Kotak funds available on Skandia Investment Solutions platform

Sept. 3, 2010 - PRLog -- Kotak funds available on Skandia Investment Solutions platform

3rd September, 2010

Kotak Mahindra (UK) Ltd., (a wholly owned subsidiary of India’s Kotak Mahindra Bank Ltd.), has extended its distribution network for Independent Financial Advisers by making two of its Luxembourg-domiciled UCITS III compliant SICAV funds available on the Skandia Investment Solutions platform.

Advisers and Investors can now access the Indian Multi-Cap Fund and the India Infrastructure and Realty Fund via Skandia’s platform.

• The India growth story plays out across market capitalisations.  With large companies exhibiting track record and growth along with high potential mid caps poised to break ground, an investor could do well to invest in a fund that approaches the market with a bottom up approach across market capitalisations. To put things in perspective, over the last one year (ended August 2010) the CNX Mid Cap index delivered a return of 47.25% in USD terms, with the broad index (Nifty) returning 20.27% in USD terms. The Kotak Funds: Indian Multicap Fund maximizes the advantage of this combination. The Fund invests in equities and equity linked instruments across the market capitalisation spectrum and a range of sectors with a bias towards large and mid cap.
• The need for Infrastructure and Realty in India can be gauged by the ground swell in demand along with the emphasis given by the Government of India, seen in its increase in planned expenditure on infrastructure from the current 5% of GDP to a larger 9% of GDP by 2014. The Kotak Funds: India Infrastructure and Realty Fund provides investors an opportunity to participate in the growth of companies in the Indian infrastructure and realty sector. Kotak Mahindra (UK) has been managing a similar strategy Fund - Kotak Indian Infrastructure and Realty Fund - since November 2007, which over the last one year (ended August 2010) has delivered a return of 6.67% in USD terms versus the benchmark return of -5.40% in USD terms*.
These funds are also available via the Royal Skandia Platform.

Nitin Jain, Principal Fund Manager for Kotak’s long only strategies manages both funds and has over 14 years’ experience in India’s equity markets.

Commenting on the launch, Shyam Kumar, Director and CEO, Kotak Mahindra (UK) Ltd. said, “We chose Skandia Investment Solutions because it is a market-leading investment platform with substantial reach amongst IFAs.  We already share a common link via our partnership with Old
Mutual in India and as we launch more funds we will add these to the platform for greater reach within the European retail markets”.

Graham Bentley, Head of Investment Marketing at Skandia said, “A key focus of our proposition is to offer a wide range of investment choice to ensure that no matter what the investor’s appetite may be, we can cater for their needs.  The addition of these Kotak funds complements our existing fund range consisting of both external funds and in-house managed solutions.”

* Please note that past performance is not an indicator of expected future performance.
                                                         
Important Notice:
The views mentioned above are those of the Kotak Group’s fund management team and are not intended as a recommendation or for the purpose of soliciting any action in relation to any investments or to be otherwise relied upon for any purpose. Some information may have been obtained from third parties. However, no representation, undertaking or warranty (express or implied) is given as to its accuracy or completeness.

Investments in India are subject to the normal risks associated with emerging markets, including but not limited to risk of losing some or all of the capital invested, high volatility, variable liquidity, geopolitical risks (including political instability), exchange rate fluctuations and restrictions on foreign investors. Investments in India should, therefore, be considered only as part of a well diversified portfolio.  Past performance is not an indicator of expected future performance.

Funds mentioned in this article are Luxembourg registered SICAVs regulated by the Luxembourg’s Commission de Surveillance Du Secteur Financier (CSSF). The address of the CSSF is 110, route d'Arlon L-2991 Luxembourg (Telephone No. : (352) 26 25 1-1 Facsimile No. : (352) 26 25 1-601).

Detailed information on the funds and the associated risks is available in the fund’s prospectus.

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About Kotak Mahindra (UK) Limited (“KMUK”):
Incorporated in the United Kingdom and authorized & regulated by the Financial Services Authority in the United Kingdom, KMUK is a member of the London Stock Exchange and is registered with the Securities Exchange Board of India as a Foreign Institutional Investor (FII). KMUK has its branch offices in Singapore and Dubai which are regulated by the Monetary Authority of Singapore and the Dubai Financial Services Authority respectively.