OFFER DOCUMENT ON CONVERSION OF

 BOB ELSS’97 TO OPEN ENDED SCHEME.

 

BOB MUTUAL FUND

(Sponsor: Bank of Baroda)

 

Investment Manager: BOB Asset Management Company Ltd.

 

105, Maker Chambers III, 10th floor,

Nariman Point, Mumbai 400 021

 

BOB OPPORTUNITIES FUND

Open Ended Equity Linked Growth Scheme

 

 

 

SPONSOR

TRUST

ASSET MANAGEMENT COMPANY

BANK OF BARODA

BOB MUTUAL FUND

BOB ASSET MANAGEMENT COMPANY LTD.

H.O. Mandvi

BARODA

105, Maker Chambers III,

10th floor, Nariman Point,

Mumbai 400 021

www: bobmf.com

 

105, Maker Chambers III,

10th floor, Nariman Point,

Mumbai 400 021

Tel: 2285 3323   

Fax: 2288 0009

E-mail: bobamc@bobmf.com

 

Proposed date of conversion into an open ended scheme : _____________

 

Price of Units : NAV Linked

Face Value of Units : Rs.10/- per unit

 

 

This Offer Document sets forth concisely information about the Scheme that a prospective investor ought to know before investing. Prospective Investors should read and review the complete offer document carefully and in its entirety and consult their legal, tax and/financial advisors before making an investment decision. This Offer Document should be retained for future reference.

 

DISCLAIMER

 

The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (SEBI) (Mutual Funds) Regulations 1996, as amended till date and filed with SEBI and the Units being offered for public subscription has neither been approved nor disapproved by SEBI nor has SEBI certified the accuracy or adequacy of the Offer Document. This Offer Document shall remain effective till a material change occurs and material changes shall be filed with SEBI and circulated to unit holders or may be publicly notified by advertisements in newspapers subject to the Regulations.

 

 

 

 

 

 

 

BOB MUTUAL FUND                                                                                   

 

INDEX

 

 

SR. NO.

TABLE OF CONTENTS

PAGE

1.

DEFINITION

3

2

RISK FACTORS

3

3.

HIGHLIGHTS OF THE SCHEME

8

4.

CONSTITUTION OF THE MUTUAL FUND

9

5.

MANAGEMENT OF THE FUND

13

6.

INVESTMENT OBJECTIVES AND POLICY

20

7.

ACCOUNTING POLICY

26

8.

NAV VALUATION OF ASSETS OF THE SCHEMES

28

9.

LOAD AND EXPENSES

31

10.

UNITS AND OFFER

35

11.

SALE OF UNITS

38

12.

DIVIDENDS AND DISTRIBUTION

42

13.

CONDENSED FINANCIAL INFORMATION

42

14.

INTER SCHEME TRANSFER

50

15.

ASSOCIATE TRANSACTIONS

50

16.

BORROWINGS BY THE MUTUAL FUND

50

17.

TAX BENIFITS

51

18.

INVESTORS RIGHTS AND SERVICES

54

19.

INVESTOR GRIEVANCES REDRESSAL MECHANISM

55

20

PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY

56

21

MISCELLANEOUS PROVISIONS AND OTHER INFORMATION

 

58

22

DUE DILIGENCE CERTIFICATE

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. DEFINITIONS

 

In this Offer Document the following words and expressions shall have the meaning specified herein unless the context otherwise requires:

 

BOBAMC or Investment Manager or Asset

 Management Company (AMC)

 

BOB Asset Management Company Limited

Mutual Fund or BOBMF

BOB Mutual Fund, constituted under Trust Deed and sponsored by Bank of Baroda

NAV

The Net Asset Value of the Scheme calculated and published in the manner  provided in this Offer Document

Applicable NAV

Purchase

In respect of valid application received up to 3 p. m. along with a local cheque or demand draft payable at par at place where the application is received, Closing NAV of the day of receipt of application

 

In respect of valid application received after 3 p.m. by the Mutual Fund along with the local cheque or demand draft Closing NAV of the next business day

 

In respect of valid applications with outstation cheque/ demand drafts not payable at par at the place application is received, Closing NAV of the day on which the the cheque or demand draft is credited.  

Re-Purchase

Where the application is received upto 3.00 pm - Closing NAV of the day of receipt of application.

 

Where the application is received after 3.00 pm - Closing NAV of the next business day.

 

Offer Document

This Offer Document through which units of BOB Opportunities Fund are being offered for subscription.

Registrar and Transfer Agents (R&T Agent) and Registrars to the Schemes

Karvy Computershare Private . Ltd.

 

 

Scheme

BOB Opportunities Fund An Open Ended Equity Scheme

SEBI

Securities and Exchange Board of India constituted under the Securities and Exchange Board of India Act, 1992, as amended from time to time.

SEBI Regulation or Regulations

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time including all SEBI notifications, guidelines and circulars issued by SEBI from time to time relating to mutual funds.

Sponsor

Bank of Baroda

Trustees, Board of Trustees

The Board of Trustees of BOB Mutual Fund

Trust Deed

The Trust Deed dated 30th October, 1992

Units

The Units which are offered for subscription under this Offer Document

Unitholder

A person holding units of the Schemes(s)

Business Day/Working Day

Any day other than:

a)     Saturday and Sunday.

b)     A day on which, The Stock Exchange, Mumbai or National Stock Exchange, Banks, Reserve Bank of India in Mumbai are closed.

c)     A day on which there is no RBI clearing/settlement of securities

d)     A day on which sale and/or redemption/switches of units is Suspended by the Trustees/AMC. Further, the day(s) on which money Markets are closed/ not accessible shall not be treated as business day.

      

Custodian

HDFC Bank, Mumbai

Government Securities/Gilts

Securities created and issued by the Central Government and/or a State Government (including Treasury Bills) or Government Securities as defined in the Public Debt Act, 1944, including any amendments/clarifications and guidelines or circulars issued in relation thereto.

Repo/Reverse Repo

Sale/Purchase of Government securities with simultaneous agreement to repurchase/resell them at a later date.

 

RBI

Reserve Bank of India, established under the Reserve Bank of India Act, 1934.

Entry Load

Load on purchases

Exit Load

Load on redemptions

 

2. RISK FACTORS

 

These risk factors may be peculiar to the Mutual Fund as well as that attendant with specific policies and objectives of the Scheme.

 

Standard Risk Factors

a)     Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Mutual Fund will be achieved.

b)     As with any investments in securities, the Net Asset Value (NAV) of the units of the Scheme can go up as well as down depending on the factors and forces affecting securities markets.

c)     Past performance of the Sponsor/the Asset Management Company/Mutual Fund does not indicate the future performance of the Scheme of the Mutual Fund.

d)     The name of the Scheme does not in any manner indicate either the quality of the Scheme, or its future prospects and returns.

e)     The Sponsor is neither responsible nor liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 10 Lac made by it towards the corpus of the Fund.

f)       As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No.10/22701/03, each scheme and individual plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of the of such scheme /plan(s).

 

In case of non-fulfillment with either of the above two conditions in a three months time period or the end of succeeding calendar quarter, whichever is earlier, from the close of IPO (Initial Public Offering) of the scheme or on an ongoing basis for each calendar quarter, the scheme/plan shall be wound up by following the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV. After conversion of BOB ELSS’97 to BOB Opportunities Fund, if the above stipulation is not met, the scheme will be wound up and the investors’ money would be redeemed at applicable NAV

Note:

a)     Investors in the Scheme are not being offered a guarantee or assured rate of return.

b)     Prospective investors should refer to the Offer Document carefully and in its entirety and consult their legal, tax and financial advisers to determine possible legal, tax, financial or other consequences of subscribing, purchasing or holding units before making an application for units.

c)     Any information or representation concerning BOB Mutual Fund or the Scheme, which is inconsistent with what has been set out herein, is unauthorized.

d)     Any change made in the Offer Document is subject to the SEBI Regulations as amended from time to time.

 

Scheme Specific Risk Factors

 

i.        All financial investments carry market and other risks and there is no assurance that the objectives of the scheme will be achieved.

 

ii.       The Sponsor is neither responsible nor liable for any loss resulting from the operation of the scheme beyond the initial contribution of Rs. 10 Lac made by it towards the corpus of the Fund.

 

iii.     Trading volumes, settlement periods and transfer procedures may restrict the liquidity of the scheme’s investments. In the event of inordinately large number of redemption requests or of a restructuring of the scheme’s portfolio, the time taken by the BOBMF for redemption of BOB Growth Fund units may be adversely affected. Please see “Right to Limit Redemptions” of BOB Growth Fund as mentioned in clause 15(iv) herein below.

 

iv.    Subject to the availability and permissibility, the funds of the scheme may be deployed for derivative transactions, which may entail risks, which could limit any potential gain by, increase or decrease in value of the position hedged. Further, exposure to derivatives in excess of hedging requirements could lead to losses.

 

v.      Derivative Risk: The derivative will entail a counter – party risk to the extent of the amount that can become due from the party. The cost of hedge can be higher than the adverse impect of market movements. An exposure to derivatives in the excess of the hedging requirements can lead to losses. An exposure to Derivatives can also limit the profit from a genuine investment transaction. Efficiency of a Derivatives market depends upon the development of the liquid and efficient market for underlying securities and also on the suitable and acceptable benchmark.

      

 

vi.    Credit Risk: In simple terms this risk means that the issuer of a debenture/bond or a money market instrument may default on interest payment or even in paying back the principal amount on maturity. Even where no default occurs, the price of a security may go down because the credit rating of an issuer goes down. It must be however noted that where the scheme has invested in government securities, there is no credit risk in respect of the same.

 

vii.   Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the securities in the scheme are reinvested.  The additional income from reinvestment is the “interest on interest” component.  The risk is that the rate at which interim cash flows can be reinvested may be lower than that originally assured.

 

viii. Liquidity of the scheme may suffer if the guidelines issued by RBI or any other regulatory body applicable to liquid funds undergo any major changes.

 

ix.     Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risks, in comparison to securities that are listed on the exchanges or offer other exit options to investors, including a put option. The AMC may choose to invest in unlisted securities that offer attractive yields. This may increase the risk of the portfolio.

 

x.      As zero coupon securities do not provide periodic interest payments to the holder of the security, these securities are more sensitive to changes in interest rate hence the risk of zero coupon securities is higher. The AMC may choose to invest in zero coupon securities that offer attractive yields. This may increase the risk of the portfolio.

 

xi.     From time to time and subject to the regulations, any unitholder or the Sponsor, investment companies of the Sponsor, funds managed by the Sponsor, their affiliates, associate companies, subsidiaries, the AMC and the Trustee Company may acquire a substantial portion of the units of the Scheme and collectively constitute a major investor in the scheme. Accordingly, redemption of units by such entities may have an adverse impact on the units of the scheme because the timing of such redemption may impact the ability of other unitholders to redeem their units.

 

xii.   The Scheme may also invest in overseas financial assets as may be permitted by the concerned regulatory authorities in India. To the extent that the assets of the Scheme will be invested in securities dominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investments.

 

Notification of Prevention of Money Laundering Act

 

The AMC Shall comply with all applicable anti money laundering law and regulation in all of its operations, including without limitation, the Prevention of Money Laundering Act, 2002 and the rules under it, which have been notified in the Gazette and made effective from July 1, 2005.

 

Prevention of Money Laundering

 

In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under and the guidelines/circulars issued by SEBI regarding the Anti Money Laundering (AML Laws), all intermediaries, including Mutual Funds, have to formulate and implement a client identification programme, verify and maintain the record of identity and address (es) of investors.

 

In order to make the data capture and document submission easy and convenient for the investors, Mutual Fund Industry has collectively entrusted this responsibility of collection of documents relating to identity and address and record keeping to an independent agency (presently CDSL Ventures Limited) that will act as central record keeping agency (‘Central Agency’). As a token of having verified the identity and address and for efficient retrieval of records, the Central Agency will issue a Mutual Fund Identification Number (‘MIN’) to each investor who submits an application and the prescribed documents to the Central Agency.

 

Investors who have obtained the MIN can invest in the schemes of the mutual fund by quoting the MIN in lieu of submitting information and documents required under AML Laws.

 

Mutual Fund Identification Number

 

Investors who wish to obtain a MIN have to submit a completed Application Form for MIN (‘MIN Form’) along with all the prescribed documents listed in the MIN Form, at any of the Point of Service (‘POS’).  The MIN Form is available at our website (www.bobmf.com) and AMFI website (www.amfiindia.com). POS are the designated centers appointed by the Central Agency for receiving application forms, processing data and allotment of MIN.  List of and location of POS is available at our website (www.bobmf.com) and   www.amfiindia.com. On submission of application, documents and information to the satisfaction of the POS, the investor will be allotted a provisional MIN across the counter. Subsequently, the Central Agency will scrutinize the information and documents submitted by the investor, and confirm the MIN. However, the Central Agency may cancel the MIN within 15 working days from the date of allotment of provisional MIN, in case of any deficiency in the document/information. Intimation on cancellation of MIN will be dispatched by the Central Agency to the investor immediately. No communication will be sent to the investor if the MIN as allotted is confirmed.

