Scheme Iformatio Documet Religare Ivesco Global Equity Icome Fud (A Ope Eded Fud of Fuds Scheme) Suitable for Ivestors who are seekig* Capital appreciatio ad / or icome over log - term Ivestmet i uits of Ivesco Global Equity Icome Fud, a overseas equity fud High risk (BROWN) *Ivestors should cosult their fiacial advisers if i doubt about whether the product is suitable for them. Note: Risk is represeted as: (BLUE) Ivestors uderstad that their pricipal will be at low risk (YELLOW) Ivestors uderstad that their pricipal will be at medium risk (BROWN) Ivestors uderstad that their pricipal will be at high risk Offer for Uits of Rs. 10 each for cash durig the New Fud Offer Period ad Cotiuous Offer for Uits at NAV based prices. New Fud Offer Opes o New Fud Offer Closes o Scheme re-opes for cotious sale ad repurchase o : April 15, 2014 April 28, 2014 Withi 5 Busiess Days from the date of allotmet The particulars of the Scheme have bee prepared i accordace with the Securities ad Exchage Board of Idia (Mutual Fuds) Regulatios, 1996, (herei after referred to as SEBI (MF) Regulatios) as ameded till date, ad filed with SEBI, alog with a Due Diligece Certificate from the AMC. The uits beig offered for public subscriptio have ot bee approved or recommeded by SEBI or has SEBI certified the accuracy or adequacy of the Scheme Iformatio Documet. The Scheme Iformatio Documet sets forth cocisely the iformatio about the Scheme that a prospective ivestor ought to kow before ivestig. Before ivestig, ivestors should also ascertai about ay further chages to this Scheme Iformatio Documet after the date of this Documet from the Mutual Fud / Ivestor Service Cetres / Website / Distributors or Brokers. The ivestors are advised to refer to the Statemet of Additioal Iformatio (SAI) for details of Religare Ivesco Mutual Fud, Tax ad Legal issues ad geeral iformatio o www.religareivesco.com SAI is icorporated by referece (is legally a part of the Scheme Iformatio Documet). For a free copy of the curret SAI, please cotact your earest Ivestor Service Cetre or log o to our website (www.religareivesco.com). The Scheme Iformatio Documet should be read i cojuctio with the SAI ad ot i isolatio. This Scheme Iformatio Documet is dated March 25, 2014. SPONSORS Religare Securities Limited D3, P3 B, District Cetre, Saket, New Delhi - 110 017 Ivesco Hog Kog Limited 41/F, Citi Bak Tower, 3 Garde Road, Cetral, Hog Kog. INVESTMENT MANAGER Religare Ivesco Asset Maagemet Compay Private Limited 3rd Floor, GYS Ifiity, Parajpe B Scheme, Subhash Road, Vile Parle (E), Mumbai - 400057. TRUSTEE Religare Ivesco Trustee Compay Private Limited 3rd Floor, GYS Ifiity, Parajpe B Scheme, Subhash Road, Vile Parle (E), Mumbai - 400057. MUTUAL FUND Religare Ivesco Mutual Fud 3rd Floor, GYS Ifiity, Parajpe B Scheme, Subhash Road, Vile Parle (E), Mumbai - 400057.
TABLE OF CONTENTS Sr. No. Particulars Page. No. Highlights/Summary of the Scheme... 1 I Itroductio... 3 A. Risk Factors... 3 Risk associated with Uderlyig Fud... 3 B. Requiremet of Miimum Ivestors i the Scheme... 6 C. Special Cosideratios... 6 D. Defiitios... 7 E. Due Diligece by the AMC... 9 II Iformatio about the scheme... 10 A. Type of Scheme... 11 B. Ivestmet Objective... 11 C. Asset Allocatio Patter... 11 D. Where will the Scheme Ivest?... 11 E. Ivestmet Strategy... 11 - Risk Cotrol... 12 - Overview of Ivesco Global Equity Icome Fud... 12 - Portfolio Turover... 13 - Ivestmet by AMC i the Scheme... 13 F. Fudametal Attributes... 13 G. Bechmark Idex... 13 H. Fud Maager... 14 I. Ivestmet Restrictios... 14 J. How has the Scheme performed?... 15 III Uits ad Offer... 16 A. New Fud Offer... 16 - New Fud Offer Period... 16 - New Fud Offer Price... 16 - Miimum Amout for Applicatio i the NFO... 16 - Plas / Optios offered... 16 - Allotmet... 18 - Refud... 19 - Who ca ivest?... 19 - Where ca you submit the filled up applicatios... 20 - Special Products / facilities available durig the NFO... 20 B. Ogoig Offer... 22 - Ogoig Offer Period... 22 - Ogoig price for subscriptio / switch-i... 22
Sr. No. Particulars Page. No. - Ogoig price for redemptio / switch outs... 22 - Cut off timig for subscriptios / redemptios / switches... 22 - Where ca the applicatios for purchase / redemptio / switches be submitted?... 23 - Miimum amout for purchase / redemptio / switches... 23 - Special Products... 23 - Applicatio via electroic mode... 23 - Dematerializatio of Uits... 24 - Purchase / Redemptio of Uits through Stock Exchage Ifrastructure... 24 - Systematic Ivestmet Pla... 27 - Systematic Trasfer Pla... 28 - Systematic Withdrawal Pla... 29 - Divided Trasfer Pla... 30 - Switchig Optios... 30 - Accout Statemets... 31 - Divided... 31 - Redemptio... 31 - Delay i paymet of redemptio / repurchase proceeds... 33 C. Periodic Disclosure... 33 - Net Asset Value... 33 - Half yearly Disclosures: Portfolio / Fiacial Results... 33 - Half Yearly Results... 33 - Aual Report... 34 - Ivestor services... 37 D. Computatio of NAV... 37 IV Fees ad Expeses... 38 A. New Fud Offer Expeses... 38 B. Aual Scheme Recurrig Expeses... 38 C. Load Structure... 39 D. Waiver of Load for Direct Applicatios... 40 E. Trasactio Charges... 40 V Right of uit holders... 40 VI Pealties, pedig litigatio or proceedigs... 40 List of Collectio Cetres
HIGHLIGHTS/SUMMARY OF THE SCHEME Name of the Scheme Religare Ivesco Global Equity Icome Fud Type of the Scheme Ivestmet Objective Plas / Optios Default Pla / Optio A Ope Eded Fud of Fuds Scheme To provide capital appreciatio ad/or icome by ivestig predomiatly i uits of Ivesco Global Equity Icome Fud, a overseas equity fud which ivests primarily i equities of compaies worldwide. However, there is o assurace or guaratee that the ivestmet objective of the Scheme will be achieved. The Scheme does ot assure or guaratee ay returs. Religare Ivesco Global Equity Icome Fud offers a separate Pla for ivestmets directly with the Fud (i.e. applicatios ot routed through Distributor). Thus, Religare Ivesco Global Equity Icome Fud offers two plas as follows: Descriptio Optios Sub-optios Regular Pla Growth Nil Divided Reivestmet / Payout Direct Pla Growth Nil Divided Reivestmet/ Payout Direct Pla will have a lower expese ratio excludig distributio expeses, commissio for distributio of Uits