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    Prudential ICICI Mutual Fund

    IMPORTANT NOTICE

    Investing in mutual fund schemes involves certain risks and considerations associated generally with making investments insecurities. The value of the Schemes investments may be affected generally by factors affecting financial markets, such as priceand volume, volatility in interest rates, currency exchange rates, changes in regulatory and administrative policies of the Governmentor any other appropriate authority (including tax laws) or other political and economic developments. Consequently, there canbe no assurance that the Scheme offered in this Offer Document would achieve the stated objectives. The NAV of the Units of theScheme may fluctuate and can go up or down. Past performance of the schemes managed by the Sponsors or their affiliates orthe Asset Management Company is not indicative of the future performance of the Scheme nor will the performance of theScheme, following the commencement of the operations, be indicative of the Schemes future performance.

    Prospective investors are advised to review this Offer Document carefully and in its entirety and consult their legal, tax andfinancial advisors to determine possible legal, tax and financial or any other consequences of subscribing to, purchasing orholding Units under the Scheme, before making an application to subscribe or purchase the Units.

    The Prudential ICICI Mutual Fund (the Fund) and the Prudential ICICI Asset Management Company Limited (the AMC), have notauthorized any person to give any information or make any representations, either oral or written, not stated in this OfferDocument in connection with issue of Units under the Scheme. Prospective investors are accordingly advised not to rely uponany information or representations not incorporated in this Offer Document. Any subscription, purchase or sale made by anyperson on the basis of statements or representations which are not contained in this Offer Document or which are inconsistentwith the information contained herein shall be solely at the risk of the investor.

    Unitholders / investors are requested to read and understand the Offer Document, Key Information Memorandum and riskfactors furnished with the scheme in which they seek to make investments or in which they have invested. Unitholders / Investorsare urged not to rely upon or be misled by any oral promises or statements made by the distributors / intermediaries of theMutual Fund and it is brought to the special attention of investors that the AMC / Mutual Fund will not be liable for mis-statement or communication by agents / distributors which are not previously expressly authorized / approved by the AMC /Mutual Fund.

    The AMC, Trust and Prudential ICICI Mutual Fund shall not be responsible for any claims made by the Unitholders / Investorsbased on such oral promises made by the distributors / intermediaries.

    The current Regulations impose certain restrictions and conditions on the AMC for entering into transactions with the Sponsorsand their associates on behalf of the Fund. These restrictions include:

    a) Purchase or sale of securities through any broker associated with the Sponsors or through a firm which is an associate of theSponsor(s) shall not exceed an average of 5% of the aggregate purchases and sale of securities made by the Fund in all itsSchemes in a block of any three months.

    b) Utilization of the services of the Sponsors or any of their associates, for the purpose of any securities transactions anddistribution and sale of securities shall be made only if a disclosure to this effect is made in the Offer Document and thebrokerage or commission paid is also disclosed in the half yearly annual accounts of the mutual fund.

    c) The Mutual Fund Scheme shall not make any investment in:

    1. any unlisted security of an associate or group company of the Sponsor; or

    2. any security issued by way of private placement by an associate or group company of the Sponsor; or

    3. the listed securities of group companies of the Sponsor which is in excess of 25% of its net assets.

    In this Offer Document, all references to $ are to United States of America Dollars, to Pound Sterling of United Kingdomand Rs. to Indian Rupees. The Reference Exchange Rate between the United States Dollar and the Indian Rupee has beentaken at $1 = Rs.44.38 and UK and Indian Rupee at 1=Rs.78.35.

    This Offer Document is dated January 20, 2006.

  • Prudential ICICI Mutual Fund

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    TABLE OF CONTENTS

    1. Highlights .............................................................................................................................................. 5

    2. Risk Factors .............................................................................................................................................. 8

    3. Due Diligence Certificate ........................................................................................................................ 15

    4. Definitions .............................................................................................................................................. 16

    5. Summary Prudential ICICI Fusion Fund ................................................................................................ 18

    6. Constitution of the Mutual Fund ............................................................................................................ 20

    a) The Sponsors ................................................................................................................................... 20

    b) The Trustee Company ...................................................................................................................... 21

    i. Directors ................................................................................................................................ 21

    ii. Rights and Obligations of the Trustee .................................................................................... 22

    iii. Trusteeship Fees ..................................................................................................................... 24

    c) Management of Asset Management Company (AMC) ..................................................................... 24

    i. Board of Directors of the AMC .............................................................................................. 24

    ii. Powers, Duties & Responsibilities of the AMC ....................................................................... 27

    iii. Key Employees of AMC & relevant experience ........................................................................ 28

    iv. Fund Manager ....................................................................................................................... 33

    v. Compliance Officer ................................................................................................................ 33

    vi. Investor Relations Officer ....................................................................................................... 33

    d) Auditors .......................................................................................................................................... 34

    e) Registrar .......................................................................................................................................... 34

    f) Custodian ........................................................................................................................................ 34

    7. Investment Objectives & Policies ........................................................................................................... 35

    Fundamental Attributes of the Scheme ..................................................................................................... 35

    a) Type of the Scheme .......................................................................................................................... 35

    b) Investment Objective ....................................................................................................................... 35

    c) Investment Pattern and Investment Policies ...................................................................................... 35

    d) Change in Investment Pattern .......................................................................................................... 36

    e) Terms of the Scheme ........................................................................................................................ 36

    f) Change in Fundamental Attributes .................................................................................................. 38

    g) Investment Strategy ......................................................................................................................... 38

    h) Portfolio Turnover ............................................................................................................................ 40

    i) Procedure followed for investment decisions ................................................................................... 41

    j) Exposure to Derivatives .................................................................................................................... 41

    k) Investment Restrictions for the Scheme ............................................................................................ 42

    l) Underwriting by the Fund ................................................................................................................ 43

    m) Computation of Net Asset Value ...................................................................................................... 43

    n) Ac