AIG Global Investment Group launches its first fund in India
Mumbai, April 25, 2007: AIG Global Investment Group today announced the launch of its maiden scheme – AIG India Equity Fund. The New Fund Offer priced at Rs.10 per unit (plus applicable entry load) will be open for purchase from May 3, 2007 to May 31, 2007. The fund will re-open for ongoing purchases/redemptions no later than June 29, 2007.
AIG India Equity Fund is an open-ended diversified equity fund with no biases. The fund has the flexibility to invest across companies without having any bias towards a particular sector, investing style or market capitalization range. The fund will be managed by Mr. Tushar Pradhan, Chief Investment Officer - Equities.
AIGGIG believes that no single sector, market capitalization orientation or style has outperformed consistently over the long term. The key to consistent long term performance is to have the flexibility to pick stocks without having any restraints on style, sector, theme or market capitalization.
Speaking on the occasion Mr. Sunil Mehta, Country Head and Chief Executive, India, American International Group, Inc. said, “We are pleased to announce our entry into the Indian mutual fund space. Our vision is to create a world class asset manager in India that combines AIG Global Investment Group’s global expertise with our local experience gained over the years and the track record of our experienced and professional management team. The launch of this fund further reaffirms AIG’s commitment and participation in the fast growing Indian economy.”
Mr. Ravi Mehrotra, Managing Director and Head of Asia Asset Management Companies for AIGGIG said “AIG India Equity Fund is the first amongst a range of investment solutions that we plan to offer. Our corporate philosophy is to align with the interests of our investors by taking a meaningful stake in the asset class. We, thereby, share common goals, parallel motivations and comparable attitudes towards portfolio and risk management. Given the pedigree of AIG Global Investment Group, the investing philosophy and the depth of experience, we are confident that our funds will form an integral part of any investor’s product portfolio.”
Speaking at the launch, Mr. Saurabh Sonthalia, Chief Executive Officer, AIG Global Asset Management Company (India) Pvt. Ltd said, “We wish to combine AIG’s experience and insight of 86 years in investments to bring focused and relevant products to the Indian investor. AIG Global Investment Group Mutual Fund is aiming to become a significant player in the Indian asset management industry in the years to come.”
The Indian Equity fund management team of AIG Global Investment Group is linked to the global fund management team through an intranet-based knowledge system called EPIC (Equity Platform for Investment Communication). EPIC serves as the backbone for equity research, stock categorization, stock ranking, idea-generation and communication. This system allows Equity teams around the globe to function as a cohesive unit and “speak the same language”.
“About AIG Global Investment Group”
AIG Global Investment Group (AIGGIG) is a worldwide leader in asset management, with extensive capabilities in equity, fixed income, hedge funds, private equity and real estate. AIGGIG manages more than US $670 billion in assets, and employs over 1900 professionals in 44 offices around the world (as of December 31, 2006). AIGGIG comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. The member companies of AIGGIG are subsidiaries of American International Group, Inc. (AIG), world leaders in insurance and financial services with USD 979 billion in assets. Headquartered in New York, AIG has operations in more than 130 countries and jurisdictions. It has a market capitalization in excess of USD 180 billion (as on December 31, 2006) with its common stock listed in the New York, London, Paris, Switzerland and Tokyo Stock Exchanges.
Key Facts about the New Fund Offer
| Issue opens |
May 3, 2007 |
| Issue closes |
May 31, 2007 |
| Minimum Investment Amount |
Rs 5000 |
Scheme Classification: An open-ended equity scheme. Investment objective: The primary 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. Asset Allocation Pattern: Equities and equity related securities: 80%-100%; Debt and money market securities / instruments / funds: 0%-20%. Terms of issue: Units of Rs. 10 per unit plus applicable entry load during the New Fund Offer (NFO) and at applicable NAV plus applicable entry load thereafter. Offer document, Key Information Memorandum and Application Forms / Transaction Slips available at the ISCs / distributors. Load Structure: Retail Plan: Entry load: 2.25% for purchase of units less than Rs. 5 crore; Nil for purchase of units equal to or greater than Rs. 5 crore; Exit load: For investments less than Rs. 5 crore - 1.00%, if redeemed within 1 year from the date of allotment; For investments of Rs. 5 crore and above - 0.50% if redeemed within 6 months from date of allotment. Institutional Plan: Entry load: Nil; Exit load: 0.50% if redeemed within 6 months from date of allotment. General Services: Investors can contact us on our toll-free number 1800 425 3444. NAVs will be calculated and published on all Business days.
Risk Factors: The AMC has no previous experience in managing a mutual fund in India and the Scheme being offered in this Offer Document is the initial Scheme being launched under its management. 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 the securities markets. Past performance of the Sponsor or mutual funds managed by the Sponsor or its affiliates does not indicate the future performance of the Scheme. Investors in the Scheme are not being offered a guaranteed or assured rate of return. The Scheme does not guarantee or assure any dividend and also does not guarantee or assure that it will make any dividend distribution, though it has every intention to make the same. All dividend distributions are subject to the investment performance of the Scheme. AIG India Equity Fund is the name of the Scheme and does not, in any manner, indicate the quality of the Scheme, its future prospects or returns. Investments in the Scheme will be affected by trading volumes, settlement periods, volatility, price fluctuations, inability to sell securities, disinvestment of holdings of any unlisted stocks prior to target date of disinvestment, credit risk and interest rate risk. The Scheme and individual Plan(s) with a separate portfolio, if any, under the Scheme shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). In case of non-fulfillment with either of the above two conditions, specified SEBI Guidelines in this regard would be complied with. Please read the Offer Document before investing.
Statutory Details:AIG Global Investment Group Mutual Fund (‘the Fund’) has been established as a trust under the Indian Trusts Act, 1882, sponsored by AIG Capital Corporation (liability restricted to Rs. 1 lakh). AIG Trustee Company (India) Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Fund. AIG Global Asset Management Company (India) Private Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Investment Manager to the Fund.
AIG Global Investment Group comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world.
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