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- Mumbai 01 Dec 2010
Motilal Oswal Mutual Fund Files For India’s 1st US Equity ETF Based On The ‘NASDAQ 100-Index®
2010-12-01 Mumbai
Mumbai & New York, N.Y., 1 December, 2010: Motilal Oswal Asset Management Company Ltd and The NASDAQ OMX Group, Inc. (NASDAQ: NDAQ) have announced the filing of the draft Scheme Information Document (SID) with SEBI for the Motilal Oswal MOSt Shares NASDAQ-100 ETF (MOSt Shares N100), an open ended index ETF, which seeks to track the NASDAQ-100 Index®.
This will be India’s first US Equity based exchange traded fund (ETF), once it is approved by the Indian regulators.
The NASDAQ-100 Index® is made up of the 100 largest non-financial companies listed on The NASDAQ Stock Market®. The NASDAQ 100-Index is developed and maintained by The NASDAQ OMX Group, the world's largest exchange company.
With the surge in popularity of technology stocks, the NASDAQ-100 Index® has become the premier benchmark for high-tech investors as well as one of the most followed indexes in the world.
Commenting on the filing, Mr. Nitin Rakesh, MD & CEO of Motilal Oswal AMC commented, “MOSt Shares N100 will be a unique offering. It aims to provide Indian investors with a global, diversified, rupee denominated, Indian market hours access to high growth NASDAQ-100 Index companies such as Google, Microsoft, Apple and other leading global companies.”
Investing in the ETF does not impact overseas investment limits and is treated at par with all Indian mutual fund investments while trading like a share on Indian stock exchanges.
“We plan to launch more such specialized first of their kind world leading products which help investors create a well diversified portfolio from global assets” added Mr. Rakesh.
“Once MOSt Shares N100 is approved by regulators, investors in India will have exposure to one hundred of the world’s most innovative non-financial companies,” said John Jacobs, Executive Vice President, NASDAQ OMX. “It is only fitting that the MOSt Shares N100 will be the first ETF listed in India based on a U.S. equity index, as the NASDAQ-100 Index is the basis of nearly 1700 investment products in more than 37 countries. The MOSt Shares N100 brings innovative investment opportunities to local investors in India, the world’s largest democracy.”
Once Approved, MOSt Shares N100 will add to the expanding MOSt Shares platform. Motilal Oswal’s flagship MOSt Shares M50 had received a tremendous response from investors with the NFO raising over INR 235 crores.
About Motilal Oswal Asset Management Company
Motilal Oswal Asset Management Company is registered with SEBI as the Investment Manager to Motilal Oswal Mutual Fund It was incorporated on November 14, 2008. MOAMC is a 100% subsidiary of Motilal Oswal Securities Limited.
About Motilal Oswal Financial Services Ltd
Motilal Oswal Financial Services Ltd. (NSE :MOTILALOFS, BSE :532892, BLOOMBERG : MOFS IN) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. Its services and product offerings include wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking and principal strategies. The company distributes these products through 1,504 business locations spread across 591 cities and the online channel to over 666,633 registered customers. MOFSL has strong research capabilities, which enables them to identify market trends and stocks with high growth potential, facilitating clients to take well- informed and timely decisions. MOFSL has been ranked by various polls such as the Best Local Brokerage 2005, Most Independent Research - Local Brokerage 2006 and Best Overall Country Research - Local Brokerage 2007 in the Asia Money Brokerage Polls for India. In the StarMine India Broker Rankings 2009 from Thomson Reuters, we won awards in 3 out of 4 categories and also bagged the No. 1 Broker Award in the ET Now – StarMine Analyst Awards 2009.
About the NASDAQ OMX Group
The NASDAQ OMX Group, Inc. is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, with approximately 3,600 listed companies. NASDAQ OMX Group offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; NASDAQ OMX Nordic, including First North, NASDAQ OMX Baltic and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX Group technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX Group exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit www.nasdaqomx.com.
NASDAQ®, NASDAQ-100®, and NASDAQ-100 Index® are registered trademarks of The NASDAQ OMX Group, Inc. (which with its affiliates is collectively referred to as “NASDAQ OMX”) and have been licensed for use by Motilal Oswal Asset Management Company for the development of the MOSt Shares N100. The MOSt Shares N100 has not been passed on by NASDAQ OMX as to its legality or suitability, and the MOSt Shares N100 is not issued, endorsed or sold by NASDAQ OMX. NASDAQ OMX makes no warranties and bears no liability with respect to the MOSt Shares N100.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX's products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements. There can be no assurance that the FSA will give the NASDAQ OMX applicant the authorization and permissions which it seeks.
Risk Factors: (1) All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Scheme’s objectives will be achieved (2) As the price / value / interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of units issued under the Scheme may go up or down depending upon the factors and forces affecting the securities market (3) Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provide a basis of comparison with other investments (4) Motilal Oswal MOSt Shares NASDAQ-100 ETF (MOSt Shares N100) is the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund (6) The present Scheme is not a guaranteed or assured return Scheme. Please read the Scheme Information Document (SID) & Statement of Additional Information (SAI) carefully before investing.
Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Ltd. Investment Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd.