*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Transcription

1 April 17, 2018 Dear Valued Unitholder, Re: Change in Fundamental Attributes of Aditya Birla Sun Life Midcap Fund Thank you for choosing Aditya Birla Sun Life Mutual Fund ( the Fund ) as your investment partner. We truly appreciate your trust in us. We would like to inform you that in accordance with SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017 and in terms of the enabling provisions of the Scheme Information Document, Aditya Birla Sun Life Trustee Private Limited (Trustee to Aditya Birla Sun Life Mutual Fund), has approved to change the following features of Aditya Birla Sun Life Midcap Fund, an open ended growth scheme ( the Scheme ) with effect from Monday, May 21, 2018: Sr. No. Features Existing Provisions Revised Provisions (w.e.f May 21, 2018) 1. Type of Scheme An Open ended Growth Scheme An open ended equity scheme predominantly investing in mid cap stocks. 2. Product labeling This product is suitable for investors who are seeking*: Long term capital growth Investments primarily in mid cap stocks This product is suitable for investors who are seeking*: Long term capital growth Investments primarily in mid cap companies *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. 3. Investment Objective The investment objective of the scheme is long term growth of capital at controlled level of risk by investing primarily in Mid-Cap Stocks. The level of risk is somewhat higher than a fund focused on large and liquid stocks. Concomitantly, the aim is to generate higher returns than a fund focused on large and liquid stocks. The investment objective of the scheme is long term growth of capital at controlled level of risk by investing primarily in Mid-Cap Stocks. 1

2 Sr. No. Features Existing Provisions Revised Provisions 4. Asset Allocation and Investment Under normal circumstances, the asset allocation pattern shall be as under: Instrument Equity and related instruments of Mid Cap Companies Equity and related instruments of Companies other than Mid Cap companies Cash, Deposits & Money Market Instruments including Mibor linked short term papers Asset Allocation Risk Profile 65%-100% High 0-35% High 0-20% Low to Medium The scheme seeks to meet the objective by investing, normally, at least 65% of its total assets in Mid Cap stocks. For the purpose of determining mid cap stocks, the market capitalisation of companies would be considered. Currently, investment universe of the Mid Cap portion of the portfolio is in line with the range specified in the Benchmark Nifty Free Float Midcap 100 Index. This range would change in line with the change in the range of the market capitalisation criterion in the Benchmark. In order to diversify the portfolio and improve liquidity, the scheme may invest in upto 35% of its net assets in Large Cap and Small Cap companies. The Fund manager may invest a small portion of the corpus for liquidity needs in money market instruments. Normally such investments would not exceed a maximum limit of 20%. The scheme may also invest upto 50% of the portfolio (i.e. net assets including cash) in such derivative instruments as may be introduced from time to time subject to framework specified by SEBI, for the purpose of hedging and portfolio balancing and other uses as may be permitted under SEBI Regulations. Under normal circumstances the scheme shall not have an exposure of more than 15% of its net assets in foreign securities. However, the AMC with a view to protecting the interests of the investors, may increase exposure in foreign securities as deemed fit from time to time. (w.e.f May 21, 2018) The following table provides the asset allocation of the Scheme s portfolio: Instrument Equity and related instruments of Mid Cap Companies Equity and related instruments of Companies other than Mid Cap companies Debt & Money Market instruments 5. Benchmark Nifty Free Float Midcap 100 Nifty Midcap 100 Allocation Range 65% - 100% Risk Profile High 0-35% High 0% - 35% Low to Medium Mid cap companies will be 101st -250th company in terms of full market capitalization The scheme seeks to meet the objective by investing, normally, at least 65% of its total assets in Mid Cap stocks. Currently, investment universe of the Mid Cap portion of the portfolio is in line with the range specified in the Benchmark Nifty Midcap 100. This range would change in line with the change in the range of the market capitalisation criterion in the Benchmark. In order to diversify the portfolio and improve liquidity, the scheme may invest in upto 35% of its net assets in Large Cap and Small Cap companies. Large cap and Mid cap companies will be determined as under: a) Large Cap: 1st -100th company in terms of full market capitalization b) Small Cap: 251st company onwards in terms of full market capitalization The Fund manager may invest a small portion of the corpus for liquidity needs in debt and money market instruments. Normally such investments would not exceed a maximum limit of 35%. The scheme may also invest upto 50% of the portfolio (i.e. net assets including cash) in such derivative instruments as may be introduced from time to time subject to framework specified by SEBI, for the purpose of hedging and portfolio balancing and other uses as may be permitted under SEBI Regulations. Under normal circumstances the scheme shall not have an exposure of more than 25% of its net assets in foreign securities. However, the AMC with a view to protecting the interests of the investors, may increase exposure in foreign securities as deemed fit from time to time. 2

