing in debt
instruments of banks, public sector
undertakings, public financial
institutions and municipal bonds.
Relatively high interest rate risk and
moderate credit risk)

13. Why invest in a Banking & PSU themed debt
fund?
Geo-political situation
remains volatile; high
commodity prices to persist
High inflation leading to
sharp tightening in
monetary conditions
Extremely low rates
supported higher debt
burdens
Funding costs are likely to
see a sharp rise
Demand in the economy is
likely to take a hit
Rising funding costs
coupled with drop in
demand is likely to squeeze
margins
Credit profile of lower rated
companies may deteriorate
in coming years
Thus,itisprudenttoinvestina
portfolioofAAA/A1+rated
securitiesprimarilyissuedby
BanksandPSUswhichareof
highcreditqualityandcarrya
relativelylowercreditrisk.
Note:TheopinionsexpressedonthisslidearethefundmanagementviewsofCanaraRobecoAssetManagementregardingtheCurrenteconomic
situation.TheviewoftheFundManagersshouldnotbeconstruedasinvestmentadvice.Investorsshouldconsulttheirfinancialadvisersifindoubt
aboutwhetheraninvestmentrecommendationissuitableforthem.

14. Canara Robeco Banking and PSU Debt Fund
CanaraRobecoBankingandPSUDebtFundintendstomaintainhighcreditquality
andliquidityintheportfolio.
Anactivelymanagedfundthataimstomanagedurationandcaptureopportunities
intheinterestratecycleandmispricingontheyieldcurve.
Thefundaimstoinvest~80%oftheportfolioinbonds&moneymarketinstruments
issuedbyBanks,PSUs&PublicFinancialInstitutionsandMunicipalBondsand
remaining~20%inG-Secs/SDLsandotherAAAorequivalentdebt/moneymarket
securities.
Thefundseekstogenerateoptimalreturnsbyinvestingindebt&moneymarket
instrumentsissuedprimarilybybanks,publicfinancialinstitutions(PFIs),public
sectorundertakings(PSUs)andmunicipalbonds.

15. How the Fund will Invest?
TherisksassociatedwithissuancesbyBanksandPSUsarelowerdueto:
ComprehensiveRegulatoryframeworkforBanksbytheReserveBankofIndia.
GovernmentOwnershipincaseofPSUs/PFIs.
Instruments
Indicative Asset
Allocation (% of total
assets) Risk Profile
Minimum Maximum High/Medium/Low
Debt and Money Market Instruments issued by
Banks, Public Financial Institutions (PFIs), Public
Sector Undertakings (PSUs) and Municipal Bonds
80% 100% Low to Medium
Debt (including securities issued by Central and
State Governments) and Money Market
Instruments issued by entities other than Banks,
PFIs, PSUs and Municipal Bonds
0% 20% Low to Medium
Units issued by REITs and InvITs 0% 10% Medium to High

16. Portfolio Analysis
As on 31
st
May’24
1.73%
9.15%
2.61%
13.82%
20.98%
51.71%
0% 10% 20% 30% 40% 50% 60%
Net Current Assets/ CDMDF
0 to 3 Months
3 to 6 Months
6 to 12 Months
1 -2 years
Greater than 2 years
Maturity Profile

17. Portfolio Analysis
As on 31
st
May’24
7.95%
10.00%
81.76%
0.29%Asset Allocation
TREPS/Repo/Reverse Repo & Net
Current Assets
Treasury Bills/ Sovereign
NCDs/Bonds
Unit Funds 81.76%
10.00%
7.95%
Rating Allocation
AAA & Equivalent
Treasury Bills/Sovereign
TREPS/Repo/Reverse Repo &
Net Current Assets

18. CR AMC is India’s
second oldest asset
manager, in
existence since
1993, tied into the
JV since September
2007
Canara Robeco
Banking & PSU Debt
Fund would focus on
a portfolio primarily
of “AAA rated bonds
issued by Banks and
PSU”.
The Fund would be a
“High Credit
Quality”portfolio;
thus, providing a
higher liquidity
benefit.
Fund would invest in
“High Grade Assets”
that are either
government –
backed entities or
systemically
important private
banks/entities. This
potentially provides
lower credit risk.
The Fund would be
an “Actively
Managed Fund”
that aims to capture
opportunities in the
interest rate cycle
and mispricing on
the yield curve.
Why Invest in Canara Robeco Banking & PSU Debt
Fund?

