Financial Daily from THE HINDU group of publications
Tuesday, Nov 09, 2004
Financial Daily from THE HINDU group of publications Tuesday, Nov 09, 2004 |
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Markets
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Mutual Funds Benchmark AMC plans to launch split capital fund Our Bureau
Mumbai , Nov. 8 BENCHMARK Asset Management Company Ltd has filed a draft prospectus for a split capital fund. Investment in the fund would be split into two and classified as Class A and Class B. Class A units, also called preferred units, will have priority of distribution over class B units at the time of maturity. The fund is a close-ended fund. The investment objective of the scheme is to invest in equity and debt securities and pass on the collection proceeds to Class A and Class B unit holders in accordance with the priority of distributions. It may be recalled that Benchmark AMC had launched a split capital fund in the debt segment earlier this year. However, because of the volatility and the change in outlook in the debt market the product was shelved. This fund is the equity equivalent of the split capital fund floated earlier by the AMC. The fund would endeavour to provide a specific participation in the equity markets for Class A unit holders, said the offer document. The face value of each unit of Class A and Class B will be Rs 100. The minimum target amount to be raised during the initial offer period is Rs 1 crore, according to the offer document. The minimum investment is Rs 1 lakh for each class of unit. There is no upper limit on the investment, which can be made by any applicant, the offer document said.
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