After lying dormant for the last few quarters, the European markets are now showing signs of growth, that has prompted the MFs in India to launch new schemes that will target companies based in Europe. The schemes are mainly targeting the investment opportunities in the developed countries arising due to the growth witnessed in the last few quarters after a prolonged recession. The major European Indices are CAC 40, DAX and FTSE 100 amongst others.
The recently launched schemes are Religare Invesco Pan European Equity Fund, Deutsche Asset Management India and JPMorgan MF. These theee fund houses have launched their overseas fund of funds which will invest in the European market.
Religare Invesco Mutual Fund is an open ended fund of funds scheme, which seeks to generate capital appreciation by investing in 'Invesco pan European Equity Fund'. The new fund offer will close on January 29, 2014.
"Diversification is the key and one of the basic building blocks for solid portfolio...Given the low correlation between Indian and European equity markets, the new fund will help investors achieve diversification by investing in European equities," Managing Director and Chief Executive Officer of Religare Invesco MF, Saurabh Nanavati said.
"We believe, growth is slowly coming back in Europe. The new fund will provide investors' an opportunity to invest in European companies, which are available at compelling valuation," he said. Nanavati also said the fund house plans to increase its feeder fund offerings in the future. Religare Invesco MF has an average assets under management of Rs 13,706 crore by the end of December quarter of this fiscal.
JPMorgan Europe Dynamic Equity Offshore Fund was launched last Friday. It is an open ended FoF that will invest predominantly in JPMorgan Funds — Europe Dynamic Fund, an equity fund, which plans to invest in an aggressively managed portfolio of European companies. The fund will be benchmarked against the MSCI Europe Index.
According to a Deutsche AMC note, the economic scenario in Euro-land, comprising 18 European countries, suggests that the fiscal drag is easing, while early indicators are signaling strong improvement in growth. “Corporate earnings are significantly below previous peak, offering a lot of recovery potential. Compared to the US equity markets, cyclical adjusted Euroland company PEs are at low levels. These indicators seem to suggest a potential upside for Euroland,” said the note.
Mutual Fund Update
Reliance MF announces change
Reliance MF has decided to enable the demat facility for daily dividend option and weekly dividend option under dividend plan / direct plan-dividend plan appearing in the SID and KIM of the following schemes with immediate effect: Reliance Liquidity Fund, Reliance Liquid Fund - Treasury Plan, Reliance Liquid Fund - Cash Plan and Reliance Money Manager Fund.
HDFC MF Launches New Scheme
HDFC MF has launched a new plan named as HDFC Capital Protection Oriented Fund - Series II - 36M January 2014, a close ended capital protection oriented scheme with the duration of 36 months from the date of allotment. The new fund offer will be open for subscription from January 08, to January 22, 2014. The face value of the new issue will be Rs 10 per unit.
Global Stable Equity Fund announces change
ICICI Prudential MF has announced that the unit-holders / investors can now invest through the STP facility under ICICI Prudential Global Stable Equity Fund, with effect from January 20, 2014. It has been included in the existing list of target schemes, whereby the investors can transfer a specified amount subject to a minimum of Rs 5000 and in multiples of Re 1 from the designated source schemes into the scheme on a specified date. This facility is only enabled for monthly frequency and the specified date shall be the last day of the calendar month.
Birla Sun Life MF announces change in key personnel
Birla Sun Life MF has announced that Hitesh Zaveri, Milind Bafna and Kunal Sangoi have been designated as the Key Personnel of Birla Sun Life Asset Management Company (BSLAMC). Nishit Dholakia, Fund Manager has ceased to be in the services of BSLAMC and accordingly also ceases to be Key Personnel of Birla Sun Life Mutual Fund.
ICICI Prudential Midcap Fund announces dividend
ICICI Prudential MF has announced dividend under the following plans/options of ICICI Prudential Midcap Fund. The record date for declaration of dividend is January 21, 2014. The recommended rate of dividend (Rs per unit) on the face value of Rs 10 per unit will be: ICICI Prudential Midcap Fund - Direct Plan - Dividend: Rs 1.31 ICICI Prudential Midcap Fund - Regular Plan - Dividend: Rs 1.31