Birla Sun Life Equity Fund Outperforms The Months Time Periods - July 28, 2009

Background: Birla Sun Life Asset Management Company (investment managers for Birla Mutual Fund) is a joint venture between the Aditya Birla Group and Sun Life Financial Services of Canada. Birla Mutual Fund has emerged as one of India's leading mutual funds and offers a spectrum of investment schemes designed to cater to every need of the investor. The fund house manages assets worth Rs 56282.87 crore at the end of June 2009.

Birla Sun Life Equity Fund (G) is an open-ended equity diversified scheme launched in August 1998. The objective of the scheme is to provide long term growth, through a portfolio with a target allocation of 90% equity, 10% debt and money market securities.

The minimum investment amount is Rs.5000 and in multiples of Rs.1000 thereafter. The unit NAV of the scheme was Rs 206.06 per unit as on 27 July 2009.

Portfolio: The total net assets of the scheme increased by Rs 161.20 crore to Rs 1112.11 crore in June 2009.

Birla Sun Life Equity Fund (G) took fresh exposure to four stocks in June 2009. The scheme has purchased 3.98 lakh units (1.41%) of Century Textiles & Industries, 3.50 lakh units (1.23%) of Tata Steel, 1.93 lakh units (1.20%) of UltraTech Cement and 1.45 lakh units (0.38%) of Tata Motors.

The scheme exited completely from Indian Oil Corporation by selling 2.48 lakh units (1.59%), Indiabulls Real Estate by selling 4.59 lakh units (1.19%) and United Spirits by selling 1.16 lakh units (1.03%) among others in June 2009.

Sector-wise, the scheme took fresh exposures in Steel-Large at 1.23%, Cement-North India at 1.20% and Automobiles-LCVs/HCVs at 0.38%. Sector-wise, the scheme exits completely from Breweries & Distilleries at 1.03% in June 2009.

The scheme had highest exposure to Bharti Airtel with 10.42 lakh units (7.52% of portfolio size) followed by Reliance Industries with 3.61 lakh units (6.57%), Infosys Technologies with 3.64 lakh units (5.83%) and ONGC with 3.96 lakh units (3.80%) among others in June 2009

It reduced its exposure from ONGC to 3.96 lakh units (by 0.90%), Reliance Industries to 3.61 lakh units (0.77%), Reliance Infrastructure by selling 15156 units to 1.86 lakh units (0.70%) and Punj Lloyd by selling 2.40 lakh units to 6.78 lakh units (0.69%) among others in June 2009.

Sector-wise, the scheme had highest exposure to Banks-Private Sector at 9.57% (from 9.16% in May 2009), followed by Telecommunications-Services Provider at 8.75% (7.64%), Computers-Software-Large at 7.50% (6.71%) and Power Generation and Supply at 6.60% (8.09%) among others in June 2009.

Sector wise, the scheme had reduced exposure from Refineries to 6.57% (by 2.36%), construction to 4.22% (by 1.61%), Power Generation and Supply to 6.60% (by 1.49%) and Oil Drilling/Allied Services to 3.80% (by 0.90%) among others in June 2009.

Performance: The performance of scheme is benchmarked against BSE 200. The scheme has outperformed the benchmark index over three months and one year time period, while it underperformed the benchmark index over one month and six months time period.

The scheme has posted returns of 4.07% underperformed the BSE 200 that increased by 4.61% over 1 month period ended 27 July 2009.

Over 3 months period, the scheme advanced by 45.49% outperformed the BSE 200 that gained 44.92%. It rose by 9.92% outperformed the benchmark index that was up by 7.30% over 1 year period.

Birla Sun Life Mutual Fund Appoints A Balasubramanian As CEO - July 22, 2009

The Birla Sun Life Asset Management Company has appointed A. Balasubramanian as new Chief Executive Officer. Balasubramanian is currently the Chief Investment Officer at Birla Sun Life Mutual Fund and will continue to handle this portfolio.

He will report on key governance issues to the Board and on business and operating matters to Pankaj Razdan, Deputy Chief Executive – Financial services, Aditya Birla Group.

Balasubramanian has been with the Fund House since January 1995. Under his leadership as the CIO, over the years, Birla Sun Life Mutual Fund has gained recognition as a consistent performer, across asset classes.

Earlier this year the mutual fund created history by becoming the only fund house to have won, in 2 consecutive years, the coveted “Mutual Fund House of the Year” award from CNBC TV 18-CRISIL.

This recognition came on the heels of Birla Sun Life Mutual Fund being declared the Debt Fund House of the year at this forum.

And prestigious wins at the ICRA and Lipper awards, both of which are considered benchmarks within the industry.

Commenting on his new designation, Balasubramanian said, “Birla Sun Life Mutual Fund has gained strong momentum in recent years, with a strong foundation for future growth.

Backed by an enviable brand and our committed team, I am confident that we will now take our success to even newer highs.”

On the appointment Ajay Srinivasan, Chief Executive-Financial Services, Aditya Birla Group, said, “Birla Sun Life Mutual Fund is a top 5 player, recognized for its customer focus and consistent performance.

Balasubramanian's appointment is an endorsement of our strong talent base and the valuable role he has played over the last 14 years, in our mutual fund's success.”