Canara Robeco MF Investment Management Services Ltd - Nov 28, 2008

Background: Canbank Investment Management Services Ltd. is a wholly owned subsidiary of Canara Bank, established in 1906, is a leading Nationalized Bank operating in India abroad through its network of branches in India and offices in London, Moscow, UAE and Hong Kong. It has commenced it operation from 19 December 1987. Fund house manages assets worth Rs 3985.21 crore at the end of October 2008.

Canara Robeco Equity Diversified (G) an open-ended equity diversified scheme launched in August 2003. The objective of the scheme is to generate capital appreciation by investing in equity and equity related securities. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 22.61 as on 26 November 2008.

The total net assets of the scheme decreased by Rs 34.53 crore to Rs 116.74 crore in October 2008.Canara Robeco Equity Diversified (G) took fresh exposure to nine stocks in October 2008. The scheme has purchased 1.38 lakh units (1.94%) of Jubilant Organosys, 38500 units (1.77%) of Tata Consultancy Services (TCS) and 84000 units (1.22%) of Ranbaxy Laboratories among others in October 2008.

The scheme completely exited from ITC by selling 4.00 lakh units (4.97%), Axis Bank by selling 36,000 units (1.71%) and Sterlite Industries (India) by selling 50,000 units (1.42%) in October 2008.Sector-wise, the scheme took fresh exposure to Petrochemicals at 1.94%, Pharmaceuticals Indian - Bulk Drugs & Formulation at 1.22%, Finance & Investments at 0.78% and Automobiles - Passenger Cars at 0.48% in October 2008.

Sector-wise, the scheme exited completely from Cigarettes at 4.97% in October 2008.The scheme had highest exposure to Reliance Industries with 76500 units (8.98% of portfolio size) followed by Bharti Airtel with 1.20 lakh units (6.67%), Larsen & Toubro with 74000 units (5.10%), and State Bank of India with 43500 units (4.13%) among others in October 2008.

It has reduced its exposure to Bank of India by selling 1.03 lakh units to 52000 units (by 1.83%), NTPC by selling 1.41 lakh units to 1.30 lakh units (by 1.52%), Punj Lloyd by selling 45000 units to 40000 units (by 1.01%) and Bajaj Auto by selling 26200 to 33000 units (by 0.80%) among others in October 2008.

Sector-wise, the scheme had highest exposure to Banks - Public Sector at 10.45% (9.25% in September 2008), followed by Telecommunications - Service Provider at 9.99% (9.54%), Refineries at 8.98% (8.62%) and Computers - Software - Large at 6.93% (3.51%) among others in October 2008.

Sector wise, the scheme had reduced exposure to Construction to 3.01% (by 1.87%), Mining / Minerals / Metals to 0.05% (1.41%), Engineering - Turnkey Services to 5.81% (0.96%) and Automobiles - Scooters and 3 – Wheelers to 1.54% (0.80%) among others in October 2008.The scheme outperformed the category average over most of the time periods. It outperformed the Sensex over all time periods.

Over three-month period ended as on 26 November 2008, the scheme posted negative returns of 33.14% outperforming the category average, which posted negative returns of 35.59%. It outperformed the Sensex that has posted negative returns of 39.82% during the same period.Since inception, the scheme posted negative returns of 122.41% outperforming the category average of 61.62%.