Samco Mutual Fund launched its first program, Samco Flexi Cap Fund, for subscription on January 17th. As per the plan’s asset allocation schedule, 65-100% will be invested in Indian equities, 0-35% in foreign securities and 0-35% in tri-party pensions (TREPS). TREPS includes borrowing and lending short-term funds.
The Flexi-cap class of mutual funds may invest a minimum of 65% of its corpus in stocks of all market capitalizations.
Since the program can invest up to 35% in TREPS instruments, the market regulator Securities and Exchange Board of India (Sebi) has ordered the asset management company (AMC) to remove the reference to the word “ pure equity scheme” from its website.
Sebi asked the fund house for additional information about its proprietary HexaShield investment framework, which the AMC says tests and rates companies on 6 facets of risk and stress to verify the company’s ability to stay afloat in adverse economic scenarios.
According to the fund house, the 6 facets of testing that are tracked in the HexaShield framework are: Competitive Strength and Pricing Power, Balance Sheet and Insolvency, Reinvestment and Growth, Corporate Governance and Leadership, and Cash Flow and Regulation.
Sebi’s notice to the fund house seeks to incorporate this Hexashield framework into the investment strategy section of the SAMCO Flexi Cap fund’s SID, key information memorandum with application form (KIM) and statement of information. additional information (SAI) of Samco Mutual Fund.
SEBI also asked the fund house to change the mutual fund’s tagline to avoid any dissonance with regulatory language. Thus, the slogan changed from “stress-tested mutual fund” to “hexashield-tested investments”.
As a result of the changes and additional information described above, unitholders of the Flexi Cap program on the record date of February 4, 2022 were offered an option to redeem units at the prevailing net asset value. without any output load. This release window opened on February 9, 2022 and will close on February 24, 2022.
Investors wishing to withdraw can follow the normal redemption process (both physical and online) and submit forms at Investor Service Centers/online. In addition, interest at the rate of 15% per annum will be paid by the fund house to the outgoing unitholder from the closing date of NFO (January 31, 2022) until the date of payment of the amount.
Unitholders who do not exercise the exit option by February 24, 2022 would be deemed to have consented to the proposed amendment.
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