Mumbai, Maharashtra, India
Fidelity Fund Management is bringing its world renowned expertise in international investment to the Indian market. Investors will now have the opportunity to add an element of geographical diversification to their portfolios with a fund house that has a strong track record in investing globally.
The Fidelity International Opportunities Fund is Fidelity's first international offering in India and other global products will be introduced once guidelines are issued under the recently announced $50,000 remittance scheme. This new fund is an open ended equity growth scheme that seeks to invest 65% in Indian equities and around 35% in international equities, with a focus on Asia, to generate long term capital appreciation.
Ashu Suyash, Managing Director and Country Head, Fidelity Fund Management Pvt. Ltd., said, "It is a landmark day for us. We are adding a new dimension to equity investing by bringing our international investment expertise to India. Investors will benefit from Fidelity's unparalleled experience of all the world's main equity markets through complete market cycles over several decades."
Rajesh Singh, Fund Manager, Fidelity International Opportunities Fund, said, "International investing lends itself perfecly to diversification benefits because each country's economy offers distinct inherent strengths and each has its own set of differing growth characteristics. Asia is going through a growth phase and offers a wide set of opportunities for stock picking in markets, some developed and others emerging. This fits well with Fidelity's investment philosophy of bottom-up stock picking which is underpinned by our global network of investment research professionals."
Ms Suyash added, "Equity investing, at the best of times, demands the rigour of research to generate consistent performance. And this is especially so when faced with the complexity of investing overseas. Our experience tells us that investors show a 'home country bias', largely because they prefer to stick with what they know. But this can have a negative impact on long-term investment returns. With our track record and experience spanning the globe, we are delighted to bring investors a simpler way of accessing opportunities in international markets. The Fidelity International Opportunities Fund is our first step and we look forward to bringing more products investing in international markets to Indian investors once the regulatory guidelines under the $50,000 remittance scheme are notified."
Elaborating on geographical diversification, Jed Wrigley, Director with Fidelity International, said, "In spite of an increasing integration of global markets, the correlation between India and other markets remains low. Different markets and their sectors move to different factors and business cycles. So, diversification reduces risk and brings more consistent returns. India accounts for only half a percent of the world's market capitalisation and Indian investors would be denying themselves a great opportunity by not looking at other markets."
The Fidelity International Opportunities Fund NFO will be open from April 9 - 30, 2007. The Fund will have a custom benchmark created using the BSE-200 to the extent of 65% of the portfolio and MSCI Asia-Pacific ex Japan for the balance 35%.
The minimum amount for lump sum investments is Rs 5000 and multiples of Rs 1000. The entry load is 2.25% for each purchase of less than Rs 5 crores. For amounts greater than or equal to Rs 5 crores or by an FOF or on dividend reinvestment or through switch-in from equity schemes, the entry load is NIL. There is an exit load of 1% for redemptions within the first six months.
To ensure that a wide cross-section of investors has the opportunity to invest, the Systematic Investment Plan (SIP) option will be available during the NFO period with a minimum of 6 instalments and each single instalment for a minimum of Rs. 500 and totalling not less than Rs. 5000. The entry and exit loads are the same as for lump sum investments.
Fidelity Fund Management Private Limited is the Indian arm of Fidelity International Limited, one of the world's leading global investment management companies with operations in 23 countries. Fidelity International provides mutual funds, retirement services, including defined benefit and defined contribution pension schemes, and specialist institutional mandates to individual and institutional investors outside the Americas. In 2006 alone, Fidelity won 2771 awards for investment excellence - an outcome of consistently following its philosophy of 'bottom-up' stock picking that focuses on the core strengths of a company based on first-hand, 360-degree research. Fidelity International along with its US affiliate, Fidelity Management and Research Co., actively covers 95%2 of the world market capitalization through its unrivalled research network of over 7003 investment professionals. Central to Fidelity's success is a pioneering spirit, a commitment to innovation that sets new industry standards and an unmatched investment in research, talent and technology. Driven by an entrepreneurial culture, Fidelity is known to actively pursue investor education and distributor training, which it has also begun in the country.
