Edelweiss Absolute Return Fund (Edelweiss A.R. Fund)
An open ended -Equity oriented scheme
(SIMPLE PRODUCT FOR COMPLEX MARKETS)
PERFORMANCE UPDATE (As on 30th June 2011)
2010 | Jan - Mar | Apr - Jun | Jul - Sept | Oct - Dec | 2010 | Volatility |
ARF | 3.60% | 3.20% | 5.70% | 0.30% | 13.40% | 4.90% |
Crisil MIP Blended Index | 1.30% | 1.70% | 2.70% | 1.20% | 6.70% | 2.50% |
Nifty Index | 0.90% | 1.20% | 13.50% | 1.70% | 17.20% | 16.20% |
2011 | Jan - Mar | Apr - Jun | Jul - Sept | Oct - Dec | 2011 | Volatility |
ARF | -2.40% | 2.70% | 0.20% | 4.40% | ||
Crisil MIP Blended Index | 0.40% | 0.60% | 1.10% | 3.10% | ||
Nifty Index | -4.90% | -3.20% | -7.90% | 19.10% |
‐ Dec 2010 Volatility
For the quarter Apr - Jun 2011, Absolute Return Fund has once again delivered outperformance with regards to its mandate of controlling the downside and protecting investors from volatility. For the first half 2011, the Absolute Return Fund has delivered absolute returns of 0.2% versus the Nifty Index at -7.9%. The fund has been able to provide uncorrelated returns to the market with the aid of its portfolio positioning, dynamic hedging and strategic execution on large special situation trades.
The Absolute return fund aims to provide investors with two benefits. Firstly, a consistent return stream that has low correlation with other funds and investment options available. Second, the fund aims to protect investors from the volatility that is inherent in Indian markets. For the quarter of Apr-Jun 2011, the Nifty is down 3.2% with a volatility of 16.5 % (annualized). In the same period, the ARF is up 2.7% with a volatility of 4.4 %( annualized).
The essence of ARF is captured by the following four agenda points
1) Participation on the upside: Endeavour to provide investors with 50% to 70% of the Nifty upside in any rolling twelve months period
The fund has provided investors with 75% of the Nifty upside during CY 2010.
2) Protection from the downside: Endeavour to restrict investor losses to less than one fifth in any rolling twelve months period
The fund is up 0.2% while the Nifty is down 7.9% for first half CY 2011.
3) Low correlation with other funds and investment options available
The fund provides uncorrelated returns to the market by using a multi strategy approach. This is evident in all the quarters.
4) Protect investors from the volatility that is inherent in Indian markets
The fund's volatility is one fourth of Nifty since inception.
