Alternative Investment
Fund

Unifi High Yield Fund

Objective

Unifi High Yield Fund (HYF) is a discretionary fund focusing on event oriented arbitrage and structured investment opportunities across multiple asset classes with an objective to generate absolute returns of 15% p.a with a standard deviation of 12% or less. The endeavour is to consistently generate superior compounded annual returns than conventional fixed income instruments with uncompromising emphasis on capital preservation.

Strategy

Unifi HYF’s core investment strategy is to exploit corporate event arbitrage opportunities in the listed capital markets that inherently have limited correlation to economic cycles and market volatility. Typically, arbitrage opportunities emerge in such cases due to the perceived discount in the pre-event market price in relation to the open offer / post-event price, occurring largely due to asymmetric information distribution, difference in investment objectives and expectation amongst investors. In the debt segment, the focus is on high yield fixed income opportunities with accrual mind set and tax efficiency.

Event Arbitrage Opportunities emerge from corporate events like mergers, acquisition, buybacks, regulation triggered / voluntary open offers made to the public by controlling shareholders, company delistings, declaration of special dividends etc. The risk- return pay-off in most of such deals is deal-specific and has limited correlation to market cycles.

Nominal and High Yield Debt  The focus is on opportunities in the AA to Investment Grade segment to optimize after tax yields while balancing risks.  Typically, all debt investments are made with Hold to Maturity (HTM) mind set but some of it could be traded opportunistically to maximize capital appreciation or minimize risk.

Structure

Unifi AIF is a SEBI registered Category III Alternative Investment Fund incorporated in the form of a trust. It is a privately pooled investment vehicle with a defined investment policy and is supervised by independent trustees. IL&FS Securities Services Limited is the independent custodian and fund accountant. The fund is open ended with a monthly window for subscription and redemption.

 

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