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.
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.
- 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
|International Flavors & Fragrances||4.0%|
|Elanco Animal Health||3.7%|
|Top 10 Holdings- Allocation(%)||43.9%|
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
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Units of US-focused mutual funds or ETFs||95%||100%||Moderate to High|
|Money Market Instruments and units of overnight & liquid mutual fund schemes of SBI mutual fund, Reverse repo or Triparty repo||0%||5%||Low to Moderate|
About the Scheme
|Name of the fund||SBI International Access - US Equity Fund of Fund|
|Fund launched by||SBI Mutual Fund|
|Asset Management Company||SBI Funds Management Private Limited|
|Type of scheme||An open-ended fof scheme investing in mutual fund scheme or ETFs that invest in US markets.|
|Investment Objective||The investment objective of the scheme is to generate long-term capital growth by investing its assets in units of mutual funds or ETFs predominantly investing in US equities.|
|Benchmark||S&P 500 Index|
|Entry Load||Not Applicable|
1% of applicable NAV - If units are redeemed or switched out within 1 year.
Nil - If units are redeemed or switched out after 1 year.
|Minimum Application Amount||₹ 5,000 & in multiples of ₹ 1 thereafter|
|Minimum Additional Amount||₹ 1,000 & in multiples of ₹ 1 thereafter|
|STP, & SWP||Available|
|Fund Managers||Mr. Mohit Jain|
|Type||Minimum Installments||Minimum Amount|
|Daily SIP||12||₹500 & in multiples of ₹1 thereafter|
|Weekly SIP||6||₹1,000 & in multiples of ₹1 thereafter|
|12||₹500 & in multiples of ₹1 thereafter|
|Monthly SIP||6||₹1,000 & in multiples of ₹1 thereafter|
|12||₹500 & in multiples of ₹1 thereafter|
|Quarterly SIP||4||₹1,500 & in multiples of ₹1 thereafter|
|Semi-Annual SIP||4||₹3,000 & in multiples of ₹1 thereafter|
|Annual SIP||4||₹5,000 & in multiples of ₹1 thereafter|