 

Presently, it is mandatory for all applications for subscription of value of Rs.50, 000/- and above to quote the MIN of all the applicants (guardian in case of minor) in the application for subscription. The MIN will be validated with the records of the Central Agency before allotting units. Applications for subscriptions of value of Rs.50, 000/- and above without a valid MIN may be rejected.

 

In the event of any MIN Application Form being subsequently rejected for lack of information / deficiency / insufficiency of mandatory documentation, the investment transaction will be cancelled and the amount may be redeemed at applicable NAV, subject to payment of exit load, wherever applicable. Such redemption proceeds will be dispatched within a maximum period of 21 days from date of acceptance of application. (In case of an ELSS Scheme or a New Fund Offer, allotment will be done only on confirmation from the Central Agency that the MIN is final and if the Central Agency informs that the MIN is cancelled, the original amount invested will be refunded).

 

All investors (both individual and non-individual) can apply for a MIN. However, applicants should note that minors cannot apply for a MIN and any investment in the name of minors should be along with a Guardian, who should obtain a MIN for the purpose of investing with a Mutual Fund. Also, applicants / unit holders intending to apply for units / currently holding units and operating their Mutual Fund folios through a Power of Attorney (PoA) must ensure that the issuer of the PoA and the holder of the PoA must mention their respective MIN at the time of investment above the threshold. PoA holders are not permitted to apply for a MIN on behalf of the issuer of the PoA. Separate procedures are prescribed for change in name, address and other MIN related details, should the applicant desire to change such information. POS will extend the services of effecting such changes.

 

Applicants / Unit holders may contact our Investor Service Centers / their distributors, if any for any additional information/clarifications. Also, please visit our website www.bobmf.com for any other related information.

The Mutual Fund, Asset Management Company, The Trustees, the Directors, employee and agent shall not be liable in any manner for any claim arising whatsoever on account of freezing the folios/ rejection of any applications /allotment of units and redemption of units due to non compliance with the provision of the Act, SEBI Circular(s) and KYC Policy / or where the AMC believes that the transaction is suspicious in nature within the purview of the act and SEBI circular and reporting the same to the Financial Intelligence Units- India   

The Investor(s) should insure that the amount invested in the schemes through the legitimate sources only and dose not involve and is not designated for the purpose of any contravention or evasion of the provision of the Income Tax Act, 1961 the Prevention of Money Laundering Act , 2002 the Prevention of corruption Act 1988 / or any other applicable law in the force and also any law enacted by the government of India from time to time any rule regulation , notification and directions  issued thereunder.

 

3.Highlights of the Schemes

 

Name of Schemes

BOB OPPORTUNITIES FUND

Types of the Schemes

Open Ended Equity Scheme

Investment Objectives

The schemes is targeted for long-term capital appreciation through a well-researched portfolio comprising of equity, equity related instruments and money market instruments.

Investment

Investment in equity,  equity related instruments and money market instruments

Transparency

Transparency of operations i.e. determination of NAV on all business days, sale price, redemption price and full disclosure of investment portfolio periodically

Fund Manager

Mr. Deepak Acharya

Bench mark Index

BSE Sensex

Option

Growth Plan, Dividend Plan and Dividend Re-investment Plan

Minimum Investment

5,000/-

Load

Entry Load –  Investment below Rs. 2 crore             - 2.25%

                    Investment of Rs. 2 crores and above - Nil

 

Exit Load –     Investment below Rs. 2 crore             - Nil

                    Investment of Rs. 2 crores and above – 1.00%    

                    on any  redemption/ switch out within 3 months  

                    from the date of allotment

 

Tax Treatments

Tax benefits under the Income Tax Act, 1961, as amended from time to time.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.CONSTITUTION OF THE MUTUAL FUND

 

The Fund

 

BOB Mutual Fund has been established and set up as a Trust under the Indian Trust Act, 1882 by Bank of Baroda (Sponsor) and registered with SEBI. The objective of establishing BOBMF is to undertake Mutual Fund business as permitted by relevant regulatory authority. The functions and responsibilities of various constituents of BOBMF namely Sponsor, Trustees, Asset Management Company and Custodian are as under:

 

(i) Sponsor - Bank of Baroda

 

Bank of Baroda, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head office at Mandvi, Baroda and Central Office at Baroda Corporate Centre, C-26, G-Block, Bandra-Kurla Complex, Bandra (East) Mumbai - 400 051, is the Settlor of BOBMF. The Sponsor has contributed a sum of Rs. 10 Lac towards setting-up of BOBMF. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes beyond the initial contribution of the said sum of Rupees Ten Lac made by it towards setting up of BOB Mutual Fund.

 

Bank of Baroda was established in July 1908 by visionary Maharaja - Sir Sayajirao Gaikwad III. During the period since inception, it has always maintained its practice of sound value based banking to emerge as one of the premier public sector banks of the country today. It has a track record of uninterrupted profits since its inception in 1908. The financial strength of the Bank and its long traditions of efficient customer service are drawn substantially from the extensive reach of its 2704 strong branch network (as on 31.03.2006) covering almost every State and Union Territory in the Country. The Bank is also one of the few Indian Banks with a formidable presence overseas with 39 branches. Thus, the total branch network is 2743 as at 31.03.06.

 

To diversify its business activities and to perform specialised functions, the Bank has following Subsidiaries in India:

 

Name of the Subsidiary

Principal Business

BOB Asset Management Co. Ltd.

Investment Manager to BOB Mutual Fund

BOB Capital Markets Ltd.

Merchant Banking & Primary Dealership in Govt. Securities

BOB Cards Ltd.

Credit Card Operations

 

The financial performance of the Sponsor during the last 3 years is as under:

 

 

(Rupees in Crore)

 

 

Particulars

2003-2004

2004-2005

2005-2006

Total Income

7866

7744

8291

Total Expenditure

6899

7067

7464

Profit After Tax

967

844

826

Global Deposits

72967

81333

93661

Global Advances

35601

43400

59911

Capital Adequacy Ratio (%)

13.91

12.60

13.70

Paid-up Capital

295

294

365

Reserves & Surplus

4836

5333

7478

Networth

5131

5537

7843

Earning Per Share (in Rs.)

32.97

23.08

27.10

Book Value per Share (in Rs.)

166.46

183.83

209.18

Dividend paid %

65

50

60

 

 (ii) Board of Trustees

 

The Board of Trustees will supervise the functions of Asset Management Company and the Trustees shall ensure that the AMC complies with the SEBI (Mutual Funds) Regulations, 1996. The address of BOB Mutual Fund is 105, Maker Chambers III, 10th floor, Nariman Point, Mumbai 400 021.

 

BOARD OF TRUSTEES

 

Name

Occupation

Residential Address

Directorship

 

 

 

 

Shri R. L. Baxi

Chairman

Retired General Manager

New India Assurance Co. Ltd.

C – 23/24, Modinagar Adarsh Co-op Society,

 Off Mathuradas Road, Kandivali (West),

Mumbai - 400 067

GIC AMC Ltd.

ESS DEE Aluminum Ltd

 

 

 

 

Shri Arun C. Vakil

Economist,

Consultant

14/B, 96 – Kalpana Co-op. Hsg. Soc., Marine

Lines,

Mumbai – 400 002

Indo-American Society

 

 

 

 

Shri V.H. Bhatia

Retired General Manager

Bank of Baroda

101, Cypress Woods,

1st floor, 16 Road, near Shivsagar, Bandra (W)

Mumbai 400 050

Nil

 

 

 

 

Shri M.B.Samant

General Manager

(Operations)

Bank of Baroda

A- 12, BOB House, Opp. Tube Company, Old

Padra Road, Baroda-390 020

Nil

 
Rights, Duties and Responsibilities of the Trustees

 

The Board of Trustee monitors the activities of the AMC.  The Meeting of Trustee shall be held at least once in every two calendar months. Periodic reports, including quarterly review of each scheme, are submitted by the AMC to the trustees. Specific approval of the trustee is obtained on important matters such as a new schemes design and launch. During the year there are six Boards of trustees meeting held during the period April 1, 2006 to December 2006.

 

As per the Trust Deed and the SEBI (Mutual Funds) Regulations, 1996, the Trustees have several rights, duties and responsibilities including the following:

 

1.      To enter into an investment management agreement with the AMC with the prior approval of SEBI.

2.      To ensure that the investment management agreement contains such clauses as per mentioned in the Fourth Schedule of SEBI Regulation and such other clause as are necessary for the purpose of making investment.

3.      To ensure before launch of any Schemes that the AMC has: -

    1. System in place of the back office, dealing room and accounting;
    2. Appointed all key personnel including Fund Manager(s)for the scheme(s) and submitted their bio- data which shall contain the educational qualification, past experience in the securities market with the trustees, within 15 days of their appointment;
    3. Appointed auditors to audit its accounts;
    4. Appointed a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulation, notification, guidelines instruction, etc,. Issued by the Board or the Central Government and for redressal of investor’s grievances;
    5. Appointed registrar and laid down parameters for their supervision.
    6. Prepared a compliance manual and designed internal control mechanisms including internal audit systems;
    7. Specified norms for empanelment of broker and marketing agents.

4.      To ensure that the AMC has been diligent in empanelling the brokers, in monitoring securities transaction with the brokers and avoiding undue concentration of business with any broker.

5.      To ensure that the AMC has not given any undue and unfair advantage to any associate or dealt with any of the associate of the asset management company in any manner detrimental to the interest of the unit- holders.

6.      The Trustees shall ensure that the transactions entered into by the asset management company are in accordance with these regulation and the Schemes.

7.      To ensure that the AMC has been managing the mutual fund schemes independently of other activities and have taken adequate steps to ensure that the interests of one scheme are nor being compromised with those of any other schemes or of other activities of the asset management company.

8.      To ensure that all the activities of the AMC are in accordance with the provision of SEBI regulation.

9.      where the trustees have reason to believe that the conduct of the business of the mutual fund is not in accordance with SEBI Regulation and the scheme they shall forthwith take such remedial steps as are necessary by them and shall immediately inform the SEBI of the violation and the action taken by them.

10.  To file the details of his/her transaction of dealing in securities with the Fund on a quarterly basis.

11.  To be accountable for, and be the custodian of, the funds and the property of the respective scheme and to hold the same in trust or the benefit of the unit holders in accordance with the SEBI regulation and the provision of the trust deed.

12.  To take steps to ensure that the transactions of the mutual fund are in accordance with the provisions of the trust deed.

13.  To be responsible for the calculation of any income due to be paid to the mutual fund and also of any income received in the mutual fund for the holder of the units of any schemes in accordance with SEBI Regulation and the trust deed.

14.  To obtain consent of the unit holders:

               i.            Whenever required to do so by the board in the interest of the unit holders or;

              ii.            Whenever required to do so on the requisition made by three fourth of the unit holders of any Schemes;

            iii.            When the majority of the trustees decide to wind up or prematurely redeem the units;

15.  To call for details of transaction in securities by the Key personnel of the AMC in his own name or on behalf of the AMC and shall report to the SEBI, as and when required.

16.  To quarterly review all transaction carried out between the mutual fund, Asset Management Company and its associates.

17.  To continuously review the net worth of the AMC and in case of any shortfall, ensure that the AMC make up for the shortfall as per clause (f) of sub- regulation (1) of regulation 21 of SEBI Regulation.

18.  To periodically review all service contracts such as custody arrangements, transfer agency of the securities and satisfy itself that such contracts are executed in the interest of the unit – holders.

19.  To ensure that there is no conflict of interest between the manner of deployment of its net worth by AMC and the interest of unit holders.

20.  To periodic review the investor complaints received and the redressal of the same by the AMC.

21.  To abide by the code of conduct as specified in the fifth schedule of SEBI regulations.

22.  To furnish to the SEBI on a half yearly basis:-

              i.         A report on the activity of the mutual fund

             ii.         a certificate stating that the trustees have satisfied themselves that there have been no instance of    

       self dealing or front running by any of the trustees, directors and key personnel of the AMC;

           iii.          a certificate to the effect that the AMC has been managing the schemes independently of any other activities and in case any activities of the nature referred to in sub- regulation (2) of regulation 24 of SEBI Regulation have been undertaken by the AMC and has taken adequate steps to ensure that that the interest of the unit holders are protected.

23.  The independent trustee referred to in regulation 16 shall give their comments on the report received from    the AMC regarding the investments made by the schemes in the securities of group companies of the sponsor.

24.  The trustees shall ensure that no change in the fundamental attribute of any scheme or the trust or fees and expenses payable or any change which would modify the scheme and affects the interest of unit holders, shall be carried out unless, a written communication about the proposed change is sent to each unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the mutual fund is situated; and the unit holders are given an option to exit at the prevailing Net Asset Value without any Exit load in accordance with the terms of this offer document.

 

Explanation: For the purpose of this clause “fundamental attributes” means the investment objectives and term of the schemes as defined later in the offer Document under the section “ Investment objectives and Policies”

 

25.  To maintain arms’ length relationship with other companies, or institution or financial intermediaries or any body corporate with which he may be associated.

26.  To appoint a custodian and shall be responsible for the supervision of its activities in relation to the mutual fund and shall enter into a custodian agreement with the custodian for this purpose.

