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Tuesday, June 30, 2009

DSP BlackRock Enhanced Equity Fund seeks Sebi's approval

Seeking enhanced performance using 130/30 (long/short) portfolio structure

DSP BlackRock Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch DSP BlackRock Enhanced Equity Fund, an open-ended equity diversified scheme. The face value of the new issue will be Rs 10 per unit.

Features of the scheme:

Investment objective: The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in equity and equity related securities of companies listed in stock exchanges in India. The Investment Manager will endeavor to have a long exposure in equity and equity related securities (including equity derivatives) up to a maximum of 130% of the net asset value and short exposure through equity and equity related securities (including equity derivatives) up to a maximum of 30% such that the net equity exposure does not exceed 100% of the net asset value of the Scheme.

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

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

The scheme seeks to collect a minimum subscription amount of Rs 1 crore during NFO period.

Asset allocation: The scheme will invest 65-130% in long exposure in equity and equity related securities of companies listed in Indian Stock Exchanges (including equity derivatives) with high risk profile. It will have investment exposure of 0-30% in short exposure in equity and equity related securities of companies listed in Indian Stock Exchanges (including equity derivatives) with high risk profile. The scheme will invest up to 35% in debt and money market securities with low to medium risk profile.

The net equity exposure i.e. long exposure less short exposure to equity and equity related securities cannot exceed 100% of the net asset value of the Scheme.

Load structure:

Regular Plan: Entry load: For investments less than Rs. 5 crore the scheme will levy an entry load of 2.25% of the initial value of Rs. 10 during NFO/applicable NAV during continuous offer. For investments of Rs. 5 crore and above, no entry load will be charged.

No entry load on direct applications, i.e. applications not routed through a distributor/agent/broker.

Exit load: For investment amount less than Rs 5 crore, 1% will be the exit load for holding period less than 6 months from the date of allotment. 0.50% exit load for holding period more than 6 months but less than 12 months from the date of allotment. While no exit load will be levied for holding period more than 12 months.

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

Benchmark index: Benchmark for comparing the performance of the Scheme is BSE 100.

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

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