Unifi High Yield
Unifi PMS | Debt | | AIFIME's View on Unifi High Yield
Strategy
Good Proposition by Unifi High Yield
Investment Fund
Recommend Unifi High Yield for investors that are looking for a higher yield on debt, without taking on too much higher credit or duration risk.
Fund's Strategy View
Unifi High Yield AIF aims to generate net post tax returns of 3% over core inflation (assuming 4-5% LT inflation, 7-8% net yield) by investing in a diversified portfolio comprising performing credit bonds (high-yield bonds in the A-BBB categroies) combined with some exposures to lower-risk bonds, special situation & aribitrage opportunities and a small allocation to directional trades.
Fund Performance
A lack of 5 yr trailing performance data from our identified reliable data sources, prevents us from having a clear performance rating on the fund.
IME's View on Unifi PMS
View on AMC
Unifi's unique thematic investment approach and experienced in-house team have positioned them as a leading player in the PMS market, allowing them to successfully deliver consistent results across various strategies and achieve significant growth.
AMC's Pedigree
Since its founding in 2001 by Sarath Reddy, Unifi has grown into a leading PMS player in India - impressively, without the backing of a big broker, AMC, or a star fund manager. It’s a testament to Reddy’s sharp entrepreneurial drive. Now, with the launch of its own mutual fund and GIFT City platforms, Unifi is taking further strides in institutionalising its business.
AMC Team
Unifi's investment team is made up of individuals with limited prior investment expertise, but they have developed strong in-house research capabilities and a consistent process. This stability has allowed them to create their own unique investment style, with Sarath Reddy playing the key role as CIO driving investment decisions.
Investment Philosophy
Unifi has traditionally focused on a thematic investment style, with the launching of specific thematic funds at different points in time (this includes funds like Event Arbitrage, Delisting, Insider Shadow, Sector Trends, Deep Value, Holdco, SpinOff, APJ 20 and BCAD). As the firm scaled, they have shifted their focus away for pure closed-ended thematic funds, towards an open-ended Rangoli strategy that encompasses stocks across the 7 major themes Unifi has invested in the past (making it now more comparable to a flexi-cap strategy, as compared to pure thematic investing).
Investment Strategy
Unifi High Yield Fund is a Category III AIF that combines fixed-income investments with event arbitrage strategies to generate stable, high-yield returns with capital preservation. The fund leverages opportunities across corporate credit, structured high-yield debt, and arbitrage trades.
Core Investment Approach
Fixed-Income Portfolio with High-Yield Debt:
- Focus on AA-rated to investment-grade debt for stable returns.
- Hold-to-maturity (HTM) approach with selective trading for capital appreciation.
- Seeks superior risk-adjusted yields over conventional debt instruments.
Event Arbitrage for Additional Returns:
- Invests in opportunities arising from mergers, acquisitions, buybacks, open offers, delistings, and special dividends.
- These low-correlation trades provide market-neutral returns, reducing portfolio volatility.
Structured Portfolio for Risk Mitigation:
- Majority allocation to fixed-income investments ensuring stability.
- Select exposure to structured high-yield credit and directional equity trades.
- Active monitoring of corporate actions and market trends for dynamic allocation.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Unifi High Yield |
Performance as of: 30-Sep-25 | Inception Date: 01-Apr-14 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Sarath K Reddy | 5-star rated FM
CIO | 36 yrs Experience | 24 yrs at current firm
Past Experience: Navia Markets (MD), Stan C (Manager)
Having started his career with Standard Chartered Bank, Sarath founded Unifi Capital in 2001 and has since built the company into one of the leading PMS providers in India. As CIO, he works closely with his investment team to deliver outperformance on Unifi PMS strategies.
Baidik Sarkar | 4-star rated FM
Fund Manager | 19 yrs Experience | 18 yrs at current firm
Past Experience: Unifi (Corporate Finance), PWC (Strategy Consultant)
Baidik has been with Unifi for over a decade, with core responsibilities of research in the IT, real-estate and the agricultural sectors and assisting the CIO in managing the spin-off and APJ funds.
Saravanan V N | 4-star rated FM
Fund Manager | 26 yrs Experience | 19 yrs at current firm
Past Experience: Unifi (Corporate Finance), ICICI Bank (Credit Manager), PWC (Article Assistant)
Saravanan has been with Unifi for over a decade, with primary responsibilities of tracking pharmaceuticals, NBFC, and domestic debt markets. He has a specific specilisation in debt securities and identifying arbitrage opportunities.
