Add a touch of gold to your portfolio. Religare Gold ... · PDF fileReligare Gold Exchange...
Transcript of Add a touch of gold to your portfolio. Religare Gold ... · PDF fileReligare Gold Exchange...
Religare Gold Exchange Traded Fund.(an open ended Gold ETF)
NFO Opens: 28th Jan, 2010 Closes: 23rd Feb, 2010
Add a touch of gold to your portfolio.
Religare Gold ETF – Jump into gold!
Content
• Gold Market Dynamics
• Does it merit long term investment?
• Religare Gold ETF
1
2
Market Dynamics – Factors affecting Gold Prices
Content
• Gold Market Dynamics
• Does it merit long term investment?
• Religare Gold ETF
New Gold Discoveries
Central Bank Reserves
Financial &Economic Crisis
Inflation
Political Risks
Dollar
Religious Festivals
Industrial Demand
Golden China
Indian Wedding Season
Supply Side Other Factors Demand Side
Gold Market Dynamics – Demand by Sector
• The strongest demand was for jewellery accounting for 2185 tonnes
• Total industrial demand, including from dental industry was 435 tonnes
• ETFs & other similar products accounted for 320 tonnes
• 862 tonnes were converted into bars, gold coins and other retail investment products
3
Source: World Gold Council, Gold.org
Jewellery - 58%
Industrial & Dental - 11%
Bar & Gold Coin RetailInvestment - 23%
ETFs & Similar Products 8%
Total Global Demand (2008): Approx. 3800 tonnes
Gold ETFs – Adding to the demand
• The inflows into ETFs have thus far continued unabated, buoyed by rally in gold prices
• Safe haven buying is supporting the price of Gold
4
Source: Bloomberg, World Gold Council, Gold.org
3 42175
383
643
896
1217
1780
2002 2003 2004 2005 2006 2007 2008 2009Q3
Tonn
es
200
300
400
500
600
700
800
900
1000
1100
1200
US
$/O
z
Global ETF Demand (Tonnes) - Cumulative
Gold Price (US$/ Oz)
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Gold Reserves – Holdings of Central Banks and IMF
• Gold ETFs holding globally is ranked 6th vis-à-vis other Central Banks and IMF’s gold reserves
• China has increased its gold reserves by 166% since 2000
5
Source: World Gold Council, Gold.org. IMF: International Monetary Fund
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000Portugal
TaiwanECBIndia
RussiaNetherlands
JapanSwitzerland
ChinaGold ETFs
FranceItalyIMF
GermanyUnited States
383424537558 (includes 200 tonnes purchase from IMF)591612
7651,0401,054
2,4352,452
3,2173,408
8,133
Gold Reserves (Tonnes), Q3 20091,780
Gold Market Dynamics – Supply
De -hedging – Since mine operators are subject to substantial capital expenditure for exploration and production, they sell parts of their future gold output forward. The cancellation of these forward positions is called “De-Hegding”. i.e additional gold is taken off the market
6
Source: World Gold Council, Gold.org. Data as on Dec 2008
Supply Tonnes
Mine Production (net of hedging) 2064
Official Sector Sales 236
Old Gold Scrap 1209
Total Supply 3509
Old Gold Scrap,1209 Tonnes
Official Sector Sales, 236 Tonnes
Mine Production (net of hedging),
2064 Tonnes
• Total supply of gold, including scrap gold sales is over 3500 tonnes in 2008
• Mine production in 2008 was around 2064 tonnes
Gold Market Dynamics – Supply Declining Mine Production
7
Source: U.S Geological Survey, Bloomberg
Real value of Gold will increase in the long term as production declines
• Gold Mine production has been on a decline – peak production was in the year 2001 – over 2,600 tonnes
• New Gold Mine deposits are harder to find
Gold Mine Production (1990-2008)
2,000
2,100
2,200
2,300
2,400
2,500
2,600
2,700
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Tonn
es
200
300
400
500
600
700
800
900
US
$/O
z
Price of Gold
Gold Mine Production
Gold Market Dynamics – Supply Fewer New Mine Discoveries
8
Source: Metals Economics Groups
Number of new discoveries and resources in new discoveries (million ounces)
100908070605040302010
