Mutual Funds News 27th march 2008

Reliance MF launches new Fixed Horizon Fund Series

Reliance Mutual Fund launched Reliance Fixed Horizon Fund -VI-Series 3. It is a close-ended income scheme. Duration of the scheme is 91 days from the date of allotment. The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the series with the objective of limiting interest rate volatility.

         

JM Financial MF launches FMP Series

JM Financial Mutual Fund launched JM Fixed Maturity Fund - Series XI - 13 Month Plan 1. The scheme is a close-ended income fund with maturity of 395 days from the date of allotment. The investment objective of the fund is to generate regular returns through investments in fixed income securities normally maturing in line with the time profile of the respective plan.

 

HDFC MF extends NFO period for FMP-VII-370 Days March (1)

HDFC mutual fund has extended the new fund-offering (NFO) period of HDFC Fixed Maturity Plans-VII-370 Days March (1) from 27 March to 28 March 2008. The issue was opened for subscription on 24 March 2008. HDFC Fixed Maturity Plans-VII-370 Days March (1) is a close-ended income scheme. The NFO price for the fund is Rs 10 per unit. The minimum investment under retail plan is Rs 5,000 and in multiple of Re 1 thereafter. The minimum investment amount under wholesale scheme is Rs 1 crore and in multiple of Re 1 thereafter. The investment objective of the fund is to generate regular income through investments in debt, money market instruments, and government securities.

 

SBI MF launches new debt fund series

SBI Mutual Fund launched SBI Debt Fund Series - 30 Days Fund-2. The objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in portfolio comprising of debt instruments such as government securities, AAA/AA+ bonds and money market instruments. The fund will invest 0%-80% in Government of India dated securities and treasury bills and money market instruments. It may invest 20-100% in AAA/AA+ bonds/ debt instruments. The investment in securitised debt will be up to 20%.

 

DSP ML MF extends NFO period

DSP Merrill Lynch mutual fund has extended the new fund-offering (NFO) period of DSP Merrill Lynch Natural Resources And New Energy Fund from 27 March to 31 March 2008. The issue was opened for subscription on 3 March 2008. DSP Merrill Lynch Natural Resources And New Energy Fund an open-ended equity growth scheme. The NFO price for the fund is Rs 10 per unit. The minimum investment amount under regular plan will be Rs. 5,000 and in multiples of Re. 1 thereafter. The investment under institutional plan will be of Rs.5 crore and in multiples of Re. 1 thereafter.

The primary investment objective of the scheme is to seek to generate capital appreciation and provide long term growth opportunities by investing in equity and equity related securities of companies domiciled in India whose pre-dominant economic activity is in the discovery, development, production, or distribution of natural resources, viz., energy, mining etc; alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage and enabling energy technologies.

 

Lotus India MF launches FMP Series

Lotus India Mutual Fund launchedLotus India Fixed Maturity Plans- 1 Month- Series VIII. This scheme is a close-ended income scheme. The objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme. The scheme offers retail and institutional plans with growth and dividend options.

         

HSBC MF launches HSBC FT Series 48

HSBC Mutual Fund launched HSBC Fixed Term Series 48. It is a close-ended income scheme, which will be for fixed term of 6 months from the date of allotment. The investment objective of the scheme is to seek generation of returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the plan. The scheme may invest up to 100% in money market instruments including CBLO and reverse repo. It may invest up to 100% in short term and medium term debt instruments and securitised debt. The investment in securitised debt will not exceed 50% of the net asset of the scheme.

         

Birla Sun Life MF revises load structure

Birla Sun Life Mutual Fund has announced the revision in the exit load structure for Birla Dynamic Bond Fund, an open-ended income scheme. According to the revised load structure, the fund will charge an exit load of 0.20% if the investment is redeemed within 30 days months from the date of allotment. Before revision of the load structure, the scheme did not ask for any exit load. There is no change in entry load i.e. the Birla Dynamic Bond Fund will not charge an entry load.

 

Standard Chartered MF launches another FMP

Standard Chartered Mutual Fund launched Standard Chartered Fixed Maturity Plans Yearly Series 20. The scheme is close-ended income scheme. The scheme will have two plans -Plan A and Plan B. The duration of the scheme will be from the date of allotment to 6 April 2009. The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally in line with the duration of the scheme. The fund will invest up to 100% in debt and money market instruments, with low to medium risk profile. The investment in securitised debt will be up to 50% of net asset of the scheme.

