- Building a portfolio of companies that are likely to benefit from economic reforms
- Fund focusing on capital appreciation by building a long term portfolio
Birla Sun Life Mutual Fund (BSLMF), one of the leading mutual fund houses in India, has launched an open ended equity scheme—Birla Sun Life India Reforms Fund---that intends to generate capital appreciation by investing in a portfolio of companies that are expected to benefit from the economic reforms, PSU divestment and increased government spending.
Mr. A Balasubramanian, CEO, BSLMF, said, “BSL India Reforms Fund will leverage on great growth opportunities for various businesses across sectors of the Indian economy as we believe that reform agenda is secular in nature and would continue for foreseeable long period of time. This belief rests on the fact that government policy evolution is an ongoing process. In turn, this will create wealth for companies and enhance shareholder value. Infact as per the eleventh five year plan ending 2012 , government has committed over Rs 10 lakh crores in four important sectors alone, which are roads, telecom, healthcare and education”.
Mr Balasubramanian further said, “The India Reforms Fund Scheme will be invested in multiple sectors at any point in time, which may be at different stages of reform. Our strategy is to maintain the fund exposure in sectors according to reforms expected, announced or implemented in those sectors at that time”.
“The scheme will invest across sectors without any market cap or sectoral bias i.e. a mix of Midcap & Large cap opportunities”, Mr Balasubramanian added.
The scheme intends to buy the stock on expectations of the reforms, and hold for the reform story to play out, unless there is a change in view pertaining to the stock/ sector. The scheme would endeavour to remain invested in such sectors to capture the complete up-cycle - from the announcement of reform measures to the time when the reforms are actually implemented and benefit the respective sectors & stocks.
The NFO of units of Rs. 10/- opened for subscriptions on May 10, 2010 and will close on June 9, 2010. Benchmarked against S&P CNX 500 index, the fund offers both growth and dividend options with minimum application amount of Rs 5,000. Residents, Non-Resident Indians (NRIs), Foreign Institutional Investors (FIIs) and Person of Indian Origins (PIOs) are eligible to invest in the scheme on a full repatriation basis.
About Birla Sun Life Asset Management Company
Established in 1994, Birla Sun Life Asset Management Company (BSLAMC) is a joint venture between Aditya Birla Group, a well known Indian conglomerate and Sun Life Financial Inc, leading international financial services organization from Canada.
BSLAMC is the 5th largest asset management company in India with an average asset under management of Rs 69,508 crores as on April 30, 2010. An impressive mix of reach through 106 branches, full range of product offerings across equity, debt, balanced & structured asset classes and strong investment performance has helped the Company garner over 2.4 Million investor scheme accounts. Known for its consistent performance, BSLAMC has received recognition from various institutes of international repute like the CRISIL, Lipper, Asian investor Magazine and The Asset Magazine- Hong Kong.
About Aditya Birla Financial Services Group (ABFSG):
The Aditya Birla Financial Services Group (ABFSG) has a significant presence across various verticals, including life insurance, insurance broking, mutual funds, private equity, security based lending, factoring, insurance advisory services, retail broking and distribution of third party products.
The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company, Birla Sun Life Asset Management Company, Aditya Birla Money (erstwhile Apollo Sindhoori Capital Investments), Aditya Birla Money Mart (erstwhile Birla Sun Life Distribution Company), Aditya Birla Finance (erstwhile Birla Global Finance Company), Birla Insurance Advisory & Broking Services and Aditya Birla Capital Advisors.
The ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its 7 business lines, with over 4.2 million customers manages assets over USD 16 billion and prides itself for having a talent pool of over 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1600 branches and over 2 lac channel partners. This pretty much allows ABFSG to offer its customers virtually anything other than a savings or current account. With over a billion dollar revenue, ABFSG is a significant non bank player and one of the few players who have a top 5 position in both life insurance and mutual funds.
ABFSG is a part of Aditya Birla Nuvo Limited (ABNL), a USD 3 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a USD 29 billion Indian business house operating in 25 countries across the globe.
About Sun Life Financial Inc
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide. As of March 31, 2009, the Sun Life Financial group of companies had total assets under management of $375 billion globally.
AUM Source: AMFIindia.com
For further details please visit www.birlasunlife.com
Statutory Details: Constitution: Birla Sun Life Mutual Fund (BSLMF) has been set up as a Trust under the Indian Trust Act, 1882. Sponsors: Aditya Birla Nuvo Limited and Sun Life (India) AMC Investments Inc. [liability restricted to seed corpus of Rs. 1 Lac] Trustee: Birla Sun Life Trustee Company Pvt. Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd. Scheme Classification & Objective: Birla Sun Life India Reforms Fund: (An Open ended Equity Scheme) with the investment objective is to generate growth and capital appreciation by building a portfolio of companies that are expected to benefit from the economic reforms, PSU divestment and increased government spending. Asset Allocation: Equity and Equity related instruments: 65%-100%, Debt and Money Market Instruments: 0%-35%. Load Structure(Incl SIP): Entry Load: Nil, Exit Load: For units Redeemed / Switched out within 1 year from the date of allotment, an exit load of 1% of applicable NAV is payable. For units Redeemed / Switched out after 1 year from the date of allotment, no exit load is payable. Issue Price: Rs.10/- per unit during the NFO period and at Applicable NAV thereafter on an ongoing basis. Minimum Application Amount: Minimum of Rs. 5,000/- and in multiples of Re. 1/- thereafter during the NFO and on an ongoing basis. Minimum Additional Amount: Minimum of Rs. 1,000/- and in multiples of Re 1/- thereafter on an ongoing basis. Liquidity: The Scheme shall re-open for all transactions ot later than 30 days from closure of NFO at NAV based prices on all business days. 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. Birla Sun Life India Reforms Fund is only the name of the Scheme and does not in any manner, indicate either the quality of the Scheme or its future prospects or returns. Unitholders in the scheme are not being offered any guaranteed/assured returns. Scheme Specific Risk Factors: The Scheme is required to have at a Portfolio level a minimum number of 20 investors and no single investor shall account for more than 25% of its corpus on an ongoing basis for each calendar quarter. In case of non-fulfilment of any one of the aforesaid criteria, the scheme shall be wound up by following the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV. Investments in the scheme shall be subject to various risk factors including but not limited to risks associated with: investment in Equity and Equity related instruments such as market risks, sector specific risks, risks due to changes in political and economic environment., investments in derivatives, investments in foreign securities, investments in Fixed Income Securities, investments in Securitised Debt assets, stock lending and borrowing, short selling etc. Please refer to Scheme Information Document for detailed scheme specific risk factors. Investors should read the Statement of Additional Information / Scheme Information Document / Key Information Memorandum available at Investor Service Centres and with Distributors carefully before investing. Please refer www.birlasunlife.com for further details.
