SBI Mutual Fund has announced the launch of SBI International Access - US Equity Fund of Fund. The scheme would be investing its assets in units of a US-focused overseas equity fund.

The New Fund Offer (NFO) starts from 01st March 2021 and will end on 15th March 2021. The fund will reopen for continuous sale and repurchase within 5 business days of allotment. The date of unit allotment is 22nd March 2021.

Investment Objective 

The investment objective of the scheme is to provide long-term capital growth by investing its assets in units of overseas mutual funds or ETFs which further predominantly invest their assets in US stocks or equities.

Features

• The Fund will be investing a minimum of 95% of its assets in its underlying fund which is Amundi Funds-US Pioneer Fund.
• The fund aims to give exposure to companies that are based in the US or do most of their business in the US.
• The fund may invest up to 20% of assets in non-US equities.
• The fund aims for an improved environmental footprint & sustainability profile as compared with its benchmark index by incorporating ESG related factors.

Why invest in Amundi Fund-US Pioneer Fund?

• The fund has downside risk mitigation with strong upside participation as it has outperformed the benchmark over the last 1,3, and 5 years. Also, it has shown lower volatility than its benchmark and peer group in the same time frame.
• The fund has a very long and strong track record of performance.
• The investment team of the fund assesses the sustainability of a business from a financial, competitive, and ESG perspective.
• The fund invests in companies that are either technology providers usually growth stocks or aggressive adopters of technology usually value stocks.

Amundi Fund-US Pioneer Fund - Investment Process

Selected from a universe of 1000 stocks from Russell 1000 and S&P 500 with a market cap of more than US$4billion.

Step 1: Idea Generation Stage: 500-750 companies are selected from the universe

• Excluding companies associated with sectors including alcohol, gaming, tobacco, coal, and controversial weapons companies
• Companies with worse ESG scores are excluded
• Quantitative screenings and Fundamental Research Analysis

Step 2: Research & Valuation Stage: Universe is reduced to 150-200 companies based on:

• ESG assessment
• Financial strength
• Competitive advantages
• 2:1 upside versus downside

Step 3: Portfolio construction of 40-70 stocks

• Stocks are selected on the basis of risk and conviction
• Evaluation of portfolio risks to ensure exposures align with views

Amundi Fund-US Pioneer Fund - Sector Allocation

Data as of 31st January 2021

Amundi Fund-US Pioneer Fund - Top 10 Holdings

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long-term capital growth.
• Interested in investments in companies listed on the US stock exchange.
• Interested in investments in units of US-focused equity fund.
• Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

About the Scheme

SIP Details