 

Standard Chartered MF launches FMP

Standard Chartered Mutual Fund launched Standard Chartered Fixed Maturity Plans Quarterly Series 28. The scheme is close-ended income scheme. Date of maturity will be 26 June 2008. The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally in line with the duration of the scheme. The fund will invest up to 100% in debt and money market instruments, with low to medium risk profile. The investment in securitised debt will be up to 50% of net asset of the scheme.

 

UTI MF opens 4 new financial centres

UTI Mutual Fund (UTI MF) announces opening of 4 new UTI Financial Centres (UFCs) at various centres viz. Jabalpur, Gurgaon, Aligarh and Bareilly. The UFC at Jabalpur was inaugurated today and is located on Ground floor, Ayush Complex, Home Science College Road, Napier Town, Jabalpur. On the occasion, Mr D Mohanty, Country Head-Retail, UTI Asset Management Company Limited ("UTI AMC") said, Keeping the investor's convenience in mind, UTI MF is expanding its wide distribution network to cover non-metro and smaller cities. It is our constant endeavour to bring our products and services closer to the door-step of our investors." UFC at Jabalpur will cover the areas of Satna, Rewa, Narsinghpur, Damoh, Mandla, Balaghat, Shahdol and Sidhi. The other 3 new UFCs at Gurgaon, Aligarh and Bareilly will be inaugurated on 28 March 2008, 29 March 2008 and 30 March 2008 respectively.

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Mutual funds - Upcoming Dividends - 27 March 2008

UTI Balanced Fund declares dividend

UTI Balanced Fund declares tax-free dividend of 22.5% . Pursuant to the payment of dividend, the NAV of the dividend option of the scheme would fall to the extent of payout and statutory levy if any. The record date for the dividend is 28 March 2008. All unitholders registered under the dividend option of UTI Balanced Fund as on 28 March 2008 will be eligible for this dividend. Also investors who join the dividend option of the scheme on or before the record date will be eligible for the dividend. UTI Balanced Fund has been a consistent performer with 13 years of uninterrupted track record of dividend distribution.

         

UTI MF declares dividend

UTI Mutual Fund has announced the dividend under dividend option of UTI Balanced Fund. The record date for the declaration of dividend is 28 March 2008. The quantum of dividend will be 22.5% i .e. Rs 2.25 per unit on the record date. The NAV for the scheme was recorded at Rs. 20.7500 on 19 March 2008. UTI Balanced Fund is an open-ended balanced fund seeking to invest in a portfolio of equity and equity related securities and fixed income securities with a view to generating regular income together with capital appreciation.

 

Sahara MF declares dividend

Sahara Mutual Fund has approved the declaration of dividend under the dividend option of Sahara Tax Gain Fund. The record date for dividend is set as 29 March 2008. The quantum of dividend under scheme will be Rs. 7.50 per unit i.e. 75%. The NAV for the scheme was Rs. 20.7515 as on 19 March 2008. Sahara Tax Gain Fund was launched in January 1997. It is an open-ended equity linked savings scheme with an objective to provide immediate tax relief and long-term growth.

 

Reliance MF declares dividend

Reliance Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Reliance Fixed Horizon Fund- II- Annual Plan -Series III under both retail and institutional plan. The record date is set as 31 March 2008. The quantum of dividend will be 5.53% i .e. Rs 0.553 per unit on the record date. The NAV for the scheme under both retail and institutional plan was Rs. 10.9657 as on 24 March 2008. Reliance Fixed Horizon Fund- II- Annual Plan -Series III is a close-ended income fund. The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the series with the objective of limiting interest rate volatility.

 

Standard Chartered MF declares dividends

Standard Chartered Mutual Fund has announced 31 March 2008 as the record date for declaration of dividend under dividend option of Standard Chartered Fixed Maturity Plan -Quarterly Series 25 and Standard Chartered Fixed Maturity Plan -Quarterly Series 26. The AMC plans to distribute entire appreciation in the NAV of dividend option since inception till 31 March 2008 as dividend for the both the schemes. The investment objective of both the schemes is to generate income by investing in a portfolio of debt and money market instruments normally in line with the duration of the schemes.

