Thursday, July 9, 2009

ING Mutual Fund Declare Contra Fund Of Outperforms - June 09, 2009

Background: The ING Group established its presence in India in 1992, when it opened a representative office of the ING Bank. It opened its first branch in Mumbai in 1994. ING Group has promoted ING Investment Management (India) Private Limited as a company incorporated in India for the purpose of carrying on asset management activities.

The group has a 75% holding in this company. The fund house manages assets worth Rs. 2396.77 crore at the end of June 2009.

ING Contra Fund (G) an open-ended equity scheme launched in January 2006. The objective of the scheme to generate capital appreciation from a diversified portfolio of equity and equity related instruments by investing in stocks of companies, which are fundamentally sound but are undervalued.

However, there can be no assurance that the investment objective of the Scheme will be achieved.

The minimum investment amount is Rs 5000 and in multiples of Re 1 thereafter. The unit NAV of the scheme was Rs 12.07 per unit as on 8 July 2009.

Portfolio: The total net assets of the scheme increased by Rs 0.95 crore to Rs 11.24 crore in June 2009.

ING Contra Fund (G) took fresh exposure to two stocks in May 2009. The scheme has purchased 38827 units (2.48%) of Indian Hotels Company, 6018 units (2.05%) of CESC

The scheme exited completely from Jain Irrigation Systems by selling 2406 units (1.64%) in May 2009.

Sector-wise, the scheme took fresh exposure to Hotels at 2.48% in May 2009. Sector-wise, the scheme did exit completely from Plastics Products at 1.64% in May 2009.

The scheme had highest exposure to Reliance Industries with 2992 units (6.62% of portfolio size) followed by ICICI Bank with 4996 units (3.60%), Indian Oil Corporation with 5872 units (3.48%) and Ranbaxy Laboratories with 12005 units (3.25%) among others in May 2009.

It reduced its exposure from Tata Power Company by selling 1310 units to 2000 units (by 1.96%), Bajaj Auto by selling 1799 units to 1810 units (1.34%), Larsen & Toubro to 1102 units (1.17%) and Chambal Fertilisers & Chemicals by selling 18045 units to 24000 units (1.03%) among others in May 2009.

Sector-wise, the scheme had highest exposure to Refineries at 15.93% (from 15.58% in April 2009), followed by Banks-Private Sector at 6.47% (6.57%), Banks-Public Sector at 6.30% (6.31%) and Computers-Software-Medium/Small at 5.17% (3.09%) among others in May 2009.

Sector wise, the scheme had reduced exposure from Automobiles-Scooters and 3-Wheelers to 1.81% (by 1.34%), Fertilizers to 3.59% (by 1.27%), Engineering-Turnkey Services to 1.23% (by 1.17%) and Sugar to 0.93% (by 0.98%) among others in May 2009.

Performance: The performance of scheme is benchmarked against BSE 100. The scheme has outperformed the benchmark index over most of the time periods.

The scheme has posted negative returns of 7.01% underperformed the BSE 100 that declined 5.88% over 1 month period ended 08 July 2009. Over 3 months period, the scheme advanced by 39.86% outperformed the BSE 100 that gained 31.47%. It rose by 13.44% outperforming the benchmark index that was up by 3.36% over 1 year period.

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