L&T Global Real Assets Fund & L&T Infrastructure Fund Announces Notice cum addendum of Merger

Mutual Fund
Apr 11, 2016 by L&T Mutual Fund | Mutual Fund | 9 Downloaded

Notice is hereby given that with effect from May 11, 2016 ("the Effective Date"), L&T Global Real Assets Fund, an open - ended fund of funds scheme ("L&TGRAF") will be merged with L&T Infrastructure Fund, an open - ended equity scheme ("L&TIF"). Thus, L&TGRAF will cease to exist from the Effective Date and the unit holders under the growth and dividend options (direct and non direct plans) of L&TGRAF will be allotted new units under the growth and dividend options (direct and non- direct plans) of L&TIF respectively. A fresh account statement reflecting the new units allotted will be sent to the new unit holders of L&TIF.

Please note that pursuant to the proposed merger of L&TGRAF and L&TIF as set out above, L&TIF will be the surviving scheme and the fundamental attributes and all the other provisions of L&TIF as contained in its Scheme Information Document ("SID") and Key Information Memorandum on the Effective Date will remain unchanged. Thus, no new scheme will come into existence as a result of the proposed merger on the Effective Date and the interests of the unit holders of L&TIF will be protected. Therefore, an option to switch-out or redeem the units is not provided to the unit holders of L&TIF.

The boards of directors of L&T Mutual Fund Trustee Limited, the trustees to L&T Mutual Fund ("the Fund") and L&T Investment Management limited ("LTIML"),the asset management company of the Fund have approved the proposed merger. Further, the Securities and Exchange Board of India ("SEBI") has, vide its letter no. OW/10414/2016 dated April 06, 2016 confirmed that it has no objection to the proposed merger of the schemes as set out above. As per the SEBI (Mutual Funds) Regulations, 1996 ("SEBI Regulations"), the merger of a scheme with another scheme is considered to be a change in the fundamental attributes of the schemes concerned. Further, such a merger can be carried out only after the unit holders of the scheme(s) concerned have been sent written communication to provide them with the option of exiting the scheme within a period of 30 days at the prevailing net asset value ("NAV") without being charged an exit load.

In accordance with the aforesaid requirement under the SEBI Regulations, the unit holders of L&TGRAF are hereby given an option to switch-out or redeem the units held by them under L&TGRAF at the prevailing NAV without being charged any exit load by submitting a switch-out/redemption request form from April 11, 2016 to May 10, 2016 (both days inclusive), subject to the terms and conditions set out in the letter being sent to the unit holders, to any of the designated collection centres/investor service centres by the applicable cut-off time as mentioned in the SID. The redemption warrant/cheque will be mailed/redemption proceeds will be credited within 10 working days from the date of receipt of the redemption request. The offer to exit is merely an option and is not compulsory.

If the unit holders of L&TGRAF have no objection to the proposed merger, no action needs to be taken by them. Please note that if the unit holders do not exercise the exit option on or before May 10, 2016 or if we do not receive the request for switch - out/ redemption on or before May 10, 2016 by 3.00 pm, the unit holders would be deemed to have consented to the proposed merger.

In case a lien is marked on the units held by the unit holders or the units have been frozen/locked pursuant to an order of a governmental authority or a court, a switch-out or redemption can be executed only after the lien/order is vacated/revoked within the period specified above. In case a lien is marked on the units held by the unit holders in L&TGRAF and the unit holders have not switched-out or redeemed the units during the period stated above, the fresh units allotted in L&TIF will also be automatically subject to lien.

In case of unit holders who opt to continue in L&TIF post merger and have registered for any of the systematic transaction facilities viz., Systematic Investment Plan ("SIP"), Systematic Transfer Plan ("STP") or Systematic Withdrawal Plan ("SWP") in L&TGRAF the said registration for SIP, STP or SWP will continue under L&TIF from the Effective Date. In case of a STP registered under L&TGRAF for transfer of units to L&TIF, the STP shall stand cancelled from the Effective Date.

The unit holders of L&TGRAF are advised to consult their tax advisers to understand the tax implications of the proposed mergers based on individual circumstances. The securities transaction tax, if any, which will arise on account of redemptions /switch-outs of units during the exit option provided to the unit holders, will be borne by LTIML. Unit holders of L&TGRAF have also been informed by an individual communication of the details of the merger along with other required disclosures.

You are requested to read the detailed features of L&TIF available on the website of the Fund to enable you to take a well-informed decision.

( Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)

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