Baroda Pioneer Asset Management Company Ltd. (“Baroda Pioneer AMC”) has announced the launch of Baroda Pioneer Ultra Short Duration Fund, an open ended debt scheme that focuses on investing in a combination of short term debt instruments including treasury bills, certificate of deposits, commercial papers and corporate bonds such that the Macaulay duration* of the portfolio is between 3 months and 6 months.
Mr. Anthony Heredia, CEO, Baroda Pioneer AMC, said “Baroda Pioneer is expanding its product basket to provide appropriate investment solutions for its investors and partners. The new fund offer of Baroda Pioneer Ultra Short Duration Fund is one such product that becomes increasingly relevant in volatile fixed income markets. At Baroda Pioneer, we remain committed to supporting the needs of our investors, and will look to launch more products based on the market environment”.
Speaking on the launch of the New Fund Offer (“NFO"), Mr. Alok Sahoo, Head of Fixed Income, Baroda Pioneer AMC, said, “The surge in yields has been higher than anticipated, but the valuations seem attractive especially in the short tenor segment. We may see range bound markets with an upward bias, and short duration funds will become increasingly relevant in such market scenarios. Keeping this in mind, we are launching a new fund – Baroda Pioneer Ultra Short Duration Fund. The fund aims at investing in instruments such that Macaulay duration* of the portfolio is between 3 months and 6 months. This product is best suited for investors looking for reasonable income with lower levels of volatility.”
The NFO commences on 24th May 2018 and closes on 29th May 2018. The fund has no entry or exit load and its benchmark is CRISIL Ultra Short Fund Index. Units will be issued at INR. 1000/- per unit, the minimum application amount is Rs.5000/- and in multiples of Re.1 thereafter.