BIRLA SUN LIFE SPECIAL SITUATIONS FUND - An Open Ended Diversified Equity
Scheme from BIRLA SUNLIFE AMC LTD
NEW FUND OFFER OPEN ON 17th DEC 2007
NEW FUND OFFER CLOSES ON 15th JAN '08
Offer of units of Rs. 10/- each during the New Fund Offer (NFO) for cash (plus applicable
entry load) and at Applicable NAV (plus applicable entry load) on an ongoing basis
Plan and Options Available: Dividend (Reinvestment / Payout/ Sweep)/ Growth
Subscription: Minimum Rs 5000/- and in multiples of Re 1 thereafter under
Redemption: In Multiples of Re 1/-
Entry Load: For amounts of less than Rs 5 Cr ( including SIP) : 2.25 % of
the applicable NAV
For Rs 5 Cr and Above : NIL
Dividend Reinvestment : NIL
Exit Load: For purchases of less than Rs 5 cr (including SIP) : 0.5 % of
the NAV if redeemed within six months. (From the date of alloted)
For purchases of Rs 5 cr and above : NIL
Benchmark Index : BSE 200
Fund Manager: Mr . A. Balasubramanian
1.Background: While long term investing in equities is a historically proven
strategy, investors can employ various strategies to boost the overall return from
their equity investments. One such style of investing is identifying special situations.
2. Special Situations: By the very name “Special situations?are ones that
are not very frequent in a company’s lifecycle. The special situations may arise
either because of an event that is intrinsic to the company or at times due to external
3. Benefits of special situations: Special situations are more often positive
surprises that result in enhanced value or rerating of the stock. Special situations
may result in significant extra gains in stocks whenever they occur. These gains
may get reflected immediately or over a longer period of time depending on the situations.
4. Kinds of Special Situations: There are multiple kind of special situations
?Mergers & Acquisitions (M&A) , Takeovers, Private Equity (PE) infusion, Demergers,
Structuring of business, Open offers, Delistings, Contra plays etc.
5. Rationale for launching a dedicated fund: The rationale of launching the
fund at this time is that the number of special situations is going up consistently
allowing the fund managers enough choices to capitalize upon.
6. Key Strategy for gains: The key strategy behind portfolio constructions
is to have a high growth and high quality portfolio that is focused on special situations.
The result of this strategy would be that the portfolio would not only generate
returns in line with any diversified portfolio but would also have additional kickers
in the form of special situations from time to time.
7. The portfolio construction strategy: would be three pronged a. Where situations
have been recently announced ?Analyze the quality of stocks; evaluate the potential
gains; evaluate the time period in which the gains would be realized; invest
b. Potential special situations ?Extensive research to identify companies that
may have potential special situations; Evaluate if the stocks are strong buys even
without the special situations; Fix price targets; Invest c. Contra Plays ?Have
a blend of top-down and bottom-up strategy; Top down strategy to identify sectors
that have be undervalued; Evaluate the reason for undervaluation; Bottom-up approach
to identify the companies within these sectors; Invest with clear price targets
Note: Kindly refer to the prospectus and risk factors before investing. Risk
Factors: All investments in mutual funds and securities are subject to market risks
and the NAV of the Scheme(s) may go up or down depending on the factors and forces
affecting the securities markets. There can be no assurance that the objectives
of the Scheme(s) will be achieved. Past performance of the Sponsor,AMC Mutual Fund
or any associates of the sponsor/AMC does not indicate the future performance of
the Scheme(s) of the Mutual Fund.