1.Reliance Fixed Horizon Fund – XX – Series 9 announces dividend.
Reliance Mutual Fund has announced 25 January 2012 as the record date for declaration of dividend under the dividend payout option of Reliance Fixed Horizon Fund – XX – Series 9. The quantum of dividend will be entire distributable surplus available in the scheme as on the record date on the face value of Rs. 10 per unit. The scheme recorded NAV of Rs. 10.2168 per unit as on 18 January 2012.
Reliance Fixed Horizon Fund – XX – Series 9 is a close ended income scheme.The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of Central and State Government securities and Other fixed income/ debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility.
News Source – INDIA INFOLINE.
Market regulator Sebi plans to allow mutual funds and insurance firms to subscribe to preferential issues of companies even if they have traded the shares of the issuing corporates in the past six months, to boost liquidity in the markets and make it easier for firms to raise funds. Such transactions are currently banned, blocking a key source of funds for companies. "The removal of the pre-preferential issue lock-in norm for financial firms would help India Inc raise resources from the domestic market," said the head of a foreign investment bank.
But this restriction will continue to be in place for promoters. A Sebi official said institutional investors such as mutual funds and insurance companies play an important role in ensuring liquidity in the secondary market.
News Source – ECONOMIC TIMES.
NEW FUND LAUNCH
Indiabulls Mutual Fund launched Indiabulls Blue Chip Fund, an open ended growth scheme. The new issue is open for subscription from 20th January and closes on 3rd February 2012.
News Source – AMFI INDIA.
Reliance Capital Asset Management has sold 26 per cent stake to Nippon Life Insurance Company in a deal signed in Mumbai on Thursday for Rs 1,450 crore. This values the company at Rs 5,600 crore. According to BL Research Bureau data, at Rs 1,450 crore for a 26 per cent stake, the deal values Reliance Mutual Fund at 6.8 per cent of its assets under management (as of December 2011 quarter).
News Source – BUSINESS LINE.
5.Union KBC to launch 3 products this year.
Union KBC, a joint venture asset management company formed by Union Bank of India and KBC of Belgium, is planning to increase the total asset size to Rs 5,000 crore by next year from the current Rs 1,000 crore by widening product portfolio among other initiatives.
The company has so far come up with four product offerings after it received mutual fund licence from the Securities and Exchange Board of India (Sebi) in March last year. It is now planning to launch three more products — an asset allocation fund with a mix of equity, debt and gold investments, a small and mid-cap fund and an ultra-short term debt fund — this year.
News Source – BUSINESS STANDARD.
6.Short-term rates up, as banks raise funds.
Interest rates on short-term debt instruments touched double digits on Thursday, as banks raised funds to meet credit growth targets in the last quarter of the current financial year. According to market participants, rates on certificates of deposit (CDs) issued by banks crossed 10 per cent on Thursday. Banks and mutual funds are major investors in short-term money market instruments. A revival in credit offtake is also a reason why banks with surplus liquidity have diverted funds from money market lending, resulting in upward pressure on short-term rates. On the other hand, mutual funds have recorded a lack of fresh flows.
Typically, banks and corporate bodies withdraw funds from mutual funds towards the end of a quarter, and such funds take about a month to find their way back into the system. According to RBI data, banks withdrew Rs 22,300 crore from mutual funds in the fortnight ended December 30. However, according to a new norm, banks are not permitted to invest more than 10 per cent of their net worth in liquid schemes of mutual funds. Banks' investments in mutual funds are unlikely to see any sharp rise, as the deadline to abide by the new norm expired in December.
News Source – BUSINESS STANDARD.