3 The above modifications (other than change in type of scheme and benchmark) are changes in the Fundamental Attributes of the Scheme as per Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 and SEBI circular no. SEBI/HO/IMD/DF3/ CIR/P/2017/114 dated October 06, The Securities and Exchange Board of India has communicated its no-objection for the above changes vide its letter no. IMD/DF3/ OW/P/2018/7315/1 dated March 08, Apart from above, the other features and terms & conditions of the Scheme will remain unchanged and all references to the above modifications shall be suitably incorporated in the SID and KIM of the Scheme. EXIT OPTION As the above proposal is a change in Fundamental Attributes of the Scheme, in accordance with Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996, the existing unitholders (i.e. whose names appear in the register of unitholders as on close of business hours on April 17, 2018) under the scheme are hereby given an option to exit, i.e. either redeem their investments or switch their investments to any other schemes of Aditya Birla Sun Life Mutual Fund, within the 30 days exit period starting from April 19, 2018 till May 18, 2018 (both days inclusive and upto 3.00 pm on May 18, 2018) at Applicable NAV, without payment of any exit load. Thus, all the applications for redemptions/switch-outs received under the Scheme shall be processed at Applicable NAV of the day of receipt of such redemption / switch request, without payment of any exit load, provided the same is received during the exit period of 30 days mentioned above. Unitholders who have pledged or encumbered their units will not have the option to exit unless they procure a release of their pledges / encumbrances prior to the submission of redemption / switch requests. Unitholders should ensure that their change in address or pay-out bank details are updated in records of Aditya Birla Sun Life Mutual Fund as required by them, prior to exercising the exit option for redemption of units. The redemption proceeds shall be despatched within 10 business days of receipt of valid redemption request to those unitholders who choose to exercise their exit option. The updated SID & KIM of the scheme containing the revised provisions shall be made available with our Investor Service Centres and also displayed on the website immediately after completion of duration of exit option. RATIONALE In order to ensure that schemes launched by a Mutual Fund are clearly distinct in terms of asset allocation, investment strategy etc. and to standardize the scheme categories and characteristics of each category, SEBI vide its circular no. SEBI/HO/IMD/DF3/ CIR/P/2017/114 dated October 6, 2017 has introduced Categorization and Rationalization of Mutual Fund Schemes. In view of the above circular and to build presence and size of the Scheme in Midcap category it is proposed to carry out the above modifications. SCHEME DETAILS To enable you to take an informed decision and understand the Scheme better, please find the following details pertaining to the scheme (Data as on March 31, 2018): Portfolio statement of the scheme (Refer Annexure A ) Performance of the scheme (Refer Annexure B ) Expense Ratio Regular Plan 2.59%; Direct Plan 1.54% Folios 1,84,317 Assets Under Management (AUM) Rs. 2, crores The Notice-cum-Addendum informing the details of the modification is published in newspapers and uploaded on our website com. We request you to go through the same. TAX IMPLICATIONS Redemption / switch-out of units from the Scheme, during the exit period, may entail capital gain/loss in the hands of the unitholder. Similarly, in case of NRI investors, TDS shall be deducted in accordance with the applicable Tax laws, upon exercise of exit option and the same would be required to be borne by such investor only. In view of individual nature of tax implications, unitholders are advised to consult their tax advisors. For details on Tax implications, please refer to SID of the Scheme and Statement of Additional Information available with our Investor Service Centres and on our website It may be noted that the offer to exit is purely optional and is not compulsory. Alternatively, you can continue to remain invested in the Scheme. In that case, no action is required by you and Unitholders who do not exercise the exit option by 3.00 p.m. on May 18, 2018, would be deemed to have consented to the above proposal. Aditya Birla Sun Life AMC Ltd / Aditya Birla Sun Life Mutual Fund would like the unitholders to remain invested in the Scheme. Also, please note that in case you choose to continue with your investments in the aforesaid scheme, there shall be no tax implications arising out of the above proposal. 3

4 CONTACT US If you have any further queries regarding your investments you can Write in at Visit your nearest Investor Service Centres (ISCs). To locate your nearest ISC we request you to visit Thanking you once again and looking forward to a long and enduring relationship. For Aditya Birla Sun Life AMC Ltd. (Investment Manager for Aditya Birla Sun Life Mutual Fund) sd/- Authorised Signatory 4

5 Annexure A ADITYA BIRLA SUN LIFE MIDCAP FUND (An Open ended Growth Scheme) Portfolio as on March 31, 2018 Name of the Instrument ISIN Industry^/ Rating Quantity Market/Fair Value % to Net Assets (Rs. in Lacs) Equity & Equity related (a) Listed / awaiting listing on Stock Exchanges TeamLease Services Limited INE985S01024 Commercial Services 311,120 6, % TI Financial Holdings Limited INE149A01033 Finance 1,000,000 6, % Mahindra CIE Automotive Limited INE536H01010 Industrial Products 3,000,000 6, % L&T Finance Holdings Limited INE498L01015 Finance 4,064,834 6, % Bharat Electronics Limited INE263A01024 Industrial Capital Goods 4,500,000 6, % Gujarat State Petronet Limited INE246F01010 Gas 3,200,000 6, % Petronet LNG Limited INE347G01014 Gas 2,612,094 6, % Yes Bank Limited INE528G01027 Banks 1,950,000 5, % PNB Housing Finance Limited INE572E01012 Finance 456,440 5, % MRF Limited INE883A01011 Auto Ancillaries 8,000 5, % Crompton Greaves Consumer Electricals Limited INE299U01018 Consumer Durables 2,273,200 5, % Solar Industries India Limited INE343H01029 Chemicals 501,000 5, % Tech Mahindra Limited INE669C01036 Software 800,000 5, % Eris Lifesciences Limited INE406M01024 Pharmaceuticals 630,135 5, % RBL Bank Limited INE976G01028 Banks 1,000,000 4, % Mangalore Refinery and Petrochemicals Limited INE103A01014 Petroleum Products 4,296,000 4, % Century Textiles & Industries Limited INE055A01016 Cement 397,900 4, % KEC International Limited INE389H01022 Construction Project 1,164,000 4, % Gujarat Fluorochemicals Limited INE538A01037 Industrial Capital Goods 560,000 4, % Godrej Industries Limited INE233A01035 Consumer Non Durables 800,000 4, % PNC Infratech Limited INE195J01029 Construction 2,500,000 4, % Voltas Limited INE226A01021 Construction Project 700,000 4, % Sun TV Network Limited INE424H01027 Media & Entertainment 500,000 4, % The Federal Bank Limited INE171A01029 Banks 4,600,000 4, % Delta Corp Limited INE124G01033 Hotels, Resorts And Other 1,612,904 4, % Recreational Activities DCB Bank Limited INE503A01015 Banks 2,390,000 3, % Max Financial Services Limited INE180A01020 Finance 848,478 3, % Pfizer Limited INE182A01018 Pharmaceuticals 164,967 3, % IRB Infrastructure Developers Limited INE821I01014 Construction 1,600,000 3, % Finolex Cables Limited INE235A01022 Industrial Products 510,000 3, % Endurance Technologies Limited INE913H01037 Auto Ancillaries 257,200 3, % Bayer Cropscience Limited INE462A01022 Pesticides 74,127 3, % Welspun India Limited INE192B01031 Textile Products 5,300,000 3, % Dewan Housing Finance Corporation Limited INE202B01012 Finance 600,000 3, % Whirlpool of India Limited INE716A01013 Consumer Durables 200,000 3, % Ashok Leyland Limited INE208A01029 Auto 2,000,000 2, % Cyient Limited INE136B01020 Software 400,000 2, % Dalmia Bharat Limited INE439L01019 Cement 95,500 2, % Redington (India) Limited INE891D01026 Transportation 1,849,000 2, % Marico Limited INE196A01026 Consumer Non Durables 800,000 2, % Schaeffler India Limited INE513A01014 Industrial Products 50,000 2, % Tata Global Beverages Limited INE192A01025 Consumer Non Durables 980,000 2, % NLC India Limited INE589A01014 Power 3,000,000 2, % Torrent Pharmaceuticals Limited INE685A01028 Pharmaceuticals 200,000 2, % Fortis Healthcare Limited INE061F01013 Healthcare Services 2,000,000 2, % Biocon Limited INE376G01013 Pharmaceuticals 400,000 2, % NMDC Limited INE584A01023 Minerals/Mining 2,000,000 2, % JM Financial Limited INE780C01023 Finance 1,700,000 2, % Reliance Nippon Life Asset Management Limited INE298J01013 Finance 882,223 2, % 5

6 ADITYA BIRLA SUN LIFE MIDCAP FUND (An Open ended Growth Scheme) Portfolio as on March 31, 2018 Name of the Instrument ISIN Industry^/ Rating Quantity Market/Fair Value % to Net Assets (Rs. in Lacs) Hindalco Industries Limited INE038A01020 Non - Ferrous Metals 1,000,000 2, % IPCA Laboratories Limited INE571A01020 Pharmaceuticals 280,000 1, % Union Bank of India INE692A01016 Banks 1,500,000 1, % Cummins India Limited INE298A01020 Industrial Products 164,000 1, % Johnson Controls Hitachi Air Conditioning India Limited INE782A01015 Consumer Durables 30, % Aditya Birla Capital Limited INE674K01013 Finance 315, % Sub Total 208, % (b) Unlisted NIL NIL Sub Total NIL NIL Total 208, % Others CBLO / Reverse Repo Clearing Corporation of India Ltd 13, % Sub Total 13, % Total 13, % Net Receivables / (Payables) % GRAND TOTAL 222, % $ Less Than 0.01% of Net Asset Value ^Industry classification as recommended by AMFI and wherever not available, internal classification has been used 6

7 Scheme Performance Annexure B Returns as on March 31, 2018 Aditya Birla Sun Life Midcap Fund NAVs as on March 31, 2018 Regular Rs Direct - Rs Period Scheme Returns (%) Benchmark Returns (%) Direct Regular Direct Regular 1 Year Year Year Since Inception Past performance may or may not be sustained in the future Since Inception Date : October 03, 2002 # Scheme Benchmark: Nifty Free Float Midcap 100 Total Return Index Pursuant to provisions of SEBI Circular dated September 13, 2012, Direct Plan is introduced w.e.f. January 1, Date of allotment for Direct Plan is January 1,

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