New Delhi, July 27, 2022: Canara Robeco Mutual Fund announced the launch of Canara Robeco Banking and PSU Debt Fund, an open-ended debt scheme that would predominantly invest in debt instruments of banks, public sector undertakings, public financial institutions, and municipal bonds.
The new fund offer in Canara Robeco Banking and PSU Debt Fund, would open for initial subscription on Friday, July 29, 2022, and close on Friday, August 12, 2022. Thereafter, being an open-ended debt scheme, it would be open for subscription on an on-going basis, effective, on or before August 29, 2022.
Canara Robeco Banking and PSU Debt Fund would be an actively managed scheme which would endeavor to invest in high grade assets, primarily AAA rated bonds of Banks and PSUs. The new fund would aim to manage duration and capture opportunities in the interest rate cycle and mispricing on the yield curve.
Canara Robeco Banking and PSU Debt Fund intends to maintain high credit quality and liquidity in the portfolio. The risk associated with issuances by Banks and PSUs are relatively lower due to comprehensive Regulatory framework for Banks by the Reserve Bank of India and the Government Ownership in case of PSUs/PFIs.
Speaking on the occasion, Mr. Avnish Jain, Fixed Income and Fund Manager, said: “We would endeavor to maintain a conservative portfolio through exposure to high credit quality issuers with low credit risk profile and follow Optimal Diversification among various issuers within Banking & PSU space.”
To ensure overall portfolio liquidity for Canara Robeco Banking and PSU Debt Fund, Mr. Jain said, we would follow a three-pronged approach, contain risks by adhering to issuer/sector limits, Track Liquidity closely, and Manage portfolio concentration & Weighted average maturity.
Given our experience in managing debt portfolios with high credit quality papers and with low credit risk, we have planned New Fund Offer in the Banking and PSU Category, Mr Jain said.
The overall allocation for the Canara Robeco Banking and PSU Debt Fund would comprise 80-100 per cent of the portfolio to be invested in bonds and money market instruments issued by banks, PSUs, PFIs and municipal bonds, while 0-20 per cent in debt (including G-secs/SDLs) and money market instruments issued by entities other than banks, PFIs, PSUs and municipal bonds and 0-10 per cent in the units issued by REITs and InvITs. For more information on Asset Allocation, investor may refer offer document.
Mr. Avnish Jain, Head Fixed-Income will be the dedicated fund manager for Canara Robeco Banking and PSU Debt Fund.
The benchmark index of the Fund is the CRISIL Banking and PSU Debt Index.