Key Indices 30-Apr-11 31-Mar-11 % Change Nifty 5749.50 5833.75 -1.44% Sensex 19135.96 19445.22 -1.59% BSE 100 9991.88 10095.74 -1.03% Dow Jones 12810.54 12319.73 3.98% Nikkei 9849.74 9755.10 0.97% Hang Seng 23720.81 23527.52 0.82% Nasdaq 2873.54 2781.07 3.32% KOSPI 2192.36 2106.70 4.07% Equity Outlook Going forward, if the ongoing correction in energy & commodity prices sustains, it will be positive for domestic inflation & will reduce the pressure on RBI to aggressively hike rates in the coming months. The peaking of the rate cycle will have favourable impact on the equity market sentiments. Stable interest rate regime is an imperative for the much needed investment pick up in our country. At current levels, Sensex seems to have priced in the known negatives. It is trading at fair valuations of 15.7x FY12E earnings. Any corrections from here-on would make the equity markets very attractive for making long-term investment. Global investors will keep a close watch on the next US Fed meeting to get a clue on the future trajectory of US monetary policy as it is stuck in a catch 22 situation- S&P’s downgrade of its sovereign rating outlook and slowing economic growth. In addition to this, over the short-term, Sensex will depend on energy and commodity price movement and RBI’s interest rate policy going forward. Equity Market The Indian equity market consolidated in a tight range in the month of April 2011 after delivering solid returns in the previous month. Led by India's improving political and policy environment along-with external account resilience despite higher oil prices, FIIs remained net buyers. They pumped in Rs.70bn in the month while DIIs sold marginally to the extent of Rs.5.5bn. The eagerly awaited US FOMC meeting affirmed the commitment to complete the $600 billion asset purchase QE2 plan as scheduled by the end of June 2010. Since the US sovereign debt rating has been put on a negative outlook by S&P, despite Fed’s cautious view on the US economic outlook, QE3 looks unlikely. While US 2011 GDP growth expectations is toned down to 3.1-3.3% from the previous forecast of 3.4%-3.9% (in Jan’11), forecast for core inflation has been increased to 1.3%-1.6% from 1.0%-1.3%. Extremely loose monetary policy globally has resulted in surge in global liquidity which led to the rise in speculative activity in energy and commodity markets. The resultant rise in prices accelerated inflationary pressures, especially in Emerging Markets. After a long period of pause, the European Central Bank finally increased rates to anchor inflationary expectations. Surging food, commodity and oil costs are escalating the danger of inflation in Asia, prompting policymakers to accelerate monetary tightening even at the risk of slowing growth. The earnings season has kicked-off with mixed set of results. While strong demand resulted in healthy volume growth, margin compression is felt across sectors due to input costs pressures. Corporate results announced till date have shown reported revenue and earnings growth of 24% and 19% YoY respectively but margins are down 121bp YoY for the quarter. Domestically, over the last few months, key worries for investors have centered around concerns on rising oil prices, sticky inflation and rising interest rates. With some cool-off recently in commodity and energy prices these fears will subside to some extent. Liquidity too has improved substantially in April from a huge deficit in end-March (post advance tax outflows). The main reason for the sharp improvement in liquidity in early-April was increased government spending which augurs well for investment pick up. Other concerns were of policy uncertainty due to environmental/land-acquisition issues, corruption/governance issues resulting in parliamentary functioning and investment decisions coming to a standstill. Contrary to the dismal Winter Session, 32 bills have been tabled in the Budget Session of Parliament and projects worth Rs.2.5 lac crores have been cleared by the MoEF in the last 6 months. While dark clouds will take some time to pass away, the bad news is now well known and discounted and the incremental news flow is slowly turning positive. 4000 4500 5000 5500 6000 6500 14000 16000 18000 20000 22000 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Sensex Nifty (2500) (1500) (500) 500 1500 2500 3500 4500 5500 6500 Apr 10 May 10 June 10 July 10 Aug 10 Sept 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 In US $ MN FII MF 42.00 43.00 44.00 45.00 46.00 47.00 48.00 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Rs v/s USD
Transcript
Key Indices 30-Apr-11 31-Mar-11 % Change
Nifty 5749.50 5833.75 -1.44%
Sensex 19135.96 19445.22 -1.59%
BSE 100 9991.88 10095.74 -1.03%
Dow Jones 12810.54 12319.73 3.98%
Nikkei 9849.74 9755.10 0.97%
Hang Seng 23720.81 23527.52 0.82%
Nasdaq 2873.54 2781.07 3.32%
KOSPI 2192.36 2106.70 4.07%
Equity Outlook
Going forward, if the ongoing correction in energy & commodity prices sustains, it will be positive for domestic inflation & will reducethe pressure on RBI to aggressively hike rates in the coming months. The peaking of the rate cycle will have favourable impact onthe equity market sentiments. Stable interest rate regime is an imperative for the much needed investment pick up in our country.