0
16
14
12
10
8
6
4
2
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Resources in Discoveries3-year Avg. (LHS)
Number of newdiscoveries (RHS)
Dearth of major new mine discoveries in the last few years
9
Source: World Gold Council, Gold.org
Gold Market Dynamics – Supply Recycled Gold Surges
Some of the gold deficit is met through recycled gold
Gold Supply - Oldgold s crap (tonne s )
Tonn
es
Q1'07
Q2'07
Q3'07
Q4'07
Q1'08
Q2'08
Q3'08
Q4'08
Q1'09
Q2'09
Q3'09
0
100
200
300
400
500
600
• Gold Supply roughly is 2500 tonnes (mine production) per annum
• Traditional demand exceeds the supply significantly – some of this gap is filled by recycled Gold (old gold scrap sales)
10
Source:World Gold Council, Gold.org
Gold Market Dynamics Demand vs. Supply (Gap widening)
Ton
nes
0
500
1000
1500
2000
2500
3000
3500
400019
9419
9519
96
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Supply
Deficit
Demand
11
Source: World Gold Council, Gold.org
Decline in Central Bank's Sales – Have turned into net buyers of Gold
Central Banks Have Sold less – Infact, have turned into net buyers of Gold
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
Tonn
es
0
100
200
300
400
500
600
500
400
300
200
100
0
-100
-200
-300
-400Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
CBGA: Central Bank Gold Agreements
• Signatory banks of CBGA II have sold less gold • Central Banks around the world (including CBGA signatories) have turned into net buyers of Gold in 2009
CBGA I LimitCBGA II Limit
-298
-81
-242-285
-169-226
-349
-242-174 -169
-211 -235
-90-34
433
260
Tonn
es
Global Currency Debasement - US dollar weakness leading to Central Bank's replacing dollar reserves with Gold. Increased Money supply by US and other nations - Can create very “Gold Friendly” environment.
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• No major threat of increased supply
• Declining production and increasing demand make Gold very attractive
• Central banks selling less – declining trend
• Strong demand for Gold in emerging markets, particularly India and China
• Strong investment demand – investments in Gold ETFs already rank 6th
Conclusions
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Jump into Gold!Does it merit long term investment?
• Gold is renowned as a hedge against inflation – as inflation goes up, price of Gold also tends to go up
• Gold preserves the purchasing power and infact even increases it gradually
• Inflation adjusted gold prices have generated a positive rate of return in the last 7 years
3780
14
Source: Bloomberg. Data as on 31st Dec, 2009.
Gold as an Inflation Hedge?
2475
1527
900
1400
1900
2400
2900
3400
3900
4400
Jan-02
Jun-02
Nov-02
Apr-03
Sep-03
Feb-04
Jul-04
Dec-04
May-05
Oct-05
Mar-06
Aug-06
Jan-07
Jun-07
Nov-07
Apr-08
Sep-08
Feb-09
Jul-09
Dec-09
Past Performance may or may not be sustained in future
Prices Rebased to 1000
Gold Prices
WPI Inflation (India)
Gold Prices-adjusted for Inflation
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Gold – A shining performance
Gold versus other asset classes
CashShort-Term DebtLong-Term Debt
GOLDCNX S&P NiftyMSCI World Index
Mar
-04
Jun-
04
Sep
-04
Dec
-04
Mar
-05
Jun-
05
Sep
-05
Dec
-05
Mar
-06
Jun-
06
Sep
-06
Dec
-06
Mar
-07
Jun-
07
Sep
-07
Dec
-07
Mar
-08
Jun-
08
Sep
-08
Dec
-08
Mar
-09
Jun-
09
Sep
-09
Dec
-09
2.20 0.99 15.93 19.19 1.44 9.09 17.15 11.35 19.95 8.90 14.71 10.53 2.06 13.00 16.28 22.25 13.94 6.87 3.79 7.86 9.73 42.04 18.48 5.65
1.04 0.32 5.07 11.59 1.35 1.81 9.48 9.04 11.96 1.71 4.05 8.02 1.94 5.82 11.75 11.02 1.71 1.77 2.15 4.97 2.09 19.73 16.90 3.68
0.99 0.14 0.91 1.08 1.12 1.48 6.57 2.73 6.15 1.60 1.86 1.74 1.77 2.65 2.58 2.57 1.66 0.98 1.64 2.55 2.06 2.41 7.00 2.30
0.92 -1.09 0.65 0.87 -1.55 1.26 1.40 1.09 1.35 1.03 1.71 1.43 0.91 2.51 2.25 1.99 1.04 -1.14 1.22 2.01 1.90 2.33 0.90 1.48
