The NFO opens for subscription on November 20 and closes on December 2.
Sundaram Mutual Fund announced the launch of its five year close ended equity scheme called Sundaram World Brand Fund.
The fund houses plans to launch five series of this fund and the first series opens for subscription on November 20 and closes on December 2.
Harsha Viji, Managing Director, Sundaram Mutual said, “We believe there are opportunities to invest in strong brands across markets and in all market conditions and Sundaram Mutual is known for unearthing these opportunities.”
“Sundaram World Brand fund will consistently target investment opportunities offered by strong brands across the world and unfold a wide array of investment prospects in the stronger returns generating global brands to the investors” said Sunil Subramaniam, Deputy CEO, Sundaram Mutual.
Benchmarked against MSCI ACWI Index, the fund will invest a minimum of 65% in overseas equities and up to 35% in domestic fixed income securities. For investing in international securities, Sundaram AMC has entered into an agreement with Sundaram AMC Singapore to act as its investment advisor. Geographically, over 70% of the assets will be invested in stocks listed on US followed by 12% in German and 8% in Japan.
The fund would invest 43% in IT, 36% in consumer discretionary, 12% in consumer staples and the remaining 9% in other sectors.
Unlike other overseas funds this is not a fund of fund as the scheme will directly invest in overseas stocks. Thus, the fund would be treated as an equity fund.
The only drawback of this fund is its five-year lock in period. Sunil said that to ensure liquidity, the fund would declare a dividend when the NAV hovers between Rs. 12 to Rs. 16.
The fund will be managed by S Bharath.
The fund house is planning to launch the second series in December.
Sundaram Mutual Fund manages assets under management of Rs. 18,944 crore as on September 2014.