At current levels, Sensex seems to have priced in the known negatives. It is trading at fair valuations of 15.7x FY12E earnings. Anycorrections from here-on would make the equity markets very attractive for making long-term investment. Global investors will keepa close watch on the next US Fed meeting to get a clue on the future trajectory of US monetary policy as it is stuck in a catch 22situation- S&P’s downgrade of its sovereign rating outlook and slowing economic growth. In addition to this, over the short-term,Sensex will depend on energy and commodity price movement and RBI’s interest rate policy going forward.
Equity Market
The Indian equity market consolidated in a tight range in the month of April 2011 after delivering solid returns in the previous month.Led by India's improving political and policy environment along-with external account resilience despite higher oil prices, FIIsremained net buyers. They pumped in Rs.70bn in the month while DIIs sold marginally to the extent of Rs.5.5bn. The eagerlyawaited US FOMC meeting affirmed the commitment to complete the $600 billion asset purchase QE2 plan as scheduled by theend of June 2010. Since the US sovereign debt rating has been put on a negative outlook by S&P, despite Fed’s cautious view onthe US economic outlook, QE3 looks unlikely. While US 2011 GDP growth expectations is toned down to 3.1-3.3% from theprevious forecast of 3.4%-3.9% (in Jan’11), forecast for core inflation has been increased to 1.3%-1.6% from 1.0%-1.3%.
Extremely loose monetary policy globally has resulted in surge in global liquidity which led to the rise in speculative activity inenergy and commodity markets. The resultant rise in prices accelerated inflationary pressures, especially in Emerging Markets.After a long period of pause, the European Central Bank finally increased rates to anchor inflationary expectations. Surging food,commodity and oil costs are escalating the danger of inflation in Asia, prompting policymakers to accelerate monetary tighteningeven at the risk of slowing growth.
The earnings season has kicked-off with mixed set of results. While strong demand resulted in healthy volume growth, margincompression is felt across sectors due to input costs pressures. Corporate results announced till date have shown reportedrevenue and earnings growth of 24% and 19% YoY respectively but margins are down 121bp YoY for the quarter.
Domestically, over the last few months, key worries for investors have centered around concerns on rising oil prices, sticky inflationand rising interest rates. With some cool-off recently in commodity and energy prices these fears will subside to some extent.Liquidity too has improved substantially in April from a huge deficit in end-March (post advance tax outflows). The main reason forthe sharp improvement in liquidity in early-April was increased government spending which augurs well for investment pick up.Other concerns were of policy uncertainty due to environmental/land-acquisition issues, corruption/governance issues resulting inparliamentary functioning and investment decisions coming to a standstill. Contrary to the dismal Winter Session, 32 bills havebeen tabled in the Budget Session of Parliament and projects worth Rs.2.5 lac crores have been cleared by the MoEF in the last 6months. While dark clouds will take some time to pass away, the bad news is now well known and discounted and the incrementalnews flow is slowly turning positive.
