| BHARAT Bond ETF – April 2033 | ||||||||
| (AMC: Edelweiss Asset Management Limited) | ||||||||
| ‘CRISIL AAA mfs’ assigned to BHARAT Bond ETF – April 2033 | ||||||||
| Rating Action | ||||||||
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| Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||||
| 1 crore = 10 million | ||||||||
| Refer to annexure for Details of Instruments & Bank Facilities |
Detailed Rationale CRISIL Ratings has assigned its ‘CRISIL AAA mfs’ rating to BHARAT Bond ETF – April 2033. This 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 2033, 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 to the borrowing requirements of central public sector entities (CPSE), by pooling investments from retail investors, high-networth individuals and institutional investors. BHARAT Bond ETF – April 2033 has defined maturity date of April 18, 2033. The ETF has a dedicated index. The index for the rated scheme is Nifty BHARAT Bond Index – April 2033. The index comprises of highly rated bonds issued by CPSEs. Weight of bonds in the indices are based on total outstanding amount of 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 index constituents as on November 28, 2022 as enumerated below:
Nifty BHARAT Bond Index – April 2033 (as on November 28, 2022)
About the ETF Scheme BHARAT Bond ETF – April 2033 is open-ended target maturity exchange traded bond fund schemes. The investment objective of both the schemes is to replicate the Nifty BHARAT Bond Index – April 2033, by investing in bonds of CPSEs/CPSUs/CPFIs and other government organizations, subject to tracking error.
Index Maturity: NIFTY BHARAT Bond Index - April 2033 will mature on April 18, 2033 |
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 (AUM) of Rs 88,590 crore (excluding Fund of Funds - Domestic) during the quarter ended September 30, 2022. This includes the 5 other BHARAT Bond ETFs – 2023, 2025, 2030, 2031 and 2032 which are also managed by EMF. |
Any other information: |
Note on complexity levels of the rated instrument: |
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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