ABN AMRO Mutual Fund

Transcription

1 ABN AMRO Mtal Fnd OFFER DOCUMENT OFFER OF UNITS OF: ABN AMRO CASH FUND An open-ended Liqid scheme with no assred retrns On going basis Offer of Units at Applicable NAV Sponsor Trstee Asset Management Company ABN AMRO Asset Management ABN AMRO Trstee (India) ABN AMRO Asset Management (Asia) Limited Private Limited (India) Limited Registered Office: Registered Office: Registered Office: 43/F, Cheng Kong Centre, 101,10th Floor, Sakhar Bhavan, 101,10th Floor, Sakhar Bhavan, 2 Qeen's Road Central, Hong Kong Nariman Point, Mmbai Nariman Point, Mmbai This Offer Docment sets forth concisely the information abot the Scheme that a prospective investor oght to know before investing. This Offer Docment shold be retained for ftre reference. The particlars of the Scheme has been prepared in accordance with the Secrities and Exchange Board of India (Mtal Fnds) Reglations, 1996, as amended till date, and filed with the Secrities and Exchange Board of India, and the Units being offered for the pblic sbscription have not been approved or disapproved by the Secrities and Exchange Board of India nor has the Secrities and Exchange Board of India certified the accracy or adeqacy of this Offer Docment. This Offer Docment will remain effective till a 'material change' (other than a change in Fndamental Attribtes and within the prview of this Offer Docment) occrs and thereafter the changes shall be filed with Secrities and Exchange Board of India and circlated to the Unitholders or as may be pblicly notified by advertisements in the newspapers sbject to applicable reglations. In accordance with Secrities and Exchange Board of India directives, this Offer Docment will be flly revised and pdated at least once in two years from the date of this Offer Docment. Till the time this Offer Docment is reprinted, an addendm giving details of each of the changes will be attached to the Offer Docment. The yearly-condensed financial information of the Scheme will also be inclded in the form of addendm to this Offer Docment till the time the revised Offer Docment is printed. Investors may also like to ascertain abot any frther changes after the date of this Offer Docment from the Mtal Fnd / its Investor Service Centres / distribtors. This Offer Docment is dated Agst 4,

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3 SPONSOR ABN AMRO ASSET MANAGEMENT (ASIA) LIMITED Registered Office 43/F, Cheng Kong Centre, 2 Qeen's Road Central, Hong Kong TRUSTEE ABN AMRO TRUSTEE (INDIA) PRIVATE LIMITED Registered Office 101, 10th Floor, Sakhar Bhavan Nariman Point, Mmbai ASSET MANAGEMENT COMPANY ABN AMRO ASSET MANAGEMENT (INDIA) LIMITED Registered Office 101, 10th Floor, Sakhar Bhavan Nariman Point, Mmbai REGISTRAR AND TRANSFER AGENT COMPUTER AGE MANAGEMENT SERVICES (P) LIMITED A & B, Lakshmi Bhawan, 609, Anna Salai, Chennai CUSTODIAN DEUTSCHE BANK A G Kodak Hose, 22, D.N. Road, Fort, Mmbai STATUTORY AUDITORS TO THE MUTUAL FUND S. R. BATLIBOI & CO. 6th Floor, Express Tower, Nariman Point, Mmbai LEGAL ADVISORS DAVE & GIRISH & CO. Advocates 1st Floor, Sethna Bilding, 55, Maharshi Karve Road, Marine Lines, Mmbai

4 TABLE OF CONTENTS Section Particlars Page No. Standard Risk Factors... 3 Scheme Specific Risk Factors and Special Considerations... 3 Highlights... 4 Definitions... 5 De Diligence by the Asset Management Company... 6 I. Smmary of The Scheme... 7 Constittion of the Mtal Fnd... 8 The Mtal Fnd... 8 The Sponsor... 8 The Trstee... 8 Directors of the Trstee... 8 Smmary of the Sbstantive Provisions of the Trst Deed... 8 Rights, Dties and Responsibilities of the Trstee Under the SEBI Reglations... 9 Trstee-Fees and Expenses The Asset Management Company Asset Management Fees Directors of the AMC Dties and Responsibilities of the Asset Management Company Key Employees of the AMC and Relevant Experience Fnd Managers Investor Relations Officer Stattory Aditors for the Mtal Fnd Cstodian Registrar and Transfer Agent Fnd Accontant II. Investment Objective & Policy Change in Investment Pattern Terms of the Plans nder the Scheme Changes in Fndamental Attribtes Benchmark Index Investment Approach and Risk Control Debt Market in India Investment Strategy Trading in Derivatives Policy on Offshore Investments by the Scheme Investment Decisions Portfolio Trnover Investment Restrictions Comptation of Net Asset Vale Depository Valation of the Scheme's Assets and determination of the Net Asset Vale Acconting Policies and Standards Unclaimed Redemption / Dividend Amont Investment by the AMC in the Scheme III. Units & The Offer Units on Offer - General Information Offer Price for ongoing sbcription Minimm Amont and Additional Amont for Application Investment Plans Offered Under the Scheme Dividend & Distribtions Effect of Dividends Rights to Offer Additional Investment Plans Option(s) Systematic Transfer Plan (STP) Systematic Withdrawal Plan (SWP) Switching Options Who can Invest? Who cannot Invest? How to Apply? Mode of Payment Master Accont / Folio Section Particlars Page No. Accont Statement Unit Certificates Hoseholdings Mode of Holding Nomination Facility Transfer and Transmission Facility Lien on Units Pledge of Units Units with Depository Sale of Units on an On-going Basis On-going Sale Price Applicable NAV for Sale of Units Redemption of Units Minimm Amont / Units for Redemption Redemption Price Applicable NAV for Redemption of Units Payment of Redemption Proceeds Bank Details Redemptions by NRIs / FIIs Effect of Redemptions Right to Limit / Withhold Redemptions Freezing / Seizre of Acconts Important note on Anti Money Landering, KYC and Investor Protection Cheqe Boncing Closre of Unitholders Accont / Mandatory Redemption of Units Sspension of Sale / Redemption / Switching Options of the Units IV. Load Strctre & Recrring Expenses Expenses of the Scheme Fees and Expenses of the Past Schemes and Condensed Financial Information V. Unit Holders' Rights & Services Investor Services Convenience of Transactions Receiving Accont Statement / Correspondence by Use of Intermediaries Information Dissemination Personal Identification Nmber (PIN) Rights of Unit Holders Dration of the Scheme / Winding Up Effect of Winding Up Procedre and Manner of Winding Up Minimm Nmber of Investors and Maximm Holding by a Single Investor Tax Benefits of Investing in the Mtal Fnd VI. Other Matters Unit Holder Grievances Redressal Mechanism Investor Complaints Associate Transactions Dealing with Associate Companies Borrowing by the Mtal Fnd Secrities Lending by the Mtal Fnd Underwriting by the Mtal Fnd Inter-Scheme Transfers Disclosre nder SEBI Reglations 25(11) Electronic Clearing Service (ECS) Powers to Remove Difficlties Powers to Make Rles Penalties and Pending Litigation or Proceedings, Findings of Inspection or Investigation for which action may have been taken or is the process of being taken by any Reglatory Athority Omnibs Clase Docments available for Inspection ABN AMRO Cash Fnd 2

