MUMBAI, JULY 15
TRUST Asset Management Company on Wednesday announced the launch of its New Fund Offer (NFO) – the TRUSTMF Short Term Fund which aims to build a portfolio of the highest rated issuers for investors to benefit from the persistent steepness in the Yield Curve in the 1-3 year segment. The company plans to raise between Rs 300 crore and Rs 600 crore from this NFO, senior official of the company said at a virtual press conference.
The NFO will be open for subscription from July 20 to August 3, 2021 and will be managed by Anand Nevatia, Fund Manager, TRUST Mutual Fund. This is the third launch from TRUST Mutual Fund with its first NFO of TRUSTMF Banking & PSU Debt Fund in January 2021 and TRUSTMF Liquid Fund in April 2021.
The TRUSTMF Short Term Fund will follow a structured investment approach backed by unique Limited Activ methodology, with the objective of delivering consistent risk-adjusted returns. The robust methodology has been developed in collaboration with CRISIL, the knowledge partner for initial debt schemes of TRUST Mutual Fund.
TRUSTMF Short Term Fund is another innovative offering from TRUST Mutual Fund. The Key Highlights of the TRUSTMF Short Term Fund are
- Focus on top quality investible universe of filtered AAA issuers
- Steepness in the Yield Curve combined with Roll Down opportunity may provide an opportunity to generate capital gains and some cushion against Yield increase
- Current curve far steeper than historical averages providing better opportunities
- Focus on Consistent risk adjusted returns in back testing of Model Portfolio by CRISIL.
Speaking on the launch of the TRUSTMF Short Term Fund, Sandeep Bagla, CEO, TRUST Mutual Fund said, “Short Term Income Funds have emerged as the most reliable fixed income category, having delivered consistent returns in times of volatile interest rates as well as uncertain credit environment. At TRUST Mutual Fund, we have crafted an innovative short term fund for our investors, which will aim to deliver consistent returns by taking advantage of the inherent steepness in the yield curve, ideal for a minimum 6-12 month investment horizon”
Anand Nevatia, Fund Manager of TRUST Short Term Fund said, “Our research shows that the steepness on the short end of the curve, particularly in the 1-3 year segment, is far higher than historical averages. This, coupled with fact that the portfolio will focus on only select AAA rated issuers and sovereign bonds, makes our short duration strategy fairly watertight when it comes to delivering consistent returns for our investors.”
This product is suitable for investors who are seeking income over short term and investment in debt & money market instruments with portfolio, they said.
