SHRIRAM DEBENTURES

Following  article has appeared in financial daily, THE ECONOMIC TIMES Dated 16.06.2011, regarding forthcoming SHRIRAM NCD ISSUE

Shriram to Raise 1k cr from Debentures Sale

The NBFC awaits RBI’s quarterly policy review to decide on the coupon rate

DIVYA RAJAGOPAL & RUCHIRA ROY MUMBAI



    Shriram Transport Finance, one of the largest non-banking finance companies in the country, will raise . 500 crore through debentures with a greenshoe option of . 500 crore, said two people familiar with this matter.

The tenure of the bond will be 3-5 years. The company is waiting for the Reserve Bank of India’s (RBI) quarterly policy review meeting to decide on the coupon rate. But according to company officials, it is expected to be around 11-12%. Corporate bond yields have risen by over 5-10 basis points in the past one month anticipating a rate hike by the RBI. The three-year ‘AAA’ rated bond is currently trading at 9.67%. Last year, it was trading at 7.16%. The spread for the three-year bond has increased by 150 bps in the past one year.

The issue is awaiting regulatory approvals and is expected to be launched by the end of this month. This issue will mostly target retail investors with 80% reserved for retail participants. Shriram Transport is a non-banking finance company (NBFC) which gives loans against used trucks. It has assets worth . 36,000 crore under management. The issue is rated ‘AA’+ by rating firm Care and ‘AA’ by Crisil. The company now has around 25 % of its bond participation from retail investors.

This is the third such issue Shriram Transport has come up with in the past three years. In May 2010, it had raised . 500 crore through debentures with a coupon rate of 10.5%, and 1,000 crore in 2009. According to company officials, the money raised from this issue will be used to meet its lending requirement. Non-banking finance companies are looking for various avenues to raise funds, after the RBI imposed strict borrowing norms for these companies.

The RBI has withdrawn the priority sector status for NBFCs, which means the cost of borrowings for these companies will go up. With securitisation also coming under scanner, people in the industry feel that NBFCs will be accessing the debt market and private equity funding to meet their capital requirements.

 

UTI Product Guides - Opportunities / Dividend Yield / Master Value Fund

Please find attached the product guides for the month of June 2011.

 

UTI Opportunities Fund

UTI Dividend Yield Fund

UTI Master Value Fund

 

Revised ROI in KTDFC w.e.f 16 June'11

Revised Rate of Interest in KTDFC Fixed Deposit (Kerala Transport Developers Finance corporation Ltd) w.e.f. 16 June'11 as follows:

 

Period	For Deposit amount below Rs. 50 Lakhs			For Deposit amount Rs. 50 lakhs and above
	Rate(p/a)	Approx. Maturity value for Rs.10,000 under MMS*	Approximate cumulative Annual Yield*	Rate (p/a)	Approx. Maturity value for Rs.10,000 under MMS*	Approximate cumulative Annual Yield*
1 year	9.75%	11,020	10.20%	10.00%	11,047	10.47%
2 years	9.75%	12,144	10.72%	10.00%	12,204	11.02%
3 years	9.75%	13,382	11.27%	10.00%	13,482	11.61%
4 years	9.50%	14,601	11.50%	9.75%	14,747	11.87%
5 years	9.50%	16,050	12.10%	9.75%	16,250	12.50%
FOR SENIOR CITIZENS ONLY :
Period	For Deposit amount below Rs. 50 Lakhs			For Deposit amount Rs. 50 lakhs and above
	Rate(p/a)	Approx. Maturity value for Rs.10,000 under MMS*	Approximate cumulative Annual Yield*	Rate (p/a)	Approx. Maturity value for Rs.10,000 under MMS*	Approximate cumulative Annual Yield*
1 year	10.00%	11,047	10.47%	10.25%	11,075	10.75%
2 years	10.00%	12,204	11.02%	10.25%	12,265	11.32%
3 years	10.00%	13,482	11.61%	10.25%	13,582	11.94%
4 years	9.75%	14,747	11.87%	10.00%	14,894	12.23%
5 years	9.75%	16,250	12.50%	10.00%	16,453	12.91%

 

 

MIP plus funds provide the right mix - debt, equity and gold

MIP plus funds provide the right mix - debt, equity and gold

In recent past both domestic and international equity markets have been at their volatile best. This volatility has elevated gold’s importance as an asset class. It has gained ground largely due to the uncertainty over the pace of the global recovery. For investors who want to diversify their portfolio and also want to protect their overall wealth, gold is the most suitable and preferred asset. It has been observed that gold tends to perform well when the other asset class particularly equity goes south wards. A little allocation in gold provides support in the portfolio. Gold, traditionally considered as a hedge against inflation tends to perform well in economic crises.

