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Union KBC Mutual Fund to Launch Its First Product
Mumbai, May 18, 2011: Union KBC Asset Management Company Private Limited would like to
announce the upcoming launch of Union KBC Equity Fund (“the Scheme”). Union KBC Equity
Fund is the first scheme being launched by Union KBC Mutual Fund, the assets of which will
be managed by Union KBC Asset Management Company Private Limited (“Union KBC”). The
Scheme shall open for subscription on May 20, 2011 and the New Fund Offer period shall be
from May 20, 2011 to June 3, 2011.
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Union KBC Equity Fund is a diversified equity scheme that shall invest primarily in a portfolio
consisting of equity and equity related securities. It offers an efficient way for investors to gain
exposure to the Indian Equity markets.
Union KBC is a joint venture between Union Bank of India (51%) and KBC Asset Management
NV (49%, through its 100% subsidiary, KBC Participations Renta), the asset management arm of
the Belgian based bankassurer KBC Group.
Mr. M. V. Nair, Chairman & Managing Director of Union Bank of India and Chairman of Union
KBC Asset Management Company Private Limited, commented on the importance of this
new venture for Union Bank of India and set out a clear vision for Union KBC.
“Union Bank of India recognises the importance of having a Mutual Fund Business as part of
our organisation. There are multiple reasons why Union Bank of India wants to be an active
participant in the Indian Mutual Fund industry. For one, the growth outlook for the Indian
Mutual Fund Industry over the coming years is very favourable, driven by millions of our fellow
countrymen looking for a convenient and cost effective investment vehicle through which they
can access the equity, debt and money markets. Also, the launch of Union KBC is a natural
extension of the strategy that Union Bank of India has successfully pursued over the last number
of years – to offer a complete financial solution to our customers under one roof. Through the
products and services we now offer at our Union Bank branches, our satisfied customers are
spreading their positive experience of Union Bank in the wider market which in turn is attracting
new customers to our branches.”
As chairman of Union KBC I have a clear vision for the company – I want Union KBC to help
spread the prosperity of the Indian capital markets to a wider base of Indian investors by
encouraging them to invest in Mutual Funds.
Mr. G. Pradeepkumar, Chief Executive Officer, Union KBC Asset Management Company Pvt. Ltd.
commented on the complimentary partnership between Union Bank of India (“Union Bank”)
and KBC Asset Management NV (“KBC”) and how the core focus of the Union KBC is on
responsible sales practices:
“Union KBC combines the strengths of two complimentary partners. Union Bank of India brings
an extensive network and knowledge of Indian customers, while KBC brings valuable expertise
gained from more than 50 years in investment management. In addition both Union Bank and
KBC foster a core principle which Union KBC will also foster – a customer focused, knowledge
based sales approach. Union KBC will work closely with distributors, providing comprehensive
coaching and training to their sale officers, to ensure that our products are sold in a responsible
manner to the customer. Union KBC is also committed to conducting education programs to
increasing awareness of Mutual Funds amongst retail investors in India. Our goal is simple; to
provide our customers with the Mutual Fund product that best suits their financial needs and to reduce incidences of mis-selling of Mutual Fund products in the market. We believe that through our
responsible approach to investing and our knowledge based sales approach, Union KBC Mutual
Fund will become a recognised Mutual Fund in India.’
Scheme Name: Union KBC Equity Fund. Classification: An Open-ended Equity Scheme.
Investment Objective: To achieve long-term capital appreciation by investing substantially in a
portfolio consisting of equity and equity related securities. However there can be no assurance that
the investment objective of the scheme will be achieved. Asset Allocation: Equity & Equity related
instruments including equity linked derivatives 75% - 100% of total assets of the scheme; Debt
& Money Market Instruments 0% - 25% of total assets of the scheme. For further details, please
refer the SID. Load Structure: Entry Load – Nil; Exit Load – 1% if redeemed or switched out on
or before completion of 1 year from the date of allotment of units; Nil - if redeemed or switched out
after completion of 1 year from the date of allotment of units. Terms of issue and mode of sale
and redemption of units: The Units are available at `10 per unit during the New Fund Offer period.
The Scheme offers Units for Subscription/Switch in and Redemption/Switch out at NAV based
prices on all Business Days on an ongoing basis. Minimum Investment - ` 5,000 and in multiples
of ` 1 thereafter. Options – Growth & Dividend; Investor benefits and general services offered:
The NAV of the Scheme will be disclosed on all Business Days. The redemption proceeds shall be
dispatched to the Unitholders within 10 Business Days from the date of receipt of valid redemption
request.
Risk Factors: All mutual funds and securities investments are subject to market risks and
the Net Asset Value (NAV) of the schemes may go up or down depending upon the factors
and forces affecting the securities market and there can be no assurance that the fund’s
objective will be achieved. The Investment Manager has no previous experience in managing
a mutual fund. Past performance of the Sponsors and their Affiliates / Investment Manager or
AMC / Mutual Fund and its Scheme (s) is not necessarily indicative of future results, and may
not necessarily provide a basis for comparison with other investments. Union KBC Equity Fund
is only the name of the Scheme and does not in any manner indicate either the quality of
the Scheme, its future prospects or returns. Investment in the units of the Scheme involves
investment risks such as market risk, trading volumes, settlement risk, liquidity risk, interest rate
risk, default risk including the possible loss of principal, fluctuations in NAVs, uncertainty of dividend
distributions etc. For detailed risk factors please refer the SID. The Sponsors are not responsible
or liable for any loss or shortfall resulting from the operations of the Scheme(s) beyond the initial
contribution of an amount of ` 1 lakh each, made by them towards setting up the Mutual Fund.
Unitholders / Investors are not being offered any guaranteed /assured returns under any scheme of
Union KBC Mutual Fund.
Statutory Details: Constitution: Union KBC Mutual Fund has been set up as a Trust under the
Indian Trusts Act, 1882. Settlors / Sponsors: Union Bank of India and KBC Participations Renta,
a 100% subsidiary of KBC Asset Management NV (liability restricted to their initial contribution of
` 1 lakh each to the corpus). Trustee: Union KBC Trustee Company Private Limited, a company
incorporated under the Companies Act, 1956 with a limited liability. Investment Manager: Union
KBC Asset Management Company Private Limited, a company incorporated under the Companies
Act, 1956 with a limited liability.
Mutual Fund investments are subject to market risks. Please read the Statement of
Additional Information (SAI) and the Scheme Information Document (SID) and Key
Information Memorandum (KIM) carefully before investing.
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