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Tuesday, March 31, 2009

Sundaram BNP Paribas MF files offer document with Sebi

Plans to launch Sundaram BNP Paribas Gold Plus

Sundaram BNP Paribas Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Sundaram BNP Paribas Gold Plus. It is an open-end scheme of three fund types with varying asset allocation patterns-Scheme A, B and C. The face value of the new issue will be Rs 10 per unit.

Features of scheme:

Investment Objective:

Scheme A: It is an equity fund. The scheme seeks capital appreciation by investing in equity and equity-related instruments listed in India to the extent of at least 65% and in gold-related assets up to 35%. Investment in overseas markets, if any, shall not exceed the permissible limit net of existing usage of the mutual fund's entitlement. Exposure to overseas securities shall also not exceed 35% of assets.

Scheme B: It is a debt fund with an objective of seeking capital appreciation by investing in equity and equity-related instruments listed in India to the extent of at least 50% and in gold-related assets up to 50%. Investment in overseas markets, if any, shall not exceed the permissible limit net of existing usage of the mutual fund's entitlement. Exposure to overseas securities shall not exceed 50% of assets.

Scheme C: This is a fund-of-funds scheme. The investment objective is to seek capital appreciation by investing in gold-related assets. Investment in overseas markets, if any, shall not exceed the permissible limit net of existing usage of the mutual fund's entitlement. Exposure to overseas securities may be up to 100% of assets.

Gold-related assets may include gold ETFs, gold mining stocks' ETFs, mutual fund investing in gold-related assets and gold mining stocks, to name a few. Investments in gold-related assets may be made through ETF listed in India and overseas.

Investment Plans: The scheme offers are two plans viz. regular and institutional in each scheme with growth and dividend option. Dividend option will have dividend payout and dividend reinvestment facility.

Minimum application amount: The minimum application amount under regular plan is Rs 5000 and for the institutional plan, the minimum application amount is Rs 5 crore and in multiples of Re 1 thereafter.

Minimum Target amount: The scheme seeks to collect a minimum corpus of Rs 1 crore under each scheme.

Asset allocation:

Scheme A: The scheme will invest 65-100% in equity & equity-related instruments listed in India with high risk profile. It will have investment up to 35% in gold-related assets with high risk profile. Exposure to fixed income & money market Instruments shall be up to 15% with low to medium risk profile.

Scheme B: The scheme will invest 50-100% in equity & equity-related instruments listed in India with high risk profile. It will have investment up to 50% in gold-related assets with high risk profile. Exposure to fixed income & money market Instruments shall be up to 15% with low to medium risk profile.

Scheme C: The scheme will invest 90-100% in gold-related assets with high risk profile. Exposure to fixed income & money market Instruments shall be up to 10% with low to medium risk profile.

Exposure to securitised debt shall not exceed 50% of the limit indicated for fixed income and money market instruments.

Load structure:

Entry load: Regular Plan under all three schemes will levy an entry load of 2.25% for investment amount of less than Rs 2 crore while no entry load foe investment amount of amount greater than or equal to Rs 2 crore.

Institutional plan shall not charge entry load.

Exit load: Regular Plan will charge an exit load of 1% for redemption done before 6 months for any investment amount. For investment amount less than Rs 2 crore, the exit load will be 1% if redemption is done after 6 months and before 12 months. While for investment amount greater than Rs 2 crore, no exit load will be charged if redemption after 6 months and before 12 months. The regular plan will not charge exit load for redemption after 12 months.

Institutional plan may not charge an exit load.

Benchmark Index: The portfolio of gold-related assets shall be benchmarked to the price of gold.

Scheme A: S & P CNX Nifty + gold (neutral allocation: 65:35)

Scheme B: S & P CNX Nifty + gold (neutral allocation: 50:50)

Scheme C: Gold

Fund Managers: Srividhya Rajesh and S. Bharath will manage the investments under the scheme.

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