Buoyed by the success of the Institutional Plan in Baroda Pioneer Liquid Fund, Baroda Pioneer Asset Management Company (AMC) has announced the launch of Baroda Pioneer Treasury Advantage Fund (BPTAF).
BPTAF, which is an open-end debt scheme, is designed in such a way that investors are provided with investment avenues for their short-term surpluses with the added proviso of generating reasonable returns. In addition, while providing returns the objective is to maintain ample liquidity in the portfolio.
As a result, asset allocation has been suitably tweaked: investments in money market instrument/debt instrument with average maturity of not greater than one year can be to the extent of 65-100 per cent, while in debt instruments with average maturity of more than one year, it can be 0-35 per cent.
The scheme may also invest in securitized debt up to 25 per cent of its net assets while no investment would be made in foreign securitized debt. The scheme will invest in debt derivatives up to 50 per cent of net assets of the scheme. Investments in derivative instruments may be done for hedging and portfolio balancing purposes.
The designated fund managers for the scheme are Alok Sahoo and Hetal P. Shah. Alok Sahoo, Head - Fixed Income, is a BE and an MBA. He has nine years experience in the investment sector and has worked for UTI as well as HSBC mutual funds, apart from being fund manager of Employee Provident Fund at HSBC.
Hetal P.Shah, the fund manager for the other existing 2 open-end debt schemes, is a BE, MBA and JAIIB. She also has a nine-year experience of working in Treasury and fund management. Earlier, she was working in the treasury department of Bank of India and was the fund manager of Baroda Pioneer Gilt Fund, Baroda Pioneer MIP fund, Baroda Pioneer Children Fund, Baroda Pioneer Income Fund and Baroda Pioneer Liquid Fund.
Baroda Pioneer Mutual Fund, erstwhile Bank of Baroda Mutual Fund, started its operations in 1992. It had total assets under management (AUM) of Rs 3,483 crore as of May 2009, of which Rs 3,437 are in two of its existing debt funds - Baroda Pioneer Income and Baroda Pioneer Liquid. The recently-launched Institutional Plan offered under its Liquid Fund category alone accounts for more than 98 per cent of the total assets of the company.
Type: Open-end Debt Scheme
NFO Opens: June 10, 2009
NFO Closes: June 23, 2009
Minimum Application Amount:
Retail Plan: Rs. 5,000/-
Institutional Plan: Rs. 1 crore
Plans: Regular and Institutional Plans with Growth and Dividend (daily, weekly, monthly, quarterly) options. Dividend option will have payout and reinvestment options. Dividends of less than or equal to Rs 500 will be compulsorily re-invested.
Benchmark: CRISIL Liquid Fund Index
Entry Load: NIL
Exit Load: For both Regular and Institutional plans, 0.10 per cent for redemption of units within three business days from the date of allotment.
Annual Recurring Expense (maximum): 2.25 per cent (Regular Plan), 2 per cent (Institutional Plan) including Investment management and advisory fee of a maximum 1.25 per cent.