| BHARAT Bond ETF - April 2023 | ||||||||
| (AMC: Edelweiss Asset Management Limited) | ||||||||
| CRISIL Ratings reaffirms ‘CRISIL AAAmfs’ rating on BHARAT Bond ETF - April 2023 | ||||||||
| Rating Action | ||||||||
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| 1 crore = 10 million | ||||||||
| Refer to annexure for Details of Instruments & Bank Facilities |
Detailed Rationale CRISIL Ratings has reaffirmed its ‘CRISIL AAAmfs’ rating to Bharat Bond ETFs - April 2023. It is an open-ended exchange traded bond fund scheme, managed by Edelweiss Asset Management Ltd (EAML).
The ‘CRISIL AAAmfs’ rating indicates CRISIL Ratings opinion on credit quality of the portfolio of debt securities that Bharat Bond ETF - April 2023, respectively will hold. The rating does not indicate the AMC's willingness, or ability, to make timely payments to the funds’ investors. The rating is also not an opinion on the funds’ net asset value (NAV). The NAV may vary as per market developments. Schemes with this rating are considered to have the highest degree of safety, with regard to timely receipt of payments from their investments.
Bharat Bond ETF is an exchange-traded fund initiated by Government of India, to cater the borrowing requirements of central public sector entities (CPSE), by pooling investments from retail investors, high-net worth individuals, and institutional investors. Bharat Bond ETF – April 2023 has defined maturity period of 3+ years. Each ETF has a dedicated index, the index for BHARAT Bond ETF - April 2023 is Nifty BHARAT Bond Index – April 2023. The indices comprises of highly-rated bonds issued by CPSEs. Weight of bonds in the indices are based on total outstanding amount issued by each issuer. The single issuer weight is capped at 15%. The index is rebalanced/reconstituted at the end of each calendar quarter. |
Key Rating Drivers & Detailed Description CRISIL Ratings assessment of a rated fund’s credit quality is based on the creditworthiness of the fund’s portfolio.
The index is reviewed at the end of each calendar quarter, with the data cut-off date being 15 working days (T-15) before last working day of calendar quarter (T). Changes are effective from the last working day of calendar quarter (T). with a prior notice of 3 working days (t-3 being the portfolio disclosure date).
CRISIL Ratings has developed a credit quality matrix to assess the aggregate credit quality of a fund’s underlying portfolio. The matrix is a set of credit factors and scores, derived scientifically from the default and transition rates of CRISIL’s long-term ratings. The credit factors reflect the expected default behavior of the respective securities in the portfolio, and the likely deterioration in their credit quality. The lower the credit factor for each security, the higher would be its inherent credit quality. The credit factors are applied to the proportion of securities held in each rating category, to arrive at the credit score for the portfolio. The rating on the fund is assigned on the basis of the fund’s total credit score. A rated fund needs to maintain, at all times, a credit score consistent with its assigned rating.
For arriving at the credit quality of the portfolio, CRISIL Ratings has factored in the portfolio constituents as on November 30, 2021 as enumerated below: BHARAT Bond ETF– April 2023 (as on November 30, 2021)
About ETF Scheme Bharat Bond ETF – April 2023 is an open-ended target maturity exchange traded bond fund scheme. The investment objective of the scheme is to replicate the Nifty Bharat Bond Index – April 2023, by investing in bonds of CPSEs/CPSUs/CPFIs and other government organizations, subject to tracking error.
Index Maturity:
About the AMC EAML manages Edelweiss Mutual Fund’s (EMF’s) funds, in accordance with provisions of the investment management agreement, trust deed, regulations, and objectives of each fund. EMF had average assets under management of Rs 61,281.92 crore (excluding Fund of Funds - Domestic) during the quarter ended September 30, 2021. |
Any other information A bond fund credit quality rating indicates CRISIL’s opinion on the credit quality of the portfolio of debt securities that the fund holds; the rating does not indicate the willingness or ability of the AMC to make timely payments to the funds’ investors. The rating is also not an opinion on the fund’s net asset values (NAVs); the NAVs can vary with developments in the market. |
| Note on complexity levels of the rated instrument: CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments. |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | |||||||||||||||||||||||||||||||||||||||
Criteria Details
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