-2.82 -1.52 -0.30 0.59 -1.83 1.16 1.21 0.54 0.70 -1.13 1.42 1.10 -0.16 1.84 1.95 1.67 -9.53 -2.45 -2.95 -22.18 -0.54 1.39 0.67 1.30
-5.74 -15.03 -1.38 -0.55 -2.16 -0.21 1.17 0.43 0.04 -8.06 -2.57 1.09 -3.65 -7.18 1.46 -2.74 -22.87 -14.66 -15.67 -24.53 -12.50 -3.72 0.14 0.67
Past Performance may or may not be sustained in futureSource: Bloomberg. Quarterly performance of different asset classes. Data from Mar 2004 to Dec 2009. Cash represented by Crisil Liquid Fund Index, Short Term debt represented by Crisil Short Term Bond Fund Index and Long term debt represented by Crisil Composite Bond Fund Index
Best
Worst
• Gold has historically exhibited an inverse relationship to the US dollar, which has grown stronger in the recent years
• Gold is bought and sold in US dollars, so any decline in the value of the dollar causes the price of gold to rise
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Source: Bloomberg. Data as on 31st Dec 2009.
Gold as Dollar Hedge
0
200
400
600
800
1000
1200
1400
1975
1976
1978
1980
1982
1984
1986
1988
1990
1991
1993
1995
1997
1999
2000
2002
2004
2006
2008
2009
70
80
90
100
110
120
130
140
150
160
170
Gold Price (USD/Oz) - LHS
Dollar Index - RHSGold - Dollar Correlation
-0.30 -0.46 -0.48
Since 1975 Last 10 Years Last 3 Years
-1.00
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
• Currently, the ratio is 9.5, the historical median is 7.8. Gold still looks attractively valued in comparison with US shares
• Although it is significantly below its peak in 1999, it is still 9 times higher than in the 1930s and 1970s bear market bottom
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Dow / Gold Ratio
9.57.8
0
5
10
15
20
25
30
35
40
45
Median : 7.8
Source: Bloomberg. Data as on 31st Dec, 2009. Dow/Gold ratio shows the ratio of price of gold with the price of the Dow Jones. In another words, it represents the number of ounces of gold it takes to buy one basket of the Dow Jones index
1920 1929 1938 1947 1956 1965 1974 1983 1992 2001 2009
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Gold – Low Correlation with other Asset classesAn Effective Portfolio Diversifier
1.00
-0.04 -0.01 -0.03
0.29
-1.0
-0.8
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
Gold Cash Long TermDebt
Short TermDebt
Crude Oil
1.00
-0.04
0.04
-1.00
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
GOLD S&P NIFTY India MSCI World Index
• A portfolio comprising of un-correlated assets generally has low volatility.
• If one asset class underperforms, it is compensated by the outperformance of other class, thereby stabilizing overall returns.
• A portfolio comprising of un-correlated assets generally has low volatility
• If one asset class underperforms, it is compensated by the out performance of other asset classes, thereby stabilizing overall returns
Source : CRISIL, Bloomberg, Religare Mutual Fund. Short Term debt represented by Crisil Short Term Bond Fund Index and Long term debt represented by Crisil Composite Bond Fund Index. Cash is represented by Crisil Liquid Fund Index. Correlation is a statistical measure of how two securities move in relation to each other.
Period: Jan 2002 – Dec 2009 Period: Jan 2000 – Dec 2009
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Source: Bloomberg. Data as on 31st Dec, 2009
Gold – Low on volatility
Nifty and Gold - Monthly Volatility (July 1990 – Dec 2009)
NiftyGold
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
1990
1991
1992
1993
1994
1995
1996
1997
1998
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Jan-
2009
Dec
-200
9
(%)
20
Past Performance may or may not be sustained in future
Gold – Safe Haven during Financial Crisis
Event
Dotcom Bubble
Unexpected Election result leads to sharp fall in India and Trading Suspension, World markets uneasy ahead of First Fed rate hike in 4 years
Heavy selling by FIIs, retail investors and global weakness.