27.  To provide or cause to provide information to the unit holders and SEBI as may be specified by SEBI.

 

As per the sub-regulation (25) of the SEBI Regulations, the trustees shall exercise due diligence as under:

 

A.     General Due Diligence

 

                    i.      The Trustees shall be discerning in the appointment of the directors on the Board of Asset Management Company.

                   ii.      Trustees shall review the desirability of continuance of the asset management company if substantial irregularities are observed in any of the schemes and shall not allow the asset management company to float the new sachems.

                 iii.      The trustees shall ensure that the trust property is properly protected, held and administered by proper persons and by a proper number of such persons.

                iv.      The trustee shall ensure that all services providers are holding appropriate registration from the board of concerned regulatory authority.

                  v.      The trustees shall arrange for test checks of service contracts.

                vi.      Trustees shall immediately report to Board of any special development in the mutual fund.

 

B.    Specific Due Diligence

 

      The Trustees shall:

              i.      Obtain internal audit reports at regular intervals from independent auditors appointed by the Trustees

             ii.      Obtain compliance certificates at regular intervals from the asset management company.

           iii.      Hold meeting of trustees at frequent intervals.

          iv.      Consider the reports of the independent auditors and compliance reports of Asset Management Company at the meetings of trustees for appropriate action.

            v.      Maintain records of the decision of the trustees at their meetings and of the minutes of the meetings.

          vi.      Prescribe the adhere to a code of ethics by the trustees, Asset management company and its personnel.

         vii.      Communicate in writing to the asset management company of the deficiencies and checking on the rectification of deficiencies.

 

Notwithstanding the aforesaid, the trustee shall not be held liable for acts done in good faith if they have exercised adequate due diligence honestly.

28.  The Independent Directors of the trustees or the asset management company shall pay specific attention to the following, as may be applicable, namely:-

              i.      The Investment Management Agreement and the compensation paid under the agreement;

             ii.      Service contracts with affiliates – whether the asset management company has charged higher fees than outside contracts for the same services;

           iii.      Selection of the assets management company’s independent directors;

          iv.      Securities transaction involving affiliates to the extent such transaction are permitted;

            v.      Selecting and nominating individuals to fill independent directors vacancies;

          vi.      Code of ethics must be designed to prevent fraudulent, deceptive or manipulative practices by insiders in connection with personal securities transactions;

         vii.      The reasonableness of fees paid to sponsor, asset management company and any other for service provided;

       viii.      Principal underwriting contracts and their renewals;

           ix.      Any service contracts with the associates of the asset management company.

Trusteeship Fees

 

The non-associate trustees of BOBMF are paid trusteeship fees of Rs. 6,000/- for every meeting of Board of Trustees attended by them.

 

Modification of Trust Deed

No amendment on trust deed will be carried out without the prior approval of the SEBI and the unit holders approval would be obtained where it affects the interest of unit holders.

 

Auditors

M/s. Borkar & Muzumdar, Chartered Accountants, having their office at 235-37, Piramal Mansion, D. N. Road, Mumbai - 400 001, have been appointed as Statutory Auditors of BOBMF for the period ending 31st March, 2004. The Auditors of the Schemes are different from those of the BOB AMC.

 

 

 

5. MANAGEMENT OF FUND

 

BOB Asset Management Company Ltd. (BOBAMC) has been acting as Investment Manager for BOBMF and they will be managing this Scheme also. Further details about the BOB Asset Management Company are as follows.

About BOB Asset Management Company Ltd.

 

An Asset Management Company by the name of BOB Asset Management Company Limited (BOBAMC) has been incorporated under the provisions of the Companies Act, 1956. This is a wholly owned subsidiary company of Bank of Baroda with paid-up share capital of Rs. 20 Crore (Rupees Twenty Crore). The net worth of BOBAMC as on 31.12.2006 is Rs. 28.29 Crore. As per the SEBI (Mutual Funds) Regulations, 1996, atleast 50% of Board of Directors are Independent outside members and the remaining are nominated for appointment by the Sponsor of the Fund.

 

Investment Management Agreement: BOBAMC has entered into an Investment Management Agreement dated 24-11-1992 with the Trustees of BOBMF, which agreement interalia incorporates the SEBI (Mutual Funds) Regulations, 1996 and is approved by SEBI. The resources mobilised and the assets of the Fund shall be managed by the BOBAMC as per the Investment Management Agreement and in conformity with SEBI (Mutual Funds) Regulations, 1996.

 

BOARD OF DIRECTORS:

 

Name

Occupation

Residential Address

Other Directorships held

Bhagirat B. Merchant

Management Consultant

Flat No. 10, Govardhan Bhavan, Jaihind Co-op. Housing Society Ltd., N. S. Road, No. 12-A, J.V.P.D. Schemes,

Mumbai - 400 049.

 

a)     e-cube solutions India  Ltd.

b)     Silchar Electronics Ltd.

c)     Visaka Industries Ltd.

 

Sharadchandr D. Abhyankar

Partner

ANS Law Associates

Advocates & Solicitors

41-A, Filmcenter, 68, Tardeo

 Road, Mumbai - 400 034

303, Marvel Residency

3rd floor, Nanda Patkar Road,

Vile Parle (East),

Mumbai - 400057

a)  Gullco International India  Pvt. Ltd.

b)   The Global Institute for

     Financial and Education

     Services India Pvt. Ltd.

c)Optimum Business Solutions Ltd.

d)     Visen Industries Limited.

e)     Visen Industries Ltd.

Anil D. Parulkar

General Manager

Bank of Baroda

Shiv Tirth Building

1st Floor,Near Haji Ali Petorl Pump

Mumbai

 

a)    CCIL

a)     CDSL

b)     BOB Employees Pension

      Fund

S. Bhattacharya

(Managing Director)

Deputy General Manager

Bank of Baroda

73, Rajat Apartment,

Mount Pleasant Road

Malabar Hills,

Mumbai- 400006

             

Nil

 

Shri Anil D. Parulkar  is an Executive of Bank of Baroda of the rank of General Manager and has been nominated as Nominee Director on the Board of BOBAMC by the Sponsor. Shri S. Bhattacharya, Managing Director is an Executive of Bank of Baroda of the rank of Deputy General Manager and has been nominated by the Sponsor.

 

BOBAMC has over 10 years experience in managing various Schemes of BOBMF. The Schemes are being managed in terms of Investment Management Agreement between BOBMF and BOBAMC. The substantive provisions of Investment Management Agreement are stated under the heading "Duties and Obligations of Asset Management Company" and also the fees payable to AMC for managing the Schemes are stated in the Offer Document.

 

Key Personnel

 

Shri S. Bhattacharya, Managing Director of BOBAMC under overall supervision of the Board of Directors, is supervising the day-to-day operations of BOBAMC. Shri S. Bhattacharya is having over 35 years of banking experience in India as well as overseas. He has held many responsible positions in Bank of Baroda at various levels prior to his appointment as Managing Director of BOBAMC in July 2006.

 

Key Personnel of BOBAMC:

 

Name & designation

Age (yrs)

Educational qualifications & Experience

S. Bhattacharya

55

On deputation from Bank of Baroda. He is Master of Science. Shri S. Bhattacharya is an executive from Bank of Baroda in the rank of Deputy General Manager.  He has wide experiences of Banking Operations Credit, Treasury & Forex Management. Over the past ten years, Shri S. Bhattacharya has handled various assignments in Bank of Baroda as under:

a)     As DGM in Corporate Financial Services (CFS), Ballard Pier, Mumbai from June 2005- till his appointment as Managing Director of BOB AMC.

b)     As AGM/ Branch In charge of Bank of Baroda in Durban, South Africa from July 2002-May 2005

c)     AGM in Corporate Financial Services (CFS), Pune from Feb 2002- June 2002.

d)     As Chief Manager in Specialised Integrated Treasury Branch (SITB), Mumbai, Bank of Baroda from October 2001- January 2002

e)     As Chief Manager, Mumbai Main office from November 2000-September 2001

f)       As Chief Manager Credit in Industrial Finance Branch from June 1996-October 2000

 

Krishna Kumar Kushwaha

Company Secretary

30

Mr. Krishna Kumar Kushwaha is commerce graduate and qualified Company Secretary.  His assignment includes compliances with Companies Act, SEBI Act etc. He was previously associated with various organizations in Delhi and attended matters dealing with ROC, CLB, SEBI, Stock Exchanges and RBI Compliances.  

Dipak Acharya 

Fund Manager

(Equity)

42

 

Shri Dipak Acharya is a MCom., AICWA, CAIIB.  He is working with Bank of Baroda as Senior Manager and is currently on deputation to the Company.  He is handling the Equity Portfolio.  Prior to his deputation Shri Acharya has worked for 10 years in the Treasury Dept of the Bank as well as in the Credit Dept of the Bank.

Hetal P. Shah

Fund Manager (Debt)

26

Hetal P. Shahis a B.Com, MBA, JAIIB. Before joining BOB Asset Management Co. Ltd. She was working in the Treasury Department with Bank of India since

 May 1999.

 

   Fund manger of the Scheme:

 

Name & Designation

Educational qualifications & Experience

Dipak Acharya 

Fund Manager

(Equity)

Shri Dipak Acharya is a MCom., AICWA, CAIIB.  He is working with Bank of Baroda as Senior Manager and is currently on deputation to the Company.  He is handling the Equity Portfolio.  Prior to his deputation Shri Acharya has worked for 10 years in the Treasury Dept of the Bank as well as in the Credit Dept of the Bank.

 

Investors Service Please Contect:

 

BOB Mutual Fund

105, Maker Chambers III,

10th floor, Nariman Point,

Mumbai 400 021

Tel No.: 2285 3323 –26; 22852161

Fax No.: 2288 0009

E-mail: customercare@bobmf.com

 

 Duties and obligations of the Asset Management Company (AMC)

 

The duties and obligations of the AMC shall be consistent with the SEBI Regulations and the Investment Management Agreement dated 24-11-1992. The AMC shall discharge such duties and obligations as are provided under the SEBI regulations and the Investment Management Agreement and amended from time to time. As per the Investment Management Agreement, the AMC shall, in the course of managing the affairs of the Mutual Fund, for and on behalf of, and on account of, and in the name of the Mutual Fund:

Under the SEBI Regulation and the Investment Management Agreement the AMC has the following obligation:

 

1)     to take all reasonable steps and exercise due diligence to ensure that the investment of funds pertaining to any scheme isnot contrary to the provisions of SEBI Regulations and the Trust Deed.

2)      to exercise due diligence and care in all its investment decisions as would be exercised by other persons engaged in thesame business.

3)      to be responsible for the acts of commissions or omissions by its employees or the persons whose services have beenprocured by the AMC.

4)      to submit to the trustees quarterly reports of each year on its activities and the compliance with SEBI Regulations.

5)     The trustees at the request of the Asset Management Company may terminate the assignment of the AMC at any time provided that such termination shall become effective only after the trustees have accepted the termination of assignment and communicated their decision in writing to the AMC.

6)      Notwithstanding anything contained in any contract or agreement or termination, the AMC or its directors or other officers shall not be absolved of liability to the mutual fund for their acts of commissions or omissions, while holding such position or office.

7)      not to deal in securities through any broker associated with the sponsor or a firm which is an associate or a  sponsor beyond 5% of the daily gross business of the mutual fund.

 

8)    not to utilize the services of the sponsor or any of its associates, employees or their relatives, for the purpose of any securities transaction and distribution and sale of securities. Provided that the AMC may utilize such services if  disclosure to that effect is made to the unit holders and the brokerage or commission paid is also disclosed in the half yearly/annual accounts of the mutual fund *.

 

* Note: Please note that the AMC utilizes the services of some branches of the BOB Group as authorized collecting branches for the scheme. It may also utilize the services of some of the Associate companies of BOB for various transactions. This has also been mentioned in the section 'Associate Transactions'. Suitable disclosure as required under SEBI Regulations will be made in the half yearly and annual accounts of the Fund.

 

9)   to file with the trustees the details of transactions in securities by the key personnel of the asset management company in their own name or on behalf of the asset management company and to also report to the SEBI, as and when required by the SEBI.

10)  In case the AMC enters into any securities transactions with any of its associates, a report to that effect shall be sent to the trustees at their next meeting.

11)  In case any company has invested more than 5% of the net asset value of a scheme, the investment made by that  scheme or by any other scheme of the same mutual fund in that company or its subsidiaries shall be brought to the  notice of the trustees by the AMC and to be disclosed in the half yearly and annual accounts of the respective schemes  with justification for such investment provided the latter investment has been made within one year of the date of the   former investment calculated on either side.

12)  to file with the trustees and the SEBI

                                     I.      detailed bio-data of all its directors alongwith their interest in other companies within fifteen days of their appointment;

                                   II.       any change in the interests of directors every six months, and.

                                III.      a quarterly report to the trustees giving details and adequate justification about the purchase and sale of the securities of the group companies of the Sponsor or the Asset Management Company, as the case maybe, by the Mutual fund during the said quarter.

13) Each director of the AMC is required to file the details of his/ her transactions of dealing     

in securities with the Trustees on a quarterly basis in accordance with the Regulations.

 

14) not to appoint any person as key personnel who has been found guilty of any economic offence or involved in violation of securities laws.

15)  to appoint registrars and share transfer agents who are registered with the SEBI. Provided if the work relating to the transfer of units is processed in-house, the charges at competitive market rates may be debited to the scheme and for rates higher than the competitive market rates, prior approval of the trustees shall be obtained and reasons for charging higher rates shall be disclosed in the annual accounts. to abide by the Code of Conduct as specified in the fifth schedule of SEBI Regulations.

16) as required by SEBI Circular No. SEBI/IMD/CIR No. 9/74364/06 dated August 14, 2006, the AMC would report the structure of the portfolio of the Scheme in the bi-monthly compliance test report.

 

Registrar and Transfer Agents

 

Karvy Computershare (Pvt.) Ltd. having its registered office at Karvy House, 21, Avenue 4, Street No. 1, Banjara Hills, Hyderabad - 500 034 are the Registrars and Transfer Agents for the Schemes.

 

BOBMF and BOBAMC have ensured that the Registrars are registered with SEBI having valid certificate and also adequate facilities to discharge the responsibilities with regard to processing of applications, dispatch of Account Statement/Unit certificates to Unitholders within the time limit prescribed by SEBI (Mutual Funds) Regulations, 1996 and also have sufficient capacity to handle investors' complaints. It has also been ensured that Karvy Comutershare (Pvt) Ltd. has adequate facilities, processes, etc. to address risk management issues prescribed by SEBI.

Custodian

 

HDFC Bank having its office at Kamala Mills Compound, Senapati Bapat Marg, Mumbai – 400 013 are the custodian for all the Schemes of BOBMF and they have also been appointed as Custodian for the proposed Scheme. The important duties and obligations of the Custodians in terms of Custodial Agreement entered with them are as under:

 

a)     All securities/investments of the Schemes shall be in the custody of the Custodian.

 

b)     The Custodian will deliver/receive securities directly to and from the parties and shall receive or make payment on receipt of written instructions from BOBMF or any other person authorised by BOBMF.

 

c)     The Custodian will be responsible for loss or damage to the securities due to its negligence or negligence of its employees and approved agents.

 

d)     The Custodian will ensure smooth inflow/outflow of securities and such other instruments as and when necessary in the best interest of the investors.

 

e)     The Custodian will ensure that the benefits due to the holdings are recovered.

 

f)       The Custodian is entitled to remuneration for its services in accordance with the terms of the existing Custodial Agreement which interalia provides that the custodian will charge the Schemes a fee at the following rates apart from reimbursement of out of pocket expenses:

 

0.02% of purchases consideration

De-Mat transaction

0.02% of sale consideration

De-Mat transaction

0.0175% of average value of securities

Custody charges for De-Mat securities per annum

0.02% of the purchase consideration

Physical transaction

0.02% of the sale consideration

Physical transaction

0.175% of average value of securities

Custody charges for Physical securities per annum

 

The above charges/fees are subject to change from time to time as may be mutually agreed between BOBMF & the Custodian.

Bankers

 

Bank of Baroda and HDFC Bank have been appointed as collecting bankers during Initial Offer and on an on-going basis. All the intermediaries appointed by the BOBMF are SEBI registered and their registration is valid as on date. Their registration number is as under:

Intermediary

Name

Registration No.

Custodian

HDFC Bank

IN300126

Registrar & Transfer Agent

Karvy Compuershare (Pvt) Ltd.

INR000000221

Collecting Bankers

Bank of Baroda

INBI/30

Collecting Bankers

HDFC Bank Ltd.

INB100000063

 

Auditor

 

M/s Babu Chokshi & Co of 31, 13th Floor Navjivan Com. Prem.Co-op.Soc. Ltd., Lamington Road, Mumbai 400 008, were appointed as statutory auditors of BOBAMC for the year ended 31st March 2005. The auditors of BOBAMC are different from the auditors of the Schemes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6. INVESTMENT OBJECTIVES AND POLICY

 

Following are the fundamental attributes of BOB Opportunities Fund

 

Type of Scheme

Open Ended Equity Scheme

Investment Objective

To generate long-term capital appreciation by investing in diversifies portfolio of equity and equity related equity related instruments and money market instruments.

 

Investment Pattern

Under normal circumstances, the broad investment pattern will be as under:

 

Instruments

% of Assets

Risk Profile

 

Equity & Equity Related Instruments

0 - 80 

Medium to Medium

Money Market Instruments

0 – 20

Low

 

In case the asset allocation goes 5% above or below the above mentioned investment pattern the Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance them within 30 days to confirm to the above limit.

 

Investment Strategy

 

  1. The corpus of the Scheme will be invested primarily in equity & equity related instruments like fully/ partly convertible debentures, convertible warrants, etc. A certain portion of the corpus will also be invested in money market instruments and debt securities.
  2. The Scheme may invest in Units of an Equity/ Balance/ Growth Scheme managed by BOBAMC or of any other Mutual Fund without charging any Investment Management Fee provided that the aggregate inter-scheme investment made by all schemes under the management of BOBAMC or in Schemes under the management of any other asset management company shall not exceed 5% of the net asset value of all the Schemes of  BOBMF.
  3. The investment in Mutual Fund Units will not exceed 5% of the assets of BOB Opportunities Fund. Such investment may be made in order to achieve the Investment Objective of BOB Opportunities Fund. The above limit is subject to  review by the Board of AMC and/or Board of Trustees of BOB Mutual Fund, as the case may be, and may increase  or decrease from time to time.
  4. BOB AMC may also invest in Units of BOB Opportunities Fund upto a maximum extent of Rs.5 crore on an ongoing basis. However, no investment management fees may be charged by BOBAMC on such investment.
  5. Investment may also be made in such other instruments as may be permitted in future by SEBI or any other       regulatory authority.
  6. In order to generate additional non-fund based income for the Scheme, the Fund may enter into underwriting commitments for primary market issues. BOBMF may obtain the necessary registration under SEBI (Underwriters) Rules & Regulations, 1993, and all other requisite rules and regulations in force in that behalf from time to time.

 

Money market instruments

 

i)        Commercial papers/Commercial bills/ Certificate of deposit

ii)      Treasury bills/Government securities having an unexpired maturity upto one year

iii)     Call or notice money

iv)    Usance bills

v)     Permitted securities under a repo/reverse repo agreement

vi)    Any other security as permitted by the concerned regulatory authority

 

g.      Investments will be made through secondary market purchases, initial public offers, other public offers,placements and negotiated deals. The securities could be listed, unlisted, privately placed, secured/unsecured  Rated/unrated of any maturity.

h.      The AMC retains the flexibility to invest across all the securities/instruments in debt and money market.

i.    Investments made by the Scheme would be in accordance with the features of the Scheme and provisions of  SEBI Regulations. The AMC will strive to assess risk of the potential investment in terms of credit risk, interest   rate risk and liquidity risk. The credit risk analysis would involve an assessment of the past track record and prospects for the company, the industry it operates in, etc. A view on the movement of interest rates will be taken on an ongoing basis, considering the impact of the developments on the macro-economic front and the demand and supply of funds.

j.    The AMC will utilise ratings of recognised rating agencies as an input in the decision making process. Investments in bonds and debentures will usually be in instruments that have been assigned investment grade ratings by a recognised rating agency. In case a debt instrument is not rated, prior approval of the Board of Directors of BOBAMC and Board of Trustees of BOB Mutual Fund will be obtained for such an investment.

k.   Investment may also be made in such other instruments as may be permitted in future by SEBI or any other regulatory authority.

l.     Investment in Overseas Financial Assets - the Scheme may as appropriate, subject to the SEBI (MF) Regulations, 1996, invest in ADRs/ GDRs. To the extent that the assets of the Schemes will be invested in securities dominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as also the application of other restrictions on investments.

 

Investment limitations

 

The investment policies of the scheme comply with the rules, regulations and guidelines laid out in the SEBI Regulations. As per the Regulations, specifically the Seventh Schedule, the following investment limitations are applicable to schemes of Mutual Funds.

 

a.      The scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of Asset Management Company. Such limit shall not be applicable for investments in government securities and Money Market Instruments. Also investment within such limit can be made in mortgaged-backed securitized debt, which is rated not below investment grade by a credit rating agency registered with the Board.

b.      The Scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the Scheme. All such investments shall be made with the prior approval of the Board of Trustees and the board of Asset Management Company. Further, the aforesaid investment limits are applicable to all debt securities which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc guaranteed by either state or central government. Government securities issued by central/state government or on its behalf by the RBI are exempt from the above referred investment limits.

c.      Debentures, irrespective of any residual maturity period (above or below one year), shall attract the investment restrictions.

d.      The Fund Schemes shall not own more than 10% of any company's paid up capital carrying voting rights or such percentage as may be stipulated by SEBI from time to time;

e.      Transfer of investments from one scheme to another scheme, including this scheme, under the Mutual Fund shall be allowed only if :

 

                                i.            Such transfers are done at the prevailing market price for quoted securities on spot basis; explanation - "spot basis" shall have the same meaning as specified by the stock exchange for spot transactions, and

                               ii.             The securities so transferred shall be in conformity with the investment objective of the relevant scheme to which such transfer has been made.

 

f.       The scheme may purchase or sell securities to any other scheme of the Mutual Fund as stated above.

g.      The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities (except in case of Derivatives) and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction or engage in badla finance.

h.      The scheme shall provide that the securities be purchased or transferred in the name of the Mutual Fund for the relevant scheme, wherever the investments are intended to be of a long-term nature.

i.        Pending deployment of funds of the scheme in securities pursuant to the investment objectives of the scheme the Mutual Fund can invest the funds of the scheme in short-term deposits of scheduled commercial banks.

j.        The assets of the scheme shall not in any manner be used in short selling or carry forward transactions.

k.      The mutual fund under all its schemes will not own more than ten per cent of any company's paid up capital carrying voting rights.

l.        The scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

m.    The mutual fund will enter into Derivatives transactions in a recognized stock exchange, in accordance with the guidelines issued by the Board.

n.      The scheme shall not make any investment in;

 

                          i.             any unlisted security of an associate or group company of the sponsor; or

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

                       iii.             The listed securities of group companies of the sponsor which is in excess of 25% of the net assets.

o.      The Scheme shall not invest more than 10 per cent of its NAV in the equity shares or equity related instruments of any unlisted company.

p.      The scheme shall not make any investment in any Fund of Funds scheme.

 

Apart from the investment restrictions prescribed under SEBI (MF) Regulations, the Fund has laid investment restriction that exposure to any industry, as classified by BOBAMC, should be limited to 15% of aggregate net assets value of all the Schemes taken together, subject to a limit of 25% of net assets of individual Schemes. This restriction shall be applicable at the time of making investment. There can be no assurance that the investment objective of the Schemes will be achieved. The investment objectives and policies stated above are in conformity with the provisions of the existing SEBI Regulations, Trust Deed, Investment Management Agreement, Memorandum and Articles of Association of BOBAMC.

 

Terms of the Schemes(s)

 

The nature and duration of the Scheme, provision for repurchase, Scheme’s expenses and fees, as stated elsewhere in this Offer Document will form part of Fundamental Attributes of the Scheme.

The Trustees shall obtain the consent of the Unit holders.

a)     Whenever required to do so by SEBI in the interest of the unit holders; or

b)     Whenever required to do so on the requisition made by three fourths of the unit holders of the Schemes; or

c)     When the majority of the trustees decide to wind up or prematurely redeem the units.

 

The Trustees shall ensure that no change in the fundamental attributes of the Scheme or the trust or fees and expenses payable or any other change which would modify the Scheme and affects the interest of unit holders, shall be carried out unless:

a)     A written communication about the proposed change is sent to each unit holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the mutual fund is situated; and

b)    The unit holders are given an option to exit at the prevailing Net Asset Value without any exit load.

 

Investments in other schemes

According to the Clause 4 of Schedule 7 read with Regulation 44(1), of the SEBI Regulations:

 

"A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter-scheme investments made by all schemes under the same management or in schemes under the management of any other asset Management Company shall not exceed 5% of the net asset value of the mutual fund."

 

Changes in Investment Strategy:

 

It shall be clearly understood that the investment strategy referred to above is not absolute and may vary substantially depending upon the perception of the capital market taking into account the factors prevailing at the material time, potential for growth etc., the intent being to protect the Unit holders' interests. In situation of extreme volatility or when in the opinion of the Asset Management Company, equities or debt do not offer appropriate opportunities, the allocation to equities or debt may be reduced. The Trustees may, from time to time, at their absolute discretion review and modify the investment strategy, provided such modification is in accordance with SEBI Regulations.

 

Derivatives and Hedging Products

 

The Schemes may use techniques and instruments such as futures and options, warrants, etc. to hedge the risk of fluctuations in the value of the investment portfolio. Provided that the Mutual Fund shall enter into derivatives transactions in a recognised stock exchange as permitted by SEBI as per prevailing regulations and commensurate with the Schemes objectives in an attempt to protect the value of the portfolio and enhance unitholders interest.  The value of derivatives contracts outstanding will be limited to 10% of the Scheme's net assets.  Derivatives and hedging strategies may be used for following purposes.

I.  For the purpose of hedging against a decline in value of a Scheme's net asset value

A hedge is designed to offset a loss on a portfolio position with a gain in the hedge position. The fund may use derivative instruments primarily to hedge the value of portfolio against potential adverse movements in securities prices. At the same time, however, a properly correlated hedge will result in a gain in the portfolio position being offset by a loss in the hedge position. As a result, the use of derivatives could limit any potential gain/ loss by increase/decrease in value of the position hedged. In addition, an exposure to derivatives in excess of the hedging requirement can lead to losses.