5 STANDARD RISK FACTORS Mtal Fnds and secrities investments are sbject to market risks and there can be no assrance or garantee that the Scheme's objectives will be achieved. As with any investment in secrities, the NAV of Units issed nder the Scheme may go p or down depending on the varios factors and forces affecting the capital markets. The varios factors which impact the vale of the Scheme's investments inclde, bt are not limited to, flctations in the eqity and bond markets, flctations in interest rates, prevailing political and economic environment, changes in government policy, factors specific to the isser of the secrities, tax laws, liqidity of the nderlying instrments, settlement periods, trading volmes etc. Past performance of the Sponsors and its affiliates / Mtal Fnd / AMC does not indicate the ftre performance of the Scheme. ABN AMRO Cash Fnd ("AACF") is the name of the Scheme and does not in any manner indicate either the qality of the Scheme or its ftre prospects and retrns. The Sponsor is not responsible or liable for any loss or shortfall reslting from the operations of the Scheme beyond the initial contribtion of Rs. 1,00,000 made by it towards the corps of the Mtal Fnd or sch other accretions and additions to the same. Investors shold stdy this Offer Docment careflly in its entirety before investing and retain the Offer Docment for ftre references. Unitholders in the Scheme are not being offered any garanteed / assred retrns. SCHEME SPECIFIC RISK FACTORS AND SPECIAL CONSIDERATIONS Sbject to the stated investment objective, the Scheme proposes to invest in debt and related instrments. Price-Risk or Interest Rate Risk: As with all debt instrments, changes in interest rates may affect the NAV of the Scheme as the prices of instrments increase as interest rates decline and decrease as interest rates rise. Prices of long-term instrments generally flctate more in response to interest rate changes than of short-term instrments. Indian debt markets can be volatile leading to the possibility of price movements p or down in fixed income instrments and thereby to possible movements in the NAV. Basis Risk: As the Scheme may invest in floating rate instrments, these instrments' copon will be reset periodically in line with the benchmark index movement. Normally, the interest rate risk of a floating rate instrment compared to a fixed rate instrment is limited. The changes in the prevailing rates of interest will likely affect the vale of the Scheme's holdings ntil the next reset date and ths the vale of the Scheme's Units. Increased rates of interest, may have a negative effect on the vale of the Units. The vale of instrments held by the Scheme may vary inversely with changes in the prevailing interest rates. The Scheme cold be exposed to the interest rate risk (i) to the extent of time gap in resetting of the benchmark rates, and (ii) to the extent the benchmark index fails to captre the interest rate movement. Spread Risk: Thogh the basis (i.e. benchmark) gets readjsted on a reglar basis, the spread (i.e. markp) over benchmark remains constant. This can reslt in some volatility to the holding period retrn of floating rate instrments. Settlement Risk (Conterparty Risk): The floating rate assets may also be created by swapping a fixed retrn to a floating rate retrn. In sch a swap, there may be an additional risk on the conterparty who will pay floating rate retrn and receive fixed rate retrn. Liqidity or Marketability Risk: This refers to the ease with which an instrment can be sold at or near to its valation yield to- matrity (YTM). The primary measre of liqidity risk is the spread between the bid price and the offer price qoted by a dealer. Liqidity risk is today the characteristic of the Indian fixed income market. Credit Risk: Credit risk or defalt risk refers to the risk that an isser of a fixed income instrment may defalt (i.e. will be nable to make timely principal and interest payments on the instrment). Becase of this risk, corporate debentres are sold at a yield above those offered on Government Secrities, which are sovereign obligations. Normally, the vale of a fixed income instrment will flctate depending pon the changes in the perceived level of credit risk as well as any actal event of defalt. The greater the credit risk, the greater the yield reqired for someone to be compensated for the increased risk. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from the instrments 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 assmed. The Scheme may also se varios derivative and hedging prodcts from time to time, as wold be available and permitted by SEBI, in an attempt to protect the vale of the portfolio and enhance Unitholders' interest. From time to time and sbject to the SEBI Reglations, the Sponsor, their affiliates, associates, sbsidiaries, the Mtal Fnd and the AMC may invest directly or indirectly in the Scheme. These entities may acqire a sbstantial portion of the Scheme's Units and collectively constitte a major investor in the Scheme. Accordingly, redemption of Units held by sch entities may have an adverse impact on the Scheme becase the timing of sch redemption may impact the ability of other Unitholders to redeem their respective Units. Redemption by the Unitholder de to change in the fndamental attribtes of the Scheme or de to any other reasons may entail tax conseqences. The Trstee, AMC, Mtal Fnd, their Directors, officers or their employees shall not be liable for any sch tax conseqences that may arise. The tax benefits described in this Offer Docment are as available nder the prevailing taxation laws and are available sbject to relevant conditions. The information so stated is based on the advice received by the AMC regarding the law and practice crrently in force in India as of the date of this Offer Docment. The information given is inclded only for general prpose and the Unitholders shold be aware that the relevant fiscal rles or their interpretation may change. As is the case with any investment, there can be no garantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endre indefinitely. In view of the