Friday, July 3, 2009

HSBC Mutual Fund Underperforms Over Most Of The Time Periods - July 03, 2009

Background: HSBC Asset Management (India) Private Limited set up in May 2002 as a trust by HSBC Securities and Capital Markets (India) Pvt. Ltd. The fund manages assets worth Rs 9660.88 crore as on June 2009. HSBC India Opportunities Fund (G) an open-ended equity diversified scheme launched in January 2004.

The objective of the scheme is to seek long-term capital growth from diversified portfolio of equity and equity related securities and fixed income securities.

The fund will invest accross all market capitalisations, including small, mid and large cap stocks. The fund aims to be predominantly invested in equity and equity related securities.

However, it could move a significant portion of its assets towards fixed income securities if the fund becomes negative on equity markets.

The minimum investment amount is Rs 10000 and in multiples of Re 1 thereafter. The unit NAV of the scheme was Rs 27.67 as on 2 July 2009.

Portfolio: The total net assets of the scheme increased by Rs 51.01 crore to Rs 359.65 crore in June 2009.

HSBC India Opportunities Fund (G) took fresh exposure to five stocks in May 2009. The scheme has purchased 2.11 lakh units (2.28%) of Aurobindo Pharma, 44,829 units (1.59%) of Reliance Infrastructure and 4.32 lakh units (1.14%) of Gateway Distriparks among others.

The scheme exited completely from Punjab National Bank by selling 71970 units (1.11%) and Infrastructure Development Finance Company by selling 4.06 lakh units (1.01%) among others in May 2009.

Sector-wise, the scheme took fresh exposure to Textiles-Products at 1.08% and Construction at 1.02% in May 2009.

Sector-wise, the scheme did exit completely from Finance & Investments at 1.18% in May 2009.

The scheme had highest exposure to Reliance Industries with 1.25 lakh units (7.96% of portfolio size) followed by State Bank of India with 90487 units (4.70%), HDFC Bank with 1.08 lakh units (4.34%) and Infosys Technologies with 90174 units (4.02%) among others in May 2009.

It reduced its exposure from ITC by selling 44145 units to 7.64 lakh units (by 1.05%), Hindustan Unilever by selling 45749 units to 3.59 lakh units (0.77%), Cipla by selling 22881 units to 2.34 lakh units (0.55%) and Bharti Airtel by selling 10054 units to 1.29 lakh units (0.44%) among others in May 2009.

Sector-wise, the scheme had highest exposure to Refineries at 12.74% (from 12.40% in April 2009), followed by Banks-Private Sector at 6.75% (5.35%), Pharmaceuticals-Indian-Bulk Drugs & Formulation at 5.52% (3.76%) and Computers-Software-Large at 5.25% (5.85%) among others in May 2009.

Sector-wise, the scheme had reduced exposure from Cigarettes to 3.91% (by 1.05%), Personal Care-Multinational to 2.31% (by 0.77%), Banks-Public Sector to 4.70% (by 0.70%) and Computers-Software-Large to 5.25% (by 0.60%) among others in May 2009.

Performance: The performance of scheme is benchmarked against BSE 500. The scheme has underperformed the benchmark index over most of the time periods.

The scheme has posted returns of 0.04% outperformed the BSE 500 that declined 1.36% over 1 month period ended 02 July 2009.

Over 3 months period, the scheme advanced by 32.30% underperformed the BSE 500 that gained 48.84%. It fell by 2.57% underperformed the benchmark index that was up by 6.0% over 1 year period.

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