BWI: Infra BeES, India’s First Infrastructure Sector ETF Launched

Press release from Business Wire India
Source: Benchmark Mutual Fund
Tuesday, October 05, 2010 07:17 AM IST (01:47 AM GMT)
Editors: General: People, Politics; Business: Accounting & management consultancy services, Advertising, PR & marketing, Banking & financial services, Business services, Construction, Financial Analyst, Real estate, Stock exchanges
————————————————–
Infra BeES, India’s First Infrastructure Sector ETF Launched

Mumbai, Maharashtra, India, Tuesday, October 05, 2010 — (Business Wire India) — Infrastructure Benchmark Exchange Traded Scheme (Infra BeES), India’s first Index Exchange Traded Fund (ETF) on Infrastructure sector from Benchmark Asset Management Co. Pvt. Ltd. is being listed on the National Stock Exchange on October 5, 2010. This is the first Infrastructure sector fund which will mirror CNX Infrastructure Index.

The index includes companies belonging to Telecom, Power, Port, Air, Roads, Railways, Shipping and other Utility Services Providers.

Investors can now participate in the rapidly growing Infrastructure sector in India, which hold the key to our country’s fast growing GDP.

As per the 11th Five Year Plan Report of the Planning Commission Government of India, the average GDP growth of 7.7% achieved in the tenth five year plan period has been the highest in any Plan period so far. Further according to the report, the average GDP growth of 9% or above can be achieved and sustained only if infrastructure deficit is overcome.

According to the estimates of the Planning Commission report the Projected Total Infrastructure investment as % of GDP in XIth Five Year Plan is estimated to increase to 7.55% as against 5.08% in Xth Five Year Plan. This roughly translates into an infrastructure investment of Rs. 6 lac crore.

ETFs as a category are gaining popularity amongst investors as they are diversified mutual fund portfolios that trade like stocks on the stock exchange.

Benchmark Asset Management Company Pvt. Ltd. is the first asset management company in India to focus on Indexing. It has launched first ETF in India in 2001 and has also given concept of Gold ETF to the world. It is always making conscientious effort to bring new and innovative products in India. Its current assets under management as on September 30, 2010 are Rs. 2608.53 crore.

STATUTORY DETAILS: Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Trustee: Benchmark Trustee Company Pvt. Ltd. Investment Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial Services Pvt. Ltd. Custodian: Citibank NA. Fund Accountants: Citibank NA. Registrar and Transfer Agents: Karvy Computershare Pvt. Ltd. Fund Name and classification: Infrastructure Benchmark Exchange Traded Scheme, An Open-Ended, exchange listed, Index Scheme tracking CNX Infrastructure Index. Investment Objective: The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Infrastructure Index by investing in the securities in the same proportion as in the Index. However, the performance of Scheme may differ from that of the Underlying Index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved. Investment Pattern: 95%-100% of net assets in securities covered by the CNX Infrastructure Index; 0%-5% of net assets in Money Market Instruments, G-Secs, Bonds, Debentures and cash at call. Option: The Scheme offers only Growth Option. Load: Entry Load – Nil; Exit Load – Nil. Terms of Issue: i) On the exchange – On NSE, the units of Infra BeES can be purchased/ sold in minimum lot of 1 unit and in multiples thereof. ii) Directly with the Fund – The Minimum number of units of Infra BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof. Pricing of the unit: 1/10th of CNX Infrastructure Index. RISK FACTORS: 1) All Mutual funds and Securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Scheme will be achieved. (2)As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. (3) Past performance of the Sponsors/Investment Manager/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provided a basis of comparison with other investments. (4) Infrastructure Benchmark Exchange Traded Scheme (Infra BeES) is the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme. (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. (6) The present Scheme is not a guaranteed or assured return Scheme. (7) The Scheme’s
NAV will react to the securities market movements. The Investor could lose money over short periods due to fluctuation in the Scheme’s NAV in response to factors such as economic and political developments, changes in interest rates and perceived trends in securities prices, market movements, and over longer periods during market downturns. (8) IISL Disclaimer : The Product on CNX Infrastructure Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the Product linked to CNX Infrastructure Index or particularly in the ability of the CNX Infrastructure Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Infrastructure Index in the Scheme Information Document / Prospectus / Information Statement. (9) NSE Disclaimer : It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document . The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. (10) Please read the Scheme Information Document (SID) and Statement of Additional Information (SAI) carefully before investing. (11) For Scheme specific risk factors kindly refer SID.

CONTACT DETAILS
Namrata Suryavanshi Senior Manager – Marketing, Benchmark Mutual Fund, +91 9833944596 +91 (22)66512727, namrata.suryavanshi@benchmarkfunds.com

KEYWORDS
PEOPLE, POLITICS, CONSULTANCY SERVICES, MARKETING, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, STOCK EXCHANGES

If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.

