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Baroda Pioneer Dynamic Bond Fund

Baroda Pioneer Mutual Fund has come up with Baroda Pioneer Dynamic Bond Fund which will be an open-ended income scheme. It will invest in fixed income instruments across various maturity profiles.

Investment Objective & Strategy
The fund seeks to generate returns with liquidity by managing the portfolio dynamically through interest rate cycles. The scheme may invest fully in the debt securities of less than one year as well as more than one year of residual average maturity. It can also invest in fixed income derivatives upto 50% of its assets.
The Fund Managers will follow an active investment strategy structured in a manner that will offer the benefit of a dynamic investment strategy through its duration management and asset allocation.
The Scheme will dynamically track interest rate movements in the short term by reducing duration in a rising rate environment while increasing duration in a falling interest rate environment. The investment strategy would revolve around structuring the portfolio so as to capture positive price movements and minimise the impact of adverse price movements.

Similar Funds
There are 14 dynamic bond funds managing assets around of Rs 7,900 crores as on March 31, 2012. Here, the data is being presented for the top seven such funds which manage a minimum of Rs 100 crores in assets.

Basic Name  Launch Date  Net Assets (Rs Cr)  Ret1Yr  Current  Avg Maturity Range (Yrs)
        Avg Maturity (Yrs)  
Birla Sun Life Dynamic Bond Ret Sep-04 5347.95 10.43 1.97 1.5 - 4.3
IDFC Dynamic Bond Plan A Jun-02 251.72 11.67 3.64 1.66 - 6.10
IDFC Dynamic Bond Plan B Dec-08 231.18 12.09 - -
Reliance Dynamic Bond Nov-04 318.2 11.38 7.06 0.23 - 11.56
SBI Dynamic Bond Jan-04 497.81 12.01 3.04 0.03 - 8.17
Taurus Dynamic Income Feb-11 151.06 10.03 1.57 0.09 - 2.03
UTI Dynamic Bond Jun-10 875.49 9.93 4.45 1.28 - 4.45
Returns (%) as on June 21, 2012, Avg Maturity Range of last one year.

Fund Manager
Alok Sahoo and Hetal Shah will be the fund managers. Mr Sahoo holds a BE degree from NIT, Rourkel,a and has done his MBA, Finance, from XIM, Bhubaneshwar. With an overall experience of 10 years, he has, in the past, worked with UTI MF and as fixed Income fund manager with HSBC MF.
While Hetal Shah is a B.Com, MBA and JAIIB having 10 years of experience in treasury and fund management. Before joining Baroda Pioneer, she had been working in the treasury department of Bank of India, starting May 1999. Solely, she manages Baroda Pioneer MIP, Gilt Fund and Income Fund. Together, these two fund managers handle Baroda Pioneer Liquid, Treasury Advantage, PSU Bond, Short-term Bond Fund and FMPs.

Fund House
Baroda Pioneer Mutual Fund has been around for more than 16 years. Its assets under management as on March 31, 2012 were Rs 4,190.83 crores and it is the 28th largest fund house in the country.

Basic Details
NFO Opens: June 22, 2012
NFO Closes: June 27, 2012
NFO Price: Rs.10 per unit
Options: Growth & Dividend (with payout & re-investment option)
Minimum Application Amount: Rs 5000/-
Exit Load: 0.50% if redeemed/switched-out within 3 months of allotment
Benchmark: CRISIL Composite Bond Fund Index
Fund Managers: Alok Sahoo & Hetal Shah