HIGH YIELD STRATEGY

High Yield Strategy is a discretionary PMS focusing on fixed income investment opportunities in domestic capital markets with the objective to consistently generate superior compounded annual returns compared with conventional debt instruments while preserving capital. The strategy primarily identifies high yield debt opportunities in Alternative NBFCs that demonstrate good fundamentals, scalable business models and established operating track records across business cycles. The approach focuses on disciplined credit evaluation and bottom up due diligence of issuers including assessment of management quality, credit appraisal processes, capital adequacy and presence of private equity investors. The portfolio predominantly consists of corporate bonds rated between AA and BBB with strict exposure limits to maintain diversification and control concentration risk. Typical portfolio maturity remains short to medium term with weighted average tenor generally below three years, allowing accrual based income generation from fixed income securities. Allocation may also include selective exposure to event arbitrage opportunities such as open offers, buybacks or delisting situations, and limited allocations to REITs, INVITs and selective directional equity calls when market dislocations create attractive yield enhancement opportunities. Portfolio exposure is diversified across segments such as SME finance, affordable housing finance, vehicle finance, consumer finance and diversified NBFCs to capture the credit growth of underserved borrower segments in India. Sector focus on financial services and Alternative NBFC lending segments. Market cap agnostic.