4000
4500
5000
5500
6000
6500
14000
16000
18000
20000
22000
Mar
-10
Apr
-10
Ma
y-1
0
Jun
-10
Jul-1
0
Au
g-1
0
Se
p-1
0
Oct
-10
Nov
-10
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Apr
-11
Sensex Nifty
(2500)
(1500)
(500)
500
1500
2500
3500
4500
5500
6500
Ap
r 1
0
Ma
y 1
0
Ju
ne
10
Ju
ly 1
0
Au
g 1
0
Se
pt 1
0
Oc
t 1
0
No
v 1
0
De
c 1
0
Ja
n 1
1
Fe
b 1
1
Ma
r 1
1
Ap
r 1
1
In U
S $
MN
FII MF
42.00
43.00
44.00
45.00
46.00
47.00
48.00
Mar
-10
Ap
r-10
May
-10
Jun-
10
Jul-10
Aug
-10
Sep
-10
Oct-
10
No
v-1
0
Dec
-10
Jan-
11
Feb
-11
Mar
-11
Ap
r-11
Rs v/s USD
Key Indices 30-Apr-11 31-Mar-11 % Change
10 year G-Sec 8.13% 7.99% 1.78%
5 Year G-Sec 8.24% 7.88% 4.46%
91 Day T Bill 7.45% 7.25% 2.76%
364 day T-Bill 7.75% 7.55% 2.65%
MIBOR 8.24% 9.91% -16.85%
Call Rates 6.85% 7.16% -4.33%
Inflation 8.98% 8.31% 8.06%
Debt Market
Market sentiments remained weak led by higher inflation & expectation of further tightening, however, short-term rates eased a bit led by
improving liquidity. At 8.98%, March 2011 WPI inflation was higher than RBI & market forecast and is getting more broad-based. Over the
past couple of months, the benefits of moderating food inflation was negated by rising manufacturing inflation. The January inflation figure
was revised upwards from a provisional 8.23% to 9.35%. Domestic Liquidity improved during the month led by rising deposits & GOI
spending. Barring a very short spell of surplus, it broadly remained in deficit mode, however, the quantum of deficit reduced substantially to
around Rs. 50,000 crs towards the end of the month, which is within RBI’s comfort zone of + 1% of NDTL.
Industrial production was recorded at 3.6% yoy in February 2011, below revised 3.9% in January 2011 as fewer working days led to
reduction in output across sectors. In sequential terms, output in February contracted by 2%MoM on a seasonally adjusted basis, reversing
the 1.6% expansion recorded in January. However, IIP ex-capital goods recorded a healthy growth of 8.9% yoy, down marginally from
9.8% last month.
As the FY12 borrowing began, RBI issued new 10-year benchmark security. The cut-off came at very aggressive levels of 7.80%, however,
it slid towards 8.10% levels immediately thereafter.
Debt Outlook
Domestic inflation is expected to remain at elevated levels in the 1HFY12. While base effect for primary (food) articles is positive, that for
manufacturing sector, which constitute 64% of the WPI basket, is unfavourable. Recently, commodities have started showing some
weakness however, the uncertainty over crude oil prices remain a concern. Further, domestic fuel price hike after the state elections in the
coming month seems inevitable. Led by higher than expected inflationary pressures, RBI is likely to maintain a hawkish stance & continue
with its rate tightening cycle. We expect additional 50-75bps policy rate hikes in FY12 including the hike in the meeting on 2nd May 2011.
We expect liquidity deficit to remain around current levels.
We expect the 10-Year G-Sec benchmark to trade in the range 8.15%-8.35% in the near-term. 10-Year AAA Corporate bond spreads are
likely to remain at the current levels of ~100 bps and 1-Year CD rates are expected to ease by ~100 bps. Market will take further cue from
Annual Monetary Policy Review scheduled on May 2, 2011.
