NFO Alert: Aditya Birla Sun Life Mutual Fund launches US Treasury 1-3 Year Bond ETFs FoFs; all you need to know

livemint.com:

Aditya Birla Sun Life AMC, said, “Our new passive offerings present an opportunity for investors to potentially earn higher returns, gain currency diversity, and access a trusted treasury market. It enables the investor to tap into the unique opportunity arising from a temporary yield curve dislocation in one of the world’s largest debt markets. At ABSLAMC, we always strive to offer innovative solutions that suit our investors' changing needs." The investment objective of the scheme is to generate returns that are in line with the performance of units of ETFs focused on US Treasury Bonds having maturity between 1-3 years.

This product is suitable for investors seeking: Investors can invest under the scheme with a minimum investment of ₹100 per plan/option and in multiples of Re 1. There is no upper limit for investment. Under normal circumstances, the asset allocation of the scheme will be as follows:Indicative allocations (% of total assets)MinimumMaximumUnits of ETFs focused on US Treasury Bonds having maturity between 1-3 years95%100%Very HighDebt & Money Market Instruments, including Tri Party Repo, G-Secs, Cash and Cash equivalent0%5%Low to Moderate To date, no asset management company (AMC) has launched any such exchange-traded fund (ETF).

The performance of the scheme will be benchmarked to the performance of the Bloomberg US Treasury 1-3 year Index. The Bloomberg US Treasury 1-3-year Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury. For inclusion in the index, securities must have at least one and up to, but not including, three years to maturity.