Submit your press release at http://www.businesswireindia.com

BWI: Infra BeES, India’s First Infrastructure Sector ETF Launched

Press release from Business Wire India
Source: Benchmark Mutual Fund
Tuesday, October 05, 2010 07:17 AM IST (01:47 AM GMT)
Editors: General: People, Politics; Business: Accounting & management consultancy services, Advertising, PR & marketing, Banking & financial services, Business services, Construction, Financial Analyst, Real estate, Stock exchanges
————————————————–
Infra BeES, India’s First Infrastructure Sector ETF Launched

Mumbai, Maharashtra, India, Tuesday, October 05, 2010 — (Business Wire India) — Infrastructure Benchmark Exchange Traded Scheme (Infra BeES), India’s first Index Exchange Traded Fund (ETF) on Infrastructure sector from Benchmark Asset Management Co. Pvt. Ltd. is being listed on the National Stock Exchange on October 5, 2010. This is the first Infrastructure sector fund which will mirror CNX Infrastructure Index.

The index includes companies belonging to Telecom, Power, Port, Air, Roads, Railways, Shipping and other Utility Services Providers.

Investors can now participate in the rapidly growing Infrastructure sector in India, which hold the key to our country’s fast growing GDP.

As per the 11th Five Year Plan Report of the Planning Commission Government of India, the average GDP growth of 7.7% achieved in the tenth five year plan period has been the highest in any Plan period so far. Further according to the report, the average GDP growth of 9% or above can be achieved and sustained only if infrastructure deficit is overcome.

According to the estimates of the Planning Commission report the Projected Total Infrastructure investment as % of GDP in XIth Five Year Plan is estimated to increase to 7.55% as against 5.08% in Xth Five Year Plan. This roughly translates into an infrastructure investment of Rs. 6 lac crore.

ETFs as a category are gaining popularity amongst investors as they are diversified mutual fund portfolios that trade like stocks on the stock exchange.

Benchmark Asset Management Company Pvt. Ltd. is the first asset management company in India to focus on Indexing. It has launched first ETF in India in 2001 and has also given concept of Gold ETF to the world. It is always making conscientious effort to bring new and innovative products in India. Its current assets under management as on September 30, 2010 are Rs. 2608.53 crore.

STATUTORY DETAILS: Constitution: Benchmark Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Trustee: Benchmark Trustee Company Pvt. Ltd. Investment Manager: Benchmark Asset Management Company Pvt. Ltd. Sponsor: Niche Financial Services Pvt. Ltd. Custodian: Citibank NA. Fund Accountants: Citibank NA. Registrar and Transfer Agents: Karvy Computershare Pvt. Ltd. Fund Name and classification: Infrastructure Benchmark Exchange Traded Scheme, An Open-Ended, exchange listed, Index Scheme tracking CNX Infrastructure Index. Investment Objective: The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Infrastructure Index by investing in the securities in the same proportion as in the Index. However, the performance of Scheme may differ from that of the Underlying Index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved. Investment Pattern: 95%-100% of net assets in securities covered by the CNX Infrastructure Index; 0%-5% of net assets in Money Market Instruments, G-Secs, Bonds, Debentures and cash at call. Option: The Scheme offers only Growth Option. Load: Entry Load – Nil; Exit Load – Nil. Terms of Issue: i) On the exchange – On NSE, the units of Infra BeES can be purchased/ sold in minimum lot of 1 unit and in multiples thereof. ii) Directly with the Fund – The Minimum number of units of Infra BeES that investors can create/redeem in exchange of Portfolio Deposit and cash component is 10,000 units and in multiples thereof. Pricing of the unit: 1/10th of CNX Infrastructure Index. RISK FACTORS: 1) All Mutual funds and Securities investments are subject to market risks and there can be no assurance or guarantee that the objective of the Scheme will be achieved. (2)As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Scheme can go up or down depending on the factors and forces affecting the securities market. (3) Past performance of the Sponsors/Investment Manager/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provided a basis of comparison with other investments. (4) Infrastructure Benchmark Exchange Traded Scheme (Infra BeES) is the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme. (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund. (6) The present Scheme is not a guaranteed or assured return Scheme. (7) The Scheme’s
NAV will react to the securities market movements. The Investor could lose money over short periods due to fluctuation in the Scheme’s NAV in response to factors such as economic and political developments, changes in interest rates and perceived trends in securities prices, market movements, and over longer periods during market downturns. (8) IISL Disclaimer : The Product on CNX Infrastructure Index is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). IISL does not make and expressly disclaims any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) regarding the advisability of investing in the Product linked to CNX Infrastructure Index or particularly in the ability of the CNX Infrastructure Index to track general stock market performance in India. Please read the full Disclaimers in relation to the CNX Infrastructure Index in the Scheme Information Document / Prospectus / Information Statement. (9) NSE Disclaimer : It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document . The investors are advised to refer to the Scheme Information Document for the full text of the Disclaimer Clause of NSE. (10) Please read the Scheme Information Document (SID) and Statement of Additional Information (SAI) carefully before investing. (11) For Scheme specific risk factors kindly refer SID.

CONTACT DETAILS
Namrata Suryavanshi Senior Manager – Marketing, Benchmark Mutual Fund, +91 9833944596 +91 (22)66512727, namrata.suryavanshi@benchmarkfunds.com

KEYWORDS
PEOPLE, POLITICS, CONSULTANCY SERVICES, MARKETING, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, STOCK EXCHANGES

If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.

Submit your press release at http://www.businesswireindia.com