individal natre of tax conseqences, each Unitholder is advised to conslt his / her / their own professional tax advisor. Investment decisions made by the AMC may not always be profitable. As the liqidity of the investments made by the Scheme cold, at times, be restricted by trading volmes and settlement periods, the time taken by the Mtal Fnd for Redemption of Units may be significant in the event of an inordinately large nmber of Redemption reqests or of a restrctring of the Scheme. In view of the above, the Trstee has the right, in its sole discretion, to limit Redemptions (inclding sspending Redemptions) nder certain circmstances, as described nder the sections titled "Right to Limit / Withhold Redemptions" on page 27 and "Sspension of Sale / Redemption / Switching Options of the Units" on page 28. The Scheme may, considering the overall level of risk of the portfolio, invest in lower rated / nrated secrities offering higher yields. This may increase the absolte level of risk of the portfolio. As zero copon secrities do not provide periodic interest payments to the holder of the secrity, these secrities are more sensitive to changes in interest rates. Therefore, the interest rate risk of zero copon secrities is higher. The Scheme may choose to invest in zero copon secrities that offer attractive yields. This may increase the risk of the portfolio. Secrities which are not qoted on the stock exchanges are inherently illiqid in natre and carry a larger amont of liqidity risk, in comparison to secrities that are listed on the exchanges or offer other exit options to the investor, inclding a pt option. The Scheme may choose to invest in nlisted secrities that offer attractive yields. This may increase the risk of the portfolio. While secrities that are listed on the stock exchange carry lower liqidity risk, the ability to sell these investments is limited by the overall trading volme on the stock exchanges. Money market secrities, while fairly liqid, lack a well-developed secondary market, which may restrict the selling ability of the Scheme and may lead to the Scheme incrring losses till the secrity is finally sold. Investors shold stdy this Offer Docment careflly in its entirety and shold not constre the contents hereof as advice relating to legal, taxation, investment or any other matters. Investors are advised to conslt their legal, tax, investment and other professional advisors to determine possible legal, tax, financial or other considerations of sbscribing to or redeeming Units, before making a decision to invest / redeem Units. Neither this Offer Docment nor the Units have been registered in any jrisdiction. The distribtion of this Offer Docment in certain jrisdictions may be restricted or totally prohibited to registration reqirements and accordingly, persons who come into possession of this Offer Docment are reqired to inform themselves abot and to observe any sch restrictions and or legal compliance reqirements. 3

6 No person has been athorised to isse any advertisement or to give any information, either oral or written to make any representations other than that contained in this Offer Docment. Circlars in connection with this offering not athorised by the Mtal Fnd / Trstee / AMC and any information or representations not contained herein mst not be relied pon as having been athorised by the Mtal Fnd / Trstee / AMC. As per SEBI circlar dated December 12, 2003 ref SEBI/IMD/CIR No. 10/22701/03 and Jne 14, 2005 ref SEBI/IMD/CIR No. 1/42529/05 each Scheme and individal Plan(s) nder the Scheme(s) shold have a minimm of 20 investors and no single investor shall accont for more than 25% of the corps of sch Scheme(s)/ Plan(s). In case of nonflfilment with the former condition on an on-going basis for each calendar qarter, the Scheme(s) / Plan(s) shall be wond p in accordance with the gidelines prescribed by SEBI. In case of later condition where there is breach of limit of 25% limit over the qarter, a rebalancing period of one month wold be allowed and thereafter the investor who is in breach of the rle shall be given 15 days notice to redeem his exposre over the 25% limit. Failre on the part of the said investor to redeem his exposre over the 25% limit within the aforesaid 15 days wold lead to atomatic redemption by the Mtal Fnd on the applicable Net asset vale on the 15th day of the notice period. Foreign Secrities : It is the AMC's belief that investment in foreign secrities offer new investment and portfolio diversification opportnities into mlti-market and mlti-crrency prodcts. However, sch investments also entail additional risks. Sch investment opportnities may be prsed by the AMC provided they are considered appropriate in terms of the overall investment objectives of the Scheme. Since the Scheme wold invest only partially in foreign secrities, there may not be readily available and widely accepted benchmarks to measre performance of the Scheme. To manage risks associated with foreign crrency and interest rate exposre, the Scheme may se derivatives for efficient portfolio management inclding hedging and in accordance with conditions as may be stiplated by SEBI / RBI from time to time. Offshore investments will be made sbject to any / all approvals, conditions thereof as may be stiplated by SEBI/RBI and provided sch investments do not reslt in expenses to the Scheme in excess of permissible ceiling of expenses and consistent with costs and expenses attendant to international investing. The Mtal Fnd may, where necessary, appoint other intermediaries of repte as advisors, cstodian/sb-cstodians etc. for managing and administering sch investments. The appointment of sch intermediaries shall be in accordance with the applicable reqirements of SEBI and within the permissible ceiling of expenses. The fees and expenses wold illstratively inclde, besides the investment management fees, cstody fees and costs, fees of appointed advisors and sb-managers, transaction costs and overseas reglatory costs. To the extent that the assets of the Scheme will be invested in secrities denominated in foreign crrencies, the Indian Rpee eqivalent of the net assets, distribtions and income may be adversely affected by changes in the vale of certain foreign crrencies relative to the Indian Rpee. The repatriation of capital to India may also be hampered by changes in reglations concerning exchange controls or political circmstances as well as the application to it of other restrictions on investment. Derivatives: The Scheme may se derivative instrments like ftres & options on individal stocks, interest rate swaps, forward rate agreements or other derivative instrments for the prpose of hedging and portfolio balancing, as permitted nder the SEBI Reglations and gidelines. As and when the Scheme trades in the derivatives market there are risk factors and isses concerning the se of derivatives that investors shold nderstand. Derivative prodcts are specialised instrments that reqire investment techniqes and risk analysis different from those associated with stocks and bonds. The se of a derivative reqires an nderstanding not only of the nderlying instrment bt also of the derivative itself. Derivatives reqire the maintenance of adeqate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is the possibility that a loss may be sstained by the portfolio as a reslt of the failre of another party (sally referred to as the "conter party") to comply with the terms of the derivatives contract. Other risks in sing derivatives inclde the risk of mispricing or improper valation of derivatives and the inability of derivatives to correlate perfectly with nderlying assets, rates and indices. Ths, derivatives are highly leveraged instrments. Even a small price movement in the nderlying instrment cold have a large impact on their vale. Also, the market for derivative instrments is nascent in India. Secrities Lending: The risks in lending portfolio secrities, as with other extensions of credit, consist of the failre of another party, in this case the approved intermediary, to comply with the terms of agreement entered into between the lender of secrities i.e. the Scheme and the approved intermediary. Sch failre to comply can reslt in the possible loss of rights in the collateral pt p by the borrower of the secrities, the inability of the approved intermediary to retrn the secrities deposited by the lender and the possible loss of any corporate benefits accring to the lender from the secrities deposited with the approved intermediary. The Mtal Fnd may not be able to sell sch lent secrities and this can lead to temporary illiqidity. The AMC has no previos experience in managing a Mtal Fnd, and the Scheme being offered in this Offer Docment is one among the initial Schemes being lanched nder its management. HIGHLIGHTS Sponsor - The Sponsor of the Mtal Fnd is ABN AMRO Asset Management (Asia) Limited Liqidity - The Scheme will offer for Sale / Switch-in and Redemption / Switch-ot of Units on every Bsiness Day on an ongoing basis. As per the SEBI Reglations, the Mtal Fnd shall despatch Redemption proceeds within 10 Bsiness Days of receiving the Redemption reqest. A penal interest of 15% per annm or sch other rate as may be prescribed by SEBI from time to time, will be paid in case the Redemption proceeds are not made within 10 Bsiness Days of the date of Redemption reqest. However, nder normal circmstances, the Mtal Fnd will endeavor to despatch the Redemption proceeds within 3 Bsiness Days from the acceptance of the Redemption reqest. Transparency - The AMC will disclosed at the close of every Bsiness Day. In addition the AMC will disclose details of the portfolio of the Scheme atleast at the end of each qarter. Flexibility - Unitholders will have the flexibility to alter the allocation of their investments among the Schemes offered by the Mtal Fnd, in order to sit their changing investment needs, by easily switching between the Schemes / Plans of the Mtal Fnd, at the Applicable NAV, sbject to applicable Load. Repatriation - Repatriation benefits wold be available to NRIs / FIIs sbject to conditions, if any, applicable nder law at the time of repatriation. ABN AMRO Cash Fnd 4

7 DEFINITIONS In this Offer Docment, the following words and expressions shall have the meaning specified herein, nless the context otherwise reqires: "AAMMF:2A" "AAMMF:2B" "AAMMF" "AAFLF" "AAFTP-2:QA" "AAFTP-2:QB" "AAFTP-2:QC" "AAFTP-2:QD" "AAFTP-2:QE" "AAFTP-2:TM" "AAFTP-2:HYA" "AATAP" ABN AMRO Mlti Manager Fnd - Series 2A ABN AMRO Mlti Manager Fnd - Series 2B ABN AMRO Mlti Manager Fnd ABN AMRO Ftre Leaders Fnd ABN AMRO Fixed Term Plan - Series 2 : Qarterly Plan A ABN AMRO Fixed Term Plan - Series 2 : Qarterly Plan B ABN AMRO Fixed Term Plan - Series 2 : Qarterly Plan C ABN AMRO Fixed Term Plan - Series 2 : Qarterly Plan D ABN AMRO Fixed Term Plan - Series 2 : Qarterly Plan E ABN AMRO Fixed Term Plan - Series 2 : Thirteen Month Plan ABN AMRO Fixed Term Plan - Series 2 : Half Yearly Plan A ABN AMRO Tax Advantage Plan (ELSS) "AAFTP-1" ABN AMRO Fixed Term Plan - Series 1 "AALTFRF" "AAEF" "AAMIP" "AAFDF" "AAFRF" "AACF" "AAOF" "AADYF" "AMC" or "Asset Management Company" or "Investment Manager" "Applicable NAV" "Bsiness Day" "CDSC" or "Contingent Deferred Sales Charge" "Cstodian" ABN AMRO Long Term Floating Rate Fnd ABN AMRO Eqity Fnd ABN AMRO Monthly Income Plan ABN AMRO Flexi Debt Fnd ABN AMRO Floating Rate Fnd ABN AMRO Cash Fnd ABN AMRO Opportnities Fnd ABN AMRO Dividend Yield Fnd ABN AMRO Asset Management (India) Limited, a company incorporated nder the provisions of the Companies Act, 1956 and approved by SEBI to act as the Asset Management Company for the Schemes of the Mtal Fnd. Unless otherwise stated, the NAV of the Scheme / Plan(s) / Option(s) applicable for Sale, Redemption, or Switches, as the context may reqire, based on the time and day on which the application is accepted. (For details please refer page no. 26 for "Applicable NAV for Sale of Units" and page no. 27 for "Applicable NAV for Redemption of Units"). A day other than: (i) Satrday and Snday (ii) day(s) on which the money markets are closed / not accessible (iii) A day on which the banks in Mmbai and / or RBI are closed for bsiness / clearing (iv) A day on which the Stock Exchange, Mmbai and / or the National Stock Exchange of India Limited are closed (v) A day which is a pblic and /or bank holiday at the Investor Service Centre where the application is received, (vi) A day on which Sale and Redemption of Units is sspended by the Trstee / AMC (vii) A book closre period as may be annonced by the Trstee / AMC. (viii) A day on which normal bsiness cannot be transacted de to storms, floods, bandhs, strikes or sch other events as the Trstee / AMC may specify from time to time.the Trstee / AMC reserves the right to change the definition of Bsiness Day(s). The Trstee / AMC reserves the right to declare any day as a Bsiness Day or otherwise at any or all Investor Service Centres. Contingent Deferred Sales Charge permitted nder the SEBI Reglations to be borne by the Unitholder pon exiting (whether by