HDFC Asset Management Company Limited, Investment Manager to the schemes of HDFC Mutual Fund, one of India’s leading mutual fund house with ₹ 4.37 trillion in assets under management has announced launch of its first international offering – HDFC Developed World Indexes Fund of Funds (“the Fund”), the first of its kind, providing exposure to 5 regions across 23 developed markets countries, 1500+ constituents and 14 currencies with coverage of ~ 56% of global GDP & ~ 50% of world market cap in one single fund. The Fund will be suitable for investors looking to diversify and benefit from opportunities in the developed world. The Fund is being launched in association with Credit Suisse Asset Management, one of the world’s leading global asset manager with USD 510 bn in assets under management. The Fund will invest in Credit Suisse Index Funds and/or ETFs which will in aggregate track the performance of MSCI World Index.
MSCI World Index is a popular global index that captures large and mid-cap representation from 23 developed countries over 1500+ constituents and covers approximately 85% of free float-adjusted market capitalization in each country. HDFC Developed World Indexes Fund of Funds offers investors an opportunity to expand their investment horizon beyond domestic frontiers and benefit from growth opportunities in companies from the developed world.
The Fund also provides its investors opportunity to geo-diversify their portfolio across economies and markets, hedge against rupee depreciation, benefit from global growth opportunities and get access to exclusive Global themes. MSCI World Index captures 40 out of top 50 most innovative companies and also participates in the fast growing sectors such as Information Technology, Financial and Health Care. MSCI World Index has lower volatility than NIFTY 50 (TRI USD) and lower correlation with NIFTY 50 TRI across times frames thereby providing meaningful diversification to its investors. The new fund offer (NFO) will open on September 17, 2021, and will close on October 1, 2021. The Fund will re-open for sale and repurchase within 5 business days from the date of allotment of units.
Commenting on the Fund, Navneet Munot – MD & CEO HDFC AMC said, “We are glad to announce the launch of HDFC Developed World Indexes Fund of Funds, the first of its kind. This Fund offers investors a gateway to the developed world. This single fund has the potential to offer best possible diversification in terms of exposure across countries, currencies, sector, style and size at a fine cost coupled with a highly efficient structure from the perspective of global taxation and execution. Since the Indian market has a low correlation with developed markets, this Fund could provide a healthy portfolio diversification.”