Credit Crisis
MSCI World Index
-13.78%
-0.80%
-5.96%
-48.99%
Source: Bloomberg. Religare Mutual Fund. Returns are absolute in nature. Returns shown for Jan00-May02 and Dec07-Mar09 are CAGR, whereas absolute for Apr04-Jun04 and Mar06-Jun06 period
-17.45%-21.95% -18.91%
-49.92%
11.78%5.52% 7.2%
41.99%
-13.78%
-0.80%-5.96%
-48.99%
-65
-45
-25
-5
15
35
55 Nifty Returns (%)
Jan 00 – May 02 April 04 – Jun 04 Mar 06 – Jun 06 Dec 07 – Mar 09
(%)
Nifty Returns
-17.45%
-21.95%
-18.91%
-49.92%
Gold Returns (INR)
11.78%
5.52%
7.2%
41.99%
Date Range
Jan 00 - May 02
Apr 04 - Jun 04
Mar 06 - Jun 06
Dec 07 - Mar 09
Gold Returns (INR) (%)
MSCI World Index (%)
21
Source: Bloomberg. Data as on 18th Jan, 2010
Investor Allocation to Gold is Low
Market Capitalisation (bn)
Largest Gold ETF (US) 40
United States 13,900
The largest gold ETF in the world – represents only about 0.29% of the total market cap of US stocks.
22
Presenting
Religare Gold ETF – Jump into Gold!
• Simply put it is a gold exchange traded mutual fund scheme that invests in physical gold
• It is a convenient and inexpensive alternative to owning physical gold
• The Fund is designed to seek returns that closely correspond to the returns provided by investment in physical gold
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Religare Gold ETF
• The Fund invests only in physical gold of 99.5 purity or higher
• No issuer risk
• One Unit of Religare Gold ETF will represent 1 gram of Gold
• The Fund intends to remain fully invested at all times
• Gold Exposure, through derivatives is not allowed
• Lending and borrowing not allowed
• Currency Hedging versus US dollar
• The gold is physically segregated and stored exclusively in high- security vaults
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Religare Gold ETF – All that glitters is Gold
• Gold is regarded as a symbol of wealth in Indian households
• Gold Purchases in India – be it Dhanteras, Akshaya tritiya or any other auspicious occasion . Gold has ritual, religious and sentimental value attached
• Weddings are incomplete without Gold - accumulation starts with the new born child
• Gold for centuries has been regarded as safe haven in India – Symbolizes Security
• In India, Gold has been accumulated and passed from generation to generation
25
Indians and GOLD India is the world’s largest consumer of Gold
Gold ETF is the new way to accumulate Gold.
" the desire of gold is not for gold. It is for the means of freedom and benefit" - Ralph Waldo Emerson
• Easily Accessible • During NFO – Retail Investors can directly buy from the Fund House • Post NFO – Units will be listed on National Stock Exchange and the Bombay Stock
Exchange. Investors can buy, sell units through their normal brokerage accounts
• Cost Effective • Much lower than cost of buying, storing and insuring physical gold
• Liquid • Not limited to Secondary Market Trading at NSE / BSE • Investors can create and redeem units in minimum lot size of 1000 units directly with the
Fund House
• Physical Gold and Purity • The underlying gold is held in the form of 1 kg bars. Gold held by the Fund shall be of fineness
(or purity) of 995 parts per 1000 (99.5%) or higher; sourced from LBMA (London Bullion Market Association) approved refiners
• Transparent • NAV will be declared on a daily basis and portfolio on a monthly basis
26
Benefits of Religare Gold ETF
27
Religare Gold ETF – Tax Treatment
• From a Tax standpoint, the treatment will be similar to that of a debt mutual fund scheme, and it will not attract wealth tax, which is the case with physical gold
• Redemption of units of Gold ETF by Authorised Participant / Large Investors with mutual fund or Sale of Units by the investor on the Stock Exchange may attract short or long term capital gain tax depending upon the holding period of the Units
• Converting Units of Religare Gold Exchange Traded Fund to Gold may also attract Wealth Tax
Please consult your professional tax advisor.
