FEBRUARY 2021 IN-DEPTH INVESTMENT BULLETIN OF AEGON LIFE INSURANCE COMPANY LTD AEGON, toh tension gone. INDEX Description Page No. Enhanced Equity Fund 6 Accelerator Fund 7 Pension Enhanced Equity Fund 8 Pension Index Fund 9 Group Equity Fund 10 Blue Chip Equity Fund 11 Opportunity Fund 12 Debt Fund 14 Pension Debt Fund 15 Secure Fund 16 Pension Secure Fund 17 Conservative Fund 18 Balanced Fund 20 Pension Balanced Fund 22 Stable Fund 24 NAVPF Fund 26 Indepth | Feb 2021 | 2 Commentary on the Indian Securities Market for January 2021 Nifty (down 2.5%) was marginally negative after giving positive return in the last three months. The covid cases continued to decline across the country with only two states having more than 10000 active cases now. The vaccination program has also started in the country with healthcare workers receiving the vaccination first. The dollar index took a breather after 2 consecutive months of depreciation. It was up 0.7% and closed at 90.58 level. The rupee continued to appreciate for the 3 rd month in a row and appreciated marginally by 11 paise to close at 72.95 level. Brent crude continued its upmove and was up another 8% to close above $55 mark. It has moved up by 49% in the last three months. Gold corrected by 2.67% to close at $1847. Foreign institutional investors (FIIs) investment continued to be strong in January albeit lower than last two months with inflow of $2.7 bn. Domestic institutional investors (DIIs) continued to be net sellers as outflows in Equity mutual funds continued for the sixth month in a row. Consumer price Index (CPI) further moderated in December to 4.59% vs 6.93% in November led by a sharp fall in food inflation. The Index of Industrial Production (IIP) was revised upwards for October and November while the eight core sectors continued to show decline for third month in a row in December. GST collections continued to improve with January GST collections up 8% YoY to its highest ever monthly collections of 1.2 lakh crores. In February, markets will react to quarterly results, Budget, progress of covid and vaccination in India and across the world. Bonds remained volatile during January with the 10 year benchmark yield starting the Indepth | Feb 2021 | 3 month at 5.87, seeing a low of 5.82 before rising to 5.95 and finally closing at 5.91. This despite RBI resorting to Open Market Operations including outright purchases. A few primary auctions did see some discouraging bidding, in response to which RBI either cancelled auctions or devolved the issuances on Primary Dealers. Market does Nifty (down 2.5%) was marginally negative after giving positive return in the last three appear nervous prior to the Union Budget and the GOI’s borrowing programme, which months. The covid cases continued to decline across the country with only two states remains the most important trigger to guide the market in the short term. having more than 10000 active cases now. The vaccination program has also started in the country with healthcare workers receiving the vaccination first. The dollar index took a breather after 2 consecutive months of depreciation. It was up 0.7% and closed at 90.58 level. The rupee continued to