AIG Investments launches the AIG World Gold Fund

PFW Bureau / April 10

AIG Investments launched AIG World Gold Fund, an open ended fund of funds scheme, with an aim to invest in companies engaged in the extracting, processing and marketing of gold through an international fund.

The primary investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in units of AIG PB Equity Fund Gold based in Zurich. The New Fund Offer (NFO) will open for purchase from April 15 to May 14, 2008 and will re-open for ongoing purchase or redemption no later than 12 June, 2008.

Speaking at the launch, Sunil Mehta, country head and chief executive, AIG  India said “It gives us immense pleasure to announce the launch of the AIG World Gold Fund. This value proposition is in line with our constant endeavor to provide our investors a complete bouquet of financial products and services tailored to suit their requirements. Keeping in mind the strong fundamentals of Gold as an asset class, this fund would be an ideal supplement to our existing range of innovative investment products. 

Commenting on the announcement, Saurabh Sonthalia, CEO, AIG Investments, India Asset Management Company said, “Gold has been treasured, stored and coveted for thousands of years. For generations, people have been traditionally investing in gold as it has always been considered the world’s preferred ‘store of value’. As such, Gold has always been and will continue to remain an important asset class in the portfolio of investors.

When gold prices rise, the profitability of gold companies tends to increase more than proportionately, thereby providing long-term capital appreciation as stocks of gold companies have the potential to outperform gold prices by a significant margin over the long run. The AIG World Gold Fund is an ideal investment opportunity as it will seek to provide value to investors based on the strong fundamental growth prospects of gold.”
 

AIG World Gold Fund

Key Facts about the New Fund Offer

Issue opens  : 15 April, 2008
Issue closes  : 14 May, 2008
Options        : Offers two options: Growth and Dividend with Dividen Payout   and Dividend Reinvestment facilities