JM Emerging Leaders Fund Sensex Over Sponsored - Nov 25, 2008

JM Financial Mutual Fund is one of India's first private sector mutual funds-integral parts of the first wave that commenced operations in 1993-94. JM Financial Asset Management Private Limited, the Asset Management Company of JM Financial Mutual Fund, is not a part of this joint venture. Sponsored by J.M. Financial and Investment Consultancy Services Pvt. Ltd., and co-sponsored by JM Financial Ltd., JM Financial Asset Management Private Limited started operations in December 1994. The fund house manages assets worth Rs 8075.65 crore at the end of October 2008.

JM Emerging Leaders Fund (G) an open-ended equity scheme launched in June 2005.The objective of the scheme seeks to long-term capital appreciation from investment in a portfolio of stocks across all market capitalization range. The portfolio may include those companies operating in emerging sectors of the economy or companies, which exhibit potential to become leaders of tomorrow. The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs 3.70 as on 24 November 2008.

The total net assets of the scheme decreased by Rs 158.75 crore to Rs 163.03 crore in October 2008.JM Emerging Leaders Fund (G) took no fresh exposure to any stock in October 2008.

The scheme completely exited from Rajesh Exports by selling 28.85 lakh units (2.54%) and Praj Industries by selling 5.85 lakh units (2.26%) in October 2008.

Sector-wise, the scheme took no fresh exposure to any sector in October 2008.Sector-wise, the scheme had not exited completely from any sector in October 2008.

The scheme had highest exposure to MphasiS with 11.32 lakh units (10.61% of portfolio size) followed by Bartronics India with 15.45 lakh units (8.81%), 3i Infotech with 28.40 lakh units (7.31%) and Sintex Industries with 7.93 lakh units (7.15%) among others in October 2008.

It reduced its exposure to Bombay Rayon Fashions by selling 2.67 lakh units to 7.18 lakh units (by 2.45%), Sintex Industries by selling 2.79 lakh units to 7.93 lakh units (2.30%), Bharati Shipyard by selling 3.87 lakh units to 1.30 lakh units (by 2.29%) among others in October 2008.

Sector-wise, the scheme had highest exposure to Computers - Software - Large at 10.61% (9.61% in September 2008), followed by Trading at 8.81% (7.37%), Computers - Software - Medium / Small at 7.31% (6.10%) and Diversified - Large at 7.15% (9.45%) among others in October 2008.Sector wise, the scheme had reduced exposure Diamond Cutting / Jewellery to 6.16% (by 4.52%), Engineering to 5.21% (by 4.48%), Textiles - Products to 6.79% (by 2.45%) among others in October 2008.The scheme underperformed the category average over all the time periods. It has underperformed the Sensex over all the time periods.

Over three-month period ended as 24 November 2008, the scheme posted negative returns of 14.92% underperforming the category average that posted negative returns of 5.52%. It underperformed the Sensex that posted negative returns of 5.01% during the same period.

Since inception, the scheme posted negative returns of 77.76% underperforming the negative category average of 50.69%.