CPSE ETF, an open-ended Index Exchange Traded Scheme New Fund Offer will open on March 18, 2014 for anchor investors and on the following day for non-anchor investors. Managed by Goldman Sachs Asset Management (India) Pvt Ltd, CPSE ETF is an open ended scheme to be listed on the Exchanges in the form of an Exchange Traded Fund (ETF), which tracks the central public sector enterprises (‘CPSE’) Index, according to an official statement.
From (L-R): Vijesh Gonsalves, Executive Director and Bibek Sengupta, Executive Director (TPD Sales), Goldman Sachs Asset Management India at the launch of the CPSE ETF NFO in Chennai.
CPSE ETF is a unique opportunity for investors to invest in ten Maharatnas, Navratnas and Miniratnas at a discount of five percent on the ‘Reference Market Price”1 of the underlying shares of CPSE Index, which will be offered to the CPSE ETF by the Government of India (GOI). 6.66 percent Loyalty Units (One Loyalty Unit will be allocated for every 15 Units held) for eligible Retail Individual Investors holding the units continuously from the Allotment Date to the Loyalty Unit Record Date, which will be one year from the NFO allotment date. The non-anchor investors NFO closes on March 21, 2014. Scheme reopens for continuous subscription and redemption on or before April 11, 2014.
Providing portfolio diversification through investment in blue-chip public sector enterprises, CPSE ETF is a play on India’s growth story through the largest companies in the core sector. The CPSE Index constituents are as follows: ONGC, GAIL (India) Ltd, Coal India Ltd, Rural Electrification Corporation Ltd, Oil India Ltd, IOCL, Power Finance Corporation Ltd, Container Corporation of India Ltd, Bharat Electronics Ltd and Engineers India Ltd.
The CPSE Index is constructed in order to facilitate the Government of India’s initiative to disinvest some of its stake in selected CPSEs through the ETF route. As per data published by the index service provider, as of March 13, 2014, the CPSE index had a PE ratio of 10.52 and dividend yield of 3.51 percent.
Retail Individual Investors can invest a minimum of Rs 5,000 and in multiples of Re 1 thereafter up to Rs 200,000. Non Institutional Investors/ QIBs can invest a minimum of Rs 200,001 and in multiples of Re 1 thereafter. Maximum Amount to be raised during the NFO will be Rs 3,000 crore subject to maximum of three percent of the paid up share capital of each of the constituents of the CPSE Index. The entry and exit load is nil. CPSE ETF offers Tax Benefits as the Scheme is in compliance with the provisions of Rajiv Gandhi Equity Savings Scheme, 2013 (‘RGESS’).
Product Label – CPSE ETF
This product is suitable for investors who are seeking*:
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Note: Risk may be represented as:
|(BLUE) investors understand that their principal will be at low risk||(YELLOW) investors understand that their principal will be at medium risk||(BROWN) investors understand that their principal will be at high risk|
1 Price determined based on the average of full day volume weighted average price on the NSE during the Non Anchor Investor NFO Period (inclusive of Non Anchor Investor NFO Period open as well as close date) for each of the index constituents of the CPSE Index.
2 Eligibility Criteria:
a. The Units must have been held as per the records of Registrar in the name of the same Unit holder continuously from the NFO Allotment Date to the Loyalty Unit Record Date
b. For calculation of the Loyalty Units, the lowest Unit balance held by the Unit holder at any point of time in between the NFO Allotment Date to the Loyalty Unit Record Date (both days included), which is at par or below the number of Units allotted to the Unit holder on the Allotment Date will be considered for determining the Loyalty Units
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Website: www.gsam.in. Call Tollfree 18002661200.
For more details please refer to the Scheme Information Document, Statement of Additional Information, Key Information Memorandum and Application Form which are available at the office of the Investment Manager or can be downloaded from www.gsam.in
• Constitution: Goldman Sachs Mutual Fund has been set up as a trust under the Indian Trust Act, 1882
• Trustee: Goldman Sachs Trustee Company (India) Private Limited
• Investment Manager: Goldman Sachs Asset Management (India) Private Limited
• Sponsor: Goldman Sachs Asset Management LP
This material is issued in or from India by Goldman Sachs Asset Management (India) Private Limited (GSAM India).
THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION WHERE OR TO ANY PERSON TO WHOM IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO.
It is to be distinctly understood that the permission given by NSE/BSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE/BSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the ‘Disclaimer Clause of NSE’ and ‘Disclaimer Clause of BSE’
The offer and sale of the Units has not been registered pursuant to an effective registration statement under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or approved or disapproved by the United States Securities and Exchange Commission or the securities or regulatory agency of any state in the United States. The offer and sale of the Units is made in reliance upon the exemption from registration contained in Regulation S of the U.S. Securities Act (“Regulation S”), and the regulations promulgated thereunder relating to limited offering transactions. Units will be offered to non-U.S. persons (as that term is defined in Regulation S) and will not be offered for sale in the United States or its territories or possessions.