etc. Direct Pla is oly for ivestors who purchase /subscribe Uits directly with the Fud (i.e. applicatio ot routed through Distributor). Ivestmets uder Direct Pla ca be made through various modes offered by the Fud for ivestig directly with the Fud (except Stock Exchage Platform(s) ad all other Platform(s) where ivestors applicatios for subscriptio of uits are routed through Distributors). The portfolio of Direct Pla will form part of portfolio of the Scheme ad there will be o separate portfolio for Direct Pla. Further, both the optios i.e. Growth ad Divided will have commo portfolio uder the Scheme. If divided payable uder divided payout optio is equal to or less tha ` 500/-, the the divided would be compulsorily reivested i the optio of the Scheme. Ivestors subscribig Uits uder Direct Pla of a Scheme should idicate Direct Pla agaist the Scheme ame i the applicatio form. Ivestors should also metio Direct i the ARN colum of the applicatio form. However, i case Distributor code is metioed i the applicatio form but Direct Pla is metioed agaist the Scheme ame, the the Distributor code will be igored ad the applicatio will be processed uder Direct Pla. Further, where applicatio is received without metioig Distributor code or where Direct is metioed i the ARN Colum, the the applicatio will be processed uder Direct Pla. If the ivestor does ot metio Direct agaist the Scheme ame ad the Distributor code is also ot provided, the the applicatio will be processed uder Direct Pla. The ivestors should idicate optio for which subscriptio is made by idicatig the choice i the appropriate box provided for this purpose i the applicatio form. I case of valid applicatio received without ay choice of optio, the followig default optio will be cosidered: Descriptio Growth/ Divided Reivestmet/ Payout Default Growth Reivestmet Liquidity Dematerializatio of Uits The Scheme will offer Uits for purchase ad redemptio at Applicable NAV o all Busiess Days o a ogoig basis commecig ot later tha 5 Busiess Days from the date of allotmet. The Mutual Fud will dispatch redemptio proceeds withi 10 busiess days from the date of acceptace of redemptio requests at the Official Poits of Acceptace. The Scheme offers optio to subscribe Uits i electroic (demat) mode. Accordigly, the Uits of the Scheme will be available i dematerialized (electroic) form. The applicat itedig to hold Uits i dematerialized form will be required to have a beeficiary accout with a Depository Participat (DP) of NSDL/CDSL ad will be required to metio i the applicatio form DP Name, DP ID ad Beeficiary Accout Number with the DP at the time of subscribig Uits of the Scheme. I case Uit holders do ot provide their demat accout details or the demat details provided i the applicatio form are icomplete / icorrect or do ot match with the details with the Depository records, the Uits will be allotted i No-demat mode provided the applicatio is otherwise complete i all respect. Further, if the uits ca ot be allotted i demat mode due to reaso that KYC details icludig IPV is ot updated with DP, the Uits will be allotted i o-demat mode subject to compliace with ecessary KYC provisios ad the applicatio is otherwise complete i all respect. Bechmark MSCI World Idex-Net Divided Face Value New Fud Offer Price Miimum Applicatio Amout Additioal Subscriptio Amout Miimum Target Amout ` 10/- per uit ` 10/- per uit ` 5,000/- per applicatio ad i multiples of ` 1/- thereafter. ` 1,000/- per applicatio ad i multiples of ` 1/- thereafter. ` 10 Crores Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 1
Miimum Redemptio Amout Load New Fud Offer Expeses Trasactio Charges NAV Disclosure / Trasparecy Temporary suspesio of subscriptio Circumstaces Warratig Termiatio of the Scheme ` 1,000/- or 100 uits or accout balace whichever is lower. Durig the New Fud Offer Period ad o a Ogoig Basis: Etry Load Nil I terms of SEBI Circular No. SEBI/IMD/CIR No. 4/168230/09 dated Jue 30, 2009, o etry load will be charged o purchase / additioal purchase / switch-i. The upfrot commissio, if ay, o ivestmet made by the ivestor shall be paid by the ivestor directly to the Distributor, based o his assessmet of various factors icludig the service redered by the Distributor. Exit Load^ I respect of each purchase/switch-i of uits, a exit load of 1% is payable if uits are redeemed/ switched-out o or before 18 moths from the date of allotmet. I respect of each purchase/switch-i of uits, o exit load is payable if uits are redeemed/switched-out after 18 moths from the date of allotmet. Switch betwee the Plas uder the Scheme: For Switch from Regular Pla to Direct Pla: Applicable exit load. For Switch from Direct Pla to Regular Pla: Nil** ** However, if the Uit holder redeems /switches-out such switched uits from Regular Pla before completig 18 moths from the date of origial purchase, applicable exit load will be charged. ^Exit load charged, if ay, will be credited back to the Scheme, et of service tax. For more details o Load Structure, refer to the sectio Load Structure o Page 39. The NFO expeses will be bore by the AMC / Trustee /Sposor. I terms of SEBI circular o. IMD/ DF/ 13/ 2011 dated August 22, 2011, a trasactio charge, as follows, is payable to distributors who have opted to receive trasactio charge*: i. For existig ivestor i a Mutual Fud: `100/- per subscriptio of `10,000/- ad above; ii. For first time ivestor i Mutual Fuds: `150/- per subscriptio of `10,000/- ad above. *Distributors shall also have the optio to either opt i or opt out of levyig trasactio charge based o type of the product. I case of ivestmet through systematic ivestmet pla (SIPs), the trasactio charge shall be applicable oly if the total commitmet through SIP (i.e. amout of each SIP istallmet X total umber of SIP istallmets) amouts to `10,000/- ad above. I such cases, the trasactio charge shall be recovered i 3-4 istallmets, as may be decided by AMC. However, there will be o trasactio charge o: i. Subscriptio of less tha `10,000/-; or ii. Trasactios other tha purchases / subscriptios relatig to ew iflows; or iii. Direct subscriptio (subscriptio ot routed through distributor); or iv. Subscriptio routed through distributor who has chose to Opt-out of chargig of trasactio charge; or v. Trasactio routed through