1) Job Purpose
To study, and analyze information companies under coverage to evaluate their creditworthiness of on a regular basis
To provide information on various characteristics of portfolios
To provide information and assist in evaluating aspects of Indian economy.
Job Context & Major Challenges:
The fixed income team offers a range of fixed income products to meet investors' differing requirements. These funds range from money market funds where emphasis is on capital protection to long term funds where the fund manager takes both interest risk and credit risk. The fund manager takes into account the scheme's investment objective when determining the asset allocation, duration, credit profile
Investment Objective of the Fixed Income Group (FIG)
To generate superior risk-adjusted returns on a consistent basis by investing in a portfolio in line with the investment objective.
To have a fundamentally research driven approach based on a combination of top down and bottom up strategies and backed by a strong risk management system.
Top down and bottom up approach
To follow core active management strategies by taking some deviations from the benchmark index as a combination of:
Top down strategies or strategic strategies (including interest rate expectations strategies, yield curve strategies and inter- and intra-sector allocation strategies)
Bottom up strategies or tactical strategies (including rich/ cheap analysis, credit analysis, yield curve trading strategies and return enhancing strategies using derivatives)
Risk management strategies
* Primary focus on risk control and management rather than just returns
* Research backed investments to optimize the portfolio through credit research and interest rate risk management
* Adequate Controls and compliance to keep operating risk under control
* Focus on risk adjusted returns
Portfolio management strategies
* Dynamic Asset Allocation
* Optimizing returns by investing and trading in fixed income or money market securities
* Focus on safety, liquidity and returns whilst managing the portfolios
Adherence to Regulatory Statutes
To ensure that the provisions laid down by the four securities legislation's governing the securities market in India, viz. (a) the SEBI Act, 1992, (b) the Securities Contracts (Regulation) Act. 1956, (c) the Companies Act, 1956, and (d) the Depositories, Act, 1996 to the extent applicable are being adhered to. Also the relevant rules, regulations, guidelines prescribed by the RBI, Stock Exchanges and other regulatory authorities shall be adhered to.
* A large number of companies under coverage (81) poses a challenge for detailed regular monitoring.
* Since credit related investments are illiquid in nature, debt investments cannot be sold in the market. Hence adverse developments in companies pose a risk to recommendation of the credit analyst.
* Views of rating agencies and BSLAMC's credit analyst may differ, leading to ratings transitions that are adverse.
4) Principal Account-abilities:
Evaluate proposal to invest in debt related instruments of companies not under credit coverage to enable investment decision-making
Monitor companies under credit coverage to identify rating upgrade and downgrade
Back up fund manager to provide information that enables portfolio decision making
Tracking Indian economy to provide information that enables portfolio decision making
Prepare proposals to invest in short term and long term papers of companies
Prepare reports regularly based on quarterly financial results and other events
Regular discussion with credit rating agencies on financial health of companies
Discussions with company management
MIS pertaining to various characteristics of a portfolio
Preparation of updates on Indian economy