Grey Sky Capital Smart Treasury Strategy PMS

The investment objective of Grey Sky Capital Smart Treasury Strategy is to generate income and moderate capital appreciation over the medium term by investing in a diversified portfolio primarily comprising high-quality fixed income instruments and select listed liquid instruments, with an emphasis on preservation of capital, liquidity management, and controlling credit and interest rate risk through defined risk limits. The objective is to deliver returns that are competitive relative to an appropriate fixed income benchmark, over the recommended investment horizon, while maintaining prudent risk management.

The GSC Smart Treasury Strategy is a specialized Investment Approach designed to optimize risk-adjusted returns mainly for corporate and institutional treasuries. Individuals, HUFs, or any entity eligible to invest in PMS can also invest in this strategy. This strategy is specifically engineered to address the suboptimal outcomes often experienced by early to mid-stage corporate treasuries that traditionally rely on simplified products such as Fixed Deposits, liquid funds, or arbitrage funds due to limited internal treasury capabilities. It is best suited for:

• Smaller treasuries, where surplus cash keeps accumulating over time, or
• Larger treasuries, where a portion can be allocated to a higher return, a diversified strategy.

While underlying instruments have good liquidity, the recommended investment horizon is 18+ months to ride out intermittent mark-to-market volatility. The strategy will deploy corpus across equity (top 250 stocks by market cap), debt instruments (primarily through bonds, ETFs, and mutual funds), SIF, global equities (primarily through ETFs and Mutual funds), REIT & INVIT products, Pass Through Certificates (rated AA- or better), arbitrage funds, and metals (gold and silver ETFs/ Funds).