Synopsis

Invesco Mutual Fund’s Summit SIF has launched the Summit Active Asset Allocator Long-Short Fund, an interval investment strategy offering exposure to multiple arbitrage opportunities across equities, debt, indices, commodities and special situations. The new fund offer is open for subscription until October 26, with a minimum investment of Rs 10 lakh for investors.

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Summit SIF on Monday announced the launch of the Summit Active Asset Allocator Long-Short Fund (An interval investment strategy dynamically investing across equity, debt, equity and debt derivatives, InVITs and commodity derivatives, including limited short exposure on permitted instruments through derivatives).

The new fund offer or NFO of the fund is open for subscription and will close on October 26.

The company highlighted that arbitrage strategies have relied predominantly on opportunities arising from cash-futures spreads. However, as financial markets have evolved, opportunities can emerge across a wider set of instruments, asset classes and market situations.

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Built around the philosophy of a multi-arbitrage approach, the Summit Active Asset Allocator Long-Short Fund seeks to combine multiple arbitrage opportunities within a single portfolio. While core arbitrage forms the foundation of the strategy, additional arbitrage opportunities across synthetic arbitrage, index arbitrage, commodity arbitrage and special situations seek to broaden the opportunity set.

The strategy is designed to capture available spreads while maintaining limited directional market exposure. By focusing on arbitrage opportunities rather than market forecasts, it seeks to offer investors a differentiated approach to deploying capital over a medium-term horizon. The strategy will be managed by Deepak Gupta and will be benchmarked to 40% Nifty 500 TRI + 40% CRISIL Short Term Bond Fund Index + 20% iCOMDEX Composite Index

“Arbitrage is often viewed primarily through the lens of cash-futures spreads. However, pricing opportunities can emerge across different markets, instruments and situations. The SIF framework gives us a wider canvas to explore such arbitrage opportunities through synthetic futures, indices, commodities and special situations, alongside conventional arbitrage,” said Deepak Gupta, Fund Manager.

“Our focus with the Summit Active Asset Allocator Long-Short Fund is to build a broader set of potential return drivers without making directional market calls the foundation of the strategy. Core arbitrage will anchor the portfolio, while we will selectively deploy complementary strategies where we see attractive spreads. Equally important is risk discipline. We intend to pursue incremental return opportunities without taking disproportionate risk,” Gupta further said.

The minimum investment amount during the NFO is Rs 10,00,000 and in multiples of Re 1 thereafter. In case of Accredited investors, the minimum investment amount during the NFO is Rs 1,00,000/- and in multiples of Re 1 thereafter. For SIP investments, the minimum application amount is Rs 1,000 and in multiples of Re 1 thereafter subject to maintaining investment threshold of Rs 10,00,000 across all investment strategies of Summit SIF.

Subscriptions will be available daily at applicable NAV, while redemptions will be available twice a week, on Mondays and Wednesdays. In case Monday or Wednesday falls on a non-business day, then the immediately succeeding business day will be considered.

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The investment strategy will charge an exit load of 0.50% if units are redeemed or switched out on or before 30 days and 0.25% if units are redeemed or switched out after 30 days but on or before 60 days. No exit load will be charged if units are redeemed/switched out after 60 days.

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