Stock Exchage(s). The trasactio charge, if ay, will be deducted by AMC from subscriptio amout ad shall be paid to distributor. The balace subscriptio amout, after deductig applicable trasactio charges, will be ivested. It is clarified that upfrot commissio to distributor will cotiue to be paid by the ivestor directly to distributor by a separate cheque. The Direct Pla uder the Scheme will have a separate NAV. The AMC will allot the Uits withi 5 (five) Busiess Days from the date of closure of New Fud Offer Period ad will calculate ad disclose the first NAV of the Scheme withi 5 (five) Busiess Days from the date of allotmet. Subsequetly, the NAVs will be calculated o daily basis. The NAV of the Scheme shall be published at least i two daily ewspapers havig circulatio all over Idia i accordace with the Regulatios. The AMC shall update the NAVs o the website of the Fud (www. religareivesco.com) ad of the Associatio of Mutual Fuds i Idia - AMFI (www.amfiidia.com) before 10.00 a.m. o the ext Busiess Day. The NAVs of the Scheme will appear i ewspapers with oe day time lag. If the NAVs are ot available before the commecemet of busiess hours o the followig day due to ay reaso, the Mutual Fud shall issue a press release givig reasos ad explaiig whe the Mutual Fud would be able to publish the NAV. The Mutual Fud shall publish a complete statemet of the Scheme portfolio, withi oe moth from the close of each half year (i.e. 31 st March ad 30 th September), by way of a advertisemet at least, i oe atioal Eglish daily ad oe regioal ewspaper i the laguage of the regio where the head office of the mutual fud is located. The Mutual Fud may opt to sed the portfolio to all Uit holders i lieu of the advertisemet (if applicable). The half yearly portfolio statemet will also be displayed o the website of the Mutual Fud ad AMFI. Further the Mutual Fud/AMC shall disclose portfolio of the Scheme (alog with ISIN) as o the last day of the moth o website of Mutual Fud (www.religareivesco.com) o or before the teth day of the succeedig moth i a user-friedly ad dowloadable format (preferably i a spreadsheet). The AMC will make available the Aual Report of the Scheme withi four moths of the ed of the fiacial year. The AMC ad the Trustee reserve the right to susped subscriptios /switches ito the Scheme if the limits prescribed by SEBI for overseas ivestmets are exceeded or are expected to exceed as per the procedure set out i this SID ad subject to the SEBI Regulatios ad approvals. The curret limit for overseas ivestmets by the Mutual Fud is equivalet to USD 300 Millio. The Scheme is a Fud of Fuds scheme ivestig predomiatly i Uderlyig Fud (for defiitio of Uderlyig Fud, please refer to Sectio I.D Defiitios). I the evet of chage i legislatio / regulatios applicable to Uderlyig Fud, rederig it icogruous with or violative of SEBI Regulatios, the Trustee may decide to ivest et assets of the Scheme i other similar Overseas Mutual Fud with similar objectives, strategy ad attributes or wid up the Scheme, after followig the procedure prescribed uder SEBI Regulatios. Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 2
I. INTRODUCTION A. RISK FACTORS Stadard Risk Factors: Ivestmet i Mutual Fud Uits ivolves ivestmet risks such as tradig volumes, settlemet risk, liquidity risk, default risk icludig the possible loss of pricipal. As the price / value / iterest rates of the securities i which the Scheme ivests fluctuate, the value of your ivestmet i the Scheme may go up or dow depedig o various factors ad forces affectig the capital markets. Past performace of the Sposors/AMC/Mutual Fud does ot guaratee future performace of the Scheme. Religare Ivesco Global Equity Icome Fud is the ame of the Scheme ad does ot i ay maer idicate either the quality of the Scheme or its future prospects ad returs. The Sposors are ot resposible or liable for ay loss or shortfall resultig from the operatios of the Scheme beyod the cotributio of `1,50,000/- (Rupees Oe Lakh Fifty Thousad Oly) made by them towards the corpus of the Mutual Fud. The preset scheme is ot a guarateed or assured retur scheme. Scheme Specific Risk Factors Risk Factors of a Fud of Fuds Scheme The Scheme will ivest primarily i Uderlyig Fud ad the performace of the Scheme will predomiatly deped upo the performace of Uderlyig Fud. Ay chage i the ivestmet policies or fudametal attributes of Uderlyig Fud may affect the performace of the Scheme. Ivestmets i Uderlyig Fud, which is a equity fud, will have all the risks associated with ivestmets i equity ad offshore markets. Portfolio disclosure of the Scheme will be largely limited to uits of Uderlyig Fud ad ivestmets by the Scheme i moey market istrumets. Therefore, Uit holders may ot be able to obtai specific details of the Scheme i respect of portfolio of Uderlyig Fud. I additio to recurrig expeses of the Scheme, the Uit holders shall also bear the applicable expeses of Uderlyig Fud. Therefore, the returs that the Uit holder of the Scheme may receive shall be substatially impacted or may, at times, be lower tha the returs that a Uit holder could obtai by directly ivestig i Uderlyig Fud. Risks associated with ivestig i Overseas Mutual Fud Uits Withi the ivestmet objective of the Scheme, the Scheme will be ivestig i overseas markets (i.e. i uits of Uderlyig Fud). As the uits of Uderlyig Fud are deomiated i foreig currecy, the value of those ivestmets, distributios, icome ad et assets whe coverted to Idia Rupee (INR) may fluctuate due to chages i exchage rate of base currecy of Uderlyig Fud vis-àvis INR. Ivestmets i overseas markets carry risks related to fluctuatios i foreig exchage rates, ature of securities market of the coutry, restrictios o repatriatio of capital due to exchage cotrols ad the political eviromet. Further the repatriatio of capital to Idia may also be hampered by chages i regulatios cocerig exchage cotrols or political circumstaces. The Scheme s NAV may also be affected by a fluctuatio i the geeral ad specific level of iterest rates iteratioally or chage i credit profiles of the issuer. The liquidity of the Scheme will be affected if there is a o- Busiess Day of Uderlyig Fud. The Scheme shall have o-busiess Day o all the days o which Uderlyig Fud has o-busiess Day. I case