Aditya Birla Sun Life MF pivots from real estate to equity in global feeder fund1 min read . Updated: 12 Jan 2021, 04:44 PM IST
- The scheme which currently invests through ING Global Real Estate Fund into global real estate companies will now feed into the Julius Baer Global Excellence Equity Fund, an equity fund investing primarily in US stocks.
Aditya Birla Sun Life Global Real Estate Fund is to be recast as Aditya Birla Sun Life Global Excellence Equity Fund, a notice issued by the fund house today showed. The scheme which currently invests through ING Global Real Estate Fund into global real estate companies will now feed into the Julius Baer Global Excellence Equity Fund, an equity fund investing primarily in US stocks with technology (27%), healthcare (17.2%) and consumer cyclicals (11.7%) as its largest sectoral allocations.
The changes will take effect from 12 February. The benchmark of the scheme will also change from the 10/40 GPR 250 Global (Net Index), a real estate index, to the diversified MSCI World Index. "The shift is to focus on a more diversified theme and we have strong conviction in this strategy. The new strategy is focused on wide moats, identifying the strongest companies across the world and have shown consistent growth across market cycles. We also took into account the growing investor interest towards international equities. This is an all season international strategy being diversified, with a strong focus on fundamentals and ESG rather than being driven by a single theme or sector," said A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC Ltd.
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The current scheme is a legacy of Aditya Birla Sun Life Asset Management’s acquisition of ING Investment Management in 2014. The scheme has delivered a return of 5.3% (CAGR) over the past five years and -7.41% over the past year, at a time when markets have rallied, according to data from Value Research (as of 11 Jan). The S&P BSE 500 Total Returns Index (TRI) is up 14.75% over the past five years and 22.02% over the past year. The Aditya Birla Sun Life move comes even as other AMCs are eyeing the global real estate market. Kotak Mahindra Asset Management Co. Ltd launched a feeder fund investing in Real Estate Investment Trusts (REITs) in markets such as Singapore and Australia on 29 December 2020.