Example

 

A Scheme has an equity portfolio of Rs. 10 crores. For the purpose of reducing the risk of loss, if any, arising out of fall in the equity prices, the fund will sell index future contracts worth Rs. 1 Crore. The potential scenario in case of rise or fall of equity prices will be as follows:

 

Scenario

Event

Gain/Loss

in equity

 portfolio

Gain/(Loss) in

derivatives

Total Gain/Loss

 

 

(Rs. in Crore)

Equity Portfolio of Rs. 10 crore

 without hedge

10% fall in equity prices

(1)

--

(1)

Equity Portfolio of Rs. 10 crore

 with hedge

10% fall in equity prices

(1)

0.1

(0.9)

Equity Portfolio of Rs. 10 crore

without hedge

10% rise in equity prices

1

--

1

Equity Portfolio of Rs. 10 crore

with hedge

10% rise in equity prices

1

(0.1)

0.9

 

Risks

 

(i)     The strategy of selling index futures is correlated to the market. However, there is no assurance that the index and stocks in the equity portfolio move in the same manner and thus this strategy may not be perfect hedge.

(ii)   There are chances of as much loss as a gain in the strategy of selling index futures i.e. if the index appreciates by 10% the future value falls by 10%. However, this is true only for futures contracts held till maturity. In the event that a future contract is closed before its expiry, the quoted price of futures contract will be different from the gain/loss due to movement of the underlying index.

 

Portfolio Turnover Policy

 

The Scheme is an open ended Scheme. It is expected that there would a number of subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. Nonetheless, BOBAMC will take advantage of opportunities that present themselves from time to time in the securities market.

 

AMC's investments in the scheme

 

The AMC may invest in the Scheme, during the new fund offer, as they deem appropriate. But the AMC shall not be entitled to charge any management fees on this investment in the Scheme. Investments by the AMC will be in accordance with Regulation 24(3) of the SEBI Regulations, which states that:

 

"The asset management company shall not invest in any of its schemes unless full disclosure of its intention to invest has been made in the offer document, provided that the asset management company shall not be entitled to charge any fees on its investment in the scheme."

 

Procedure for investment decision

 

All the daily investment decisions are taken by the Daily Market Operations Committee. A list of recommendation for daily trades is given to the Committee and the same is discussed and approved. The investment decisions are taken considering the factors like economic scenario, fundamental analysis, technical analysis, interest rate movements, liquidity, industry weight age, etc. All the investment decisions are recorded on a daily basis. A new scrip is introduced in the portfolio for the first time only after a thorough research report has been prepared and the same has been approved by the Investment Committee of BOBAMC/Board of BOBAMC. The performance of each Scheme is monitored by the board of AMC and trustees on periodic basis vis-à-vis BSE Sensex as a benchmark for investment in equity & equity related instruments and I-Sec Mi-Bex, Crisil Composite Bond Fund Index, Crisil Liquid Fund Index and Crisil Balanced Fund Index, as a benchmark indices for debt funds.

 

Fund's Policy on Unclaimed Redemption Amount

 

The unclaimed redemption and dividend amounts are being deployed by the mutual funds in call money market or Money Market Instruments only and the investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing Net Asset Value. Investors can claim the amount at NAV prevailing at the end of the third year. The income earned on such funds may be used by the Fund for the purpose of investor education. The AMC would make a continuous effort to remind the investors through letters to take their unclaimed amounts. The AMC may charge an investment management fee not exceeding 50 basis points for managing unclaimed amounts. The policy is in line with the SEBI circular No. MFD/CIR/ 9 /120 /2000 dated 24/11/2000.

 

Investment of Subscription Money

 

The Schemes may invest subscription money received from the public in money market instruments including deposits with banks during the Initial Offer Period, before allotment of Units. Further, the Investment Manager, after satisfying itself that subscription to the extent of the minimum amount as per the Offer Document has been received during the Initial Offer Period, may commence making investments as per the Investment Objective of the Schemes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. ACCOUNTING POLICIES AND STANDARDS

 

In accordance with Regulation 50 read with Ninth Schedule to SEBI (Mutual Funds) Regulations 1996, the Mutual Fund shall follow the following accounting policies.

 

a)      BOBAMC shall keep and maintain proper books of accounts, records and documents, for the Scheme so as to explain its transactions and to disclose at any point of time the financial position of the Scheme and in particular give a true and fair view of the state of affairs of the Fund.

b)      For the purposes of the financial statements, BOBMF shall mark all investments to market and carry investments in the balance sheet at market value. However, since the unrealised gain arising out of appreciation on investments cannot be distributed, provisions shall be made for exclusion of this item when arriving at distributable income.

c)       Dividend income earned by the Scheme shall be recognised, not on the date the dividend is declared, but on the date such share is quoted on an ex-dividend basis. For investments, which are not quoted on stock exchanges, dividend income would be recognised on the date of declaration.

d)      In respect of all interest-bearing investments, income shall be deemed to have accrued on a day-to-day basis as it is earned.  Therefore, when such investments are purchased, interest paid for the period from the last interest due date upto the date of purchase shall not be treated as a cost of purchase but shall be debited to Interest Recoverable Account. Similarly, interest received at the time of sale for the period from the last interest due date upto the date of sale shall not be treated as an addition to sale value but shall be credited to Interest Recoverable Account.

e)      In determining the holding cost of investments and the gains or loss on sale of investments, the "average cost" method shall be followed.

f)        Transactions for purchase or sale of investments shall be recognised as of the trade date and not as of the settlement date, so that the effect of all investments traded during a financial year are recorded and reflected in the financial statements for that year. Where investment transactions take place outside the stock market, for example, acquisitions through private placement or purchases or sales through private treaty, the transaction would be recorded, in the event of a purchase, as of the date on which the Scheme obtains an enforceable obligation to pay the price or, in the event of a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an enforceable obligation to deliver the instruments sold.

g)      Bonus shares to which the Scheme becomes entitled to shall be recognised only when the original shares on which the bonus entitlement accrues are traded on the Stock Exchange on an ex-bonus basis. Similarly, rights entitlement would be recognised only when the original shares on which the rights entitlement accrues are traded on the stock exchange on an ex-rights basis.

h)      Where income receivable on investments has accrued but has not been received for the period specified in the guidelines issued by the Board, provision shall be made by debiting to the revenue account the income so accrued in the manner specified by guidelines issued by the Board.

i)        When Units are sold, the difference between the sale price and the face value of the Unit, if positive, shall be credited to reserves and if negative is debited to reserve, the face value being credited to Capital Account.  Similarly, when Units are repurchased, the difference between the purchase price and face value of the Unit, if positive shall be debited to reserves and, if negative, shall be credited to reserves, the face value being debited to the capital account.

j)        When Units are sold, an appropriate part of the sale proceeds shall be credited to an Equalization Account and when Units are repurchased, an appropriate amount would be debited to Equalization Account.  The net balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalization Account debited or credited to the Revenue Account shall not decrease or increase the net income of the Fund but would only be an adjustment to the distributable surplus. It shall, therefore, be reflected in the Revenue Account only after the net income of the Fund is determined.

k)      The cost of investments acquired or purchased would include brokerage, stamp charges and any charge customarily included in the broker's bought note.  In respect of privately placed debt instruments any front-end discount offered shall be reduced from the cost of the investment.

l)        Underwriting commission shall be recognised as revenue only when there is no devolvement on the Scheme.  Where there is devolvement on the Schemes, the full underwriting commission received and not merely the portion applicable to the devolvement shall be reduced from the cost of the investment.

 

The accounting policies and standards as outlined above are as per the prevailing SEBI (Mutual Funds) Regulations 1996 and are subject to change from time to time in conformity with changes in the said SEBI Regulations.

 

Annual Financial Reports and Half Yearly Disclosures

 

a)      An abridged annual report of the Scheme will be mailed to all the Unitholders not later than six months from the date of closure of the relevant accounting year and the full annual report will be available for inspection at the head office of the mutual fund and a copy will be furnished to the Unitholders upon a written request and on payment of such fees as may be specified by the Board of Trustees from time to time.

b)      The Mutual Fund shall before the expiry of one month from the close of each half year that is on 31st March and 30th September publish the unaudited financial results in the prescribed format as per SEBI Circular MFD/CIR/1/200/2001 dated April 20, 2001 in one national English daily newspaper and in a newspaper in the language of the region where the Head Office of the mutual fund is situated.

c)       The Mutual Fund shall before the expiry of one month from the close of each half year that is on 31st March and 30th September publish its Schemes portfolio in the prescribed format as per SEBI Circular MFD/CIR/9/120/2000 dated November 24, 2000 in one English daily newspaper and in a newspaper in the language of the region where the Head Office of the mutual fund is situated or send a copy to all the unitholders.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8. NET ASSET VALUE (NAV) AND VALUATION OF ASSETS OF THE SCHEMES

 

(i) Disclosure of NAV

 

The Net Asset Value will be calculated by the Mutual Fund on each working day and published at least in two daily newspapers. The information on NAV may be obtained by the unit holders, on any day, by calling the office of the BOBAMC or any of the Investor Service Centres or the office of the Registrar. The first such declaration of NAV will be made immediately after the Schemes opens for sale and redemption on ongoing basis.

 

(ii) Calculation of NAV

 

Net Asset Value (NAV) of the Scheme shall be determined by dividing the net assets of the Scheme by the number of outstanding units on the valuation date and is computed as shown below:

 

NAV (Rs.) =  (Market/fair value of securities + accrued income + receivables + other assets) - (accrued expenses + payables + other liabilities)

Number of units outstanding

 

NAV will be calculated upto 4 decimal places.

 

Repurchase price shall not be lower than 93% of the NAV and the sale price shall not be higher than 107% of the NAV and the difference between the repurchase price and sale price shall not exceed 7% on the sale price.

 

(iii) Valuation of assets

 

The valuation norms are indicated based on the current Regulations and the guidelines/instructions issued by SEBI.

 

1.   Traded Securities  

a)      Traded securities shall be valued at the last quoted closing prices on the stock exchange where the security is principally traded.

b)      When the securities are traded on more than one recognised stock exchange, the securities shall be valued at the last quoted closing price on the stock exchange where the security is principally traded. The AMC will select the appropriate stock exchange and will record the reason for such selection. All scrips may be valued at the prices quoted on the stock exchange where a majority in value of investments are principally traded.

c)       When a security is not traded on selected stock exchange on a particular valuation day, the value at which it was traded on another stock exchange may be used.

d)      When a security is not traded on any stock exchange on a particular valuation day, the value at which it was traded on any stock exchange on the earliest previous day may be used provided such date is not more than thirty days prior to the valuation date.

 

2.   Non-traded Securities:

a)      When a security is not traded on any stock exchange for a period of thirty days prior to the valuation date, the same will be treated as a `Non-traded' security.

b)      Non-traded securities shall be valued as per guidelines issued by SEBI or any other regulatory authority from time to time.

 

For the purpose of valuation of non-traded securities, the following principles will be adopted:

 

a)         Equity instruments shall generally be valued on the basis of capitalisation of earnings solely or in combination with the net asset value, using for the purpose of capitalisation, the price or earnings ratios of comparable traded securities and with an appropriate discount for lower liquidity;

b)         In respect of convertible debentures and bonds, the non-convertible and convertible components shall be valued separately. The non-convertible component shall be valued on the same basis as would be applicable to a debt instrument. The convertible component shall be valued on the same basis as would be applicable to an equity instrument. If, after conversion the resultant equity instrument would be traded pari passu with an existing instrument, which is traded, the value of latter instrument can be adopted after an appropriate discount for the non-tradability of the instrument during the period preceding the conversion. While valuing such instruments, the fact whether the conversion is optional shall also be factored in;

c)          In respect of warrants to subscribe for shares attached to instruments, the warrants would be valued at the value of the share which would be obtained on exercise of the warrant as reduced by the amount which would be payable on exercise of the warrant.  A discount similar to the discount to be determined in respect of convertible debentures (as referred to in sub-paragraph (b) above) would be deducted to account for the period which must elapse before the warrant can be exercised;

d)         Where instruments have been bought on `repo' basis, the instrument shall be valued at the resale price after deduction of applicable interest upto date of resale. Where an instrument has been sold on a `repo' basis, adjustment must be made for the difference between the repurchase price (after deduction of applicable interest upto date of repurchase) and the value of the instrument. If the repurchase price exceeds the value, the depreciation would be provided for and if the repurchase price is lower than the value, credit would be taken for the appreciation.

 

Valuation of government securities (not traded for more than 30 days or one which will qualify as thinly traded security)

All government securities which are not traded for more than 30 days or one which qualify as thinly traded security shall be valued at yield to maturity based on the prevailing market rate.

 

Valuation of money market securities

While investments in call money, bills purchased under rediscounting Schemes and short term deposits with banks shall be valued at cost plus accrual, other money market instruments shall be valued at the yield at which they are currently traded. For this purpose non-traded instruments, that is instruments not traded for a period of seven days, will be valued at cost plus interest accrued till the beginning of the day plus the difference between the redemption value and the cost spread uniformly over the remaining maturity period of the instruments.