25
50
75
100
125
150
175
5.0
6.0
7.0
8.0
9.0
Ma
r-1
0
Ap
r-1
0
Ma
y-1
0
Jun
-10
Jul-
10
Au
g-1
0
Se
p-1
0
Oct
-10
No
v-1
0
De
c-1
0
Jan
-11
Fe
b-1
1
Ma
r-1
1
Ap
r-1
1
10 Yr G-Sec yield 5 year AAA Corporate Bond Spread
bps
perc
enta
ge
Learning Curve
Understanding Follow-on Public Offers & Rights Issues
As explained earlier, Primary Issuance can be classified as Initial Public Offer (IPO), Follow-on Public Offer
(FPO), Rights Issue, Bonus Issue and Private Placements. While IPOs & FPOs involve a detailed procedure,
Bonus Issues and Private Placements are relatively simpler.
Having explained the Initial Public Offer (IPO) in detail in our earlier issue of Learning Curve, we would
like to emphasize on other primary offerings such as Follow on public Offer, (FPO) & Right Issuances in
this issue.
While IPOs are issued when a company sells its shares for the first time in the market, FPOs are
supplementary issues and are offered even as the shares of the company are traded in stock exchanges.
However, like IPOs, the FPOs also require the company to file offer documents and the offer price is
determined by the book building process whereby the issuer sets a price band within which investors bid.
Typically in FPOs, the price band is set at a discount to the then prevailing market price.
Companies come up with FPOs to raise funds in order to restructure or expand their existing business or to
enter new business or product lines. Through an FPO, the company can either issue fresh shares or dilute
promoters’ holdings or do a combination of both.
In case of fresh issuance of shares, the number of shares outstanding goes up. This means that earnings per
share (Total Net Profit / No of shares outstanding) get diluted, which could also lead to decline in the price
of existing listed shares. In case fresh shares are not issued, earnings per share do not change. However, the
price of the listed shares could still go down. This is because investors will take advantage of the price
arbitrage, buying shares issued during the FPO at a lower price and then selling it at the higher listed price.
As this arbitrage vanishes, the listed price, typically, comes down to the level of the fixed issue price.
A listed issuer making a public issue (FPO) needs to comply with the following:
• If the company has changed its name within the last one year, atleast 50% revenue for the preceding
1 year should be from the activity suggested by the new name.
• The issue size does not exceed 5 times the pre-issue net worth as per the audited balance sheet of the
last financial year
Any listed company not fulfilling these conditions shall be eligible to make a public issue by complying with
QIB Route.
Banks & Infrastructure company whose project has been appraised by a Public Financial Institution or IDFC/
IL&FS or a bank which was earlier a PFI and not less than 5% of the project cost is financed by any of these
institutions are exempted from the above norms.
Rights issue is a method used by companies to raise funds by issuing additional stocks to the existing
shareholders of the company. Unlike an IPO or an FPO, the rights issue is not open to all investors. It is
reserved only for the existing shareholders. Shareholders have the freedom to exercise or refuse to exercise
their right of acquiring new shares issued by the company. Companies fix up a price for Rights Issue that is
usually less than the then prevailing market price to make the issue attractive enough for the shareholders to
subscribe to it. The shareholders can apply for more number of shares than they are entitled to. If some of the
shareholders don’t exercise their right, then the other shareholders who have applied for additional shares are
allotted the same.
Letter of Offer needs to be filed with Stock exchanges in case of a Rights Issue. It is important for a
shareholder to know the reason behind the Rights Issue i.e. whether the company is raising funds to acquire
another company or to expand the existing business or to meet the obligations of the existing business.
Usually the share price comes down after the rights issue. This is because the company’s equity base goes up
due to issue of additional shares and hence the Earnings per Share come down. Considering the same market
conditions, to maintain the same P/E ratio before and after the issue, price comes down. The extent to which
the price falls will depend upon the reasons for the Rights Issue & the company’s outlook going forward. For
instance, if the company acquires another company or expands the existing business which will eventually
result in superior profitability & growth, the price would fall less than proportionately. But if the company
has chosen the rights issue to raise funds to meet the obligations of the existing business and future growth
prospects are not that bright, then the price may come down more than proportionately.
Follow-on Public offers have been the flavor of the season last year with Indian corporate sector having
raised Rs 450 billion through FPO in FY11. During the same year, fund raising through Rights Issue stood at
Rs 55 billion.