 

Birla MF declares dividend

Birla Mutual Fund has declared dividend of 60% i.e. Rs 6.00 per unit on the face value of Rs 10 under dividend option in Birla Equity Plan. The fund has announced 28 March 2008 as the record date for dividend distribution. The scheme had NAV of Rs 59.45 per unit as on 19 March 2008. Birla Equity Plan is an open-ended equity linked savings scheme with a lock in of 3 years. The investment objective is to achieve long-term growth of capital along with income tax relief for investment.

 

Canara MF declares 30% income distribution on tax saver scheme

Kochi: Canara Robeco Mutual Fund has announced an income distribution of 30 per cent on its Canara Robeco Equity Tax Saver scheme. The scheme is an open-ended equity linked saving scheme, which has a face value of Rs 10. The investment objective of the scheme is to give long-term capital appreciation by predominantly infusing in equities. Investments in the scheme, up to a limit of Rs 1 lakh, are exempted from income tax under Section 80C of the Income Tax Act and the repurchase of the units under the scheme can be made after a lock-in period of three years from the date of allotment.

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Economy News 27th march 2008 - Govt staff to get effective salary hike of 28%

Govt staff to get effective salary hike of 28%

New Delhi: The Sixth Pay Commission may have recommended an average 40 per cent hike in the salaries of government employees, but the effective increase will be much less at 28 per cent on account of merger of 50 per cent DA in basic pay way back in 2004.

After submitting the report, the Commission Chairman justice B N Srikrishna had said the average increase in salaries would work out to be 40 per cent over the Fifth Pay Commission award.

The government had merged 50 per cent of the Dearness Allowance (DA) with the basic pay with effect from January 1, 2004.This accordingly puts the basic pay at much higher level than that was provided in the Fifth Pay Commission and the effective increase over that level is 28 per cent, a top Commission official said.

The government increase the DA of its employees every six months to compensate them for rising cost of living. Among other things, the Sixth Pay Commission has also suggested that the government should revise the base year of the Consumer Price Index (CPI) for computation of DA "as frequently as feasible". It further recommended that a separate CPI should be prepared by the National Statistical Commission for computation of DA for government employees.

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Industry News 27th march 2008 - Market volatility taking its toll on mutual funds

Market volatility taking its toll on mutual funds

Choppy markets lead to nervous investors and lacklustre demand has hit mutual funds in February after decent action in January but the good news is redemption pressures have not kicked in yet. Market volatility is taking its toll on mutual funds and money coming into new fund offers is dwindling to a trickle. DSP ML's Natural Resources Fund has extended its closing date by 4 days to March 31 and although the fund house refused to give details about the extension, poor response by small investors could be the real reason.

But DSP ML is not alone as DSPML's Natural Resources Fund, Mirae Equity Opportunities Fund and Morgan Stanley ACE Fund are also facing the heat. Indians poured crores into equity funds in January, making it the highest monthly inflow in the past two years but in February, this all turned around. Over the past two years whenever the market has fallen mutual fund investors have stayed put and they've been rewarded for their patience.

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Corporate News 27 March 2008

Gujarat Hotels Board to consider dividend

Gujarat Hotels Ltd has informed that a meeting of the Board of Directors of the Company will be held on April 25, 2008, inter alia, to consider and approve the audited financial results of the Company for the financial year ended March 31, 2008.

Further the Company has informed that the Board of Directors may consider recommendation of dividend for the year ending March 31, 2008 at this meeting while approving the financial results for the year ending March 31, 2008.

 

S.Kumars Nationwide fixes Record Date for Scheme of Arrangement

S.Kumars Nationwide Ltd (SKNL) has informed that the Board of Directors of the Company has passed a Circular Resolution on March 24, 2008, and fixed May 02, 2008 as the Record Date, to determine the shareholders of SKNL who will be entitled to shares in Brandhouse Retails Ltd (BHRL), in the ratio of one share for every five shares held in SKNL. This is pursuant to the scheme of demerger approved earlier by the Hon. High Court of Judicature at Bombay and filed with ROC on March 03, 2008.

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KS Oils acquired 50,000 acres of Palm plantation in Indonesia

KS Oils Ltd has announced the acquisition of 20,000 hectares (50,000 acres) of Palm plantation in Indonesia. With an investment of Rs 230 crores spread over the next 3 years, the Company is ensuring backward integration to secure raw material supplies and avoid global price volatility. This will help the Company in reducing raw material costs significantly and also signals the Company's strategic intent of being a global player.

