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5th July, 2011
An Open-ended, Index-linked, Exchange Traded Fund
NFO opens on July 04, 2011 and closes on July 18, 2011
Mumbai: Birla Sun Life Asset Management Company Ltd (BSLAMC), one of the top five Asset Management Companies as per average Asset Under Management, has launched a New Fund Offer (NFO), Birla Sun Life Nifty ETF. This is an Open-ended, Index- linked, Exchange Traded Fund. The Investment objective of this fund is to provide returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty (Nifty), subject to tracking errors.
Commenting on the launch, Mr. A Balasubramanian, CEO, BSLAMC, said, "Birla Sun Life Nifty ETF reinforces our existing range of financial solutions that are aligned with investor needs. Given that the Nifty is well diversified and gives exposure to a wide range of sectors, this Fund can provide long term stability to investors."
Key characteristics of the Fund are:
Simplicity: Investor can buy and sell ETF units on the exchange like equity shares
Cost Effective: Investor can buy as little as 1 unit, which will be approximately equal to 1/100th of Nifty Index; the expense ratio is also lower due to the passive management strategy
Speed: Transactions can be executed on the exchange at real time prices during market hours
Diversity: Investors can gain exposure to top 50 companies, which are a part of Nifty, by purchasing one single security of scheme on the exchange
Nifty tracks the behaviour of a portfolio of blue chip companies, the largest and most liquid Indian securities. The index has been trading since April 1996 and is well suited for benchmarking, index funds and index based derivatives. Nifty offers investment managers exposure to the Indian market in one efficient portfolio. It is a well diversified 50 stock index accounting for 24 sectors of the economy as on 31st March 2011.
A sector neutral exposure, in line with the market and no dynamic allocation to stocks or sectors is also a way to participate in the equity market. The Minimum Application Amount in the fund is Rs.5,000 and in multiples of Rs.1000, thereafter. Mr. Satyabrata Mohanty will be the Fund Manager of this scheme.
About Birla Sun Life Asset Management Company
Established in 1994, Birla Sun Life Asset Management Company Limited (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 domestic average assets under management of US$15 billion for the quarter, April - June 2011. An impressive mix of reach through 103 branches, wide range of product offerings across equity, debt, balanced as well as structured asset classes and strong investment performance has helped the Company garner over 2.4 Million investor scheme accounts. Known for its consistent investment performance across asset classes, BSLAMC has received recognition from various institutes of international repute like Lipper, Outlook Money and The Asset Magazine - Hong Kong.
About Aditya Birla Financial Services Group (ABFSG)
The Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals, viz., life insurance, asset management, NBFC, private equity, broking, general insurance advisory services and wealth management and distribution. The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd, Birla Sun Life Asset Management Company Ltd, Aditya Birla Finance Ltd, Aditya Birla Capital Advisors Pvt Ltd, Aditya Birla Money Ltd, Aditya Birla Money Mart Ltd and Aditya Birla Insurance Brokers Ltd.
ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its 7 lines of businesses, with about 5.5 million customers manages assets worth US$20 billion approximately and prides itself for having a talent pool of about 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1700 points of presence and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything other than a savings or current account. With revenue of US$1.4 billion ABFSG is a significant non bank player.
ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a US$4 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a US$35 billion Indian business house operating in 33 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 to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2011, the Sun Life Financial group of companies had total assets under management of Canadian $469 billion. For more information please visit www.sunlife.com
Sun Life Financial Inc trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
For more details contact:
M: +91 9702700333
Statutory Details: Constitution: Birla Sun Life Mutual Fund has been set up as a Trust under the Indian Trusts Act, 1882. Sponsors: Aditya Birla Financial Services Private Limited and Sun Life (India) AMC Investments Inc. [liability restricted to seed corpus of Rs.1 Lakh]. Trustee: Birla Sun Life Trustee Company Pvt. Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd. (AMC). Scheme Classification and Objective: Birla Sun Life Nifty ETF: (An Open ended, Index linked, Exchange Traded Fund) with an investment objective to provide returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. Asset Allocation: Securities comprising of underlying benchmark Index*: 95-100 per cent, Debt & Money Market Instruments: 0-5 per cent. *The Scheme's benchmark is S&P CNX Nifty. Issue Price: Offer of Units at face value of Rs.10 each at a premium equivalent to the difference between the allotment price and face value of Rs.10. Allotment price for the NFO shall be approximately equal to 1/100th of the value of S&P CNX Nifty on the date of allotment. Minimum Application amount: During NFO: Rs.5,000 and in multiples of Rs.1,000 thereafter. During Ongoing Offer period: Units of scheme may be subscribed to / redeemed in Creation Unit size of 50,000 units and in multiples thereof, by Authorised Participants and Large Investors on any business day directly with the Mutual Fund at Applicable NAV and transaction charges, if any, by depositing stocks comprising the benchmark index and/or cash, value of which is equivalent to Creation Unit size. Terms of Issue/Liquidity: Units of the scheme shall be available and compulsorily be issued/repurchased and traded in dematerialized form. The Units of the scheme will be listed on NSE and all categories of Investors may purchase the units of the scheme through the Stock exchange(s) on which the units of the scheme are listed on any trading day in round lot of 1 (one) Unit at the prevailing listed price. The Units will be computed and accounted for up to whole numbers (complete integers) only and no fractional units will be allotted. Load Structure: Entry Load: Nil; Exit Load: Nil. The units of the scheme are compulsorily traded in dematerialized form, and hence, there shall be no entry/exit load for the units purchased or sold through stock exchanges. However, the investor shall have to bear costs in form of bid/ask spread or brokerage or such other cost as charged by his broker for transacting in units of the scheme through secondary market. Further, if the average discount, of the bid price to the applicable NAV over a continuous period of 30 trading days is greater than 3 per cent, then an investor can sell its units of the Scheme directly to the Fund for a period of 3 consecutive trading days with an exit load of 1 per cent of the applicable NAV of the Scheme. The notification of the same would be displayed on our website. Unitholder Information and General Services: No separate account statement will be issued to the Unit holders since the statement of account furnished by depository participant will contain the details of transactions. AMC will calculate and disclose the first NAV of the scheme not later than 5 business days from the date of allotment. Thereafter, the NAV of the Scheme will be calculated 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 objective 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 Nifty ETF is only name of the Scheme and does not, in any manner, indicate either the quality of the Scheme or its future prospects or returns. Unit holders in the Scheme are not being offered any guaranteed/assured returns. Scheme Specific Risk Factors: The performance of the index will have a direct bearing on the performance of the scheme. Hence, any composition change made by the index service provider in terms of weightage or stocks selection will have an impact on the scheme. Further, tracking error may cause the scheme to generate returns, which are not in line with the performance of underlying index. Although the scheme is proposed to be listed on NSE, there can be no assurance that an active secondary market will be developed or maintained. The scheme may invest in debt and money market instruments to meet the liquidity requirements. Accordingly, scheme shall be subject to risks associated with investments in Fixed Income securities such as Price-Risk or Interest-Rate Risk, Credit Risk, Liquidity or Marketability Risk, Reinvestment Risk etc. Please read the Scheme Information Document for detailed Scheme Specific Risk Factors. Investors should read the Scheme Information Document / Statement of Additional Information / Key Information Memorandum available at Investor Service Centers and with Distributors carefully before investing. Please refer www.birlasunlife.com for further details.