of uforesee evets like system breakdow, atural calamities etc. which could delay NAV of Uderlyig Fud, NAV of the Scheme may also be delayed ad the AMC shall suitably itimate AMFI / SEBI i this regard. I additio, coutry risks would iclude evets such as itroductio of extraordiary exchage cotrols, ecoomic deterioratio, bi-lateral coflict leadig to immobilisatio of overseas fiacial assets ad prevalet tax laws of the respective jurisdictios for the executio of trades or otherwise. Subject to other terms of the SID, all applicats applyig for up to 5,000 (Five Thousad) Uits shall be allotted Uits i full. However, keepig i mid the ivestmet restrictios i foreig securities curretly applicable to Mutual Fud uder SEBI s Circulars SEBI/IMD/CIR No. 7/104753/07 dated September 26, 2007 ad SEBI/IMD/CIR No.2/1222577/08 dated April 8, 2008, if overall limit for the Mutual Fud i overseas securities reaches USD 300 millio, the applicats will receive a pro-rata allotmet as calculated by the AMC. I such a evet, applicat s moey relatig to uused portio of origial allotmet request may be refuded to ivestors, subject to SEBI Regulatios ad approvals. The process for moitorig USD 300 millio limit for overseas ivestmets is as follows: The cap of USD 300 millio will be moitored ad eforced at the Mutual Fud level ad ot at the idividual scheme(s) level. Oce 90% of the limit is reached, ivestors will be iformed that further sales of Uits will be suspeded whe the Mutual Fud s combied AUM i scheme(s) ivestig i overseas securities reaches cap of USD 300 millio. A otice will be issued to ISC offices ad AMC braches ad published o the website of the AMC (www.religareivesco.com) Oce USD 300 millio cap is reached, ay allotmet will be o a pro-rata basis ad subject to the combied AUM level of overseas ivestmets of the Mutual Fud beig below this cap. Example: I. Day T (opeig AUM) - USD 270 millio is the overseas AUM of Mutual Fud, icomig cash flows o Day T - USD 30 millio Uits will be allotted for the etire applicatio II. amout. Day T (opeig AUM) - USD 270 millio is the overseas AUM of Mutual Fud, icomig cash flows o Day T - USD 60 millio - Uits will be allotted oly for USD 30 millio o a pro rata basis. Therefore, o Day T, a otice will be set to all ISC offices & AMC braches ad published o the website of the AMC (www.religareivesco.com) statig that further sales are suspeded with immediate effect, i the evet additioal limits for overseas ivestmets has ot bee obtaied from SEBI. If the cap of USD 300 millio is reached, ay fresh applicatio for fresh allotmet will be rejected ad refuds will be processed withi the regulatory timelies. The above process will ot have ay impact o redemptio process. The performace of Uderlyig Fud will be affected by a umber of risk factors icludig the followig: Risk associated with Equity ad Equity Related Istrumets Equity ad Equity Related Istrumets by ature are volatile ad proe to price fluctuatios o a daily basis due to macro ad micro ecoomic factors. The value of Equity ad Equity Related Istrumets may fluctuate due to factors affectig the securities markets such as volume ad volatility i the capital markets, iterest rates, currecy exchage rates, chages i law/policies of the Govermet, taxatio laws, political, ecoomic or other developmets, geeral declie i the global markets, which may have a adverse impact o idividual securities, a specific sector or all sectors. Cosequetly, the NAVs of uits issued uder Uderlyig Fud ad i tur of the Scheme may be adversely affected. Further, the Equity ad Equity Related Istrumets are risk capital ad are subordiate i the right of paymet to other securities icludig debt securities. Equity ad Equity Related Istrumets listed o the stock exchage carry lower liquidity risk; however Uderlyig Fud s ability to sell these ivestmets is limited by overall tradig volumes o the stock exchages. I certai cases, settlemet periods may be exteded sigificatly by uforesee circumstaces. The iability of Uderlyig Fud to make iteded securities purchases due to settlemet problems could cause Uderlyig Fud to miss certai ivestmet opportuities. Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 3
Similarly, the iability to sell securities held i Uderlyig Fud portfolio may result, at times, i potetial losses to Uderlyig Fud, should there be a subsequet declie i the value of securities held i Uderlyig Fud s portfolio. Uderlyig Fud may ivest upto 10% of its et assets i securities which are ot listed o the stock exchages. These securities may be illiquid i ature ad carry a higher amout of liquidity risk, i compariso to securities that are listed o the stock exchages or offer other exit optios to the ivestor. The liquidity ad valuatio of Uderlyig Fud s ivestmets due to its holdigs of ulisted securities may be affected if they have to be sold prior to the target date of disivestmet. Currecy Risk Uderlyig Fud s assets may be ivested i securities deomiated i currecies other tha the base currecy of Uderlyig Fud ad ay icome from these ivestmets will be received i those currecies. The performace of Uderlyig Fud may therefore be affected by movemets i the exchage rate betwee the currecies the assets are held ad the base currecy of Uderlyig Fud ad hece there ca be the prospect of additioal gai or loss for the Uit holder tha what may be ormally derived from the assets i which Uderlyig Fud ivests. The performace of Uderlyig Fud may also be affected by chage i exchage cotrol regulatios. Coversio ito foreig currecy or trasfer of proceeds received from the sale of securities caot be guarateed. Exchage rate fluctuatios may also occur betwee the trade date for a trasactio ad the date o which the currecy is acquired to meet settlemet obligatios. Movemets i currecy ca adversely affect the retur o your ivestmets. The currecy hedgig that may be used to miimise the effect of currecy movemets may ot be always successful. Political ad Ecoomic Risks Ecoomic ad/or political istability could lead to legal, fiscal ad regulatory chages or the reversal of legal/fiscal/ regulatory/market reforms. Assets could be compulsorily reacquired without adequate compesatio. Admiistrative risks may result i the impositio of restrictios o free movemet of capital. A coutry s exteral debt positio could