 

Thinly Traded Debt Securities

A debt security (other than Government Securities) that has a trading volume of less than Rs. 15 crores for a period of thirty days prior to the valuation date shall be considered as a thinly traded security based upon information provided by the stock exchanges on the volume of trading of debt securities.

 

In order to determine whether a debt security is thinly traded or not the volumes traded in all recognised stock exchanges in India may be taken into account.

 

A thinly traded debt security as defined above would be valued as per the norms set for non-traded debt security.

 

Non Traded debt Securities

When a debt security (other than Government Securities) is not traded on any stock exchange for a period of fifteen days prior to the valuation date, the scrip must be treated as a 'non traded' security.

 

Valuation Of Non-Traded / Thinly Traded debt Securities

 

Non-traded/ thinly traded debt securities shall be valued by BOBAMC as follows:

 

A.  Non traded /thinly traded debt securities of upto 182 days to maturity

All non traded / thinly traded debt securities (other than Government securities) purchased with a residual maturity upto 182 days shall be valued as below:

[(Cost price + Accrued interest) + (Redemption value - Cost price)] / (No. of days to maturity)

 

In case of a debt security with maturity greater than 182 days at the time of purchase, the last valuation price plus accrued interest should be used instead of purchase cost.

 

B.  Non traded / thinly traded debt securities of over 182 days to maturity

For the purpose of valuation, all Non Traded Debt Securities would be classified into "Investment grade" and "Non Investment grade" securities based on their credit ratings.

 

a) Investment grade securities

All non government investment grade securities will be valued as per the yield to maturity basis based on matrix of risk free benchmark yield of government securities and matrix of spreads over such risk free yields and adjusted for illiquidity risk.

 

b) Non-Investment grade securities

 

The non-investment grade securities would further be classified as "Performing" and "Non Performing" assets.

 

1) Non Performing Assets (NPA)

An 'asset' shall be classified as non performing, if the interest and/or principal amount have not been received or remained outstanding for one quarter from the day such income / installment has fallen due. When an asset is classified as NPA, the provisioning for the same will be done in a phased manner as per the table given below:

 

% of provision

Time of provision

10%

3 months from the date of classification as NPA

20%

6 months from the date of classification as NPA

20%

9 months from the date of classification as NPA

25%

12 months from the date of classification as NPA

25%

15 months from the date of classification as NPA

 

2) Performing Assets

All performing assets shall be valued at 75% of the face value of the asset.

 

Valuation of Derivative Products

 

a)        The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause 1 of the Eighth Schedule to the SEBI (Mutual Funds) Regulations, 1996.

b)        The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments prescribed in the Eighth Schedule to the SEBI (Mutual Funds) Regulations, 1996.

 

     Until they are traded, the value of the "rights" shares would be calculated as:

 

Vr = n/m x (Pex - Pof)

 

Where,

Vr   = Value of rights

n    = No. of rights offered

m    = No. of original shares held

Pex = Ex-rights price

Pof  = Rights Offer Price

 

c)       Where the rights are not treated pari-passu with the existing shares, suitable adjustment would be made to the value of rights. Where it is decided not to subscribe for the rights but to renounce them and renunciations are being traded, the rights can be valued at the renunciation value.   

d)      All expenses and income accrued upto the valuation date shall be considered for computation of NAV. For this purpose, while major expenses like management fees and other periodic expenses would be accrued on a day to day basis, other minor expenses and income need not be so accrued, provided the non-accrual does not affect the NAV calculations by more than 1%.

e)      Any changes in securities and in the number of units will be recorded in the books not later than the first valuation date following the date of transaction. If this is not possible given the frequency of the Net Asset Value disclosure, the recording may be delayed upto a period of seven days following the date of the transaction, provided that as a result of non-recording, the NAV calculations shall not be affected by more than 1%.

 

The valuation norms as outlined above are as per the prevailing SEBI Regulations and are subject to change from time to time to be in conformity with changes made by SEBI.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9. LOAD AND EXPENSES

 

Initial Issue Expenses

 

As per SEBI Circular vide SEBI/IMD/CIR No-1/64057/06 dated April 2006; initial issue expenses cannot charge to the schemes.

 

Present Scheme

 

The initial issue expenses, for conversion of the scheme into open-ended, will be borne by BOB AMC.

 

Past Schemes

 

Scheme Name

 (Launch date)

Total Initial Issue

Expenses ( Rs.)

Total Corpus Mobilized

Initially (Rs.)

% age of Initial Issue Expenses upon the Total Corpus (%)

BOB Liquid Fund

 (14.02.2002)

26,72,461

44,54,29,111

0.60

 

BOB Gilt Fund

(14.02.2002)

30,23,043

6,58,99,290

4.59

BOB income Fund

 (14.02.2002)

31,02,076

8,14,64,800

3.81

BOB Income Fund – STP Plan (5.12.2002)

14,03,836

74,46,40,000

0.19

BOB PF Plan (9.12.03)

  5,91,000

13,88,00,000

0.43

BOB Growth Fund(14.8.03)

  8,70,150

14,31,00,000

0.61

BOB Balance Fund (14.8.03)

25,10,250

47,58,00,000

0.53

BOB MIP Fund (28.7.04)

76,97,974

192,13,00,000

0.40

BOB NRI Fund (28.7.04)

  1,30,318

1,45,00,000

0.90

BOB Children Fund

(28.7.04)

     66,439

49,00,000

1.36

Baroda Global Fund

(06.02.2006)

1,23,68,763

55,57,43,264

2.11

 

 

(c) Ongoing basis

 

For ongoing subscriptions, units will be offered to investors at NAV based prices. Subscription requests received on any working day will be priced at applicable NAV. The details of entry and exit load charged under each scheme are as follows:

Entry Load –  Investment below Rs. 2 crore             - 2.25%

                    Investment of Rs. 2 crores and above - Nil

 

Exit Load –         Investment below Rs. 2 crore             - Nil

                         Investment of Rs. 2 crores and above – 1.00% on any redemption/ switch out within 3 months from the               

                                                                              date of allotment

 

For the existing investors who do not wish to opt for conversion NIL exit load will be charged till ___________ i.e. the date of conversion.

 

Subject to regulations, the Trustees of BOBMF have the right to change/modify the load structure, with prospective effect, at a later date. Any change in the load structure will be applicable to all prospective investments. The applicable load as a percentage of NAV will be added to NAV to calculate sale price and will be subtracted from NAV to calculate repurchase price. This is explained as follows:

 

Sale price = Applicable NAV (1+ Sales Load, if any)

 

Repurchase price = Applicable NAV (1- Exit Load, if any). 

 

For example, if the applicable NAV is Rs. 10, sales/entry load is 2% and the exit/repurchase load is 2% then sales price will be Rs. 10.20 and the repurchase price will be Rs. 9.80

 

(d) Use of Load

 

All the load (including CDSL) will be used, in whole or in part, by BOBAMC for providing distribution and redemption related services to the Scheme including expenses relating to the sale, promotion and marketing of the Units, payments to agents/brokers for their services in connection with the distribution of the Units, postage, application processing, disseminating NAV related information etc.  All loads for the Scheme shall be maintained in a separate account. Excess sales/ redemption load collected from ongoing sales/redemption/repurchase may be returned to the Schemes, whenever felt appropriate by BOBAMC.

 

(e) Enhancement of load Structure

Any imposition or enhancement of load in future shall be applicable on prospective investment only. At the time of changing the load structure the BOB Mutual Fund may consider the following measures to avoid complaints from investor about investments in the schemes

1.      The addendum dealing detailing the changes may be attached to offer documents and abridged offer documents.

2.      Arrangements may be made to display the changes/modification in the offer documents in the form of a notice in all the investor service centers and distributors/ brokers office.  

3.      The introduction of the exit load/CDSC along with the details may be stamped in the acknowledgment slip issued to the investors on submission of the application form and may be disclosed in the statement of accounts issued after the introduction of such load/CDSC.

 

(e) Contingent Deferred Sales Load (CDSL)

At present there is no CDSL. However the AMC reserves the right to charge / change CDSL at a later date, which shall be applicable on prospective investment only.

 

(f) Fees

 

Investment management fees charged by BOBAMC to BOB Opportunities Fund shall be 1.25% of the average weekly/Daily net assets, as long as the net assets do not exceed Rs.100 crores (rupees one hundred crores only) and 1.0% of the excess amount over Rs.100 crores (rupees one hundred crores only), where net assets so calculated exceed Rs.100 crores (rupees one hundred crores only).

 

The AMC may at its sole discretion from time to time charge fees lower than the prescribed rate. The AMC may also charge further fees as may be permitted from time to time under Regulations.

 

g) The total ongoing recurring expenses permitted by SEBI are as follows:

 

On the first Rs. 100 Crore

:

2.50% of the average weekly net assets outstanding during the accounting year.

On the next Rs. 300 Crore

:

2.25% of the average weekly net assets outstanding during the accounting year.

On the next Rs. 300 Crore

:

2.00% of the average weekly net assets outstanding during the accounting year.

On the balance

:

1.75% of the average weekly net assets outstanding during the accounting year.

 

The Fund will strive to reduce the level of expenses so as to keep them well within the maximum limits allowed by SEBI. Presently the Fund estimates the recurring expenses as follows:

 

Nature of Expenses

BOB Opportunities Fund

 

 

Investment Management & Advisory Fees

1.25%

Marketing & Selling Expenses including Commission

Custodian & Registrar & Transfer Agent Fees

Other Expenses *

1.25%

Total

2.50%

*  Other Expenses include:

 

a) Costs related to investor communications

b) Cost of providing account statements and dividend/ redemption /repurchase warrants

c) Costs of Statutory Advertisements

d) Other miscellaneous Expenses

 

The expenses as aforesaid are subject to inter se change and may increase/decrease as per actuals and/or any change in the regulations that take place from time to time. The purpose of above table is to assist the investor in understanding the various costs and expenses that an investor in the Schemes would have to bear directly or indirectly. The above estimates have been made in good faith as per information available to the AMC and the total expenses may vary from the estimates. The total expenses of the schemes including the investment management and advisory fee shall be within the limits stated in SEBI Regulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10. UNITS AND OFFER

 

BOB ELSS’97 is an existing close-ended scheme, the units will be offered to public from ________, upon the scheme being converted to an open-ended scheme by the name of BOB Opportunities Fund. No target amount has been fixed for the Scheme, as the Scheme is an existing Scheme.

 

The scheme shall have a minimum of 20 investors and no single investor will account for more than 25% of the corpus of such scheme/plan(s) on an average basis in every calendar quarter. 

 

As the scheme will be an open-ended scheme from ________ the units will be available for ongoing subscription/redemption, at NAV based prices.

 

Right to offer Additional Investment Plans and/or facility

 

The Scheme may offer one or more investment plans and/or facility at a later date.

 

Right to close Unitholder’s account

 

BOB Mutual Fund may close a Unit holder’s account whenever, due to redemptions, the value of the account falls below the minimum amount required as per this offer document and the Unit holder fails to purchase sufficient units to bring the value of the account up to the minimum balance or more, in the next 10 days. Without being obliged to, a written notice may be sent by the Mutual Fund to the Unit holder intimating that the balance in his account has fallen below the minimum balance and within the given time frame the Unit holder should replenish the account by purchase of fresh Units.

 

Minimum amount of Investment

 

Minimum application amount is Rs. 5,000/- and in multiples of Rs. 1000/- thereof. The minimum amount of investment or amount of additional investment may be changed and announced by BOBAMC from time to time.

 

Applicable NAV

 

Subscription

 

In respect of valid application received up to 3 p. m. along with a local cheque or demand draft payable at par at place where the application is received, Closing NAV of the day of receipt of application

 

In respect of valid application received after 3 p.m. by the Mutual Fund along with the local cheque or demand draft Closing NAV of the next business day

 

In respect of valid applications with outstation cheque/ demand drafts not payable at par at the place application is received, Closing NAV of the day on which the the cheque or demand draft is credited.  

 

Redemption

 

Where the application is received upto 3.00 pm - Closing NAV of the day of receipt of application.

 

Where the application is received after 3.00 pm - Closing NAV of the next business day.

 

Allotment & Refund

 

Full and firm allotment, will be made to all eligible applicants provided the applications are complete in all respects. Units will also be allotted in fractions. This will not result in any liquidity problem, as the fund will redeem fractional units also.

 

Account Number/Account Statement

 

a)      Account Number – Every Unit holder will have an Account Number. The number of Units issued to a Unit holder or redeemed by a Unit holder will be reflected in his or her account and a statement to this effect will be issued to the Unit holder.

 

b)      Account Statement – Each Unit holder will receive an Account Statement each time additional purchases or part redemptions of Units are made.

 

On an ongoing basis, despatch of Account Statement shall be made available three days from the date of realisation of the sale price. The Account statement shall not be construed as a proof of title and is only a computer printed statement indicating the details of transaction under the Schemes and is a non-transferable document. However, if an applicant so desires, BOBAMC will issue Unit Certificate to such applicant within four weeks of the receipt of such request.

 

Listing

 

No listing of the Scheme is intended as continuous sale and repurchase facility will be available to all unitholders.

 

Transferability

 

As the Schemes will be open for continuous sale and repurchase after it being converted to an open ended scheme from _________.

