DSP Global Allocation Fund

An open ended fund of fund scheme investing in BlackRock

Global Funds – Global Allocation Fund
31 December, 2019

Product Structure
DSP BlackRock Global Funds
Indian Investors Global Allocation Fund
Global Allocation Fund (BGF-GAF)
The Luxembourg-domiciled fund has an AUM of
around USD 14.44 billion#

Fund Managers
DSP Global Allocation Fund provides access to BGF Allocation Fund, a sub portfolio of Global Allocation strategy, which is one
of the largest actively managed strategies in the world with an AUM in excess of USD 100 billion and history of over 25 years

BGF Global Allocation Fund: Highlights

Jay Kothari
 The fund’s mission is to provide a core holding, suitable for a broad range of clients, and deliver a competitive rate of return with
Dedicated Fund
Manager for overseas less risk than a traditional equity portfolio
investments
 Rigorous investment process with a top-down macro strategy to decide asset allocation, and bottom-up security selection
 A go-anywhere, flexible investment solution that typically invests in more than 700 securities across 40 countries in 30
currencies across sectors
 Seasoned management team of 49 dedicated professionals with 300+ years of combined experience
 The 3 Portfolio Managers have more than 90 years of combined experience

Laukik Bagwe
Fund Manager
(Debt Portion) A “one-stop” international diversification, global allocation and rebalancing solution
Past performance may or may not be sustained in future.
#
AUM of BGF– GAF as on 31 December, 2019. AUM of Global Allocation strategy (across all sub-portfolios) is in excess of USD 100 billion as
of 31 December, 2019.

BGF Global Allocation Fund:

Managed by an experienced Investment team
The 3 Portfolio Managers have more than 90 years of combined experience, Dennis Stattman has been with
Kedar Karnik BGF-GAF since inception.
Fund Manager
(Debt Portion)
Rigorous investment process with a top-down macro strategy to decide asset allocation, and bottom-up
security selection.
Dennis Stattman,
CFA
Universe
Global equities and fixed income of all sizes and qualities, cash equivalents

Asset Allocation
Top-down view of industries/regions + security selection
Benchmark: 60% Equities, 40% Fixed Inc/60% US, 40% ex-US
Research
Equity: Bottom-up, value-driven, fundamental process
Fixed Income: Focus on total return and credit analysis

Portfolio Construction Dan Chamby Aldo Roldan,

Over 700 holdings, broadly diversified CFA Ph. D.

Seasoned management team of 49 dedicated professionals with 300+ years of combined experience
Page 1 of 2

for product labelling and disclaimer refer page no. 2

BGF - GAF^: Asset Allocation as on 31 December, 2019 Scheme Features
Name of the Scheme
Asset Class % Wt in Portfolio DSP Global Allocation Fund
BlackRock Global Funds - Global Allocation Fund Type of Scheme
(Class I2 USD Shares)^^ 96.25% An open ended fund of fund scheme investing in Global Funds –
Global Allocation Fund
TREPS / Reverse Repo Investments / Corporate Debt Repo 5.75%
Underlying Equity Scheme
Net Receivables/Payables -2.00% BGF Global Allocation Fund (BGF-GAF)
TOTAL 100% Fund Managers
Jay Kothari (Dedicated Fund Manager for overseas investments),
Total AUM of the Scheme as on 31 December, 2019: Rs. 28 crores Laukik Bagwe & Kedar Karnik (Debt Portion)
Benchmark
BGF - GAF^: Top equity holding as on 31 December, 2019 Composite Benchmark = (36% S&P 500 Composite;
24% FTSE World (ex-US);
Top 10 Stocks % to Net Assets 24% MLUS Treasury Current 5 Year;
MICROSOFT CORP 1.7% 16% Citigroup Non-USD World Government Bond Index)
ALPHABET INC CLASS C 1.6% Entry load
APPLE INC 1.5% Not Applicable
AMAZON COM INC 1.5% Exit load
COMCAST CORP CLASS A 1.0% Holding period < 12 months: 1%
Holding period >= 12 months: NIL 
UNITEDHEALTH GROUP INC 0.9%
JPMORGAN CHASE & CO 0.9% Plans
Regular Plan & Direct Plan
RAYTHEON 0.9%
Options
SIEMENS N AG 0.9% • Growth (default option)
ANTHEM INC 0.9% • Dividend
TOTAL 11.70% - Payout Dividend
- Reinvest Dividend
Source: BlackRock
^BGF- BlackRock Global Funds; GAF- Global Allocation Fund,
^^Fund domiciled in Luxembourg Please note that DSP Global Allocation Fund shall be investing in I2 share class of
Note: All data in this document is as of 31 December, 2019 unless mentioned otherwise. BGF-GAF