Traditional Monthly Income Plans combine debt portfolio with a small equity allocation. Off late, fund houses are now coming up with the funds that invest in a combination of equities, fixed income securities and gold exchange traded funds (ETFs) with the aim of improving diversification and enhancing performance. It attempts to further improve the returns of the MIP while also reducing volatility. These types of funds are known as MIP Plus funds. It offers an interesting investment proposition by providing exposure to 3 major classes (debt, equity and gold). These kinds of fund are suitable for conservative investors who can take small exposure to equities to lend support to the overall returns of their portfolio. These funds adding gold as part of its diversification can marginally increase the return and also reduce volatility in comparison to the monthly income plans that are currently available in the market. Gold has a low or negative correlation with most of the asset classes, which means that its price changes are independent of price changes in other asset classes like equities and debts. Gold is also named as insurance of your complete asset allocation as it covers the risk of complete erosion due to excess allocation towards one asset class.

The fall of equity market over the past few months has amplified the importance of multi asset funds in investor portfolios. This kind of product offers stability of debt, growth from equities as well as overall diversification from gold.

Scheme Name Launch Date Axis Triple Advantage Fund 23-Aug-10 Canara Robeco InDiGo Fund 09-Jul-10 Fidelity India Childrens Plan - Marriage Fund 07-Feb-11 Kotak Multi Asset Allocation Fund 21-Jan-11 Peerless MF Child Plan 05-Apr-11 Religare MIP Plus 01-Jun-10 Sundaram Equity Plus 24-May-11 Taurus MIP Advantage Fund 06-Aug-10 UTI Wealth Builder Fund - Series II 17-Dec-08

Simple Annualised % (Point to Point) Scheme Name 1 Month 3 Months 6 Months Canara Robeco InDiGo Fund 8.70 14.67 10.14 Kotak Multi Asset Allocation Fund 3.69 11.34 -- Religare MIP Plus 1.64 12.25 5.20 Taurus MIP Advantage Fund 1.76 10.39 4.25         Indices       Crisil MIP Blended Index -5.70 6.83 2.23 CRISIL Short-Term Bond Fund Index 3.27 6.73 5.73 Returns as on 31st May 2011

Canara Robeco Indigo fund:

Canara Robeco is one the fund that invests only in debt and gold ETFs. It is an open ended debt scheme, launched in July 2010.  The scheme invests a minimum of 65% and a maximum of 90% in Indian debt and money market instruments, a minimum of 10% and a maximum of 35% in Gold ETFs. The performance of the scheme is benchmarked against CRISIL Short Term Bond Fund Index and Price of Gold. With Fixed Income & Gold being together in the portfolio, there is a blend of steady flow of income in form of coupons coming from the fixed income securities and capital appreciation coming in from the gold ETF investment. The fund restricts itself to low duration credit worthy fixed income options and generate the additional returns through allocation to gold.   The scheme has delivered 10.14% simple annualized returns in just 6 months.

Kotak Multi Asset Allocation fund

Kotak Mutual fund has introduced a new fund called Kotak multi asset allocation fund, launched in January 2011 as the name suggests it invests in multiple assets namely, debt, equity and gold. While debt will be a minimum of 75-90 % of the portfolio, the balance 5-20% will be invested in equities and 5-20% in gold ETFs (exchange traded funds), respectively. The scheme's advantage is that it offers a ready asset allocation for investors who are looking to invest a predominant part of their money in debt (75-90%), with the balance in equity and gold. The scheme had delivered double digit simple annualized returns of 11.34% in just 3 months.

Religare MIP Plus

This is one of the oldest schemes in the category which was launched in June 2010. It is an open ended income scheme, where the fund has the flexibility to invest minimum 65% of its assets in debt and in the range of 10–35% in Gold ETFs and 25% in equity and equity related assets. The scheme has generated 12.25% and 5.20% simple annualized returns in 3 and 6 months respectively. The fund has increased its debt allocation from 18% to 47% as on April 2011 compared to February 2011.