lead to sudde impositio of taxes or exchage cotrols. High iterest ad iflatio rates ca mea that busiesses have difficulty i obtaiig workig capital. Local maagemet may be iexperieced i operatig compaies i free market coditios. A coutry may be heavily depedet o its commodity ad atural resource exports ad is therefore vulerable to weakesses i world prices for these products. Legal Eviromet The iterpretatio ad applicatio of decrees ad legislative acts ca be ofte cotradictory ad ucertai particularly i respect of matters relatig to taxatio. Legislatio could be imposed retrospectively or may be issued i the form of iteral regulatios ot geerally available to the public. Judicial idepedece ad political eutrality caot be guarateed. State bodies ad judges may ot adhere to the requiremets of law ad relevat cotract. There is o certaity that Uit holders will be compesated i full or at all for ay damages icurred. Recourse through the legal system may be legthy ad protracted. I certai circumstaces, Uderlyig Fud or certai share classes of Uderlyig Fud may be liquidated or merged which are detailed i the prospectus of Uderlyig Fud. I such cases, the costs ad expeses of ay such liquidatio or merger may be bore by Uderlyig Fud or share class of Uderlyig Fud up to the limit specified i the prospectus of Uderlyig Fud. Ay uamortized costs resultig from closure may be charged as a expese i full agaist the assets of Uderlyig Fud. I such a case, the amout distributed to shareholders of Uderlyig Fud (icludig the Scheme) may be less tha their origial ivestmet. I certai circumstaces as specified i the prospectus of Uderlyig Fud, the right of ivestors of Uderlyig Fud (icludig the Scheme) to redeem their uits may be suspeded. Uderlyig Fud is govered by Europea Uio legislatio, specifically EU Coucil Directive 2009/65/EC of July 13, 2009 o Co-ordiatio of Laws, Regulatios Admiistrative Provisios relatig to Udertakig for Collective Ivestmets i Trasferable Securities ad is Luxembourg domiciled. The regulatory protectios provided by their local regulatory authorities may differ or may ot apply. Accoutig Practices The accoutig, auditig ad fiacial reportig system may ot accord with iteratioal stadards. Eve whe reports have bee brought ito lie with iteratioal stadards, they may ot always cotai correct iformatio. Obligatios o compaies to publish fiacial iformatio may also be limited. Shareholder Risk Existig legislatio may ot yet be adequately developed to protect the rights of miority shareholders. There is geerally o cocept of ay fiduciary duty to shareholders o the part of maagemet. Liability for violatio of what shareholder rights of Uderlyig Fud there are, may be limited. Market ad Settlemet Risks Lack of liquidity may adversely affect the ease of disposal of assets. The absece of reliable pricig iformatio i a particular security held by Uderlyig Fud may make it difficult to assess reliably the market value of assets. The share register of Uderlyig Fud may ot be properly maitaied ad the owership or iterest may ot be (or remai) fully protected. Registratio of securities may be subject to delay ad durig the period of delay it may be difficult to prove beeficial owership of securities. The provisio for custody of assets may be less developed tha i other more mature markets ad thus poses a additioal level of risk for Uderlyig Fuds. Settlemet procedures may be less developed ad still be i physical as well as i dematerialised form. Other risk associated with Uderlyig Fud The ivestors will be exposed to the risk of global markets arisig out of ivestmet by Uderlyig Fud i securities which are deomiated i foreig currecies. These markets ad/or assets may act with more or less volatility tha the core ivestmets ad performace will, i part, be depedet o these ivestmets. All ivestmets ivolve risks ad there ca be o guaratee agaist loss resultig from a ivestmet i ay share of Uderlyig Fud, or ca there be ay assurace that Uderlyig Fud s ivestmet objectives will be attaied i respect of its overall performace. I certai circumstaces, the right of ivestors of Uderlyig Fud may be suspeded. The value of assets of Uderlyig Fud may be affected by ucertaities such as chages i govermet policies, taxatio, fluctuatios i foreig exchage rates, the impositio of currecy repatriatio restrictios, social ad religious istability, political, ecoomic or other developmets i the law or regulatios of coutries i which Uderlyig Fud may ivest ad, i particular, by chages i legislatio relatig to level of foreig owership i coutries i which Uderlyig Fud may ivest. Accoutig, auditig ad fiacial reportig stadards, practices ad disclosure requiremets applicable to some coutries i which Uderlyig Fud may ivest may differ from those applicable i Idia or Luxembourg that less iformatio is available to ivestors ad such iformatio may be out of date. Taxatio Ivestors should ote i particular that the proceeds from Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 4
the sale of securities i some markets or the receipt of ay divideds ad other icome may be or may become subject to tax, levies, duties or other fees or charges imposed by the authorities i that market, icludig taxatio levied by withholdig at source. As a result, Uderlyig Fud (ad therefore the Scheme) could become subject to additioal taxatio i such coutries that is ot aticipated either at the date of this SID or whe ivestmets are made, valued or disposed of. Prospective ivestors should ote that there may be additioal taxes, charges or levies applied i respect of the Scheme s ivestmet i Uderlyig Fud depedig o the locatio of assets of Uderlyig Fud ad the jurisdictio i which Uderlyig Fud is located, registered or operated. Ivestors should also ote that Uderlyig Fud s ivestmet maagers ad the Scheme s ability to provide tax iformatio ad audited accouts i respect of Uderlyig Fud to Uit holders of the Scheme is depedet o relevat tax ad other iformatio beig provided by Uderlyig Fud i timely fashio. Accordigly, delays may occur i respect of delivery of such iformatio to the Scheme s Uit Holders. Hedgig Risk The ivestmet maager of Uderlyig Fud is permitted, but ot obliged, to use hedgig techiques to attempt to offset market ad currecy risks. There is o guaratee that hedgig techiques will