HDFC Long Term Advantage Fund Outperforms The Sensex - Dec 15, 2008

Background: HDFC Assets Management Company Ltd. is sponsored by Housing Development Finance Corporation Limited (HDFC) and Standard Life Investment Ltd. HDFC incorporated in 1977 as the first specialized housing finance institution in India. HDFC AMC was incorporated on 10 December 1999, and today manages assets worth Rs 44262 crore in November 2008.

HDFC Long Term Advantage Fund (G) an open-ended equity linked savings scheme launched in January 2001. The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. The minimum investment amount is Rs.500 and in multiples of Rs.500 thereafter. The unit NAV of the scheme was Rs 60.47 as on 12 December 2008.The total net assets of the scheme decreased by Rs 47.24 crore to Rs 468.50 crore in November 2008.

HDFC Long Term Advantage Fund (G) took fresh exposure to only one stock in November 2008. The scheme purchased 75,000 lakh units (1.73%) of Sun Pharmaceuticals Industries in November 2008.The scheme exited completely from Kotak Mahindra Bank by selling 2.60 lakh units (1.70%) and Godawari Power & Ispat by selling 2.01 lakh units (0.29%) in November 2008.Sector-wise, the scheme took no fresh exposure to any sector in November 2008.

Sector-wise, the scheme exited completely from Steel - Medium / Small at 0.29% in November 2008.The scheme had highest exposure to ICICI Bank with 7.50 lakh units (5.63% of portfolio) followed by Reliance Industries with 2.02 lakh units (4.89%) and State Bank of India with 2.00 lakh units (4.65%) among others in November 2008.It reduced its exposure to Thermax to 5.51 lakh units (by 1.44%), Crompton Greaves to 12.27 lakh units (by 0.55%) and Reliance Industries to 2.02 lakh units (by 0.50%) among others in November 2008.

Sector-wise, the scheme had highest exposure Computers - Software - Large at 9.72% (from 9.87% in October 2008), Banks - Private Sector at 7.37% (9.68%), Refineries at 6.75% (6.75%), Food - Processing - MNCat 6.30% (6.52%), and Electric Equipmentat 6.00% (6.86%) among others in November 2008.

Sector wise, the scheme had reduced exposure to Banks - Private Sector to 7.37% (by 2.31%), Engineering to 3.34% (by 1.61%), Electric Equipment to 6.00% (by 0.86%) and Auto Ancillaries to 3.10% (0.40%) among others in November 2008. The scheme outperformed the category average over most of the time periods. It has outperformed the Sensex over most of the time periods.

Over three-month period ended as on 12 December 2008, the scheme posted negative returns of 33.34% underperformed the category average, which had posted negative returns of 31.66%. It underperformed the Sensex that posted negative returns of 30.79% returns during the same period.Since inception, the scheme posted 504.66% returns outperforming the category average of 227.85%.