Sources:
-- Fidelity. All awards have been won by Fidelity International Limited and its affiliates. Past performance is not a guide to future returns. The value of investments, and the income from them, can go down as well as up and an investor may not get back the amount invested.
-- Fidelity, 2006.
-- FMR Corp., Pyramis Global Advisers, FIL, 2006. Data is unaudited. These figures reflect the resources of FMR Corp., A U.S. company and its subsidiaries, and the resources of Fidelity International Limited, a non-U.S. company and affiliate and its subsidiaries.
Scheme Classification:
An open ended equity growth scheme.
Investment Objective:
The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives in the Indian and international markets.
Normal Asset Allocation:
Equity and Equity related securities (including Indian and foreign equity securities as permitted by SEBI/RBI): 95%; Money Market Instruments: 5%.
Terms of issue:
Units of Rs. 10 per Unit for cash plus applicable entry load during the New Fund Offer and at Applicable NAV plus applicable entry load thereafter. Minimum initial application amount: Rs. 5,000 per application. Minimum additional application amount: Rs. 1,000 per application. Minimum redemption amount/units: Rs.1,000/100 units. Offer Document, Key Information Memorandum and Application Forms / Transaction Slips available at the ISCs/distributors' offices.
General Services:
Investors can contact any of the ISCs at its toll-free number "1-800-180 8000". NAVs will be calculated on all calendar days and published in two daily newspapers on all Business Days. Purchase/Redemption on all Business Days.
Loads - Entry:
For each Purchase (i) of less than Rs. 5 Crores - 2.25% (ii) of Rs. 5 Crores or more - Nil (iii) by an FOF (irrespective of the amount of Purchase) - Nil (iv) as a result of Dividend Re-investment - Nil (v) through switch-in (including through STP) into any of the equity schemes of the Fund from Fidelity MultiManager Cash Fund ("FMCF") or Fidelity Short Term Income Fund ("FSTIF") or Fidelity Cash Fund ("FCF"); provided units are first switched out / systematically transferred out from the equity schemes of the Fund to FMCF or FSTIF or FCF and, within a period of 90 days from such transaction, the units allotted against such switch proceeds are again switched out / systematically transferred out from FMCF or FSITF or FCF (on a FIFO basis) into any of the equity schemes of the Fund - Nil (vi) through switch-in from other equity schemes of the Fund - Nil. In case of SIP/STP the above criteria for Entry Load will be applicable for each installment. A switch-in will also attract an Entry Load like any Purchase except in cases mentioned above. Exit: For Redemptions within 6 months from the date of allotment/purchase applying First in First Out basis: 1.00%. A switch-out or a withdrawal under SWP may also attract an Exit Load like any Redemption. No loads will be applicable for switches between the options of the Scheme.
Risk factors:
-- Mutual funds, like securities investments, are subject to market risks and there is no guarantee against loss in the Scheme or that the Scheme's objectives will be achieved.
-- As with any investment in securities, the NAV of the Units issued under the Scheme can go up or down depending on various factors and forces affecting capital markets.
-- Past performance of the Sponsor/the AMC/the Mutual Fund does not indicate the future performance of the Scheme.
-- Fidelity International Opportunities Fund is the name of the Scheme, and this does not in any manner indicate the quality of the Scheme, its future prospects or returns.
-- Subject to necessary approvals and within the investment objectives of the Scheme, the Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances.
-- Please read the Offer Document of the scheme carefully before investing.
Statutory:
Fidelity Mutual Fund ('the Fund') has been established as a trust under the Indian Trusts Act, 1882, by Fidelity International Investment Advisors (liability restricted to Rs. 1 Lakh). Fidelity Trustee Company Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Fund. Fidelity Fund Management Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Investment Manager to the Fund. Fidelity, Fidelity International and Pyramid Logo are trademarks of Fidelity International Limited.
Anjali Patil, Fidelity Fund Management Pvt. Ltd., + 91 (022) 6655 4015 anjali.patil@fidelity.co.in
Sandesh Advani, IPAN, Mumbai, + 91 (022) 4066 1755 / + 91 98201 94678 sandesh.advani@ipan.com
Source: Fidelity Fund Management (Business Wire India)
Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.