achieve the desired result. Risks Associated with Derivatives Uderlyig Fud may use derivatives i coectio with its ivestmet strategies. Derivative products are leveraged istrumets ad ca provide disproportioate gais as well as disproportioate losses to the ivestor. Executio of such strategies depeds upo the ability of the ivestmet maager of Uderlyig Fud to idetify such opportuities. Idetificatio ad executio of strategies to be pursued by the ivestmet maager of Uderlyig Fud ivolve ucertaity ad decisio of the ivestmet maager of Uderlyig Fud may ot always be profitable. No assurace ca be give that the ivestmet maager of Uderlyig Fud will be able to idetify or execute such strategies. The risks associated with the use of derivatives are differet from or possibly greater tha the risks associated with ivestig directly i securities ad other traditioal ivestmets. Derivatives may be riskier tha other types of ivestmets because they may be more sesitive to chages i ecoomic or market coditios tha other types of ivestmets ad could result i losses that sigificatly exceed Uderlyig Fud s origial ivestmet. Certai derivatives may give rise to a form of leverage. Due to low margi deposits ormally required i tradig fiacial derivative istrumets, a extremely high degree of leverage is typical for tradig i fiacial derivative istrumets. As a result, Uderlyig Fud may be more volatile tha if Uderlyig Fud had ot bee leveraged because the leverage teds to exaggerate the effect of ay icrease or decrease i the value of Uderlyig Fud s portfolio. A relatively small price movemet i a derivative cotract may result i substatial losses to the ivestor. Derivatives are also subject to risk that chages i value of a derivative may ot correlate perfectly with the uderlyig asset, rate or idex. The use of derivatives for hedgig or risk maagemet purposes or to icrease icome or gai may ot be successful, resultig i losses to Uderlyig Fud ad cost of such strategies may reduce Uderlyig Fud s returs ad icrease Uderlyig Fud s potetial for loss. Uderlyig Fud may use derivatives to hedge market ad currecy risk ad for the purposes of efficiet portfolio maagemet. The use of derivatives may expose Uderlyig Fud to a higher degree of risk. I particular, derivative cotracts ca be highly volatile ad the amout of iitial margi is geerally small relative to size of cotract so that trasactios are geared. Uderlyig Fud may take short positios o a security through the use of fiacial derivative istrumets i the expectatio that their value will fall i the ope market. The possible loss from takig a short positio o a security differs from the loss that could be icurred from a cash ivestmet i the security, the former may be ulimited as there is o restrictio o the price to which a security may rise, whereas the latter caot exceed the total amout of the cash ivestmet. The short sellig of ivestmets may also be subject to chages i regulatios, which could impose restrictios that could adversely impact returs to ivestors. Right of Exchage to Susped Tradig i Securities listed The securities exchage o which shares of Uderlyig Fud may be listed may have right to susped or limit tradig i all securities which it lists. Such suspesio would expose Uderlyig Fud to losses ad delays i its ability to redeem shares of Uderlyig Fud. Divideds Uderlyig Fud may distribute ot oly ivestmet icome but also realised ad urealized capital gais or capital. Where capital is distributed, this will result i a correspodig reductio i the value of shares of Uderlyig Fud. Warrats Uderlyig Fud may ivest i warrats ad the value of these warrats is likely to fluctuate more tha the prices of uderlyig securities because of greater volatility of warrat prices. Futures ad Optios Uderlyig Fud may use optios ad futures o securities, idices ad iterest rates for the purpose of efficiet portfolio maagemet. Trasactios i futures ad optios carry a high degree of risk. A relatively small market movemet will have a proportioately larger impact which may work for or agaist the ivestor. The placig of certai orders which are iteded to limit losses to certai amouts may ot be effective because market coditios may make it impossible to execute such orders. Listig I case the shares of Uderlyig Fud are listed, the exchages o which those shares are listed will have o resposibility for cotets of ay prospectus issued by Uderlyig Fud or will make o represetatios as to its accuracy or completeess ad expressly disclaim ay liability whatsoever for ay kid of loss arisig from or i reliace upo ay part of ay such prospectus. For additioal risk factors of Uderlyig Fud, ivestors are requested to refer to the offerig documet or the website (www.ivesco.com) of Uderlyig Fud. Risk associated with Debt ad Moey Market Istrumets: Ivestmet i Debt ad Moey Market Istrumets would have credit risk. Credit risk or default risk refers to the risk that the issuer of a fixed icome security may default o iterest paymet or eve i payig back the pricipal amout o maturity. Eve where o default occurs, the price of security may be affected because of chage i the credit ratig of issuer/istrumet ad the price of security goes dow if the credit ratig agecy dowgrades the ratig of the issuer. I case of T-Bills, there is miimal credit risk to that extet. Debt ad Moey Market Istrumets also have liquidity or marketability risk. This refers to the ease with which a security ca be sold at or ear to its valuatio, i.e. yield-tomaturity (YTM). The primary measure of liquidity risk is the spread betwee bid price ad offer price quoted by a dealer. The NAV of the Uits, to the extet the corpus of the Scheme is ivested i Debt ad Moey Market Istrumets, will be affected by chages i the level of iterest rates. Whe iterest rate i the market rise, the value of a portfolio of Debt ad Moey Market Istrumets ca be expected to declie. The extet of rise or fall i the price is a fuctio of existig coupo, days to maturity, icrease or decrease i level of iterest, credit quality, demad ad supply. Ivestmets i debt securities may carry re-ivestmet risk as iterest rates prevailig o the iterest or maturity due dates may differ from the origial coupo of the debt security. Cosequetly, the proceeds may get ivested at a lower rate. Risks associated with Securities Ledig Not Applicable. The Scheme will ot udertake securities ledig. Risks associated with Short Sellig Not Applicable. The Scheme will ot udertake short sellig. Risks associated with Ivestig i Securitized Debt Not Applicable. The Scheme will ot ivest i securitized debt. Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 5
