SBI AMC announces change in fundamental attributes of SBI short term debt fund
SBI Asset Management Company (AMC) has announced addendum to the Scheme Information Documents (SIDs)/ Key Information Memorandums (KIMs) cum Common Application Form of the Scheme(s) of SBI Mutual Fund.
SBI Funds Management informed that board of directors of SBI Funds management and SBI Mutual Fund Trustee Company have approved changes in the potential risk class matrix of SBI Short Term Debt Fund. The scheme has a Macaulay duration with the upper limit of 3 years but the positioning of the scheme’s PRC in A- II limits the maximum maturity of non-sovereign assets to 7 years. This restricts the scheme from investing in liquid corporate bonds with more than 7 years of residual maturity. Accordingly, it is proposed to change the PRC matrix A- II ( A moderate interest rate risk and relatively low credit rate risk) to B- III (ie, A relatively high interest rate risk and moderate credit risk) in order to increase the flexibility by allowing a broader range of debt instruments with longer maturities while ensuring the Macaulay duration remains within the 1-3 years limit.
This addendum forms an integral part of the Scheme Information Documents/ Key Information Memorandums of the Scheme(s) of the Fund as amended from time to time.