Arpita Nanoti
Head – Investment Communication & Advisory
GROUP
Inception Date
Fund Return BM Fund Return BM Fund Return BM Fund Return BM
Last 1 year 4.95% 3.95% 5.33% 4.32% 5.92% 4.64% 7.00% 4.81%
Last 2 years 10.27% 7.58% 14.48% 11.22% 20.18% 14.87% 24.02% 17.31%
Last 3 years 10.43% 4.92% 10.42% 4.84% 13.11% 4.57% 15.96% 4.29%
Since Inception 11.61% - 15.37% - 17.49% - 17.11% -
Asset Held (Rs. In
Million)
GROUP
Inception Date
Fund Return BM Fund Return BM Fund Return BM Fund Return BM Fund Return BM
Last 1 year 7.74% 5.33% 6.13% - 6.42% 3.37% 6.59% 3.82% 5.56% 3.36%
Last 2 years 8.76% 3.67% 7.77% - 8.24% 2.75% 7.33% - - -
Last 3 years 10.91% 4.98% 12.05% - 13.77% 4.75% - - - -
Bond Fixed Interest Short Term Debt Income Advantage
5884 122
10-Dec-0830-Mar-05
19-Jun-01
1466 1279 479
31-Aug-01 31-Aug-01
23-Mar-10
18-Feb-08
Money Market
28-Jan-07 18-Nov-02
3865 2941
Growth Advantage BSE 100
Money Market -
Income Advantage -
Fixed Interest -
Short Term Debt Fund -
Disclaimer:
This document is issued by BSLI. While all reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors of
fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer, recommendation or solicitation to
any person to enter into any transaction or adopt any investment strategy, nor does it constitute any prediction of likely future movements in NAVs. Past
performance is not necessarily indicative of future performance. We have reviewed the report, and in so far as it includes current or historical information, it
is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Birla Sun Life Insurance Company Limited, nor any person
connected with it, accepts any liability arising from the use of this document. You are advised to make your own independent judgment with respect to any
About the FundObjective: To build capital and generate better returns at moderate level of risk, over amedium or long-term period through a balance of investment in equity and debt.
Strategy: Generate better returns with moderate risk level through fixed income portfolioand focus on creating long term equity portfolio which will enhance yield of compositeportfolio with low level of risk appetite.
AA+2.80%
AA4.00% AA-
4.14%Sovereign
MMI20.62%
G-Secs20.58%
Equities18.55%
NCD40.25%
RELIANCE INDUSTRIES LTD. 1.58%
INFOSYS TECHNOLOGIES LTD. 1.32%
I C I C I BANK LTD. 1.16%
I T C LTD. 0.85%
LARSEN AND TOUBRO LTD. 0.78%
STATE BANK OF INDIA 0.77%
BHARAT HEAVY ELECTRICALS LTD. 0.56%
HOUSING DEVELOPMENT FINANCE CORPN. LTD. 0.53%
OIL AND NATURAL GAS CORPN. LTD. 0.51%
H D F C BANK LTD. 0.49%
OTHER EQUITY 10.01%
MMI 20.62%
Maturity Profile
Sectoral Allocation
1.35%
1.74%
1.93%
2.11%
2.79%
5.98%
6.42%
6.52%
6.59%
7.19%
10.69%
12.38%
12.46%
20.64%
DIVERSIFIED
CEMENT
TELECOMMUNICATION
POWER GENERATION AND SUPPLY
OTHERS
FINANCIAL SERVICES
METAL
FMCG
AUTOMOBILE
PHARMACEUTICALS
SOFTWARE / IT
OIL AND GAS
CAPITAL GOODS
BANKING
41.37%
22.84%
35.79%
2.80% 4.14%P1+/A1+16.00%
AAA44.64%
Sovereign28.42%
Apr-
04
Jul-04
Oct-
04
Jan-0
5
Apr-
05
Jul-05
Oct-
05
Jan-0
6
Apr-
06
Jul-06
Oct-
06
Jan-0
7
Apr-
07
Jul-07
Oct-
07
Jan-0
8
Apr-
08
Jul-08
Oct-
08
Jan-0
9
Apr-
09
Jul-09
Oct-
09
Jan-1
0
Apr-
10
Jul-10
Oct-
10
Jan-1
1
Apr-
11
Secure BM
1.23%PORTS AND SEZLess than 2 years 2 to 7years 7years & above
9.5% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 20121.81%
8.5% EXPORT IMPORT BANK OF INDIA 2011 1.54%
8.7% POWER FINANCE CORPN. LTD. 2020 1.50%
11.4% POWER FINANCE CORPN. LTD. 2013 1.48%
10.1% POWER GRID CORPN. OF INDIA LTD. 2017 1.34%
9.4% NATIONAL HOUSING BANK 2013 1.29%
8.9% POWER FINANCE CORPN. LTD. 2014 1.27%
OTHER CORPORATE DEBT 16.22%
EQUITY 32.53%
Asset Allocation
Stable FundPortfolio as on 30th April 2011
Rating Profile
About the FundObjective: To grow your capital through enhanced returns over a medium to longterm period through investments in equity and debt instruments, thereby providing agood balance between risk and return.
