Notification of changes affecting the underlying fund of L81 Kotak India Growth
20 Jun 2022
The investment objective and policy of the underlying fund of L81 Kotak India Growth ("the Affected Mirror Fund") has been enhanced with effect from 15 February 2022 (the “Effective Date”) to reflect that the underlying fund is managed as a fund qualifying as Article 8 under Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial sector (“SFDR”). As a consequence, the name of the underlying fund has also changed from the Effective Date to "Kotak Funds – India ESG Fund".
In line with this, the Affected Mirror Fund will also be changing name to L81 Kotak India ESG (USD) with effect from 24 June 2022.
Article 8 funds promote environmental, social and governance (“ESG”) factors as an integral part of their investment strategy and decision making process. This could be accomplished by focussing, for example, on companies with a better than average ESG rating, companies following strong corporate governance practices or companies which are actively operating in areas which reduce ESG risk, such as green energy firms.
The core investment objective and risk weighting of the underlying fund has not changed. The continuing aim is to provide long term capital appreciation by investing at least two thirds of the underlying fund's total assets in equity and equity linked securities of companies registered in India or deriving a significant portion of their business from India.
The underlying fund is actively managed and prior to the Effective Date used the Nifty 50 Index for performance comparison purposes only. From the Effective Date this was changed to the MSCI India Index to compare the performance of the underlying fund, as this index is more representative of the underlying fund's investment universe.
As a consequence, the section "Benchmark" in the underlying fund's appendix has been amended accordingly.
This change does not have any impact on the way the underlying fund is managed, on its asset allocation or its risk profile.
For full details of the changes to the investment policy, please view the Kotak Funds notification opposite.