DSP Merrill Lynch Fund Managers Launches DSP Merrill Lynch Strategic Bond Fund
Mumbai, April 23, 2007: DSP Merrill Lynch Fund Managers has launched DSP Merrill Lynch Strategic Bond Fund, an open ended income scheme. The New Fund Offer (NFO) period commences on April 23, 2007 and closes on May 3, 2007.
DSP Merrill Lynch Strategic Bond Fund is designed to offer investors the benefit of investing across the spectrum of fixed income securities and maturity durations. The scheme focuses on optimising returns while endeavouring to maintain commensurate risk.
Speaking on the occasion of the launch, Mr. S. Naganath, President and Chief Investment Officer, said, “In seeking mitigate the risks due to rising interest rates, fixed income fund investors have largely migrated from actively managed bond funds to money market funds. We believe that interest rates are likely to peak out by the middle of this year and thus feel that it may be a good time for investors to gradually consider investing in actively managed bond funds”.
The fixed income fund management team is headed by Mr. Dhawal Dalal – Sr. Vice President and Head of Fixed Income who is also the fund manager of the scheme. At the recently concluded ICRA Mutual Fund Awards – 2007, DSPML Liquidity Fund – Institutional Plan was ranked ICRA MFR 1 in the Open Ended Liquid - Institutional Plan category for its 1 year performance ending Dec 31, 2006 (20 schemes considered). Also DSPML Government Securities Fund – Plan B was ranked ICRA MFR 1 in the Open Ended Gilt - Short Term category for its 1 year performance ending Dec 31, 2006 (17 schemes considered)
As on March 30, 2006 the total assets under management stood at over Rs. 12,000 crore.
Investment Objective: Open ended income scheme, seeking to generate optimal returns with high liquidity through active management of the portfolio by investing in high quality debt and money market instruments. Asset Allocation: 1. Money market securities and/or Debt securities* with residual or average maturity of less than or equal to 367 days or put options within a period not exceeding 367 days: 0% - 100%; 2. Debt securities* which have residual or average maturity of more than 367 days: 0% - 100% (*Debt Instruments may include securitised debts up to 75% of the net assets). Terms of Issue: Rs. 1000/- per Unit. Min. Investment – Rs.5000/- (Reg Plan) / Rs.5 crore (Inst Plan). Investor Benefits & General services: During continuous offer, declaration of NAV, sale (at Purchase Price) and redemption (at Redemption Price) on all Business Days (Redemption normally within 3 Business Days). Load Structure: Entry Load and Exit Load – Nil. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Schemes’ objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Schemes can go up or down depending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Schemes of the mutual fund. Investors in the Schemes are not being offered a guaranteed or assured rate of return or dividend. DSP Merrill Lynch Strategic Bond Fund is the name of the Scheme and does not in any manner indicate the quality of the Scheme, its future prospects or returns. The Scheme is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. If the aforesaid point (i) is not fulfilled within the prescribed time, the Scheme will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investor’s holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. For risk factors related to trading in derivatives and overseas investments, and other scheme specific risk factors, please refer the Offer Document. Statutory Details: DSP Merrill Lynch Mutual Fund was set up as a Trust by the settlors, DSP Merrill Lynch Ltd. (DSPML) and Merrill Lynch Investment Managers LP, USA. Sponsors: DSPML, HMK Investment Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd. (collectively) (Liability restricted to Rs. 1 lakh). Trustee: DSP Merrill Lynch Trustee Company Pvt. Ltd. Investment Manager: DSP Merrill Lynch Fund Managers Ltd.