Taurus MIP Advantage fund

Taurus MIP Advantage invests 65-95% in debt, 5-25 % gold ETFs and 0-25 % to equity. The fund captures seasonal patterns in gold by actively managing the allocation to gold. The fund has generated 10.39% simple annualized returns in 3 months. The fund is cautious of its exposure to gold with a 6-8% of exposure being maintained over the past three months.

There are some fund houses that have launched equity-oriented schemes with a tinge of gold ETFs. A fund like UTI Wealth Builder Fund - Series II is a fund which invests at least 65% in equities and 35% in gold ETFs. Since its launch, it has generated about 31.88% compound annualized return till as on 31st May 2011. There is another fund which recently joined the gold rush by launching Sundaram Equity Plus. According to the fund house, the scheme will primarily focus on opportunities in Indian equities, with the addition of a gold-ETF providing diversification and exposure to the relative attractiveness of gold in certain phases. The fund has been launched in May 2011. Peerless Mutual fund launched Peerless MF Child Plan, a multi asset class product wherein the investment will be made in debt, equity and gold ETFs. The fund provides systematic investment plans (SIPs) to help investors build capital in installments. The fund was introduced in April 2011. Fidelity Mutual fund introduced new scheme called as Fidelity Child Plan – Marriage fund. This fund exposes its investors in 3 major asset classes- equity debt and gold. This fund aims to protect against rise in gold prices while saving for children’s marriage needs. Even Axis Mutual Fund has launched Axis triple advantage fund in August 2010 which invests in mix of three asset classes namely, equity, fixed income and gold.

 

RELIANCE DUAL ADVANTAGE FIXED TENURE FUND I - PLAN L

RELIANCE MUTUAL FUND presents " RELIANCE DUAL ADVANTAGE FIXED TENURE FUND I - PLAN L"


Reliance Dual Advantage Fixed Tenure Fund I - Plan L is a closed ended income scheme which intends to invest 80% - 95% of its assets in Debt Securities & Money Market Instruments and 5% - 20% in Equity & Equity Related Instruments.

NFO Opening Date: 10th June,2011
NFO Closing Date: 24th June, 2011
Tenure: 3 years

The funds intend to provide the fixed income oriented long term investor, the dual advantage of stability in investments along with the added advantage of earning returns relatively higher than a typical fixed investment.

While the debt portion offers potential for higher accruals in the current market situation with a limited interest rate risk, the equity portion of the portfolio would seek to benefit from the higher growth potential given the 3 years holding period.

Please find attached the KIM and presentation of Reliance Dual Advantage Fixed Tenure Fund I - Plan L.

 

ICICI PRUDENTIAL DISCOVERY PLAN

 

One Time Investment  Return

Performance as on 14 June 11

Scheme Name

Latest NAV

Corpus (Rs.Crores)

QAAUM (in Crs.)

3 Months

Rank

6 Months

Rank

1 Year

Rank

2 Years

Rank

3 Years

Rank

5 Years

Rank

Inception

Rank

ICICI Prudential Discovery Fund - Growth

49.00 (14-Jun-11)

1685.8037 (31-Mar-11)

1625.81(31-Mar-11)

6.78%

3

-2.14%

2

9.67%

6

80.35%

1

88.10%

2

162.03%

7

390%

5

Past performance is no guarantee of future returns.





 

 

 

 

L&T FMP - IV (June 90D A) - NFO

Launch of “L&T FMP – IV ( June 90 D A )”- NFO.

 

a)     The details of the same  as follows:

 

FMP Name	Opening Date	Closing Date	Maturity Date	Payout Date
L&T FMP – IV (June 90 D A)	21-06-2011	22-06-2011	20-09-2011	21-09-2011

 

b)     Attaching the following with this mail:

 

1. Highlights

2. KIM & Application form

3. SID

 

c)  Also please Note the following:

           

1.    The subscription cheque should be favoring:  “L&T FMP – IV (June 90 D A)”

2.     Money can be brought in liquid / FI with a switch request to be registered by 3.00 PM on 21st  June,2011 ( Tuesday )

            3.     In case of RTGS request, both application as well as RTGS to be date stamped on or before the closing date.