Income from Debt Instruments & Gold; A first-of-its-kind initiative.
Canara Robeco Asset Management Company Ltd (JV between Canara Bank and Robeco, an 80-year old Rabobank entity and an asset management specialist), one of India’s fastest growing asset management companies today announced the launch of Canara Robeco InDiGo Fund - an open-end debt scheme. The objective of this fund is to generate income from a portfolio constituted of debt & money market securities along with investments in Gold ETFs. The New Fund Offer (NFO) is open for subscription from 19th May, 2010 and will close on 10th June, 2010.
The scheme will invest a minimum of 65% and a maximum of 90% in Indian debt and money market instruments, a minimum of 10% and a maximum of 35% in Gold ETFs. The performance of the scheme will be benchmarked to CRISIL Short Term Bond Fund Index + Price of Gold (neutral allocation: 65:35). Mr. Ritesh Jain, Head – Fixed Income is the fund manager for this scheme.
Key Highlights
- Unique combination of Fixed Income and Gold providing accrual income and capital appreciation in one fund
- Fund aims to provide enhanced yield without additional Duration risk / additional Credit risk
- Capturing the seasonal patterns in Gold by active asset management
- Ideal for investors without de-mat a/c to invest in a Gold based fund
- A gold based fund which aims to provide regular flow of income to its investors via a quarterly dividend option, subject to availability of distributable surplus
Speaking on the NFO, Mr. Rajnish Narula, Chief Executive Officer, Canara Robeco Asset Management said, “Canara Robeco InDiGo Fund focuses on Gold – an Asset ‘Class’ apart. It keeps the purchasing power intact, protects against weakening of US Dollar, less volatile than equities and valued as a savings/investment tool. Thus, Gold is one of the only few assets to have inherent value. Combination of Fixed Income and Gold aims to provide enhanced yield without additional duration / credit risk, he added”.
Elaborating on the fund, Mr. Ritesh Jain, Head – Fixed Income, Canara Robeco Asset Management said, “Given the current market volatility and rising interest rate environment, investments in to higher accrual instruments is the way forward. The portfolio aims to provide higher liquidity and low duration. Gold allocation in the portfolio would aim to generate capital appreciation and provide alpha to the portfolio, he added”.
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Name of the Fund: Canara Robeco InDiGo (INcome from Debt Instruments & GOld) Fund. Type: Open Ended Debt Scheme. Investment Objective – To generate income from a portfolio constituted of debt & money market securities along with investments in Gold and Gold related Instruments. Asset Allocation: Indian Debt and Money Market Instruments : 65-90% and Gold ETFs : 10-35%. Terms of issue: Sale at face value of Rs.10/- during the new fund offer period and thereafter redemption of units at NAV based price on all business days subject to exit load. Load Structure: Entry Load – Nil, Exit Load – 1% if redeemed /switched-out within 1 year from the date of allotment. Options available under the fund: Growth, Quarterly Dividend Payout and Quarterly Dividend Reinvestment. Minimum application amount – Initial Purchase – Rs. 5,000 and multiples of Re.1 thereafter and Subsequent Purchase – Rs. 1000 and multiples of Re. 1 thereafter. NAV: AMC will calculate and publish the first NAV of the Scheme not later than 30 days from the closure of the new fund offer. Subsequently the NAVs will be calculated and disclosed at the close of every business day. Scheme specific Risk Factors :Price-Risk or Interest-Rate Risk, Credit Risk, Reinvestment Risk, Liquidity Risk, Risk associated with investing in Securitised Debt , Risk associated with Mortgage Backed Securities (MBS) - Housing Loans, Risk associated with Asset Backed Securities (ABS)-Auto loans, Risk associated with Asset Backed Securities (ABS) - Corporate loans, Risk associated with investing in Derivatives, Risk factors relating to investments in Gold ETFs . For Further details on scheme specific risk factors ,please refer to scheme information document. Canara Robeco InDiGo (INcome from Debt Instruments & GOld) Fund, is the name of the scheme and do not in any manner indicate the quality of the scheme, their future prospects or returns.
Statutory Details: Canara Robeco Mutual Fund (CRMF) has been set up as a Trust under Indian Trust Act, 1882. CRAMC is the asset management company registered under The Companies Act, 1956. Sponsors: Canara Bank, Head Office, 112 J C Road, Bangalore; Robeco Groep N.V., Coolsingel 120, 3011 Rotterdam, The Netherlands.Risk Factors: Mutual Funds and securities investments are subject to market risks and there can be no assurance or guarantee that the objectives of the scheme will be achieved. As with any investment in securities, the NAV of the units issued under the scheme may go up or down depending on the various factors and forces affecting capital markets and money markets. Past performance of the sponsors / Investment Manager / Mutual fund does not indicate the future performance of the scheme and may not necessarily provide a basis of comparison with other investments. The Sponsors of the Fund are not responsible or liable for any loss or shortfall resulting from the operations of the schemes of CRMF, beyond the initial contribution of a sum of Rs. 10 lacs made towards setting up of CRMF. Investors should read the Scheme Information Document for Scheme specific risk factors and other details before investing. CRMF, its sponsors, its trustees, CRAMC, its employees, officers, directors, etc assume no financial liability whatsoever to the user of this document. This document is not and should not be construed as an offer to sell or solicitation to buy the scheme
About Canara Robeco Asset Management Company Ltd
Canara Robeco is a JV between Canara Bank, a 100-year old premier bank in India and Robeco, an 80-year old Rabobank entity and an asset management specialist. It is one of the fastest Growing Asset Managers in India, clocking 94% growth year-on-year in AuM (March 2010 over March 2009). Canara Robeco has an experienced fund management team with over 100 years of experience amongst them in Equities and Fixed Income.