28
Reasons to Invest in Gold
• Gold as an inflation hedge – keeps purchasing power intact
• Gold is an Effective Diversifier - Helps to contain Portfolio Risk. Low / Negative Co-relation with major asset classes
• Gold as Safe Haven in financial crisis – Solid Asset
• Global Currency Debasement – US dollar weakness to continue. Other countries are reluctant to see their currencies appreciate. This could lead to increase in price of Gold
• Investment demand on a rise – globally hedge funds, Gold ETFs and mutual funds are driving up investment demand for gold for its safe haven qualities
• Gold Exposure is warranted based on macroeconomic considerations
• Central Banks have changed their attitude towards gold – increasing Gold reserves
29
Who should invest?
• Investors looking to diversify specific asset class risk, by combining Gold in their overall portfolio
• Investors who are bullish on long term prospects of Gold as a commodity
• Investors looking for a hassle free way of owning Gold
• Families accumulating Gold for future events e.g. Marriage etc. can look towards investing in Gold – making small and regular purchases possible
30
Religare Gold ETF vs. Buying Physical Gold
ParametersMode
Safety/ Storage
Purity of Gold
Pricing
Liquidity
Denomination
Religare Gold ETFDemat
No risk of theft
99.5 % or higher
Transparent. Low on cost.
On business days on the exchange
1 unit (1 gram of Gold)
JewellerJewellery / Bar/ Coins
High Risk
Can’t Say
Can’t Say
Relatively at High Cost
Pre-defined
BanksBar / Coins
High Risk
High on Purity
High Mark up
Low on Liquidity
Pre-defined
31
Physical Gold vs. Gold Mining Shares
• The difference is Risk. Gold Mining Shares will come with higher risk compared to investments in physical gold
• Gold mining share is not gold. It’s a company stock first and then secondly can be construed as Gold
• A Gold Mining Share is NOT a substitute for physical Gold. It represents a benefit in the future from potential Gold deposits in the ground and not the actual Gold itself
• Physical Gold ownership has protected investors during periods of economic depression, wars and political unrest. Mining stocks could be negatively affected in such times as stock markets may be closed or adversely affected for a period of time
32
Source: Bloomberg. Data as on 31st Dec 2009.
Commodity vs. Gold / Oil Companies
50
100
150
200
250
Ja
n-0
7
Ma
r-0
7
Ma
y-0
7
Ju
l-0
7
Se
p-0
7
No
v-0
7
Ja
n-0
8
Ma
r-0
8
Ma
y-0
8
Ju
l-0
8
Se
p-0
8
No
v-0
8
Ja
n-0
9
Ma
r-0
9
Ma
y-0
9
Ju
l-0
9
Se
p-0
9
No
v-0
9
CL1 ComdtyXOI Index
50
100
150
200
250
300
Ja
n-0
5M
ar-
05
Ma
y-0
5J
ul-
05
Se
p-0
5N
ov-
05
Ja
n-0
6M
ar-
06
Ma
y-0
6J
ul-
06
Se
p-0
6N
ov-
06
Ja
n-0
7M
ar-
07
Ma
y-0
7J
ul-
07
Se
p-0
7N
ov-
07
Ja
n-0
8M
ar-
08
Ma
y-0
8J
ul-
08
Se
p-0
8N
ov-
08
Ja
n-0
9M
ar-
09
Ma
y-0
9J
ul-
09
Se
p-0
9N
ov-
09
GOLDS ComdtyHUI Index
US
D
US
D
Prices rebased to 100 Prices rebased to 100
• Owning the stocks of commodity companies is not the same as owning the underlying commodity
• The movement of the commodity price is not always reflected in the movement of stock prices – as a stock trades based on long term average prices rather than current prices
Gold versus HUI Gold mine index Crude Oil versus NYSE Arca Oil
Past performance may or may not be sustained in future
Type
Investment Objective
Asset Allocation
Minimum Application Amount
Unit
Loads
Fund Manager
Listing
Benchmark
An open-ended Gold Exchange Traded Fund
To generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error
1 unit = approx. price of 1 gram of Gold
Rs. 5,000 per application and in multiples of Re.1/-
Entry Load:
Nil
Exit Load:
Nil
Gautam Kaul
National Stock Exchange (NSE) & Bombay Stock Exchange (BSE)
Price of Gold
* Investments in securitized debt can be made by the scheme up to 10% of the net assets
Key Facts
Indicative Allocation (% of total assets) Risk Profile
90-100% Medium
0-10% Low to medium
Type of Instruments
Physical Gold
Debt and Money Market instruments
33
