Dundee Mutual Funds

Dundee Mutual Funds is sponsored by Dundee Bancorp Inc and Dundee Investment Management & Research of Canada.

Dundee Bancorp Inc., Canada, is a leading investment management firm which provides investment management and administrative services to Dundee Mutual Funds, closed-end funds, hedge funds, pension funds, institutional accounts and private individuals.

Dundee is also engaged in securities brokerage, investment banking, financial planning and advisory services to corporations and individuals and manages its own merchant banking portfolio. Total assets under management at Jun. 30,'98 of approximately C$7.7 bln comprised third party assets of C$ 7.2 bln and the merchant banking portfolio with a market value of approximately $ 500 mln.

More recently, Dundee Bancorp Inc, Canada, has announced the acquisition of Infinity Funds Management, a company that manages five mutual funds with approximately with $ 925 mln in assets under management; and Fortune Investment, a mutual fund dealer comprising approximately 250 investment advisors with approximately $1.5 bln of assets under administration.

They also announced the acquisition of Fortune Financial, a securities dealer with approximately 250 registered investment advisors representing approximately $ 2.8 bln of assets under administration. These are to be merged with Dundee Investment Management & Research, Dundee Securities Corporation, and Private Investors Management to form Dundee Wealth Management Inc., wholly owned by Dundee Bancorp Inc.

Dundee Mutual Funds launched their first scheme in India, Dundee Liquidity Fund, on Jan.4,'99. The Fund is a corporate treasury product. It is liquid, open-ended income fund, especially created for people who have cash or bank balance resulting out of very short investment time periods. It is also a short-term savings avenue for individuals, endeavouring to provide a rate of return commensurate to that of a 30-day fixed deposit.

Dundee Liquidity Fund provides 24-hour redemption facility in all metros. This is to be enhanced through a proposed chequing facility and across-the- counter redemption soon.

The investment objective of the scheme is to provide a reasonable rate of return while focussing on its liquidity and capital preservation. The fund investment in high-quality liquid debt and money and money-market instruments including treasury bills, government bonds, PSU bonds, commercial papers and certificates of deposites.

Investors have the option of investing in Plan A (Dividend Option) or Plan B (Appreciation Option). These options ar ealso available for the Sec. 54EA and 54EB Investment Plans.

Unit holders will have an option to switch all or part of their investment in the scheme to any other plan within the scheme or to any other scheme which may be established by the Fund which is available for investment at that time. The AMC would not charge any fees for such switching. The switch will be effected by way of a redemption of units and a reinvestment of the redemption proceeds in another scheme(s).

Dundee now plans to launch the Dundee Sovereign Trust, a dedicated gilts fund investing only in government securities and is eligible for investment by provident & pension funds. The fund is an opportunity for long-term savings and nest egg investment option, whilst providing a high degree of liquidity.

Dundee plans to launch both a real estate and a gold fund in India. Dundee has significant experience in the management of mutual funds in both the real estate and precious metal sectors, and is today one of the largest managers in precious metals. Dundee's experience in management ranges from management of precious metals funds through to mining and exploration activities.

Dundee Mutual Funds distributes its funds and or collections through IndusInd Bank, Deutsche Bank and HDFC Bank. Currently, over 49 branches in more than 25 cities act as collecting branches for the fund schemes.

Dundee believes that their value-based investment style, and the specialised funds they will offer, should lead to strong performances. Dundee will focus in the next few years on developing a strong track record in terms of above average performance with a high quality investor service.

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