Kotak Global India (G) Underperforms The Sensex - Dec 23, 2008

Background: Kotak Mahindra Asset Management Company Ltd. manages Kotak Mahindra Mutual Fund (KMMF), a wholly owned subsidiary of Kotak Mahindra Bank Ltd. Kotak Mahindra Mutual Fund launched its schemes in December 1998. The fund house manages assets worth Rs 14474.21 crore at the end of November 2008.

Kotak Global India (G) an open-ended equity scheme launched in December 2003. The objective of the scheme is sought to generate capital appreciation from a diversified portfolio of predominantly equity and equity and equity related securities issued by globally competitive Indian companies. The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs.15.10 as on 22 December 2008.

Portfolio: The total net assets of the scheme decreased by Rs 3.95 crore to Rs 39.26 crore in November 2008.

Kotak Global India (G) took fresh exposure to only one stock in November 2008. The scheme has purchased 5000 units (1.38%) of Sun Pharmaceuticals Industries in November 2008.

The scheme completely exited from Hanung Toys and Textiles by selling 62400 units (1.04%) in November 2008.

Sector-wise, the scheme took no fresh exposure to any sectors in November 2008.Sector-wise the scheme did not exit completely from any sector in November 2008.

The scheme had highest exposure to ICICI Bank with 75000 units (6.72% of portfolio size) Oil & Natural Gas Corpn with 35000 units (6.18%), Reliance Industries with 20000 units (5.78%) and Divis Laboratories with 18000 units (5.62%) among others in November 2008.

It reduced its exposure to Reliance Industries by selling 5000 units to 20000 units (by 2.18%), Thermax to 45000 units (by 1.40%), Zee Entertainment Enterprises to 1.25 lakh units (by 0.98%) and United Phosphorus to 1.51 lakh units (by 0.58%) among others in November 2008.

Sector-wise, the scheme had highest exposure to Pharmaceuticals - Indian - Bulk Drugs at 8.14% (6.92% in October 2008), Oil Drilling/Allied Services at 7.32% (6.62%), Banks - Private Sector at 6.72% (6.92%) and Refineries at 5.78% (7.96%) among others in November 2008.

Sector wise, the scheme had reduced exposure to Refineries to 5.78% (by 2.18%), Engineering to 1.98% (by 1.40%), and Entertainment/Electronic Media Software to 3.47% (by 0.98%) among others in November 2008.

Performance: 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 22 December 2008, the scheme posted negative returns of 35.70% underperforming the category average, which had given negative returns of 25.96%. It underperformed the Sensex that has posted negative returns of 29.06% during the same period.

Since inception, the scheme posted 54.23% returns underperforming the category average of 78.86%.