Baroda Pioneer AMC launches Baroda Pioneer Ultra Short Duration Fund

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(An open ended ultra short term debt scheme investing in instruments such that the Macaulay duration* of the portfolio is between 3 months and 6 months)

NFO period May 24, 2018 to May 29, 2018

Key highlights

 

  • Baroda Pioneer Ultra Short Duration Fund is an open-ended debt scheme investing in instruments such that the Macaulay duration* of the portfolio is between 3 months and 6 months

 

  • The fund will invest in a combination of short-term debt instruments including treasury bills, certificate of deposits, commercial papers and corporate bonds

 

  • The portfolio will be co-managed by Mr. Alok Sahoo, Head of Fixed Income and Ms. Hetal Shah, Fund Manager (Debt)

Mumbai,  Baroda Pioneer Asset Management Company Ltd. (“Baroda Pioneer AMC”) has announced the launch of Baroda Pioneer Ultra Short Duration Fund, an open ended debt scheme that focuses on investing in a combination of  short term debt instruments including treasury bills, certificate of deposits, commercial papers and corporate bonds such that the Macaulay duration* of the portfolio is between 3 months and 6 months.

Mr. Anthony Heredia, CEO, Baroda Pioneer AMC, said “Baroda Pioneer is expanding its product basket to provide appropriate investment solutions for its investors and partners. The new fund offer of Baroda Pioneer Ultra Short Duration Fund is one such product that becomes increasingly relevant in volatile fixed income markets. At Baroda Pioneer, we remain committed to supporting the needs of our investors, and will look to launch more products based on the market environment”.

Speaking on the launch of the New Fund Offer (“NFO“), Mr. Alok Sahoo, Head of Fixed Income, Baroda Pioneer AMC, said, “The surge in yields has been higher than anticipated, but the valuations seem attractive especially in the short tenor segment. We may see range bound markets with an upward bias, and short duration funds will become increasingly relevant in such market scenarios. Keeping this in mind, we are launching a new fund – Baroda Pioneer Ultra Short Duration Fund. The fund aims at investing in instruments such that Macaulay duration* of the portfolio is between 3 months and 6 months. This product is best suited for investors looking for reasonable income with lower levels of volatility.”

The NFO commences on 24th May 2018 and closes on 29th May 2018. The fund has no entry or exit load and its benchmark is CRISIL Ultra Short Fund Index. Units will be issued at INR. 1000/- per unit, the minimum application amount is Rs.5000/- and in multiples of Re.1 thereafter.

* Macaulay duration is the weighted average term to maturity of the cash flows from an instrument. The weight of each cash flow is determined by dividing the present value of the cash flow by the price. Macaulay duration is a measure of interest rate sensitivity of a fixed income instrument. Higher the Macaulay duration, higher would be the interest rate risk. Investors may refer to page no. 37 of the Scheme Information Document of the fund for further details

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