Mutual Fund News : ICICI Prudential Mutual Fund Introduces ICICI Prudential ESG Fund

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ICICI Prudential Mutual Fund has launched an open ended equity scheme –ICICI Prudential ESG Fund.

It is a thematic fund that will focus on investing in companies identified based on the Environmental, Social and Governance (ESG) theme.

The investment objective of the scheme is to generate long-term capital appreciation by investing in a diversified basket of companies identified based on the Environmental, Social and Governance (ESG) criteria. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Under normal circumstances, 80% to 100% of the funds portfolio will be invested in companies with strong ESG Scores. It can also invest in foreign securities i.e. global companies with a high ESG Score. It can invest up to 20% of its assets in Equity & Equity related securities of other companies.

The fund can also hold up to 20% of its assets in Fixed Income & Money Market Instruments, and has flexibility to invest up to 10% of its assets in Units issued by REITs and InvITs.

ICICI Prudential ESG Fund will aim to Identifying companies with a High ESG Score which reflects the strength and stability of the companies. The selection process of the scheme will be based on internal research and/or from the Nifty 100 ESG universe. The fund will maintain a portfolio with a suitable ESG Score.

The stock selection of the scheme will be based on Environmental, Social & Governance (ESG) aspects of the companies. The endeavor of the Scheme would be to follow ESG parameters which can impact or pose risks to the long-term sustainability of the business, delve deeper into a company‟s management practices, culture and risk profile which would thereby help in understanding the impact on long term investors.

Accordingly, ICICI Prudential ESG Fund shall invest in stocks which are forming part of the benchmark index and/or stocks in the research coverage, based on ESG scores. It will avoid sin companies such as tobacco, weapons, alcohol etc., It will also avoid companies with governance issues,leverage issues and other ESG relatedissues.

The scheme’s performance will be benchmarked against Nifty 100 ESGTRI (Total Return Index).

The fund will be managed by Mr Mrinal Singh, where as Ms. Priyanka Khandelwal will be the dedicated fund manager formanaging overseas investments of the scheme.

The NFO opens for subscription on September 21, 2020 and closes on October 05, 2020. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).