Morgan Stanley Mutual Fund has launched new fund offer (NFO) period of Morgan Stanley Short-Term Bond Fund. The issue is opened for subscription from 12 May till 20 May 2009. It is an open-ended debt scheme. The face value of the new issue will be Rs 10 per unit.
Features of the Morgan Stanley Short-Term Bond Fund
Investment objective: The investment objective is to generate income from a diversified portfolio of short to medium term debt and money market securities.
Investment options: The scheme will offer two plans regular and institutional plus plan with growth & dividend options. Dividend option will further offer dividend payout and reinvestment facility. Regular plan will be having monthly dividend frequency while institutional plus plan will be having weekly and monthly dividend frequencies.
Investment objective: The investment objective is to generate income from a diversified portfolio of short to medium term debt and money market securities.
Investment options: The scheme will offer two plans regular and institutional plus plan with growth & dividend options. Dividend option will further offer dividend payout and reinvestment facility. Regular plan will be having monthly dividend frequency while institutional plus plan will be having weekly and monthly dividend frequencies.
Minimum application amount: The minimum application amount under regular plan is Rs 5,000 plus in multiples of Re 1 thereafter. Under institutional plus plan, the minimum application amount is Rs 50 lakh plus and in multiples of Re 1 thereafter.
The scheme seeks to collect a minimum corpus of Rs 1 crore during NFO period.
Asset allocation: The scheme will invest 25%-100% in money market instruments and debt securities with maturity/ average maturity / interest rate reset not greater than 1 year. It will invest up to 75% in debt securities including government securities with residual maturity greater than 1 year. Investment in debt instruments including securitised debt shall be up to 100% of the net assets. No investment shall be made in foreign securitised debt.
The scheme may invest in derivative up to 50% of the net assets of the scheme. The scheme may also invest in foreign debt instruments up to 30% of the net assets of the scheme. Not more than 20% of the net assets of the scheme can generally be deployed in securities lending and not more than 5% of the net assets of the scheme can generally be deployed in securities lending to any single counter party.
The scheme seeks to collect a minimum corpus of Rs 1 crore during NFO period.
Asset allocation: The scheme will invest 25%-100% in money market instruments and debt securities with maturity/ average maturity / interest rate reset not greater than 1 year. It will invest up to 75% in debt securities including government securities with residual maturity greater than 1 year. Investment in debt instruments including securitised debt shall be up to 100% of the net assets. No investment shall be made in foreign securitised debt.
The scheme may invest in derivative up to 50% of the net assets of the scheme. The scheme may also invest in foreign debt instruments up to 30% of the net assets of the scheme. Not more than 20% of the net assets of the scheme can generally be deployed in securities lending and not more than 5% of the net assets of the scheme can generally be deployed in securities lending to any single counter party.
Load structure: The scheme will not levy any entry nor exit load during NFO.
On an ongoing basis the scheme will not levy entry load but, it will charge 0.25% if redeemed within 15 days.
On an ongoing basis the scheme will not levy entry load but, it will charge 0.25% if redeemed within 15 days.
Benchmark index: The performance of the scheme is being benchmarked to the performance of CRISIL Short-Term Bond Fund Index.
Fund Managers: Ritesh Jain will be the fund manager for the scheme. He will handle the fixed income investments. Sridhar Sivaram, and Amay Hattangadi will be the dedicated fund managers for investment in foreign securities.
Rating: ICRA has assigned the “Credit Risk Rating mfAAA” to Morgan Stanley Short Term Bond Fund which means that Morgan Stanley Short Term Bond Fund carries the lowest credit risk, similar to that associated with long term debt obligations rated in the highest-credit-quality category. This rating should however, not be interpreted as an indication of the performance of the aforesaid Fund or of volatility in its returns.
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