Risk Mitigatio Strategies: Type of Risk Measures to Mitigate Risk(s) Cocetratio Risk As the Scheme will predomiatly ivest i uits of Uderlyig Fud, the Scheme carries cocetratio risk. However, Uderlyig Fud will have diversified portfolio comprisig equities of compaies worldwide ad cocetratio risk to that extet is miimized. Currecy Risk As the Scheme will be predomiatly ivestig i overseas mutual fud, the Scheme will be exposed to fluctuatios i currecy of Uderlyig Fud vis-à-vis INR. As per the curret regulatios, the Scheme is ot allowed to use currecy derivatives to hedge agaist currecy risk ad hece currecy risk would be iheret risk of the Scheme. Liquidity Risk Uderlyig Fud i which the Scheme will ivest is a ope eded scheme which provides for subscriptio ad redemptio o all Busiess Days. Further the Scheme will maitai some % of its et assets to meet liquidity requiremets for the purpose of repurchase or redemptios. B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme shall have a miimum of 20 ivestors ad o sigle ivestor shall accout for more tha 25% of the corpus of the Scheme. However, if such limit is breached durig the NFO of the Scheme, the Fud will edeavor to esure that withi a period of three moths or the ed of the succeedig caledar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two coditios. I case the Scheme does ot have a miimum of 20 ivestors i the stipulated period, the provisios of Regulatio 39(2)(c) of the SEBI (MF) Regulatios would become applicable automatically without ay referece from SEBI ad accordigly the Scheme shall be woud up ad the Uits would be redeemed at applicable NAV. The two coditios metioed above shall also be complied withi each subsequet caledar quarter thereafter, o a average basis, as specified by SEBI. If there is a breach of the 25% limit by ay ivestor over the quarter, a rebalacig period of oe moth would be allowed ad thereafter the ivestor who is i breach of the rule shall be give 15 days otice to redeem his exposure over the 25 % limit. Failure o the part of the said ivestor to redeem his exposure over the 25% limit withi the aforesaid 15 days would lead to automatic redemptio by the Mutual Fud o the applicable Net Asset Value o the 15th day of the otice period. The Fud shall adhere to the requiremets prescribed by SEBI from time to time i this regard. C. SPECIAL CONSIDERATIONS Prospective ivestors should study this Scheme Iformatio Documet ad Statemet of Additioal Iformatio carefully i its etirety ad should ot costrue the cotets hereof as advise relatig to legal, taxatio, fiacial, ivestmet or ay other matters ad are advised to cosult their legal, tax, fiacial ad other professioal advisors to determie possible legal, tax, fiacial or other cosideratios of subscribig to or redeemig Uits, before makig a decisio to ivest / redeem / hold Uits. Neither this Scheme Iformatio Documet, Statemet of Additioal Iformatio or the Uits have bee registered i ay jurisdictio. The distributio of this Scheme Iformatio Documet or Statemet of Additioal Iformatio i certai jurisdictios may be restricted or totally prohibited to registratio requiremets ad accordigly, persos who come ito possessio of this Scheme Iformatio Documet or Statemet of Additioal Iformatio are required to iform themselves about ad to observe ay such restrictios ad / or legal compliace requiremets. The AMC, Trustee or the Mutual Fud have ot authorized ay perso to issue ay advertisemet or to give ay iformatio or to make ay represetatios, either oral or writte, other tha that cotaied i this Scheme Iformatio Documet or the Statemet of Additioal Iformatio i coectio with this offerig. Prospective ivestors are advised ot to rely upo ay iformatio or represetatio ot icorporated i the Scheme Iformatio Documet or Statemet of Additioal Iformatio as havig bee authorized by the Mutual Fud, the AMC or the Trustee. Redemptio due to chage i the fudametal attributes of the Scheme or due to ay other reasos may etail tax cosequeces. The Trustee, AMC, Mutual Fud, their directors or their employees shall ot be liable for ay such tax cosequeces that may arise due to such redemptios. The Trustee, AMC, Mutual Fud, their directors or their employees shall ot be liable for ay of the tax cosequeces that may arise i the evet that the Scheme is woud up for the reasos ad i the maer provided i Statemet of Additioal Iformatio ( SAI ). The tax beefits described i this Scheme Iformatio Documet ad Statemet of Additioal Iformatio are as available uder the preset taxatio laws ad are available subject to relevat coditios. The iformatio give is icluded oly for geeral purpose ad is based o advice received by the AMC regardig the law ad practice curretly i force i Idia as o the date of this Scheme Iformatio Documet ad the Uit holders should be aware that the relevat fiscal rules or their iterpretatio may chage. As is the case with ay ivestmet, there ca be o guaratee that the tax positio or the proposed tax positio prevailig at the time of a ivestmet i the Scheme will edure idefiitely. I view of the idividual ature of tax cosequeces, each Uit holder is advised to cosult his / her ow professioal tax advisor. The Mutual Fud may disclose details of the ivestor s accout ad trasactios there uder to those itermediaries whose stamp appears o the applicatio form. I additio, the Mutual Fud may disclose such details to the bakers, as may be ecessary for the purpose of effectig paymets to the ivestor. The Fud may also disclose such details to regulatory ad statutory authorities/bodies as may be required or ecessary. I case the AMC or its Sposor or its shareholders or their affiliates/associates or group compaies make substatial ivestmet, either directly or idirectly i the Scheme, redemptio of Uits by these etities may have a adverse impact o the performace of the Scheme. This may also affect the ability of the other Uit holders to redeem their Uits. As the liquidity of the