JM Mutual Fund Under Performs The Sensex - April 28, 2009

Background: JM Financial Mutual Fund is one of India's first private sector mutual funds-an, integral parts of the first wave that commenced operations in 1993-94. JM Financial Asset Management Private Limited, the Asset Management Company of JM Financial Mutual Fund, is not a part of this joint venture. Sponsored by J.M. Financial and Investment Consultancy Services Pvt. Ltd., and co-sponsored by JM Financial Ltd., JM Financial Asset Management Private Limited started operations in December 1994 with a simultaneous launch of three funds-JM Liquid Fund (now JM Income Fund), JM Equity Fund, and JM balanced Fund. Today, JM Financial Mutual Fund offers a bouquet of funds that caters to the diverse needs of both its institutional and individual investors.

The fund house manages assets worth Rs 4787.56 crore at the end of March 2009.

JM Arbitrage Advantage Fund (G) an open-ended equity–diversified scheme launched in June 2006. The objective of the scheme to generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. The minimum investment amount is Rs 5000 and in multiples of Rs 1 thereafter. The unit NAV of the scheme was Rs 12.47 as on 27 April 2009.

Portfolio: The total net assets of the scheme decreased by Rs 7.91 crore to Rs 290.28 crore in March 2009.

JM Arbitrage Advantage Fund (G) took fresh exposure to three stocks in March 2009. The scheme has purchased 1.20 lakh units (0.91%) of Bank of India, 1.11 lakh units (0.90%) of Bank of Baroda and 2.00 lakh units (0.57%) of Strides Arcolab.

The scheme exited completely from Sintex Industries by selling 9.15 lakh units (by 2.87%), Voltas by selling 20.89 lakh units (2.72%) and Bombay Rayon Fashions by selling 2.30 lakh units (0.71%) among others in March 2009.

Sector-wise, the scheme took no fresh exposure to any sector in March 2009.

Sector-wise, the scheme exited completely from Diversified–Large at 2.87%, Textiles-Products at 0.71% and Textiles–Manmade at 0.18% in March 2009

The scheme had highest exposure to Infosys Technologies with 1.85 lakh units (8.46% of portfolio size) followed by Hindustan Unilever with 6.07 lakh units (4.98%), Oil & Natural Gas Corporation with 1.62 lakh units (4.37%) and GTL with 4.95 lakh units (4.07%) among others in March 2009.

It reduced its exposure from Punjab National Bank by selling 3.57 lakh units to 7284 units (by 4.26%), ICICI Bank by selling 3.29 lakh units to 1.50 lakh units (3.85%), Housing Development Finance Corporation by selling 75501 units to 26522 units (3.30%) and Reliance Industries of India by selling 64780 units to 36206 units (2.62%) among others in March 2009.

Sector-wise, the scheme had highest exposure to Computers-Software–Large at 14.78% (from 7.45% in February 2009), followed by Oil Drilling/Allied Services at 5.09% (4.26%), Personal Care–Multinational at 4.98% (5.15%) and Telecommunications–Equipment at 4.07% (3.21%) among others in March 2009.

Sector wise, the scheme had reduced exposure from Banks-Private Sector to 3.26% (by 3.72%), Finance–Housing to 1.29% (by 3.30%), Refineries to 2.35% (by 2.52%) and Banks-Public Sector to 3.33% (by 2.51%) among others in March 2009.

Performance: The scheme underperformed the Sensex over most of the time periods.

Over three-month period ended as on 27 April 2009, the scheme posted returns of 1.64% underperforming the Sensex that posted returns of 26.30%. Over 6 month period, the scheme's returns surged by 3.10% underperforming the Sensex that rose 33.64%.

The returns of the scheme over one year period rose 7.49% outperforming the Sensex that plunged by 33.60%.

JM Financial Mutual Fund Has Under Dividend Option - Nov 03, 2008

JM Financial Mutual Fund has declared dividend under dividend option of JM Fixed Maturity Fund -Series XII- Quarterly Plan 1. The record date for the dividend is 5 November 2008. The Fund house has decided to offer dividend for both plans viz, regular and institutional plans of above-mentioned scheme. The quantum of dividend will be the realized appreciation in the NAV of the plan/option till the record date. The NAV for the JM Fixed Maturity Fund -Series XII- Quarterly Plan 1 under regular plan is Rs 10.1523 and under Institutional plan is Rs 10.1559 as on 29 October 2008.

JM Financial MF Launched By FMF Series - June 13, 2008

JM Financial MF has launched a new fund called JM Fixed Maturity Fund - Series X - Quarterly Plan 3. The scheme is a close-ended income scheme with a maturity of 91 days. The investment objective of the fund is to generate regular returns through investments in fixed income securities normally maturing in line with the time profile of the respective plan. Under each plan, the fund will invest 65-100% in short term debt securities including fixed income derivatives, securitized debt and money market instruments. Also, it will have investment up to 35% in government securities. Allocation in securitised debt securities will not, normally exceed 80% of the net assets of the respective plans. Securitised debt will not include foreign securitised debt.

JM Financial Ceases Its G-Sec Fund

The JM Financial mutual fund has declared that the JM G-Sec Fund PF Plan is being wound up with effect from 8 April 2008.

The fund house will cease to carry any business activities in respect of the plan. It has also ceased to issue units in the plan and has also ceased to create or cancel units in the plan.

JM G-Sec Fund PF Plan aimed at providing ultimate level of safety to its unit holders through investments exclusively in sovereign securities issued by the central and state government.

JM Financial MF Declares Dividend

The JM Financial mutual fund has announced the declaration of dividend under dividend option with both regular and institutional plans of JM Interval Fund-Quarterly Plan 1. The record date for dividend will be 26 March 2008.

The AMC plans to distribute realized appreciation in the NAV of the plan / option since inception till the record date as dividend. The NAV of the scheme was recorded at Rs 10.2176 under regular plan and Rs 10.2256 under institutional plan as on 19 March 2008.

JM Interval Fund-Quarterly Plan 1 is a debt oriented interval fund, whose primary investment objective is to seek to generate predictable returns over a predetermined period by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the plan.

JM Financial MF Declares Dividend For Two Schemes

JM Financial Mutual Fund has announced 19 March 2008 as the record date for the declaration of dividend under dividend option of JM Arbitrage Advantage Fund and JM Equity and Derivative Fund.

The fund house has declared a dividend of 2.50% i.e. Rs 0.25 per unit on face value of Rs 10 – for JM Arbitrage Advantage Fund. It has also declared a dividend of 1.80% inclusive of dividend distribution tax i.e. Rs 0.18 per unit on face value of Rs 10 -for JM Equity and Derivative Fund.

The record date for both the scheme has been fixed as 19 March 2008.

The NAV of JM Arbitrage Advantage Fund was at Rs. 10.3900 as on 13 March 2008 whereas the NAV of JM Equity and Derivative Fund were at Rs. 10.3899 as on 13 March 2008.

JM Arbitrage Advantage Fund is an equity oriented interval fund with an investment objective of generating income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments.

JM Equity and Derivative Fund is an income scheme –Interval fund. Its investment objective is to generate regular income through arbitrage opportunities.