K S Oils has acquired a single palm plantation over a vast area spread across 50,000 acres of green land in Indonesia. The Company has set up operations and the plantation will be developed over next 3 years. The investments in the plantation will ensure, that agricultural best practices and environment friendly methods are used in the cultivation; while the focus will be on scientific methods of plantation to increase productivity and yield, due care will be taken to enrich the surrounding eco-system.

"Indonesian palm plantations are among the most efficient and productive plantations across the world and hence our decision to invest; with spiraling commodity and raw material prices, owning raw material source is the right strategy to derisk in the long term. We thank our Private Equity partners for providing strategic inputs and deep insights which helped us clinch the deal. This is another important step in our global ambitions."

With current investments in the project pegged at Rs 230 crores over a three year period, the plantation will yield 80,000 Mt annually. This will substantially bring down the raw material costs for K S Oils which is currently importing palm oil to refine and sell along with its main product of mustard oil in Northern and Eastern India. The investment has been routed through the Company's wholly owned subsidiary in Singapore. The plantation yield of 80,000 Mt. represents 2.5% of India's current palm oil imports, which today stands at 3.6 million tonnes annually.

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Govt ties up with ICICI Lombard to give health cover to BPL people

New Delhi: The government has joined hands with ICICI Lombard General Insurance to introduce Niramaya, a health insurance scheme for welfare of Below Poverty Line (BPL) persons. As a part of the pilot project, the health cover will be against diseases like autism, cerebral palsy, mental retardation and multiple disabilities in ten selected districts across the country. General insurance to provide health insurance to a maximum of one lakh BPL persons, especially the disabled, in ten districts of Central Delhi, Chandigarh, Jabalpur, Kaimur (Bihar), Agarthala, Raebareily, Erode (Tamil Nadu), Ernakulam (Kerala), Ahemdabad and Bhageshwar (Uttarakhand).

The insurance premium of Rs 99, excluding service tax, will be funded by National Trust, which is under of Social Justice and Empowerment Ministry. Minister of State for Union Ministry of Social Justice and Empowerment Meira Kumar distributed photo ID cards to the first 20 specially-abled people, amid a well-attended function. ICICI Lombard is a 74:26 joint venture between ICICI Bank Ltd, country's second largest bank and Fairfax Financial Holdings Ltd, a Canada based 26 billion dollars diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management.

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Tata Motors to pay $2.30 bn for JLR

Tata Motors on March 26 acquired Ford's British marquees Jaguar and Land Rover for 2.30 billion dollars in an all cash deal, sealing a deal that it pursued for nine months. Under the deal, Tata will continue to source engine from Ford, which would be paying about 600 million dollars toward the pension liabilities of Jaguar-Land Rover employees. As part of the transaction, Ford will continue to supply Jaguar and Land Rover for differing period with powertrains, stampings and other vehicle components in addition to a variety of technologies such as environmental and platforms. Ford has also committed to providing engineering support, including Research and Development plus information technology, accounting and other services.

In addition, Ford Motor Credit Company will provide financing for JLR dealers and customers during a transitional period, which can vary by market, for up to 12 months. The deal would be funded through a mix of existing cash reserves and new debts. Recently, Tata Motors had announced that its Board has approved raising of Rs 4000 crore (about one billion dollar) from either overseas or domestic markets through issuance of securities. The company had said the funds to be raised would be utilised to part finance overall funding requirement to meet some of its strategic plans. Stating that its expansion plans through organic route over the next 3-4 years might incur expenditure; the company said the acquisition opportunities have to be financed upfront. The acquisition by the Tatas saves up to 40,000 British jobs. While the three Jaguar and Land Rover factories in Britain employ 16,000 people, the number swells to around 40,000 when ancillary units are taken into account, according to Andrew Dodgson of Unite.

The only question mark that surrounds the acquisition is one posed by some industry watchers in the US - over the branding of the two luxury brands, given that Tata Motors have unveiled the Nano, the world's cheapest car, this year. Tata Motors is India's largest automobile company, with revenues of $7.2 billion in 2006-07. With over 4 million Tata vehicles plying in India, it is the leader in commercial vehicles and the second largest in passenger vehicles. In the past few years, the Tata group has led the growing appetite among Indian companies to acquire businesses overseas in Europe, the United States, Australia and Africa - some even several times larger - in a bid to consolidate operations and emerge as the new age multinationals.

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