Thursday, March 5, 2009

Reliance Floating Rate Fund Changes In Asset Allocation- March 5, 2009

Reliance Mutual Fund has announced the change in the asset allocation pattern of the Reliance Floating Rate Fund. The change will be effective from 4 April 2009.

Accordingly, the scheme will invest upto 25%-100% in money market instruments and floating rate debt instruments (including floating rate securitised debt and fixed rate debt swapped for floating rate returns) and upto 75% in fixed rate debt instruments (including fixed rate securitised debt and floating rate debt swapped for fixed rate returns)

Presently, the schemes invests upto 40% in fixed rate debt securities (including fixed rate securitised debt, money market instrument and floating rate debt instruments swapped for fixed rate returns) and upto 60%-100% Floating rate debt securities (including floating rate securitised debt, money market instruments and fixed rate debt instruments swapped for floating rate returns).

Since the proposed change would result in change in the fundamental attributes of the scheme, all the existing unitholders fo the scheme shall have an option to exit the scheme by sending a valid redemption/ switch out request at the prevailing Net Asset value without any exit load for a period of 30 days from 4 March 2009 to 03 April 2009 (both days inclusive). Unitholder do not exercise the exit option by 3 April 2009 would be deemed to have consented to the proposed change.

Reliance Floating Rate Fund is an open ended liquid scheme with an objective to generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including fixed rate securitised debt, money market instrument and floating rate debt instruments swapped for fixed rate returns).

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