-Union Asset Management Company a subsidiary of Union Bank of India and Dai-ichi Life Holdings, Inc announces the launch of Union Medium Duration Fund.
It is an open-ended medium-term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 to 4 years.
The NFO of Union Medium Duration Fund will open on August 24 and closes on September 7. The allotment will happen on September 14 and it will re-open for continuous sale and repurchase on September 21.
The Scheme is benchmarked against CRISIL Medium Term Debt Index and will be managed by Mr. Parijat Agrawal and Mr. Anindya Sarkar. The minimum investment required is Rs 5,000 and in multiples of Rs 1 thereafter Mr. G. Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company, said “The launch of Union Medium Duration Fund is a step towards bridging the gap in the fixed income debt scheme offerings from our company. The portfolio construction will be a prudent combination of strategic allocation to PSU/Corporate bonds of high credit quality and a tactical allocation to securities of the Government of India. The portfolio construction of this scheme would be guided by our robust fixed income investment process.”
Union AMC is co-sponsored by Union Bank of India and Dai-ichi Life of Japan. The company manages more than Rs 4,000 crores AUM as of July 2020. Union AMC is been fairly successful in tapping investors from the smaller cities and towns in India. The company has added 200,000 + folios, out of which, 75,000 folios are first-time investors. About 70% of Union AMC investors are first-time investors and around 44 percent of folios come from B-30 cities at present.