Allocation Alpha

Algorithmic investment and execution offerings

Allocation Alpha Allocation Alpha dynamically allocates capital between Indian equities, foreign equities and low-risk debt/ debt-like instruments. The equity exposure varies from 0% to 60%. The aim of the product is to systematically generate capital appreciation by investing in a portfolio of equity or equity linked securities while secondary objective is to generate income through investments in debt and money market instruments, managing risk through active asset allocation. Based on our proprietary capital allocation model, we reduce the equity exposure when markets are over-valued and increase the exposure when markets are under valued. The equity exposure is taken via Estee Long Alpha fund and the low-risk debt like exposure may be taken via Estee I-Alpha Arbitrage fund.

Excess return over Crisil Hybrid conservative index: 33.98% (Mar'19 to Sep20)

Product Characteristics

Product Structure

Discretionary PMS

Nature of Product

Hybrid

Instruments

S&P BSE 500 Equities, Foreign Equity Mutual Funds, Arbitrage Funds and Debt and Money Market Instruments

Liquidity

Notice by 15th of month for end of month exit

Risk / Return

Expected Return

Crisil Hybrid (75+25) Conservative Index + 4% (Net of Fees)

Expected Sharpe

2.5

Expected Max Drawdown

5% ; Crest to Trough [2009-2019]

Key Risks

Market risk, Operational risk

Leverage

No external leverage

Investment Amount

INR 1 Crore.

Gross Return Series

Moonbeam.in

Fund Performance Metrics

Measure Since Inception
(Mar ‘19)
12 Months 6 months 3 months 1 month
Gross Return 33.98% 22.86% 14.88% 8.76% 3.64%
Excess Return over Crisil Hybrid Conservative Index 12.46% 11.26% 2.27% 5.25% 3.42%
Excess Return over Crisil Hybrid Aggressive Index 13.58% 11.79% -8.01% 1.48% 3.78%
Active Return (Annualized) 7.87% 11.26% 4.54% 21.00% 40.98%
Standard Deviation (Annualized) 3.49% 4.07% 3.23% 2.68% 3.49%
Sharpe Ratio (Annualized) 3.98 4.11td> 7.66 11.49 11.55

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All investment are subject to market risk. Please read the offer document thoroughly. To learn more contact us.