appreciate for the 3 rd month in a row and appreciated marginally by 11 paise to close at 72.95 level. Brent crude continued its upmove and was up another 8% to close above $55 mark. It has moved up by 49% in the last three months. Gold corrected by 2.67% to close at $1847. Foreign institutional investors (FIIs) investment continued to be strong in January albeit lower than last two months with inflow of $2.7 bn. Domestic institutional investors (DIIs) continued to be net sellers as outflows in Equity mutual funds continued for the sixth month in a row. Consumer price Index (CPI) further moderated in December to 4.59% vs 6.93% in November led by a sharp fall in food inflation. The Index of Industrial Production (IIP) was revised upwards for October and November while the eight core sectors continued to show decline for third month in a row in December. GST collections continued to improve with January GST collections up 8% YoY to its highest ever monthly collections of 1.2 lakh crores. In February, markets will react to quarterly results, Budget, progress of covid and vaccination in India and across the world. Bonds remained volatile during January with the 10 year benchmark yield starting the Indepth | Feb 2021 | 4 FUND MANAGEMENT TEAM FUND MANAGER AVINASH AGARWAL Qualification : MBA (IIM-L) Experience : 15 years Number of funds : 10 Lovelesh Manocha Qualification : B.E (Chemical), PGDM (IIML) Experience : 12 years Number of funds : 1 Karan Jhaveri Qualification : Chartered Accountant, Chartered Financial Analyst (CFA Institute, USA) Experience : 5 years Number of funds : 9 Indepth | Feb 2021 | 5 ENHANCED EQUITY FUND SFIN: ULIF00105/07/08EEF0138 Inception Date 24 - 7 - 2008 Fund Manager : Avinash Agarwal Investment Objective : This fund will aim to invest in a well-diversified portfolio of equity instruments, and generate attractive returns in the long term. NAV : 32.7161 AUM : 97.34 Cr Benchmark : NIFTY 50 EQUITY HOLDINGS % of AUM EQUITY HOLDINGS % of AUM INFOSYS LIMITED 8.83 TRENT LIMITED 1.42 RELIANCE INDUSTRIES LIMITED 8.16 HCL TECHNOLOGIES LIMITED 1.41 HDFC BANK LIMITED 6.24 KOTAK MAHINDRA BANK LIMITED 1.28 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 5.57 HDFC LIFE INSURANCE COMPANY LIMITED 1.27 BHARTI AIRTEL LIMITED 5.10 DIVIS LABORATORIES LIMITED 1.24 HINDUSTAN UNILEVER LIMITED 4.90 BHARAT ELECTRONICS LIMITED 1.13 SBI-ETF NIFTY BANK 4.62 ENDURANCE TECHNOLOGIES LIMITED 1.08 ICICI BANK LIMITED 4.53 MAHINDRA & MAHINDRA LIMITED 0.95 NIPPON INDIA ETF BANKBEES EXCHANGE TRADED SCHEME 4.46 THE FEDERAL BANK LIMITED 0.90 LARSEN & TOUBRO LIMITED 3.20 ALEMBIC PHARMACEUTICALS LIMITED 0.90 TATA CONSULTANCY SERVICES LIMITED 2.75 ULTRATECH CEMENT LIMITED 0.80 DR REDDYS LABORATORIES LIMITED 2.62 TATA STEEL LIMITED 0.78 CIPLA LIMITED 2.08 TATA MOTORS LIMITED 0.77 ITC LIMITED 2.08 BHARAT FORGE LIMITED 0.60 NESTLE INDIA LIMITED 2.03 WIPRO LIMITED 0.59 BHARAT PETROLEUM CORPORATION LIMITED 2.01 JSW STEEL LIMITED 0.57 AXIS BANK LIMITED 1.84 HINDALCO INDUSTRIES LIMITED 0.56 SBI LIFE INSURANCE COMPANY LIMITED 1.81 HONEYWELL AUTOMATION INDIA LIMITED 0.32 MARUTI SUZUKI INDIA LIMITED 1.63 BAJAJ AUTO LIMITED 1.55 VARUN BEVERAGES LIMITED 1.53 INDUSTRY % of AUM