Unifi Umbrella AIF: Blend Fund 2
|Fund Type||Category III AIF|
|Commencement Date:||1st June 2021|
|Fund Re-open Date:||31st March 2022|
|Category of Registration:||Unifi Umbrella AIF is registered with SEBI as a Category III AIF under the Regulations.|
|Investment Manager:||Unifi Capital Pvt Ltd.|
|Minimum Investment:||For New Clients – Rs 1 Cr, For Existing clients – minimum top-up of 10 lakhs and multiples of 10k.|
With a robust in-house research team and a high level of service supported by continuity and customization, Unifi concentrates on long-only investment techniques as well as event arbitrage, with a significant concentration on Indian stocks. The company was created in 2001 by a core group of four seasoned capital market experts. Unifi has a 20-year track record of outperforming its benchmark, as proven by the fact that every fund has outperformed its peers. AUM currently stands at Rs 11,000 crores (USD 1,467 million) Unifi is based in Chennai, with offices in Bangalore, Hyderabad, Mumbai, and Delhi, and employs a total of 88 people.
Unifi Capital oversees seven bottom-up equity strategies that sift through possibilities across the market spectrum. The mission for all of the funds is to invest in opportunities that result from a combination of emerging topics, corporate activities, and, of course, the attractiveness of core fundamentals. From an absolute standpoint, the goal of all the funds under administration is to generate superior risk-adjusted returns.
The Blended Portfolio Strategy selects companies from Unifi’s portfolio of companies across each of the seven unique funds. In effect, the goal is to invest in “the best of our best” while also lowering the investor’s switching costs and effort when switching between excellent possibilities at any given time.
Subscriptions and New Investments:
This is an open-ended fund having a subscription period of one year. The deadline for dealing will be April 1, 2022. The funds must be received by March 28, 2022.
New clients that invest in 2022 will have a redemption opportunity in March 2023, followed by March of the following years. All redemptions communicated prior to the 30th of March will be processed on the basis of the 31st of March NAV, with pay-outs occurring within 7 working days.
Management Fee & Additional Return Calculation:
The Management Fee will be charged on a monthly basis, based on the NAV at the end of the month. Every year on March 31st, the applicable extra return is due. After applying the applicable hurdle rate and high-water mark, an additional return will be charged on a pre-tax NAV basis.
Tax is paid at the fund level, and customer returns are on a post-tax basis. Gains on the sale of AIF shares are taxed at the applicable capital gains rates. Interest income, dividends, and other fees are assessed at their current rates.
Objective – Focus on uncovering one-of-a-kind investment opportunities that regularly deliver higher (risk-adjusted) returns while also preserving capital.
Creating value necessitates a mental model that goes beyond the obvious. It necessitates a methodical mindset capable of sifting through reams of data and absorbing just the information that is important to identifying value-adding opportunities. This may be compared to looking for a needle in a haystack metaphorically. The investment approach for this fund will seek to select the greatest possibilities from among the following themes.
In a single corporate structure with several enterprises, the value of the individual pieces is frequently less than the value of the whole. A de-merger of various enterprises frees up the financial and management resources needed for each company to flourish. The spin-off fund invests in situations where enterprises have a good chance of realising their full growth potential and attracting a fair market valuation.
Unorganized enterprises make up a large sector of India’s economy, accounting for around 35% of the country’s GDP. Over the next decade, as the economy increases from $ 2.6 trillion to $ 5 trillion, it will face social, technological, scale, legal, taxes, and regulatory changes. These changes are expected to put unorganised companies in certain industries’ current business strategies to the test. As a result, well-established organised firms in such areas will gain market share while boosting margins, potentially resulting in extremely high earnings growth. The BC-AD fund was designed to profit from the impending transfer of market share from unorganised to organised players.
Despite evident growth possibilities, a few parts of the market are mispriced, resulting in equities trading at a substantial discount to their real worth. The reasons could range from most analysts’ lack of understanding of a business to low relative market cap and liquidity, as well as a lack of correlation to benchmark indices. DVD invests in such companies and takes advantage of market inefficiencies.
Rather than being strategic investment firms, many holding companies are run as a group holding companies. This leads to a continual discount in their valuations, but such discounts are not permanent. The Holdco fund seeks out core firms with excellent fundamentals and large valuation discounts that are projected to narrow as the regulatory landscape changes and value convergence occurs in a rising market.
Markets, as usual, favour a few industries that have performed well in the past while ignoring the rest. Few areas, such as speciality chemicals and precision manufacturing, are less well-known, but they have become globally competitive and have access to growing market potential. APJ20 invests in companies that have evolved and are well-positioned to benefit from such opportunities.
The green fund focuses its investments on firms that produce products and services that improve the environment by lowering carbon emissions and/or allowing for more efficient use of natural resources. The sectors identified for establishing the portfolio in the framework of this strategy are emission control, energy efficiency, water management, and waste management.
Insider Shadow Fund:
The Insider Shadow Fund invests in corporations that have repurchased their own stock or in companies whose promoters have purchased extra stock at market prices. This move reflects their belief in the company’s growth prospects or underlying value, which is not reflected in the stock price at the time. The idea is to profit from the market’s eventual balancing of the value-price mismatch.
About Fund Managers
Sarath K. Reddy ( FOUNDER & CHIEF INVESTMENT OFFICER )
Mr. Sarath K. Reddy has led a number of duties in the field of investments during the course of his 30-year career. He began his career at Standard Chartered Bank in Mumbai, and when the opportunity to become an entrepreneur arose, he jumped at it. With a team of highly skilled individuals, he launched Unifi Capital in 2001. He works closely with the analysts and fund management team at Unifi as Chief Investment Officer.
EXECUTIVE DIRECTOR OF UNIFI
Mr. Maran is one of Unifi’s co-founders and presently holds the position of Administrative Director. Starting his trip in capital requests in the early 90s, he has worked with some of the leading names in fiscal requests. He presently manages some of Unifi’s crucial customer connections and has also been necessary for leading Unifi’s enterprise into niche investment strategies and new topographies. His passion for grainy details about Indian frugality and consumption pattern helped to develop thematic investing styles far ahead of time. He freehandedly shares his studies with data as a sought-after speaker in academic and assiduity forums.
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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.