way of redemption or Inter-scheme switching) based on the amont of investment (if applicable) and period of holding of Units. Detsche Bank AG, Mmbai, registered nder the SEBI (Cstodian of Secrities) Reglations, 1996, crrently acting as Cstodian to the Scheme or any other cstodian approved by the Trstees. "Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996). "Dividend" "Entry Load" or "Sales Load" "Exit Load" or "Redemption Load" "FII" "Floating Rate Debt Instrments" Income distribted by Scheme on the Units, where applicable. Load on Sale / Switch-in of Units. Load on Redemption / Switch-ot of Units. Foreign Instittional Investors, registered with SEBI nder the Secrities and Exchange Board of India (Foreign Instittional Investors) Reglations, 1995, as amended from time to time. Floating rate debt instrments are debt secrities issed by Central and / or State Government, Corporate Bodies or PSUs with interest rates that are reset periodically. The periodicity of the interest reset cold be daily, monthly, qarterly, half-yearly, annally or any other periodicity that may be mtally agreed with the isser and the Mtal Fnd. Floating rate debt instrments which can be synthetically created by swapping Money Market Instrments & Fixed Rate Debt Instments for floating rate retrns. The interest payable on the instrments cold also be in the natre of a fixed spread over benchmark yields. 5

8 "Gilts" or "Government Secrities" "Investment Management Agreement" or "IMA" "Investor Service Centres" or "ISCs" "Load" "Local Cheqe" "Mtal Fnd" or "the Fnd" "NAV" "NRI" "Offer Docment" Secrities created and issed by the Central Government and/or a State Government (inclding Treasry Bills) or Government Secrities as defined in the Pblic Debt Act, 1944, as amended or re-enacted from time to time. The agreement dated April 15, 2004 entered into between ABN AMRO Trstee (India) Private Limited and ABN AMRO Asset Management (India) Limited, as amended from time to time. Designated branches or service centres or representative offices of Registrar and Transfer Agent or its associates or sch other centres / offices as may be designated by the Trstee / AMC from time to time. A charge that may be levied as a percentage of NAV at the time of entry into the Scheme or at the time of exiting from the Scheme. A cheqe handled locally and drawn on any bank which is a member of the Banker's Clearing Hose located at the designated official points of acceptance of transactions, where the application form is sbmitted. ABN AMRO Mtal Fnd, a trst set p nder the provisions of the Indian Trsts Act, 1882 and registered with SEBI nder the Secrities Reglations vide. Registration No. MF/049/04/01 dated May 27, Net Asset Vale per Unit of the Scheme, calclated in the manner described in this Offer Docment or as may be prescribed by the SEBI Reglations from time to time. A Non-Resident Indian or a person of Indian origin residing otside India. This docment issed by the Mtal Fnd offering the Units of the Scheme for Sbscription. "RBI" Reserve Bank of India, established nder the Reserve Bank of India Act, "Registrar and Transfer Agent" Compter Age Management Services (P) Limited (CAMS), Chennai, registered nder the Secrities and Exchange Board of India (Registrars to an Isse and Share Transfer Agents) Reglations, 1993, crrently acting as registrar and transfer agent to the Scheme, or any other registrar and transfer agent appointed by the Mtal Fnd acting throgh the AMC from time to time. "Reprchase" / "Redemption" Redemption of Units of the Scheme as permitted at matrity / reprchase of nits on the dates period dring which nits will be reprchased by the Fnd. "Sale" / "Sbscription" "Scheme" Sale or allotment of Units to the Unitholder pon Sbscription by the Investor / Applicant nder the Scheme ABN AMRO Cash Fnd and the Plan(s) / Option(s) offered therender. "SEBI" Secrities and Exchange Board of India, established nder the Secrities and Exchange Board of India Act, "SEBI Reglations" or "Reglations" "Sponsor" or "Settlor" "Trst Deed" "Trstee" "Unit" Secrities and Exchange Board of India (Mtal Fnds) Reglations, 1996, as amended from time to time. ABN AMRO Bank Asset Management (Asia) Limited The Trst Deed dated April 15, 2004 made by and between ABN AMRO Bank N.V. and ABN AMRO Trstee (India) Private Limited, establishing the Mtal Fnd, as amended from time to time. ABN AMRO Trstee (India) Private Limited, incorporated nder the provisions of the Companies Act, 1956 and approved by SEBI to act as the Trstee to the Schemes of the Mtal Fnd. The interest of the Unitholder which consists of each Unit representing one ndivided share in the net assets of the Scheme. "Unitholder" or "Investor" A person holding Unit(s) in the Scheme of the Mtal Fnd offered nder this Offer Docment. Interpretation For all prposes of this Offer Docment, except as otherwise expressly provided or nless the context otherwise reqires : All references to the mascline shall inclde the feminine and all references, to the singlar shall inclde the plral and vice-versa. All references to "Eros" refer to the crrency of some Member States of the Eropean Union, "dollars" or "$" refer to United States Dollars, "HKD" refers to Hong Kong Dollars and "Re." / "Rs." refers to Indian Rpee(s). A "crore" means "ten million" and a "lakh" means a "hndred thosand". Words and Expressions sed and not defined in this Offer Docment shall have the same meaning as in the SEBI Reglations. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY A De Diligence Certificate, dly signed by the Head - Compliance of ABN AMRO Asset Management (India) Limited has been sbmitted to SEBI on Agst 4, 2006, which reads as follows. It is confirmed that: (i) The draft combined Offer Docment forwarded to SEBI is in accordance with the Secrities and Exchange Board of India (Mtal Fnds) Reglations, 1996 and the gidelines and directives issed by SEBI from time to time. (ii) All legal reqirements connected with the lanching of the Scheme as also the gidelines, instrctions, etc. issed by the Government of India and any other competent athority in this behalf, have been dly complied with. (iii) The disclosres made in this Offer Docment are tre, fair and adeqate to enable the investors to make a well-informed decision regarding investments in the proposed Scheme. (iv) The intermediaries named in this Offer Docment are registered with SEBI and till date sch registrations are valid. Place : Mmbai Signed : Sd / - Date : Agst 4, 2006 Name : Abhaya Joglekar Designation : Head - Compliance & Risk Management ABN AMRO Cash Fnd 6