 

As the Fund will be redeeming and issuing the units on a continuous basis, no transfer facility is being offered. However, if a transferee becomes a holder of units of the Scheme in an official capacity by operation of law or is a scheduled bank/financial institution upon enforcement of pledge, then the BOB Mutual Fund shall, subject to production of such evidence, which in its opinion is sufficient, proceed to effect the transfer, if the intended transferee is otherwise eligible to hold such Units.

 

Pledge/Lien/Charge of Units

 

The units under the Scheme may be offered as security by way of a pledge/lien/charge in favour of scheduled banks, financial institutions, NBFCs or any other body. The AMC and/or the ISC and/or the Registrars to the Scheme will note and record such pledged units. A standard form for this purpose is available on request from any of the ISCs. Disbursement of such loans will be at the entire discretion of the bank/financial institution/NBFC or any other body concerned and the BOBMF assumes no responsibility thereof. The pledgor will not be able to redeem units that are pledged until the entity to which the units are pledged provides written authorisation, to BOBMF, that the pledge/lien/charge may be removed. As long as units are under pledge the pledgee will have complete authority to redeem such units.

 

Duration of the Scheme/Winding up

 

BOB ELSS’95 was a close-ended scheme due for redemption on April 1, 2005. It has been converted into BOB Diversified Fund, an open-ended scheme w.e.f. _____________. The duration of BOB Diversified Fund is perpetual. However, in terms of the SEBI (Mutual Funds) Regulations 1996, any Scheme may be wound up, after repaying the amount due to the Unitholders of such Scheme:

 

a)     On the happening of any event, which in the opinion of the Trustees, requires the Scheme to be wound up, OR

b)     If 75% of the Unitholders of the Scheme pass a resolution that the Schemes be wound up, OR

c)     If SEBI so directs in the interests of the Unitholders.

 

Where the Scheme is so wound up, the Trustees shall give notice disclosing the circumstances leading to the winding up of the Scheme to:

a)     SEBI and

b)     In two daily newspapers having circulation all over India and a vernacular newspaper circulating in Mumbai.

 

Procedure and manner of Winding Up

 

The Trustees shall call a meeting of the Unit holders to approve by simple majority of the Unit holders present and voting at the meeting, resolution for authorizing the Trustees or any other person to take steps for winding up of the Scheme. The Trustees or any person authorized as above, shall dispose of the assets of such Scheme in the best interest of Unit holders of such Scheme. The proceeds of sale realised in pursuance of the above, shall be first utilised towards discharge of such liabilities as are payable under the said Scheme, and after making appropriate provision for meeting the expenses connected with such winding up, the balance shall be paid to the Unit holders of such Scheme in proportion to their respective interest in the assets of the Scheme, as on the date when decision for winding up was taken.

 

On completion of the winding up, the Trustees shall forward to SEBI and Unit holders of such Scheme a report on the winding up of the said Scheme, detailing the circumstances leading to the winding up of that Scheme, the steps taken for disposal of the assets of such Scheme before winding up, expenses of the Scheme for winding up, net assets available for distribution to the Unit holders of that Scheme and a Certificate from the auditors of the Mutual Fund. After the receipt of the report referred to above, if SEBI is satisfied that all measures for winding up of the Scheme have been complied with, such Schemes shall cease to exist. Notwithstanding anything contained herein above, the provisions of the Regulations in respect of disclosures of half-yearly reports and annual reports shall continue to be applicable (until winding up is completed or the Scheme ceases to exit)

 

Effects of winding up

 

On and from the date of the publication of notice of winding up, the Trustees or the AMC as the case may be, shall

a)     Cease to carry on any business activities in respect of the Scheme so wound up;

b)     Cease to create or cancel Units in such Scheme;

c)     Cease to issue or redeem Units in such Scheme.

 

 

 

 

 

 

 

 

 

 

 

 

11. SALE OF UNITS

 

(i) Who can apply?

 

Application for units may be made by the following:

 

1)     Adult Resident Individual(s) and also Minors through their parents/ lawful guardians.

2)     Adult Resident Individuals jointly not exceeding three, on

     -    either or survivor basis, or jointly or,

     -    first holder or survivor(s) basis or,

     -    any one or survivor(s) basis,

3)     Hindu Undivided Family (HUF), in the name of Karta.

4)     Companies/Bodies Corporate/Public Sector Units registered in India.

5)     Banks and Financial Institutions

6)     Mutual Funds registered with SEBI

7)     Charitable or Religious Trust/Wakfs or Endowments and Registered Societies (including Registered Co-operative Societies) and Private Trusts authorised to invest in the units.

8)     Partnership firms or an Association of Persons or body of individuals whether incorporated or not.

9)      NRIs, OCBs, and persons of Indian origin residing abroad, on a full repatriation basis or non-repatriation basis.

10) Foreign Institutional Investors registered with SEBI

11) Army/Airforce/Navy/Paramilitary funds and other eligible institutions.

12) Scientific and/or industrial research organisations authorised to invest in the Units.

13) Such other individuals/Institutions/Body Corporate etc. as may be decided by the Mutual Fund from time to time, so long as wherever applicable they are in conformity with the SEBI Regulations.

 

Subject to the Regulations, the Trustee/AMC may reject any application received, in case the application is found invalid/incomplete or for any other reason at the Trustee's/AMC’s Sole discretion

 

 (ii) Instructions on how to apply

 

a)     Application forms for investors will be available at specified branches of Bank of Baroda/Investor Service Centres/Distributors and the office of BOB Asset Management Company Ltd.

b)     Application forms must be completed in full in Block letters in English and may be signed in English or in any Indian language. In case of thumb impression, it must be attested either by a Magistrate or a Notary under his official seal.

c)     MIN must be quoted in the application form required under AML Laws.

d)     Applications should be submitted to any of the designated Investor Service Centres or Collecting Bankers designated branches or office of BOBAMC, duly accompanied by the subscription amount payable by cheques/drafts (for Minimum Rs. 5,000 and in multiples of Re. 1/- thereof) drawn locally on any bank which is member of the Bankers clearing house located at the place where the application is submitted and should be made payable to “BOB Diversified Fund” and crossed “A/c Payee only”. Stockinvest/outstation cheques/outstation drafts shall not be accepted.

e)     Applicants located at a place where there is no designated Investor Service Centre or designated Branch of the Collecting Bankers to the Offer, may send their applications accompanied with separate bank drafts, payable at Mumbai, in favour of "Schemes Name” and crossed “A/c Payee Only” to the office of BOBAMC at.105, Maker Chambers III, 10th floor, Nariman Point, Mumbai 400 021

f)       Investors should indicate their preference of Growth or Dividend options in the application forms. If no indication is given in the application forms the investment will be deemed to be for the Growth option. If both the options are selected, applications must be accompanied by two separate cheques.

g)     All cheques and bank drafts accompanying the application form should contain the application form number on its reverse. To prevent fraudulent encashment of dividend/ redemption/refund cheques, it is mandatory for applicants to fill in the details of the applicant's Bank Account in the space provided in the application form. Investors are requested to preserve the acknowledgement slip given by the Collecting Bank/Investor Service Centre.

h)     In case of NRIs and OCBs payments maybe made by Indian Rupee drafts purchased abroad or by cheque drawn on NRE Accounts maintained by the banks authorised to deal in foreign exchange in India. In case of payment made by way of demand drafts, the Demand Draft should be accompanied by a Bankers certificate confirming that the funds have been utilised from NRE account. All cheques/drafts should be drawn in favour of “BOB Diversified Fund” and crossed “A/c Payee only” and must be payable at par at Mumbai.

i)        NRIs/OCBs investing on a non-repatriable basis may do so by issuing cheques/demand drafts drawn on Non-Resident Ordinary (NRO) accounts.

j)       Foreign Institutional Investors shall pay their subscription by direct remittance from abroad or out of their special Non-Resident Rupee account maintained with a designated bank in India.

k)      OCBs desiring to invest should furnish a certificate (in origin) from overseas auditors as per the format provided by RBI. Allotment of units to OCBs is subject to specific approval of RBI.

l)        Application forms duly completed in all respect must be lodged at the designated Investor Service Centre or designated branch of the collecting bankers to the Offer.

m)    Applicants are requested to note the following points before submitting application to any of the collection centres.

a)        Separate cheques/demand drafts should accompany each application form

b)        Stockinvests/Outstation cheques/Post dated cheques/Money orders/Postal orders shall not be accepted and such application will not be considered for allotment

n)     Cheques once returned shall not be represented and the accompanying applications shall not be considered for allotment.

o)     If an application is for units of the value of Rs. 50,000 or more, then the PAN/GIR number and IT Circle/Ward/District of the sole/first applicant should be mentioned.

p)     In case any application is found to be incomplete, the same shall be liable to be rejected and refund of such application money will be made as soon as possible without any interest whatsoever after compliance of requisite operational and procedural formalities.

q)     Where an application is rejected in part or in full, application money will accordingly be refunded to the applicant. No interest will be paid on the amount so refunded. Letters of regret together with refund cheques/orders if any will be despatched by post. Refund will be made by cheques/pay orders.

r)       All communications and payments shall be made only to the sole/first applicant or to the Karta in case of HUF or to the parent or Guardian as the case maybe in respect of minors.

 

Important Note:

 

1.      Please read the terms and conditions of the Offer Document before filling the application. It must be clearly understood that all the applicants are deemed to have accepted the terms subject to which this offer is being made and bind themselves to terms thereof upon signing the application form and tendering payment.

2.      The right to accept or reject any application in whole or in part lies with the BOB AMC/Trustees.

3.      Investors are requested to read the instructions contained in the Application Form carefully, before submitting the same.

 

 

 

Permanent Account Number (PAN)

 

Pursuant to the Notification No. 288 of 2004 dated. 1st December 2004 issued by the Central Board of Direct Taxes, it is brought to the notice of all investors that with effect from 1st January 2005, while making an application for purchase of units for Rs. 50000 or more in a mutual fund, investors should compulsorily quote their Permanent Account Number (PAN) in the application form. Purchase of units would include Fresh purchases, additional purchases, Switch, Systematic Investment Plan/Systematic Transfer Plan. Further Investors at the time of application must also submit PAN photocopy, PAN letter, and refund order or demand notice from IT department, where in PAN is mentioned. No other form of declaration will be accepted. In case of joint applications, the PAN of all the applicants should be quoted supported by the submission of relevant documents. In case a person, making an application for purchase of units in a mutual fund is a minor and does not have any income chargeable to income-tax, he/she shall quote the PAN of his/her father or mother or guardian, as the case may be, in the application form. In case a person does not have a permanent account number and makes an application for purchase of units in a mutual fund, the said investor should make a declaration in Form No. 60 /Form No. 61 giving therein the particulars the transaction. Applications where the PAN is not quoted or the declaration is not provided in the Form 60/Form No. 61 (where the investor does not have a PAN) would be rejected by the Mutual Fund without any reference to the investor.

 

(iii) Applications under Power of Attorney

 

In case of an application under a Power of Attorney or by a limited company or a body corporate or a registered society, or a trust, the original Power of Attorney or a certified copy thereof duly notarised or the relevant resolution or authority to make the application as the case may be, or a duly certified copy thereof, alongwith a certified copy of the Memorandum and Articles of Association and/or Bye-Laws and/or Trust Deed and/or Constitutive document should be lodged at the Office of the Registrars to the Scheme, simultaneously with the submission of application form to the Collecting Banker/Investor Service Centre quoting the reference number of the application form.

  

(iv) Mode of Payment

 

Payment may be made for a minimum amount and in multiples thereof as provided in this offer document by cheque/bank draft, payable locally and drawn on any Bank which is a member of the Bankers clearing house located at the place where the application is submitted. Cheques/ drafts must be drawn in favour of “BOB Opportunities Fund” and crossed "A/C Payee only". Stock invests/ outstation cheques or outstation drafts shall not be accepted.

 

(v) Nomination Facility

 

Nomination facility is available only for individuals applying on their own behalf i.e. either singly or jointly upto two. If an application is made in the name of individual applying on their own behalf i.e. either singly or jointly upto two, the Unit holder can, at the time when the application is made or subsequently thereafter nominate a successor to receive the Units upon his/her death, subject to the prescribed formalities. An applicant can change the nomination any time during the currency of the Scheme. Unit holders holding Units on a joint or first or survivor basis could nominate one person whose nomination will take effect only upon the death of all the Unit holders. However, persons applying on behalf of minors, Hindu Undivided Families, Partnership Firms, eligible trusts, societies and bodies corporate shall not be entitled to nominate.

 

A minor can be nominated and in that event, the name and address of the Guardian of the minor Nominee shall be provided by the Unit holder.

The Nominee shall not be a society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family, holder of Power of Attorney. A non-resident Indian can be a nominee subject to the exchange controls in force from time to time.

 

Nomination in respect of the Units stands rescinded upon the transmission of Units.

 

Transmission of Units in favour of a Nominee shall be a valid discharge by the Mutual Fund/ AMC/ Trustees against the legal heirs of the Unit holder(s).

 

The cancellation of nomination can be made only by those individuals who hold Units on their behalf singly or jointly and who made the original nomination.

 

On cancellation of the nomination, the nomination shall stand rescinded and the Mutual Fund/ AMC/ trustees shall not be under any obligation to transmit the Units in favour of the Nominee.