INDUSTRY % of AUM FINANCIAL AND INSURANCE ACTIVITIES 23.44 MANUFACTURE OF BASIC METALS 1.91 INFRASTRUCTURE 15.27 MANUFACTURE OF OTHER TRANSPORT EQUIPMENT 1.55 COMPUTER PROGRAMMING, CONSULTANCY AND RELATED ACTIVITIES 13.58 MANUFACTURE OF BEVERAGES 1.53 MFG OF PHARMACEUTICALS, MEDICINAL CHEMICAL AND BOTANICAL 6.84 MANUFACTURE OF COMPUTER, ELECTRONIC AND OPTICAL PRODUCTS 1.46 MANUFACTURE OF CHEMICALS AND CHEMICAL PRODUCTS 4.90 RETAIL TRADE, EXCEPT OF MOTOR VEHICLES AND MOTORCYCLES 1.42 MANUFACTURE OF MOTOR VEHICLES, TRAILERS AND SEMI-TRAILERS 3.48 MANUFACTURE OF MACHINERY AND EQUIPMENT N.E.C. 0.95 CIVIL ENGINEERING 3.20 MANUFACTURE OF OTHER NON-METALLIC MINERAL PRODUCTS 0.80 MANUFACTURE OF TOBACCO PRODUCTS 2.08 MFG OF FABRICATED METAL PRODUCTS, EXCEPT MACHINERY & MANUFACTURE OF FOOD PRODUCTS 2.03 EQUIPMENTS 0.60 ASSET ALLOCATION PERFORMANCE Period Fund Benchmark F&U ACTUAL Return 1 Month -1.46% -2.48% EQUITIES 75% TO 100% 94.10% Return 6 Month 20.69% 23.13% FIXED INCOME SECURITIES 0 % TO 25% 5.90% Returns 1 Year 11.99% 13.98% MONEY MARKET INSTRUMENT Returns 2 Year 10.25% 12.20% Returns 3 Year 5.73% 7.33% Inception 9.92% 9.38% Indepth | Feb 2021 | 6 ACCELERATOR FUND SFIN: ULIF01203/09/10ACCELERATE0138 Inception Date 16 - 9 - 2010 Fund Manager : Lovelesh Manocha Investment Objective : This fund will aim at investing in equities of various sectors, to diversify the portfolio and to generate attractive returns in long term. This fund will also have the flexibility to invest in fixed interest assets and money market instruments up to 20%. NAV : 22.9664 AUM : 187.40 Cr Benchmark : S&P BSE 100 EQUITY HOLDINGS % of AUM EQUITY HOLDINGS % of AUM INFOSYS LIMITED 7.35 BOSCH LIMITED. 0.30 RELIANCE INDUSTRIES LIMITED 6.78 EICHER MOTORS LIMITED 0.15 HINDUSTAN UNILEVER LIMITED 6.20 KOTAK MAHINDRA BANK LIMITED 5.33 MARUTI SUZUKI INDIA LIMITED 4.76 SBI-ETF NIFTY BANK 4.31 ICICI BANK LIMITED 4.15 HONEYWELL AUTOMATION INDIA LIMITED 4.11 HDFC BANK LIMITED 3.93 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 3.87 BHARTI AIRTEL LIMITED 2.98 INDUSTRY % of AUM NIPPON INDIA MUTUAL FUND - NIPPON INDIA ETF NIFTY IT 2.53 TATA MOTORS LIMITED 2.18 FINANCIAL AND INSURANCE ACTIVITIES 23.39 HDFC LIFE INSURANCE COMPANY LIMITED 2.17 NIPPON INDIA ETF BANKBEES EXCHANGE TRADED SCHEME 2.05 COMPUTER PROGRAMMING, CONSULTANCY AND RELATED ACTIVITIES 11.45 SHRIRAM TRANSPORT FINANCE COMPANY LIMITED 2.03 MANUFACTURE OF MOTOR VEHICLES, TRAILERS AND SEMI-TRAILERS 10.03 TATA CONSULTANCY SERVICES LIMITED 1.93 DR REDDYS LABORATORIES LIMITED 1.86 INFRASTRUCTURE 9.75 ITC LIMITED 1.81 MANUFACTURE OF CHEMICALS AND CHEMICAL PRODUCTS 7.19 ENDURANCE TECHNOLOGIES LIMITED 1.67 MFG OF PHARMACEUTICALS, MEDICINAL CHEMICAL AND BOTANICAL 5.12 NESTLE INDIA LIMITED 1.57 VARUN BEVERAGES LIMITED 1.53 MANUFACTURE OF COMPUTER, ELECTRONIC AND OPTICAL PRODUCTS 4.11 HCL TECHNOLOGIES LIMITED 1.45 MANUFACTURE OF FOOD PRODUCTS 2.63 TITAN COMPANY LIMITED 1.35 BRITANNIA INDUSTRIES LIMITED 1.06 MANUFACTURE OF TOBACCO PRODUCTS 1.81 ABBOTT INDIA LIMITED 1.02 MANUFACTURE OF BEVERAGES 1.53 RBL BANK LIMITED 1.02 PIDILITE INDUSTRIES LIMITED 0.99 MANUFACTURE OF BASIC METALS 1.45 ASHOK LEYLAND LIMITED 0.97 OTHER MANUFACTURING 1.35 TATA