19. FIXED
INCOME
MARKET
REPORT
CARD
ABOUT
CANARA
ROBECO
CANARA
ROBECO
FOCUSED
EQUITY
FUND
INVESTORS
SUITABILITY
SCHEME
FEATURES

20. Who should Invest in this fund?
Investors seeking to gain from
accrual and duration calls by
investing in short to medium
term maturity bonds
Investors who wish to take
exposure towards bonds
issued by Banks, Public Sector
Undertakings and other
government backed securities
Investors having relatively low
to medium risk appetite looking
to invest in high credit quality
bonds with good liquidity
Investors with a medium-term
investment horizon of 2-3 years

21. FIXED
INCOME
MARKET
REPORT
CARD
ABOUT
CANARA
ROBECO
CANARA
ROBECO
FOCUSED
EQUITY
FUND
INVESTORS
SUITABILITY
SCHEME
FEATURES

22. Fund Summary:
Type
Anopen-endeddebtschemepredominantlyinvestingindebtinstrumentsofbanks,publicsectorundertakings,public
financialinstitutionsandmunicipalbonds.Relativelyhighinterestrateriskandmoderatecreditrisk.
Investment Objective
Togenerateincomeand/orcapitalappreciationthroughaportfolioofhigh-qualitydebtandmoneymarket
instrumentsissuedbyentitiessuchasBanks,PublicSectorUndertakings(PSUs),PublicFinancialInstitutions(PFIs)and
MunicipalBonds.However,thereisnoassurancethattheobjectiveofthefundwillberealized.
Inception Date 22-August-2022
Asset Allocation
Types of Instruments
Indicative allocation
(% of total assets)Risk Profile
MinimumMaximum
DebtandMoneyMarketInstrumentsissuedbyBanks,Public
FinancialInstitutions(PFIs),PublicSectorUndertakings(PSUs)and
MunicipalBonds
80% 100% Low to Medium
Debt(includingsecuritiesissuedbyCentralandState
Governments)andMoneyMarketInstrumentsissuedbyentities
otherthanBanks,PFIs,PSUsandMunicipalBonds
0% 20% Low to Medium
UnitsissuedbyREITsandInvITs 0% 10% Medium to High
Plans & Options
RegularPlan&DirectPlan
(a)Growth
(b)IncomeDistributioncumcapitalwithdrawaloption:
-ReinvestmentofIncomeDistributioncumcapitalwithdrawaloption
-PayoutofIncomeDistributioncumCapitalWithdrawalOption
Fund Size Rs.380.18Crs(Ason31
st
May’24)
Load Structure
EntryLoad:Nil
ExitLoad:Nil
Benchmark CRISILBankingandPSUDebtA-IIIndex
Fund Manager Mr.AvnishJain

23. Disclaimer
Theinformationusedtowardsformulatingtheoutlookhavebeenobtainedfromsourcespublishedbythird
parties.Whilesuchpublicationsarebelievedtobereliable,however,neithertheAMC,itsofficers,the
trustees,theFundnoranyoftheiraffiliatesorrepresentativesassumeanyresponsibilityfortheaccuracyof
suchinformation.CRMF,itssponsors,itstrustees,CRAMC,itsemployees,officer,directors,etc.assumeno
financialliabilitywhatsoevertotheuserofthisdocument.MutualFundInvestmentsaresubjecttomarket
risk.InvestorsarerequestedtoreadtheSchemerelateddocumentscarefullybeforeinvesting.
MutualFundinvestmentsaresubjecttomarketrisks,readallSchemerelateddocumentscarefully.