 

(vi) Switchover Option

 

Unitholders of any of BOB Opportunities Fund Scheme shall have the option to switch part or all of their Unit Holdings in the Scheme to other schemes established by BOB Mutual Fund, or within the Scheme from one plan to another, (subject to the completion of Lock-in Period) which is available for investment at that time. This option will be useful for Unitholders who wish to alter the allocation of their investment among the scheme(s) / plans of the Mutual Fund in order to meet their changed investment needs.

 

All valid applications received for “switch out” shall be treated as redemption, and all valid applications received for “switch in” shall be treated as purchase. Cut off timings for applicable NAV shall be same as are applicable in the case of purchases and redemptions.

 

A switch by NRI/OCB/FII Unit holders will be subject to the compliance of procedures and/or final approval of the Reserve Bank of India or any other agency, as may be required.

 

The AMC reserves the right to charge different (including zero) loads on applicable NAV on switchover as compared to the sale/repurchase as the case may be.

 

(vii) Depository Services

 

Units of the Scheme may, if decided by the Trustees, be issued through a Depository Participant in the dematerialised form. Under such circumstances, transfer of Units (wherever applicable) will be in accordance with the provisions of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 and as may be amended from time to time 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 12. DIVIDENDS AND DISTRIBUTION

 

BOBMF may declare and pay dividend any time during the currency of the Scheme, depending on the performance of the Scheme. BOBMF reserves the right to determine the frequency of dividend distribution. Those investors whose names appear in the register of unit holders as on the record date will be eligible for dividend. The record date will be declared through newspaper advertisements, press releases and other permissible circulations. The AMC shall dispatch to the Unit holders, dividend warrants within 30 days of the date of declaration of dividend.

 

13.CONDENSED FINANCIAL INFORMATION

     a) BOB Diversified Fund (Formerly known as BOB ELSS’ 95)

 

Date of allotment

26-12-1994*

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)

7.15

(02.04.2003)

16.54

(07.04.2004)

20.08

Net Income per unit (Rs.)

0.15

 4.04

13.84

Dividends

Nil

Nil

20%

Transfer to reserves (if any)

Nil

Nil

 

NAV at the end of the year (Rs.)

15.77

19.53

30.55

Annualized return (%) (Compounded)

5.19

6.92

11.32

BSE Sensex CAGR (%)

6.17

7.12

11.93

Net Assets at the end of period (Rs. Crore)

23.35

23.79

32.11

Ratio of recurring expenses to average net assets

2.42%

1.34%

2.40%

*Eastwhile close ended BOB ELSS ‘95’ scheme converted to open ended from 21st March 2005

b) BOB ELSS’96:

Date of allotment

31.03.1996

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)

9.66

(01.04.2003)

21.56

(01.04.2004)

24.22

Net Income per unit (Rs.)

0.57

6.18

5.63

Dividends

10%

20%

110%

Transfer to reserves (if any)

Nil

Nil

Nil

NAV at the end of the year (Rs.)

19.49

23.79

23.42

Annualised return (%) (Compounded)

11.26*

12.72

14.99

BSE Sensex CAGR (%)

6.54

7.57

12.84

Net Assets at the end of period (Rs. Crore)

2.86

3.13

11.04

Ratio of recurring expenses to average net assets

2.31%

0.14

2.50%

*Considering dividend declared during the years

 

 

 

c) BOB ELSS’97

Date of allotment

31.03.1997

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)

9.13

(02.04.2003)

18.96

(07.04.2004)

24.50

Net Income per unit (Rs.)

2.25

6.28

23.40

Dividends

10%

Nil

Nil

Transfer to reserves (if any)

Nil

Nil

Nil

NAV at the end of the year (Rs.)

18.02

24.01

45.61

Annualised return (%) (Compounded)

10.26*

12.57

18.04

BSE Sensex CAGR (%)

7.53

8.57

14.39

Net Assets at the end of period (Rs. Crore)

1.48

1.72

2.56

Ratio of recurring expenses to average net assets

2.28%

0.07%

1.91%

*Considering dividend declared during the years.

d) BOB INCOME FUND

 

Date of allotment

21.03.2002

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)       (Dividend Plan)

10.6504

11.4317

11.7739

                                         (Growth Plan)

10.6497

11.4314

11.7739

Net Income per unit (Rs.)

2.252

0.533

0.421

Dividends

Nil

Nil

Nil

Transfer to reserves (if any)

Nil

Nil

Nil

NAV at the end of the year (Rs.) (Dividend Plan)

11.4165

11.760

12.1879

                                        (Growth Plan)  

11.4162

11.760

12.1879

Annualised return (%) (Compounded)

(Growth Plan)  

 

6.74

 

5.50

 

5.03

CRISIL Composite Bond Fund Index

9.83

6.46

5.71

Net Assets at the end of period (Rs. Crore)

1.19

0.34

0.47

Ratio of recurring expenses to average net assets

2.54%

2.05%

1.89%

 

 

 

e)    BOB GILT FUND

 

Date of allotment

21.03.2002

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)    (Dividend Plan)

10.1063

10.1925

10.3289

                                        (Growth Plan)

10.1049

10.1910

10.3274

Net Income per unit (Rs.)

0.375

0.926

0.374

Dividends

Nil

Nil     

Nil

Transfer to reserves (if any)

Nil

Nil

Nil

NAV at the end of the year (Rs.) (Dividend Plan)

10.6392

10.3327

10.7143

                                        (Growth Plan)  

10.6377

10.3312

10.7132

Annualised return (%) (Compounded) Dividend

(Growth Plan)  

3.10

3.09

 

 

1.08

 

1.72

I Sec Mi-BEX

11.53

7.36

6.41

Net Assets at the end of period (Rs. Crore)

20.61

8.79

7.56

Ratio of recurring expenses to average net assets

1.95%

3.71%

1.23%

 

f) Schemes: BOB LIQUID FUND

         

Date of allotment

21.02.2002

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)    (Dividend Plan)

10.6934

10.1541

(01.04.2004)

10.1990

                                    (Growth Plan)

10.8168

11.3674

11.8923

Net Income per unit (Rs.)

 

0.284

1.18

0.991

Dividends

9.5%

3.5%

Nil

Transfer to reserves (if any) (Rs. in lac)

9.75

22.77

Nil

NAV at the end of the year (Rs.) (Dividend Plan)

10.1492

10.1976

10.7645

                                  (Growth Plan)  

11.3618

11.8908

12.5518

Annualised return (%) (Compounded) Dividend

(Growth Plan) 

5.65

6.25

 

5.72

 

5.69

CRISIL Liquid Fund Index

5.19

4.68

4.85

Net Assets at the end of period (Rs. Crore)

 

278.61

94.70

67.95

Ratio of recurring expenses to average net assets

0.71%

0.60%

0.53%

*Considering dividend declared during the years

 
(g) BOB Growth Fund

 

Date of allotment

12.09.2003

 

Historical Per Unit Statistics

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)   (Dividend Plan)

12.51

15.91

                                        (Growth Plan)

12.52

15.93

Net Income per unit (Rs.)

 

54.86

7.756

Dividends

Nil

Nil

Transfer to reserves (if any)

Nil

Nil

NAV at the end of the year (Rs.) (Dividend Plan)

15.24

27.61

                                        (Growth Plan)  

15.26

27.72

Annualised return (%) (Compounded)

(Growth Plan)  

 

31.33

 

49.14

BSE Sensex CAGR (%)

 

30.33

45.87

Net Assets at the end of period (Rs. Crore)

0.65

1.99

Ratio of recurring expenses to average net assets

7.05%

2.36%

 

(h) BOB Balance Fund

 

Date of allotment

12.09.2003

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)    (Dividend Plan)

-

11.94

(01.04.004)

16.09

                                        (Growth Plan)

-

11.95

(01.04.2004)

16.04

Net Income per unit (Rs.)

1.89

30.97

10.931

Dividends

Nil

Nil

Nil

Transfer to reserves (if any)

Nil

Nil

Nil

NAV at the end of the year (Rs.) (Dividend Plan)

11.66

15.12

23.86

                                       (Growth Plan)  

11.67

15.07

23.80

Annualised return (%) (Compounded) Dividend

(Growth Plan)  

16.60

16.70

 

30.27

 

40.49

Crisil Balanced Fund Index

21.31

19.21

26.37

Net Assets at the end of period (Rs. Crore)

37.17

0.81

1.01

Ratio of recurring expenses to average net assets

1.69*

2.50%

2.34%

* The recurring expenses are for a period starting from 12.09.2003 to 31.03.2004.

 

 

(i) BOB Gilt Fund- P.F. Plan

Date of allotment

 

 

 

Historical Per Unit Statistics

2003-2004

2004-2005

2004-2005

NAV at the beginning of the year (Rs.)    (Dividend Plan)

 

10.0572

 

10.0666

(01.04.2004)

 

0.00

                                    (Growth Plan)

10.0571

10.0665

9.7038

Net Income per unit (Rs.)

0.047

(1.636)

0.638

Dividends

Nil

Nil

Nil

Transfer to reserves (if any)

 

Nil

Nil

NAV at the end of the year (Rs.) (Dividend Plan)

10.0572

--

0.00

                                    (Growth Plan)  

10.0571

9.715

10.0687

Annualised return (%) (Compounded)

(Growth Plan)  

0.57

0.57

(2.31)

 

0.30

BSE Sensex CAGR (%)

1.53

0.92

2.16

Net Assets at the end of period (Rs. Crore)

19.41

6.67

4.72

Ratio of recurring expenses to average net assets

1.61%

13%

1.16%

 

(j) BOB MIP FUND

 

Date of allotment 

28.7.2004

 

Historical Per Unit Statistics

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)   (Dividend Plan)- monthly pay out

--

10.5339

                                                           (Dividend Plan)- Quarterly plan

 

10.5338

                                                              (Growth Plan)

--

10.5333

Net Income per unit (Rs.)

 

(1.229)

0.632

Dividends

Nil

 

Transfer to reserves (if any)

Nil

 

NAV at the end of the year (Rs.) (Dividend Plan)

10.4072

11.3249

                                      (Growth Plan)

10.4072

11.3242

                                                 (quarterly Plan)

10.4072

11.3248

Annualised return (%) (Compounded)

(Dividend Plan)

(Growth Plan)  

 

4.07

 

N.A

8.30

CRISIL MIP Blended Index

4.73

10.58

Net Assets at the end of period (Rs. Crore)

2.73

2.56

Ratio of recurring expenses to average net assets

10.11

1.60%

 

 

 

 

 

 

(k) BOB CHILDREN FUND

 

Date of allotment

28.7.2004

 

Historical Per Unit Statistics

2004-2005

2005-2006

NAV at the beginning of the year (Rs.)            (Study Plan)

--

10.1330

                                             (Gift Plan)

--

10.1651

Net Income per unit (Rs.)

Study Plan

0.16

(0.020)

Gift Plan

0.12

0.254

Transfer to reserves (if any)

Nil

 

NAV at the end of the year (Rs.) (Gift Plan)

10.1076

10.2940

                                          (Study Plan)  

10.0307

9.9663

Annualised return (%) (Compounded)  (Gift Plan)

                                                              (Study Plan)  

 

1.40

1.88

-0.22

CRISIL Balance Fund Index

13.09

36.21

Net Assets at the end of period (Rs. Crore)

0.11

0.05

Ratio of recurring expenses to average net assets

0.01

1.53%

 

    (L) BARODA GLOBAL FUND 

 

Date of allotment 

06 .02.2006

Historical Per Unit Statistics

06.02.2006-31.12.2006

NAV at the beginning of the year (Rs.)

(Dividend Plan)                        

9.8469

 

                                        (Growth Plan)

9.8470

Net Income per unit (Rs.)

-0.174

Dividends

--

Transfer to reserves (if any)

--

NAV as on 31.12.2006(Rs.) (Dividend Plan)

11.04

                                      (Growth Plan)

11.06

Absolute Return

(Dividend Plan)

(Growth Plan)  

14.09

 

 

BSE sensex

33.12

Net Assets at the end of period (Rs. Crore)

 

Ratio of recurring expenses to average net assets

0.90%

 

 

 

 

 

 

 

 

 

 

 

Condensed Financial Information for the period

01.04.2006 to 31.12.2006

 

 

BOB

Diversified

BOB

ELSS ‘96

BOB

ELSS ‘97

BOB

Growth

BOB

Balance

BOB

Income

Fund

BOB

 Gilt

Fund

BOB

Liquid

Fund

NAV at the

 beginning of the

 year (Rs.) (01.04

.06)(Dividend Plan)

 

31.45

24.07

44.52

27.94

24.58

12.19

10.76

10.76

(Growth Plan)

--

 

---

--

28.05

24.51

12.19

10.76

12.55

Net Income per

 unit (Rs.)

-3.63

 

-1.97

-1.65

-1.41

-3.05

0.16

0.22

0.32

Dividends (%)

 

 

---

101%

--

---

---

---

Transfer to reserves

--

 

---

---

--

--

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Net Assets at

31.12.2006

(Rs. Crore)

29.23

12.10

2.46

13.14

0.91

0.45

4.61

44.86

NAV as on 31.12.2006 (Rs.)(Dividend Plan)

Daily dividend plan

30.99

25.53

47.12

19.00

22.19

12.53

11.18

11.29

10.04

(Growth Plan)

30.31

25.54

47.13

30.12

22.10

12.53