This fund has an impressive track record of beating benchmark and category over many interest cycles over a ten-year time frame. This explains its life-average  and its remarkable record of always retaining a four-five-star rating since 2006, except for a brief patch in 2013. Not overly focused on G-secs, the fund does use a mix of G-secs and corporate bonds in its portfolio to deliver returns.

The fund's returns have averaged 8.8 per cent since launch. Consistency of returns shows in the fund trailing its benchmark in only one of the last ten years (2013) and beating its category in all ten years. It has managed good returns even in difficult periods for bond markets such as 2005 and 2009. The NAV took a knock of 3.7 per cent in the bond shock of May-August 2013 but has since more than made up for it with high one-year returns.

While portfolio maturity is actively managed, the fund's portfolio uses a good mix of AAA- and AA-rated corporate paper, sovereign bonds, commercial paper and certificates of deposits to improve yield. This resulted in a portfolio yield to maturity of 8.6 per cent by April end, which is relatively healthy, given its tilt towards good-quality paper. The fund has reduced portfolio maturity between January and April this year, moving to a less aggressive position. An expense ratio of 1.13 per cent is reasonable relative to the category.

With assets of R14,100 crore as of April, this is the largest fund in the income category. While size isn't an impediment in the G-sec market, it can lead to some impact cost if the fund wishes to dabble in corporate bonds.