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Thursday, October 15, 2009

SBI MF Announces Change in Features for Magnum NRI Investment Fund – Long Term Bond Plan

With effect from 23 November 2009 

SBI Mutual Fund has decided to make changes in the features of Magnum NRI Investment Fund – Long Term Bond Plan. The changes will be effective from 23 November 2009. The name of the scheme is proposed to change as SBI Dynamic Bond Fund. The following are the proposed changes:

Investment Objective:
 
The investment objective will be to actively manage a portfolio of good quality debt as well as Money Market instruments so as to provide reasonable returns and liquidity to the unitholders
.
Asset Allocation Pattern:
 
The scheme would invest 0-100% of net assets in debt instruments including government securities and corporate debt with medium risk profile. Debt instruments may include securitized debt up-to 40% of the net assets. It would also invest 0-100% in money market instruments with low risk profile.

Fees and Expenses:
 
Investment Management and advisory fees would be 1.25%, Trustee fee – 0.01%, Custodian fee – 0.04%, registrar fee – 0.15%, brokerage fee – 0.25%, business development and investor communication - 0.25%, other expenses – 0.30. Total expenses are 2.25%. The fees are charged as per cent of NAV.

Type of Scheme:
 
The scheme has been proposed to be changed as an open ended income scheme from open ended scheme.

Investment Strategy:
 
The proposed investment strategy of the scheme would be to allocate fund corpus across debt and money market instruments of various maturities on the basis of the expected interest rate scenario. Since the interest rates can be volatile at times, the fund will always endeavor to invest in highly liquid debt and money market instruments. The fund will follow an active duration management strategy as a result of which the portfolio turnover could be high.

Change of Name of the Scheme:
 
In view of the above proposed changes, the name of the scheme is proposed to change as SBI Dynamic Bond Fund.

Minimum Application Amount:
 
The amount would be Rs. 5000 and in multiples of Rs. 1 thereafter.

Changes in Exit Load Structure:
 
The exit load charge will be nil.

Unitholders who are not in agreement with the aforesaid changes, can exit without payment of exit load from 20 October 2009 to 20 November 2009.
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