Sundaram BNP Paribas Select Thematic Funds PSU Opportunities, an open ended equity scheme, is the first fund by Sundaram BNP Paribas Mutual Fund that will invest in the companies falling under the public sector, which straddle segments as diverse as banking, insurance, oil, power, mining, defense, engineering and transportation infrastructure & services. The scheme seeks to provide a dedicated way to tapping wealth creation in this space.
The fund house is looking to profit from the central position that PSUs have again acquired in India to drive future economic growth.
For the industry as a whole, this is the second such thematic fund after Religare’s PSU Equity Fund. These two funds will actively invest in PSUs, though there are other passively managed funds investing in this segment, but not on an exclusive basis.
The fund would invest at least 65 per cent in equity and equity-related securities of PSU, but looks to hedge some bets by stating that it may invest up to 35 per cent of its assets in stocks other than the targeted theme or even in fixed income/money market instruments. The fund can also invest up to 35 per cent in overseas securities related to the theme. It can also invest in bonds and other fixed income instruments issued by public sector entities.
The fund has been benchmarked to the CNX PSE Index.
Sundaram BNP Paribas AMC was founded in 1996. At present, the total assets under management (AUM) as on October, 2009 is Rs 13,505.82 crore. Out of the total of 39 funds, 12 are open-end equity funds and the total assets in equities, as on October, 2009, stands at Rs 6,874.92 crore.
47-year-old J. Venkatesan, fund manager-equity, would manage the fund. He holds an M.Com degree and Grad CWA and CAIIB. He has more than 24 years’ experience (13 years at Canara Mutual Fund and 7 years at Canara Bank).
29-year-old S. Bharath has been designated Fund Manager - Overseas Securities. He holds a B.Com, MBA degrees and is an ICWA. He has a total of 7.5 years' experience of which 2.2 years was with Navia Markets Ltd.
Type: Open Ended Equity Scheme
NFO Opens: November 25, 2009
NFO Closes: December 23, 2009
Plan / Options: Dividend and Growth
Minimum Application Amount: Rs 5,000
SIP Investment: Rs 750 (Quarterly) and Rs 250 (Monthly)
Minimum Additional Application/Redemption: Rs 500
Benchmark: CNX PSE Index
Exit Load Structure: One per cent if redeemed within 12 months. Nil if redeemed on or after 12 months
Annual Recurring Expense (maximum): 2.25 per cent (including investment management fee of 1.25 per cent)