9 SECTION I SUMMARY OF THE SCHEME Name of the Scheme ABN AMRO Cash Fnd Strctre An Open Ended Liqid Scheme with no assred retrns Plans and Options nder The Scheme offers two Plans : the Plans Reglar Plan : This Plan offers a Growth Option, Weekly Dividend Option with complsory Dividend Re-investment and Monthly Dividend Payot Option. Instittional Plan : This Plan offers a Growth Option, Daily Dividend Option, Weekly Dividend Option with complsory Dividend Re-investment and Monthly Dividend Payot Option. Instittional Pls Plan : This Plan offers a Growth Option, Monthly Dividend Option, Daily Dividend Option and Weekly Dividend Option with complsory Dividend Re-investment. The Monthly Dividend Option offers Dividend Payot and Dividend Re-investment facilities. All the Plans will be managed with a common portfolio. Featres The primary objective of the Scheme is to enhance income consistent with a high level of liqidity, throgh a jdicios portfolio mix comprising of money market and debt instrments. However, there can be no assrance that the investment objective of the Scheme will be achieved. The Scheme does not garantee / indicate any retrns. Application Amont Reglar Plan : Growth Option, Weekly Dividend Option with complsory Dividend Re-investment and Monthly Dividend Payot Option. A minimm of Rs. 1,00,000 per application and in mltiples of Re. 1 thereafter. Instittional Plan : Growth Option, Daily Dividend Option, Weekly Dividend Option and Monthly Dividend Payot Option A minimm of Rs. 1,00,00,000 per application and in mltiples of Re. 1 thereafter. Instittional Pls Plan : Growth Option, Daily Dividend Option,Weekly Dividend Option and Monthly Dividend Option A minimm of Rs. 10,00,00,000 per application and in mltiples of Re. 1 thereafter. There is no pper limit. Additional Application Amont Reglar Plan : Growth Option, Weekly Dividend Option with complsory Dividend Re-investment and Monthly Dividend Payot Option Rs. 1,00,000 and in mltiples of Re. 1 thereafter. Instittional Plan : Growth Option, Daily Dividend Option, Weekly Dividend Option and Monthly Dividend Payot Option Rs. 1,00,000 and in mltiples of Re. 1 thereafter. Instittional Pls Plan : Growth Option, Daily Dividend Option, Weekly Dividend Option and Monthly Dividend Payot Option Rs. 1,00,000 and in mltiples of Re. 1 thereafter. Offer Price for ongoing Based on applicable NAV of the Scheme, sbject to entry load provisions, if any. sbscription Target Amont The Mtal Fnd soght to raise a minimm sbscription amont of Rs.l Crore nder the Reglar Plan and Rs. 20 crores nder the Instittional Plan dring the Initial Offer Period of the Scheme and retained any excess sbscription collected. Load Strctre Presently, there is no Entry or Exit or CDSC. For investment by any Fnd of Fnds Scheme(s), on or after April 21, 2006, in Open Ended Liqid Scheme, there is no Entry or Exit Load or CDSC. For the prpose of calclating the Entry Load each Sbscription / Switch-In made into the Scheme will be tracked separately on first in first ot basis. Entry and / or Exit Loads and / or any other Load may be imposed / modified prospectively as may be decided by the Trstee / AMC from time to time. Liqidity The Scheme will offer for Sale / Switch-in and Redemption / Switch-ot of Units on every Bsiness Day on an ongoing basis. As per the SEBI Reglations, the Mtal Fnd shall despatch Redemption proceeds within 10 Bsiness Days of receiving the Redemption reqest. A penal interest of 15% per annm or sch other rate as may be prescribed by SEBI from time to time, will be paid in case the Redemption proceeds are not despatched within 10 Bsiness Days of the date of Redemption reqest. However, nder normal circmstances, the Mtal Fnd will endeavor to despatch the Redemption proceeds within 3 Bsiness Days from the acceptance of the Redemption reqest. Transparency The AMC will disclose at the close of every Bsiness Day and released to the Press, News Agencies and the Association of Mtal Fnds in India (AMFI) except in case of "Sspension of Sale / Redemption / Switching Options of the Units" described on page 28. NAVs will also be displayed on the website of the AMC The AMC will disclose details of the portfolio of the Scheme on a qarterly basis on the website of the AMC As presently reqired by the SEBI Reglations, a complete statement of the Scheme portfolio wold be pblished by the Mtal Fnd as an advertisement in a newspaper within one month from the close of each half year (i.e. March 31 & September 30) or mailed to the Unitholders. The AMC shall pdate the NAVs on the website of Association of Mtal Fnds in India - AMFI ( and the website of the AMC by 9.00 p.m. everyday. In case of any delay which may normally be de to non-receipt of NAVs in time from the nderlying schemes, in posting the NAVs of the Scheme, the reasons for sch delay wold be explained to AMFI and SEBI by the next day and nmber of delays wold be reported to SEBI in the bi-monthly Compliance Test Report alongwith the corrective steps proposed.. If the NAVs are not available before the commencement of the bsiness on the following day de to any reason, the Mtal Fnd shall isse a press release providing reasons and explaining when the Mtal Fnd wold be able to pblish the NAVs. 7

10 CONSTITUTION OF THE MUTUAL FUND THE MUTUAL FUND ABN AMRO Mtal Fnd has been constitted as a trst in accordance with the provisions of the Indian Trsts Act, 1882, by the Sponsor, as per the terms of the Trst Deed dated April 15, The Trst Deed has been registered nder the Indian Registration Act, The Mtal Fnd has been registered with SEBI, vide. Registration No. MF/049/04/01 dated May 27, The office of the Mtal Fnd is at 101, 10th Floor, Sakhar Bhavan, Nariman Point, Mmbai The Mtal Fnd has been formed with the prpose of pooling capital from the pblic for collective investment in secrities / any other property for the prpose of providing facilities for participation by persons as beneficiaries in sch properties / investments and in the profits / income arising therefrom beyond this contribtion. THE SPONSOR - ABN AMRO ASSET MANAGEMENT (INDIA) LIMITED Conseqent to reciept of no-objection letter from SEBI (its letter no. IMD/ SB/46021/05 dated Agst 4, 2005), the controlling interest in the AMC was transferred from ABN AMRO Bank N.V. to ABN AMRO Asset Management (Asia) Limited ("AAAM Asia") with effect from October 31, AAAM Asia holds 75% of the paid-p eqity share capital of the AMC. In view of the same details of AAAM Asia are being privided herender. Given below is a brief