Strategy: To earn capital appreciation by maintaining diversified equity portfolio andseek to earn regular return on fixed income portfolio by active management resultingin wealth creation for policyholders.
AA1.71%
AA+2.05% AA-
MMI14.66%
G-Secs17.95%
Equities32.53%
NCD34.86%
RELIANCE INDUSTRIES LTD. 2.75%
INFOSYS TECHNOLOGIES LTD. 2.26%
I C I C I BANK LTD. 1.99%
I T C LTD. 1.46%
LARSEN AND TOUBRO LTD. 1.33%
STATE BANK OF INDIA 1.29%
BHARAT HEAVY ELECTRICALS LTD. 0.99%
HOUSING DEVELOPMENT FINANCE CORPN. LTD. 0.91%
OIL AND NATURAL GAS CORPN. LTD. 0.88%
H D F C BANK LTD. 0.84%
OTHER EQUITY 17.85%
MMI 14.66%
Maturity Profile
Sectoral Allocation
1.24%
1.58%
1.73%
1.93%
2.03%
2.20%
5.52%
6.42%
6.46%
6.66%
7.35%
10.56%
12.30%
12.48%
20.53%
PORTS AND SEZ
DIVERSIFIED
CEMENT
TELECOMMUNICATION
OTHERS
POWER GENERATION AND SUPPLY
FINANCIAL SERVICES
METAL
FMCG
AUTOMOBILE
PHARMACEUTICALS
SOFTWARE / IT
OIL AND GAS
CAPITAL GOODS
BANKING
43.39%
22.80%
33.81%
1.71% 2.05% AA-5.07%
P1+/A1+11.95%
Sovereign29.93%
AAA49.30%
Apr-
04
Jul-04
Oct-
04
Jan-0
5
Apr-
05
Jul-05
Oct-
05
Jan-0
6
Apr-
06
Jul-06
Oct-
06
Jan-0
7
Apr-
07
Jul-07
Oct-
07
Jan-0
8
Apr-
08
Jul-08
Oct-
08
Jan-0
9
Apr-
09
Jul-09
Oct-
09
Jan-1
0
Apr-
10
Jul-10
Oct-
10
Jan-1
1
Apr-
11
Stable BM
1.01%AGRI RELATEDLess than 2 years 2 to 7years 7years & above
SECURITIES HOLDING
GOVERNMENT SECURITIES 12.50%
8.2% GOVERNMENT OF INDIA 2022 2.86%
6.35% GOVERNMENT OF INDIA 2020 2.33%
7.59% GOVERNMENT OF INDIA 2016 1.24%
6.9% GOVERNMENT OF INDIA 2019 1.09%
7.8% GOVERNMENT OF INDIA 2020 1.00%
8.08% GOVERNMENT OF INDIA 2022 0.84%
8.24% GOVERNMENT OF INDIA 2027 0.83%
8.32% GOVERNMENT OF INDIA 2032 0.75%
8.3% GOVERNMENT OF INDIA 2040 0.67%
7.46% GOVERNMENT OF INDIA 2017 0.57%
OTHER GOVERNMENT SECURITIES 0.32%
CORPORATE DEBT 24.93%
8.7% POWER FINANCE CORPN. LTD. 2020 3.77%
8.48% L I C HOUSING FINANCE LTD. 2013 1.66%
5.9% H D F C BANK LTD. 2014 1.24%
8.95% POWER FINANCE CORPN. LTD. 2015 1.10%
10.05% MARICO LTD. 2013 1.02%
8.75% BAJAJ FINANCE LTD. 2011 1.02%
9.4% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 20141.02%
9.05% STATE BANK OF INDIA 2020 1.00%
8.4% L AND T FINANCE LTD. 2013 1.00%
8.7% POWER FINANCE CORPN. LTD. 2020 0.98%