Sector & Portfolio Update

1. A broad overweight to equities relative to the reference benchmark contributed to returns this month, as well as an underweight to Australian stocks. From a sector perspective, stock selection within financials (notably banks), and
healthcare was also additive. Portfolio positioning within fixed income, particularly an underweight to duration, also contributed to performance this month, as well as an overweight to emerging market sovereign bonds.
2. Within equities, an overweight to the United Arab Emirates weighed on returns. From a sector perspective, stock selection within information technology, consumer discretionary, and energy also detracted from performance.
Currency management also negatively impacted returns.
3. Within materials, we added to select high quality chemical companies that we believe can benefit from a stabilizing economy and do not require a sharp cyclical upturn as a catalyst.
4. We remain neutrally positioned towards the energy sector given growing concerns over the fundamental supply demand balance in energy markets. We tactically added to select names over the month that had been oversold. Much
of the fund’s exposure remains in storage & transport companies that have simplified their capital structures, reduced leverage, have limited exposure to commodity prices, and eliminated the need for equity to fund their growth
plans.
5. We favor the healthcare sector, as we believe it to be attractively valued relative to other defensive sectors that have similar levels of sustainable growth characteristics.
6. We reduced overall portfolio duration over the past month to 1.61 years, versus its benchmark duration of 2.7 years. With the Fed on hold for the foreseeable future, and with rates at the lower end of the recent trading range, we
thought it was sensible to reduce duration for the time being. The majority of our duration exposure is in U.S. Treasuries, as we maintain a material underweight to fixed income in Europe and Japan. We increased exposure to gold
and gold-related securities. We believe gold can provide resiliency in the portfolio, particularly as economic growth and inflation remain moderate and central banks continue to lean towards accommodation. In this environment, we
believe any shocks to equities are likely to come from concerns over growth or geopolitics, both scenarios that would likely prove gold to be an effective hedge against equity risk.
7. We hold a modest exposure to cash in the fund as a diversifying asset class to help manage risk in the portfolio. The fund reduced exposure to the U.S. Dollar to a modest underweight as we added to the Australian dollar and the
British pound. In addition, the fund increased exposure to the Chinese yuan via the Chinese government bonds which are only partially hedged.

Positioning
1. Asset allocation (as % of net assets): Equity: 67%, fixed income: 26%, commodity-related: 2%, cash equivalents: 5%.
2. Within equities, we see the best opportunities in high quality stocks. We are overweight U.S. and Chinese equities from a regional perspective and favor industries within the technology, communication services and consumer
discretionary sectors.
3. More recently, we have looked for opportunities to modestly increase exposure to select cyclical stocks that were attractively valued and positioned to benefit from a stabilization of economic growth.
4. Within fixed income, we have been shifting our Treasury exposure toward the front-end of the yield curve. While we believe that rates are likely to remain range bound, we think that the recent injection of liquidity by the Fed is likely
to keep the front end of the curve anchored, while the back end of the Treasury curve to drift modestly higher if risk assets continue to rally.
5. In the search for high quality carry, we have recently added U.S. agency mortgages into the portfolio as we believe refinancing risks have diminished substantially since long-term Treasury rates bottomed in August. Meanwhile, we
have substantially reduced our exposure to U.S. Investment Grade bonds, as credit spreads have fallen considerably over the past several quarters and no longer offer
attractive relative value.
Source: Internal; BGF-GAF is referred as ‘Fund’
*All exposures are based on the economic value of securities and is adjusted for futures, options, and swaps (except with respect to fixed income securities) and convertible bonds.

PRODUCT LABELLING & SUITABILITY RISKOMETER

This Open Ended Fund of Funds Scheme (Investing In International Fund) is suitable for investors who are seeking* M O D ER A T E MO
Y
T EL DE
RA R
H IG A T E
DE OW H
L
MO

• Long-term capital growth

LY

• Investments in units of overseas funds which invest in equity, debt and short term securities of issuers around
HIGH
L OW

the world

*Investors should consult their financial/tax advisors if in doubt about whether the product is suitable for them. Investors understand that their
principal will be at high risk
In the preparation of the material contained in this document, DSP Investment Managers Pvt. Ltd. (“AMC”) has used information that is publicly available, including information developed in-house or basis information received from its affiliates. The AMC however does
not warrant the accuracy, reasonableness and / or completeness of any information. The data/statistics are given to explain general market trends in the securities market, it should not be construed as any research report/research recommendation.We have included
statements / opinions / recommendations in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from
those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact
on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The sector(s)/stock(s)/issuer(s) mentioned in this document do
not constitute any recommendation/opinion of the same and the Underlying Fund may or may not have any future position in these sector(s)/stock(s)/issuer(s). The portfolio of the Underlying Fund is subject to changes within the provisions of its Offer document. Past
performance may or may not be sustained in the future. All figures and other data given in this document are dated as on 31 December, 2019 unless otherwise specified and the same may or may not be relevant in future. Please refer to the Scheme information document
for investment pattern, strategy and risk factors of the Scheme. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of the DSP Mutual Fund
(“Fund”). There is no guarantee of returns/ income generation in the Scheme. Further, there is no assurance of any capital protection/capital guarantee to the investors in the Scheme. "The investors are bearing the recurring expenses of the Fund, in addition to the expenses
of the underlying Fund".
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
FOR MORE INFORMATION
Contact Centre: 1800 200 4499
Email: service@dspim.com
Website: www.dspim.com