smmary of AAAM Asia's financials in the last three years as on December 31 : Description Trnover / Total Income (in millions of HKD) Profit After Tax (in millions of HKD) Eqity Capital (in millions of HKD) Free Reserves (in millions of HKD) Net Worth (in millions of HKD) Earning Per Share (HKD) Book Vale Per Share (HKD) Percentage of Dividend Paid 11.6% 0 0 Notes: (1) Free Reserves are Other Reserves of the Sponsor and do not inclde Share premim accont, Revalation reserves and Other Reserves prescribed by law. (2) Net-worth means aggregate of Eqity Capital and all Reserves of the Sponsor. AAAM Asia was incorporated in Hong Kong on 29 October 1991 and is licensed with the Secrities and Ftres Commission to condct Type 1 (dealing in secrities), Type 4 (advising on secrities), Type 5 (advising on ftres contracts) and Type 9 (asset management) reglated activities nder the Secrities and Ftres Ordinance. AAAM Asia is a wholly owned sbsidiary of ABN AMRO Holding N.V., incorporated in the Netherlands. AAAM Asia specialises in the Asian markets for both investment fnds' advisory and discretionary mandates. It also promotes ABN AMRO's global prodcts in the Asian region to both instittional investors and private clients. AAAM Asia is the Asian asset management centre for ABN AMRO's global asset management bsiness. ABN AMRO Bank N.V. in 2004 had contribted an amont of Rs. 1,00,000 (Rpees One Lakh Only) to the corps of the Mtal Fnd. Hence, AAAM Asia is not liable or responsible for any loss or shortfall reslting from the operations of the Schemes. THE TRUSTEE ABN AMRO Trstee (India) Private Limited, a company incorporated nder the Companies Act, 1956, on November 4, 2003, is appointed as the Trstee to the Mtal Fnd vide. the Trst Deed dated April 15, ABN AMRO Trstee (India) Private Limited is a sbsidiary of ABN AMRO Bank N.V. The registered office of the Trstee is sitated at 101, 10th Floor, Sakhar Bhavan, Nariman Point, Mmbai DIRECTORS OF THE TRUSTEE The Board of Directors of ABN AMRO Trstee (India) Private Limited comprises of the following eminent persons: Pradip Nayak Other Directorships 71, Antariksha, K. Gadgil Road, GlaxoSmithKline Pharmaceticals Prabhadevi, Mmbai Limited, Non-Exective Director Siemens Limited, Director Retired Senior Exective Director - GlaxoSmithKline Pharmaceticals Limited Pradymna Naware Other Directorships Flat No. 51, 5th Floor, Vila Hosing Limited, Director Marble Arch 52/5, The Greatship Singapore Pte. TPS III, 5th Road, Limited, Director Near V.N. Desai Hospital, Greatship (India) Limited, Director Santacrz (East), Rotes Travel Limited - Director Mmbai President (Corporate) - The Great Eastern Shipping Co. Limited Shariq Contractor Other Directorships Rewa Apartment, Marin Properties Private Limited, 2nd Floor, Flat No. 23, Director Bhlabhai Desai Road, Island Properties Private Limited, Mmbai Director New Consolidated Constrction Principal Partner - Contractor, Company Limited, Director Nayak & Kishnadwala, Chartered Accontants Grrajan Seth Other Directorships 10, Stlej, Plot 21, Sector 14, OTCEI Secrities Limited - Director Vashi, Navi Mmbai UTI Technology Services Limited Professor, UTI Institte of Capital Markets Kalpathi Sridhar * Other Directorships 172, A Wing NCPA Apartments, NIL Nariman Point, Mmbai Director, Head - Risk Management, India ABN AMRO Bank N.V. Brijesh Mehra* Other Directorships 171, Maker Tower B, NIL Cffe Parade, Mmbai Contry Corporate & Investment Bank Head, ABN AMRO Bank N.V., India * Associate Director i.e. Director associated with the Sponsor. SUMMARY OF THE SUBSTANTIVE PROVISIONS OF THE TRUST DEED The Trst Deed dated April 15, 2004 contains, among others, the following clases that may be of material interest to the investor: It shall be the responsibility of the Trstee in carrying ot its responsibilities to maintain arms' length relationship with other companies or instittions or financial intermediaries or any body corporate with which the Trstee may be associated. It shall be the dty of the Trstee to take into its cstody or nder their control all the property of the Schemes of the Mtal Fnd and hold these in trst for the Unitholders. The Trstee shall be accontable for and be the cstodian of the fnds and property of the respective Schemes and shall hold the same for the benefit of the Unitholders in accordance with the SEBI reglations and the provisions of the Trst Deed. It shall be the dty of the Trstee to act in the interest of the Unitholders. It shall be the dty of the Trstee to provide or case to provide information to the Unitholders and SEBI as may be reqired by SEBI from time to time The Trstee shall spervise the collection of any income de to be paid to the Schemes of the Mtal Fnd and for claiming any repayment of tax and holding any income received in trst for the Unitholders in accordance with the Trst Deed and the SEBI Reglations. The Trstee shall not acqire any asset ot of the Mtal Fnd which involves the assmption of any liability which is nlimited or which reslts in encmbrance of the Mtal Fnd in any way. It shall be the dty of the Trstee to take reasonable care to ensre that the fnds nder the Schemes floated by and managed by the ABN AMRO Cash Fnd 8

11 AMC are in accordance with the Trst Deed and the SEBI Reglations. The Sponsor or the Trstee shall be entitled by one or more Deed/s spplemental to the Trst Deed to amend, modify, alter or add to the provisions of the Trst Deed in sch manner and to sch extent as they may consider expedient for any prpose, provided that: (i) no sch amendment, modification, alteration or addition shall be made withot the approval of the Unitholders and SEBI; (ii) no sch modification, alteration or addition shall impose pon any Unitholder any obligation to make any frther payment in respect of his Units or to accept any liability in respect thereof. Where the SEBI Reglations provide for seeking the approval of the Unitholders for any prpose, the Trstee may adopt any of the following procedres: (i) Seeking approval by postal ballot or (ii) Approval of the Unitholders present and voting at a meeting to be specifically convened by the Trstee for the prpose. For this prpose, the Trstees shall give 21 days notice to the Unitholders and the Trstees may lay down gidelines for the actal condct and accomplishment of the voting at the meeting and annoncement of the reslts. The nmber of Directors of the Board shall not be less than 4 (or sch other nmber as specified by SEBI from time to time). Sbject to the provisions of the SEBI Reglations, at least two thirds of the