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Monday, April 13, 2009

Canara Robeco F.O.R.C.E Fund looks Sebi's approval

Investment exposure will be in finance, retail, & entertainment sector

Canara Robeco Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch Canara Robeco F.O.R.C.E Fund (Financial Opportunities, Retail Consumption & Entertainment Fund), an open-ended equity Fund. The face value of the new issue will be Rs 10 per unit.

The investment objective of the Fund is to seek to provide long-term capital appreciation by primarily investing in equity and equity related securities of companies in the finance, retail, & entertainment sector.

Features of the scheme

Investment option: The scheme offers two plans viz. retail and institutional plan with growth and dividend option. The dividend option further offers dividend payout and dividend reinvestment facility.

Minimum application amount: The minimum investment amount under retail plan will be Rs 5000 and in multiples of Re 1 thereafter and under institutional plan will be Rs 5 crore and in multiples of Re 1 thereafter.

The scheme seeks to collect a minimum corpus of Rs 10 crore during NFO period.

Asset allocation: The scheme will invest 65-100% in Equity and equity related instruments of companies in the Finance, Retail & Entertainment with high risk profile. It will invest up to 35% in Other Equity and equity related instruments with high risk profile. The fund will invest up to 35% in Domestic Debt and Money Market instruments (Including securitised debt up to 10% of net assets) with low risk.

The scheme shall invest minimum 40% and maximum 65% in Finance Sector, minimum 15% and maximum 35% in Entertainment sector and minimum 10% and maximum 25% in Retail sector. Exposure by the Scheme in derivative instruments for the purpose of hedging and portfolio rebalancing shall not exceed 30% of the total Net Assets of Scheme.

Investment by the Scheme in ADRs/GDRs shall not exceed 10% of the net assets of the Scheme as on the date of such investments. The Scheme may invest in Foreign Securities up to 10% of the net assets of the Scheme (subject to an overall limit of 10% of the net assets of the Fund) as on 31st March of each relevant year of the investment subject to a maximum of US$ 7 billion (subject to a maximum of US$ 300 million per Mutual Fund).

The stock lending done by the Scheme (if any) shall not exceed 25% of the net assets of the Scheme as on the date of such lending. The scheme shall not make any investments in foreign securitized debt.

Load structure:

Retail Plan:

Entry load: The scheme will levy an entry load of 2.25% for investments less than Rs. 5 crore. For investments of Rs. 5 crore and above, no entry load will be charged.

Exit load: 1% will be the exit load for investments less than Rs 5 crore redeemed/ switched out within 12 months from the date of allotment. While no exit load will be levied for amount equal to and greater than Rs.5 crore redeemed/switched out.

Institutional Plan: There will be no entry load and exit load.

Benchmark index: The performance of the scheme is being benchmarked to the performance of BSE 100.

Fund Manager: Anand N. Shah will be fund manager for the scheme.

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