Fortis Opportunities Fund Underperforms The Over All Time Periods - Dec 02, 2008

Background: Fortis Investments is the autonomous global asset management arm of the Fortis group. Fortis Investments is a top-tier asset management company with a truly global footprint. Fortis Investment Management (India) Private Limited aim is to offer a wide range of investment products, designed to cater to varied investment needs of different categories of investors in India, which was formerly known as ABN Amro Asset Management (Asia) Ltd. The fund house manages assets worth Rs 7127.20 crore at end of October 2008.

Fortis Opportunities Fund (G) is an open-ended equity scheme launched in March 2005.The objective of the scheme is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities. The scheme will invest in a range of companies, with a bias towards large and medium market capitalization companies. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 10.93 as on 01 December 2008.

The total net assets of the scheme decreased by Rs 38.47 crore to Rs 95.15 crore in October 2008. Fortis Opportunities Fund (G) took no fresh exposure to any stocks in October 2008. The scheme completely exited from Glenmark Pharmaceuticals by selling 48,677 units (1.79%), ITC by selling 1.13 lakh units (1.59%, Housing Development Finance Corporation by selling 8010 units (1.28%) and Reliance Industries by selling 6009 units (0.87%) among others in October 2008.

Sector-wise, the scheme took no fresh exposure in October 2008. Sector-wise, the scheme exited completely from Pharmaceuticals – Indian –Bulk Drugs & Formulation at 1.79%, Cigarettes at 1.59% and Finance – Housing at 1.28% among others in October 2008.The scheme had highest exposure to Bank of India with 4.34 lakh units (10.98% of portfolio size) followed by State Bank of India with 77013 units (8.97%) and Maruti Suzuki India with 1.41 lakh units (8.40%) among others in October 2008.

It reduced its exposure to Infosys Technologies by selling 23, 475 units to 6936 units (by 2.17%), Orbit Corporation to 2.87 lakh units (2.09%), Tanla Solutions to 8.60 units (1.99%) and Ansal Properties & Infrastructure to 7.64 lakh units (1.21%) among others in October 2008.

Sector-wise, the scheme had highest exposure to Banks - Public Sector at 27.12% (from 23.96% in September 2008), followed by Computers - Software - Medium / Small at 15.32% (16.31%), Automobiles – Passengers Cars at 8.40% (7.07%) and Construction at 8.02% (11.69%) among others in October 2008.

Sector wise, the scheme had reduced exposure Construction to 8.02% (by 3.67%), Computers - Software – Medium / Small to 15.32% (by 0.98%) and Electronics – Components to 5.42% (by 0.74%) among others in October 2008.The scheme underperformed the category average over all time periods. It has underperformed the Sensex over all time periods.

Over three-month period ended as on 01 December 2008, the scheme posted negative returns of 42.05% underperforming the category average, which posted negative returns of 33.35%. It underperformed the Sensex that has posted negative returns of 35.28% returns during the same time period.Since inception, the scheme posted 18.58% returns underperforming the category average of 65.11%.