The fund will have a focused portfolio. The portfolio will be sector and market cap agnostic. The fund can also invest upto 25% of the corpus in international opportunities pertaining to special situations.
According to the press release, the scheme looks at exploring opportunities created by events like change in management, business restructuring, merger & acquisitions, Government policy change, regulatory changes, disruption due to a new entrant, macro-economic changes, regulatory changes, geo-political developments, global events etc.
A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited said, “Markets have a way of offering special opportunities to stock pickers. Sometimes it will favour growth companies and sometimes value companies. In times of uncertainty, even the good companies get impacted due to some reason or the other. Money managers have to look at the hidden value that can be unlocked from these companies in times ahead. These opportunities backed by good managements enhance the probability of success of these companies. An avid stock picker will be on the lookout for these kind of potential opportunities. This fund will be run by a team that has immense experience in identifying and investing in such opportunities and have a track record of identifying trends early on. We are already in a special situation market due the unprecedented nature of the times we are in. We believe that the time is just right to benefit from many special opportunities that exist today in terms of new emerging trends, existing businesses adapting and evolving, and a big consolidation in many industries that is underway”.
“In addition there is abundant liquidity which is favourable for equity markets, make this the perfect time to look for these opportunities and come into this fund with an investment horizon of five years or more”, adds Balasubramanian.
The minimum application amount for this fund is Rs.500/- and in multiples of Re. 1/- thereafter, during the New Fund Offer period. Investors can come into this fund both in the SIP or Lumpsum route.