The NFO opens on 29 November and closes on 13 December.
US equity funds seem to be the flavor of the season. The latest to join the bandwagon is PineBridge Mutual Fund which announced the launch of PineBridge India - US Equity Fund. The fund will invest in PineBridge US Large Cap Research Enhanced Fund which would be the underlying scheme.
The underlying fund, with controlled tracking error targets, seeks to outperform the S&P 500 Index (before fees) regardless of the market environment. The New fund offer will be open for purchase from 29 November – 13 December 2013 and will reopen for ongoing purchase / redemption no later than 30 December 2013.
Mr. Robin Thorn, Managing Director, Head of Global Equities, PineBridge Investments said “It gives us immense pleasure to announce the launch of the PineBridge India – US Equity Fund. This value proposition is in line with our constant efforts to provide investors with a complete suite of unique products tailored to suit their requirements. Keeping in mind the strong fundamentals of the United States as an economy, this fund would be an ideal supplement to the existing range of exciting investment products from PineBridge Investments.”
The fund aims to provide long term capital appreciation by investing in units of a fund that invests predominantly in equity and equity-related securities of companies having assets, products or operations in the United States. The underlying fund is benchmarked against Standard & Poor’s 500 Total Return Net Index in USD.
Kei A. Sasaki, Managing Director – Equities and Client Portfolio Manager, added “Since the global financial crisis, high equity market volatility and stock correlations have made it challenging for active managers to consistently outperform the benchmark. At the same time, we believe that passive investing also does not add much value since the excess returns could be negative after deducting fees. This has been the genesis of our strategy. We utilize an investment process that first categorizes companies into life cycle stages and then ranks them relative to each other, using factors relevant to that group. With a controlled tracking error target, it can help close the performance gap created by allocating to passive or traditional active equity strategies.”
Commenting on the announcement, Mr. Siddhartha Singh, CEO - PineBridge Investments, India said “This fund seeks to address the basic premise that one needs to invest in the same currency in which one would expect to spend in future. For instance, the fund may be suitable for those who are planning for their child’s higher education in the US or aspire to spend a holiday in the US with their family. Our study shows that US equities complements India equities as they are not perfectly correlated to one another. Hence, the fund is also suitable for investors looking for global diversification. And what better geography to look for than the United States of America, which houses a significantly high number of Fortune 500 companies. PineBridge India – US Equity Fund will be a unique and differentiated product in the way it is managed with controlled tracking error target, which is akin to investing in US blue chip companies.”
The minimum investment amount is Rs. 5000.