Directors of the Board shall be independent Directors and shall not be associated with the Sponsor or be associated with the Sponsor in any manner whatsoever. A Director shall not participate in the meetings of the Trstee or in any decision making process for any investments in which he may be interested. It shall be the dty of each Director to frnish to the Trstee, the particlars of any interest which he may have in any other company or instittion or financial intermediaries or any corporate body by virte of his position as Director, partner or with which he may be associated in any other capacity. The Board shall meet atleast once every two calendar months and atleast six meetings of the Board shall be held in every year. The qorm for sch meeting shall be 2(two) Directors of the Board or 1/3 Directors which ever is higher. The qorm for the meetings of the Board shall always inclde the presence of atleast one Independent Director. The Trstee shall have power to dismiss the Asset Management Company nder specific events only with the approval of SEBI in accordance with the SEBI Reglations. The Trstee shall appoint a Cstodian and enter into a cstodian agreement on behalf of the Mtal Fnd with the Cstodian in accordance with the SEBI Reglations and shall be responsible for the spervision of its activities in relation to the Mtal Fnd. RIGHTS, DUTIES AND RESPONSIBILITIES OF THE TRUSTEE UNDER THE SEBI REGULATIONS Under the SEBI Reglations, the Trstee has, inter-alia, the following rights, dties and responsibilities : The Trstee shall have a right to obtain from the Asset Management Company sch information as is considered necessary by the Trstee. The Trstee shall ensre before the lanch of any scheme that the Asset Management Company has- (a) systems in place for its back office, dealing room and acconting; (b) appointed all key personnel inclding fnd manager(s) for the scheme(s) and sbmitted their bio-data which shall contain the edcational qalifications, past experience in the secrities market with the Trstee, within 15 days of their appointment; (c) appointed aditors to adit its acconts; (d) appointed a compliance officer who shall be responsible for monitoring the compliance of the Secrities and Exchange Board of India Act, 1992, rles and reglations, notifications, gidelines instrctions etc issed by SEBI or the Central Government and for redressal of investors' grievances; (e) appointed registrars and laid down parameters for their spervision; (f) prepared a compliance manal and designed internal control mechanisms inclding internal adit systems; (g) specified norms for empanelment of brokers and marketing agents. The Trstee shall ensre that - the Asset Management Company has been diligent in empanelling the brokers, in monitoring secrities transactions with brokers and avoiding nde concentration of bsiness with any broker; the Asset Management Company has not given any nde or nfair advantage to any associates or dealt with any of the associates of the Asset Management Company in any manner detrimental to interest of the Unitholders; the transactions entered into by the Asset Management Company are in accordance with the SEBI Reglations and the scheme; the Asset Management Company has been managing the Mtal Fnd schemes independently of other activities and have taken adeqate steps to ensre that the interest of investors of one scheme are not being compromised with those of any other scheme or of other activities of the Asset Management Company; and all the activities of the Asset Management Company are in accordance with the provisions of the SEBI Reglations. Where the Trstee have reason to believe that the condct of bsiness of the Mtal Fnd is not in accordance with the SEBI Reglations and the scheme they shall forthwith take sch remedial steps as are necessary by them and shall immediately inform SEBI of the violation and the action taken by them. The Trstee shall take steps to ensre that the transactions of the Mtal Fnd are in accordance with the provisions of the Trst Deed. The Trstee shall be responsible for the calclation of any income de to be paid to the Mtal Fnd and also of any income received in the Mtal Fnd for the holders of the Units of any scheme in accordance with the SEBI Reglations and the Trst Deed. The Trstee shall obtain the consent of the Unitholders; whenever reqired to do so by SEBI in the interest of the Unitholders; or whenever reqired to do so on the reqisition made by threeforths of the Unitholders of any scheme; or when the majority of the Board of Directors of the Trstee decide to wind p or prematrely redeem the Units. The Trstee shall ensre that no change in the fndamental attribtes of any scheme or the trst or fees and expenses payable or any other change which wold modify the scheme and affects the interest of Unitholders, shall be carried ot nless: a written commnication abot the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circlation as well as in a newspaper pblished in the langage of the region where the Head Office of the Mtal Fnd is sitated; and the Unitholders are given an option to exit at the prevailing Net Asset Vale withot any exit load. The Trstee shall qarterly review all transactions carried ot between the Mtal Fnd, Asset Management Company and its associates. The Trstee shall qarterly review the networth of the Asset Management Company and in case of any shortfall, ensre that the Asset Management Company make p for the shortfall as per clase (f) of sb-reglation (1) of SEBI Reglation 21. The Trstee shall periodically review all service contracts sch as cstody arrangements, transfer agency of the secrities and satisfy itself that sch contracts are exected in the interest of the Unitholders. The Trstee shall ensre that there is no conflict of interest between the manner of deployment of its networth by the Asset Management Company and the interest of the Unitholders. The Trstee shall periodically review the investor complaints received and the redressal of the same by the Asset Management Company. The Trstee shall abide by the Code of Condct as specified in the Fifth Schedle to the SEBI Reglations. The Trstee shall exercise de diligence as nder; A. General De Diligence: i. The Trstee shall be discerning in the appointment of the Directors on the Board of the Asset Management Company. ii. Trstee shall review the desirability of continance of the Asset Management Company if sbstantial irreglarities are observed in any of the schemes and shall not allow the Asset Management Company to float new schemes. 9