Disclaimer: This information alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. The readers should exercise due caution and/or seek independent professional advice before making any investment decision or entering into any financial obligation based on information, statement or opinion which is expressed herein. All opinions, figures, charts/graphs, estimates and data included in this presentation are as on date and are subject to change without notice. The statements contained herein may include statements of future expectations and other forward looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The data used in this material is obtained by Religare AMC from the sources which it considers reliable. While utmost care has been exercised while preparing this document, Religare AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient of this material should rely on their investigations and take their own professional advice.Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the objective of Scheme will be achieved. Investment in mutual fund units involve investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of capital. As with any investment in securities, the NAV of the units issued under Scheme may go up or down depending upon the factors and forces affecting the securities markets. As the Scheme will invest primarily in physical gold, the NAV of the Scheme will react to the price of gold. The prices of gold may be affected by several factors such as demand and supply of gold in India and in the global market, change in political, economical environment and government policy, inflation trends, currency exchange rates, interest rates, perceived trends in bullion prices, restrictions on the movement/trade of gold by RBI, GOI, etc. Past performance of the Sponsor and its affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. There is no assurance or guarantee to unit holders as to the rate of dividend distribution nor that dividend will be paid regularly. Investors in the Scheme are not being offered any guaranteed / assured returns. Religare Gold Exchange Traded Fund, an open-ended Gold Exchange Traded Fund is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme or its future prospects and returns. Please read the Statement of Additional Information (SAI) / Scheme Information Document (SID) before investing. SID, SAI and Key Information Memorandum cum Application Form are available at the ISC/Distributors. Terms of Issue: Offer for Units having face value of Rs. 100 each and will be issued at a premium equivalent to difference between the allotment price and face value during the New Fund Offer. After the closure of NFO, the Units of the Scheme will be listed on Stock Exchange(s) and the same can be purchased / sold in round lots of 1 Unit during the trading hours of the Stock Exchange(s) like any other publicly traded stock. In addition to purchase and sale of Units on Stock Exchange(s), Authorized Participants and Large Investors can directly subscribe to or redeem the Units of the Scheme with the Mutual Fund in Creation Units size at NAV based prices on all Business Days during an ongoing offer period. The NAV of the Scheme will be disclosed on all Business Days. Statutory Details: Religare Mutual Fund has been set up as a trust sponsored by Religare Securities Ltd. (liability restricted to Rs. 1,50,000) with Religare Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with Religare Asset Management Company Ltd. as the Investment Manager.Disclaimer of NSE/BSE: It is to be distinctly understood that the permission given by National Stock Exchange of India Ltd. (NSE) / Bombay Stock Exchange Ltd. (BSE) should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE/ BSE nor does it certify the correctness or completeness of any of the contents of the draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of ‘Disclaimer Clause of NSE/ BSE”.Religare Enterprises Limited (“REL”) proposes, subject to receipt of requisite approvals, market conditions and other considerations, to make a rights issue of its equity shares to its existing shareholders and has filed a letter of offer (“LOF”) with the Bombay Stock Exchange Limited (“BSE”), the National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”) and the Securities and Exchange Board of India (“SEBI”). The LOF is available on the websites of the Stock Exchanges and SEBI at www.bseindia.com, www.nseindia.com and www.sebi.gov.in, respectively, as well as on the website of the lead manager at www.enam.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, please refer to the section titled “Risk Factors” of the LOF.
34
Compliance Information
MK
TG/ R
PSU
NFO
/ C0
00
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For a more in-depth look at the Religare Gold Exchange Traded Fund, visitwww.religaremf.com or call 1800 - 209 - 0007 for more information.
Corporate Office:Religare Asset Management Company Limited3rd Floor, GYS Infinity, Paranjpe ‘B’ Scheme, Subhash Road, Vile Parle (East), Mumbai - 400 057T +91 22 67310000 F +91 22 28371565