Scheme s ivestmets may sometimes be restricted by tradig volumes ad settlemet periods, the time take by the Fud for Redemptio of Uits may be sigificat i the evet of a iordiately large umber of redemptio requests or of a restructurig of the Scheme s portfolio. I view of this, the Trustee has the right, i its sole discretio, to limit redemptios uder certai circumstaces - please refer to the sectio Right to Limit Redemptios o Page 21. Pursuat to the Provisios of Prevetio of Moey Lauderig Act, 2002, if after due diligece, the AMC believes that ay trasactio is suspicious i ature as regards moey lauderig, failure to provide required documetatio, iformatio, etc. the AMC shall have absolute discretio to report such suspicious trasactios to FIU-IND ad / or to freeze the folios of the ivestor(s), reject ay applicatio(s) / allotmet of uits ad effect madatory redemptio of uit holdigs of the ivestor(s) at the applicable NAV subject to paymet of exit load, if ay. Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 6
D. DEFINITIONS I this Scheme Iformatio Documet, the followig words ad expressios shall have the meaig specified herei, uless the cotext otherwise requires: AMC or Asset Maagemet Compay or Ivestmet Maager Applicable NAV Beeficial ower Busiess Day Busiess Hours Custodia Cut-off time Depository Depository Participat Depository Records Derivative Distributor Divided Etry Load or Sales Load Exit Load or Redemptio Load Foreig Istitutioal Ivestors or FIIs Fud or Mutual Fud or RIMF Gilts or Govermet Securities Ivestmet Maagemet Agreemet Religare Ivesco Asset Maagemet Compay Pvt. Ltd. (previously kow as Religare Asset Maagemet Compay Private Limited), a Compay icorporated uder the Compaies Act, 1956 ad approved by SEBI to act as the Asset Maagemet Compay for the Scheme(s) of Religare Ivesco Mutual Fud. The NAV applicable for Subscriptio or Redemptio or Switchig based o the Busiess Day ad relevat cut-off times o which the applicatio is accepted at Official Poit of Acceptace of Trasactio. As defied i the Depositories Act 1996 (22 of 1996) meas a perso whose ame is recorded as such with a depository. A day other tha: a) A Saturday or Suday; b) A day o which BSE Ltd., Mumbai ad the Natioal Stock Exchage of Idia Ltd. are closed, whether or ot the baks i Mumbai are ope; c) A day o which Purchase ad Redemptio of Uits is suspeded or a book closure period is aouced by the Trustee / AMC; d) A day o which ormal busiess caot be trasacted due to storms, floods, badhs, strikes or such other evets as the AMC may specify from time to time; e) A day o which baks i Mumbai, Idia or Reserve Bak of Idia (RBI) is closed; f ) A day o which there is o RBI clearig or settlemet of securities. g) A day o which Uderlyig Fud is closed for Subscriptio or Redemptio. Further, if the baks are ot ope for busiess i the coutry of the currecy of settlemet, the i such case, the settlemet for subscriptio / redemptio of uits i Uderlyig Fud would be o the ext Busiess Day o which those baks i that coutry are ope. Provided that the days whe the baks i ay locatio where the AMC s Ivestor Service Cetres are located are closed due to a local holiday, such days will be treated as o Busiess Days at such cetres for the purposes of acceptig fresh subscriptios. However, if the Ivestor Service Cetre i such locatios are ope o such local holidays, the redemptio ad switch requests will be accepted at those cetres, provided it is a Busiess Day for the Scheme o a overall basis. The AMC reserves the right to chage the defiitio of Busiess Day ad to declare ay day as a Busiess Day or otherwise at ay or all ISCs. Presetly 9.30 a.m. to 5.30 p.m. o ay Busiess Day or such other time as may be applicable from time to time. A perso who has bee grated a certificate of registratio to carry o the busiess of custodia of securities uder the Securities ad Exchage Board of Idia (Custodia of Securities) Regulatios, 1996, which for the time beig is Deutsche Bak AG, Mumbai. Cut off timig i relatio to subscriptio ad redemptio of Uits meas the outer limits of timigs o a particular Busiess Day which are relevat for determiatio of Applicable NAV that is to be applied for the trasactio. As defied i the Depositories Act, 1996 ad icludes Natioal Securities Depository Ltd (NSDL) ad Cetral Depository Services Ltd (CDSL). Meas a perso registered as such uder sub sectio (1A) of sectio 12 of the Securities ad Exchage Board of Idia Act, 1992. As defied i the Depositories Act 1996 (22 of 1996) icludes the records maitaied i the form of books or stored i a computer or i such other form as may be determied by the said Act from time to time. Icludes (i) a security derived from a debt istrumet, share, loa whether secured or usecured, risk istrumet or cotract for differeces or ay other form of security; (ii) a cotract which derives its value from the prices or idex of prices of uderlyig securities. Such persos/firms/ compaies/ corporates who fulfill the criteria laid dow by SEBI/AMFI from time to time ad empaelled by the AMC to distribute/sell/market the Schemes of the Fud. Icome distributed by the Mutual Fud o the Uits. Load o Sale/Switch-i of Uits. Load o Redemptio/Switch-out of Uits. Meas a istitutio established or icorporated outside Idia ad registered with SEBI uder the Securities ad Exchage Board of Idia (Foreig Istitutioal Ivestors) Regulatios, 1995, as ameded from time to time. Religare Ivesco Mutual Fud (earlier kow as Religare Mutual Fud), a trust set up uder the provisios of the Idia Trusts Act, 1882 ad registered with SEBI vide Registratio No. MF/052/06/01 dated May 10, 2013. Religare Mutual Fud origially kow as Lotus Idia Mutual Fud was registered with SEBI vide Registratio No. MF/052/06/01 dated July 24, 2006. Securities created ad issued by the Cetral Govermet ad/or a State Govermet (icludig Treasury Bills ad Cash Maagemet Bills) or Govermet Securities as defied i the Govermet Securities Act, 2006, as ameded or re-eacted from time to time. The agreemet dated April 27, 2006 etered ito betwee Religare Ivesco Trustee Compay Pvt. Ltd. ad Religare Ivesco Asset Maagemet Compay Pvt. Ltd., as ameded by the First Amedmet to Ivestmet Maagemet Agreemet dated March 28, 2013. Scheme Iformatio Documet - Religare Ivesco Global Equity Icome Fud 7