Itc Threadneedle Debt Fund In March

ITC Classic Threadneedle Asset Management Ltd is launching a pure debt fund next month.

It also plans to launch another fund with an equity flavour to it, the company managing director Richard Overton, said.

Asked about reports that ITC was planning to sell ITC Classic Finance, Overton said, All I can say is that both shareholders are extremely supportive to our business. But I am not involved in the decision making about selling ITC Classic Finance, so I can say nothing about it. The company, owned equally by ITC Classic Finance and Threadneedle Asset Management of the United Kingdom, launched its first fund which raised Rs 52 crore in August last year. Called Top 200 fund, it has so far invested in only 21 companies. Its net asset value (NAV) on February 19 was Rs 10.26.

 

About the debt fund, Overton said, The idea is to have a family of funds to provide a variety of options to our loyal investors.

The debt fund will enable investors to enjoy the advantages of liquidity while indirectly investing in high-yield debt paper. An investor can redeem his investments anytime after 12 months at the going Net Asset Value (NAV).

There will, however, be a 1.5 per cent redemption charge if an investor seeks to redeem it within the first 12 months.

He refused to disclose the target being sought by the debt fund, saying it is not wise to hazard a guess in a market where the retail customer has demonstrated low-key response to all mutual funds in recent times.

The fund will mostly focus on highly rated bonds and debt paper.

For investments in unrated debt paper, the permission of the funds board of directors will have to be sought, he explained.

Overton said investors can take advantage of indexing by investing in growth units of the fund on March 31, 1997 and redeeming it on April 1, 1998.