Birla Sun Life Asset Management Company Limited, a part of Aditya Birla Financial Services Group (ABFSG), and investment manager for Birla Sun Life Mutual Fund (BSLMF), announced the launch of Birla Sun Life Corporate Bond Fund, an open-ended income Scheme focusing on the corporate debt securities. The New Fund Offer (NFO) opens for subscription from March 30 – April 13, 2015 with price of units of the scheme at face value of Rs.10 per unit.
Speaking on the Indian Debt market, A. Balasubramanian, CEO, Birla Sun Life Asset Management Company Limited said, “As interest rates ease off, it holds merit for investors to relook, and rebalance their debt portfolio by increasing allocation to accrual funds. The value proposition of BSL Corporate Bond Fund lies in our team’s ability to deliver superior investor experience compared to traditional savings by proactively spotting creditworthy opportunities ahead of most of other market participants.”
“The fund will not only help investors seeking stability of returns to take advantage of the current economic reforms, but will also help them benefit from expected fall in interest rates in market over the next few quarters,” added A. Balasubramanian.
Birla Sun Life Corporate Bond Fund aims to generate returns by predominantly investing in a portfolio of corporate debt securities with short to medium term maturities across the credit spectrum within the investment grade. The scheme shall not invest in government securities and State Developmental Loans but may invest in money market instruments including T-Bills, Repo and Reverse Repos and CBLO within the limits mentioned in asset allocation pattern.
The scheme will be managed so that the maximum duration of the portfolio is capped at 4 years. The Scheme would seek opportunities across the credit curve and would endeavour to take benefit from mispriced credit opportunities. The performance of the scheme will be benchmarked to the performance of Crisil AA Short Term Bond Fund Index. Birla Sun Life Corporate Bond Fund will be managed by Mr. Maneesh Dangi.
Birla Sun Life Corporate Bond Fund will have Regular Plan and Direct Plan with a common portfolio and separate NAVs. Each of the above (Regular and Direct) Plan under the Scheme will have the following Options: (1) Growth Option and (2) Dividend Option (Payout / Reinvestment Facility) and (3) Bonus Option. The Scheme being open ended; the Units are not proposed to be listed on any stock exchange. However, the Mutual Fund may at its sole discretion list the Units on one or more stock exchanges at a later date if it is considers this to be necessary in the interest of unit holders of the scheme.