OTHER CORPORATE DEBT 11.11%
EQUITY 47.00%
Growth FundPortfolio as on 30th April 2011
Asset Allocation
Rating Profile
About the FundObjective: To achieve optimum balance between growth and stability to providelong-term capital appreciation with balanced level of risk by investing in fixed incomesecurities and high quality equity security.
Strategy: To ensure capital appreciation by simultaneously investing into fixedincome securities and maintaining diversified equity portfolio. Active fundmanagement is carried out to enhnce policyholder’s wealth in long run.
AA-3.29%
AA3.79% AA+
6.24%
P1+/A1+16.16%
AAA42.51%
G-Secs12.50%
MMI15.57%
NCD24.93%
Equities47.00%
EQUITY 47.00%
RELIANCE INDUSTRIES LTD. 4.07%
INFOSYS TECHNOLOGIES LTD. 3.31%
I C I C I BANK LTD. 2.90%
I T C LTD. 2.14%
LARSEN AND TOUBRO LTD. 1.95%
STATE BANK OF INDIA 1.90%
BHARAT HEAVY ELECTRICALS LTD. 1.41%
HOUSING DEVELOPMENT FINANCE CORPN. LTD. 1.36%
OIL AND NATURAL GAS CORPN. LTD. 1.28%
H D F C BANK LTD. 1.27%
OTHER EQUITY 25.40%
MMI 15.57%
Maturity Profile
Sectoral Allocation
1.03%
1.20%
1.23%
1.52%
1.63%
1.97%
1.97%
5.96%
6.26%
6.53%
6.73%
7.37%
10.71%
12.49%
12.55%
20.85%
AGRI RELATED
DIVERSIFIED
PORTS AND SEZ
OTHERS
CEMENT
POWER GENERATION AND SUPPLY
TELECOMMUNICATION
FINANCIAL SERVICES
METAL
FMCG
AUTOMOBILE
PHARMACEUTICALS
SOFTWARE / IT
CAPITAL GOODS
OIL AND GAS
BANKING
41.75%
23.68%
34.57%
Less than 2 years 2 to 7years 7years & above
Sovereign28.00%
Apr-
04
Jul-04
Oct-
04
Jan-0
5
Apr-
05
Jul-05
Oct-
05
Jan-0
6
Apr-
06
Jul-06
Oct-
06
Jan-0
7
Apr-
07
Jul-07
Oct-
07
Jan-0
8
Apr-
08
Jul-08
Oct-
08
Jan-0
9
Apr-
09
Jul-09
Oct-
09
Jan-1
0
Apr-
10
Jul-10
Oct-
10
Jan-1
1
Apr-
11
Gr. Growth BM
1.03%AGRI RELATEDLess than 2 years 2 to 7years 7years & above
Growth Advantage FundPortfolio as on 30th April 2011 About the Fund
Objective: To provide blend of fixed return by investing in debt & moneymarket instruments and capital appreciation by predominantly investing inequities of fundamentally strong and large blue chip companies.Strategy: To build and actively manage a well-diversified equity portfolio ofvalue & growth driven stocks by following a research-focused investmentapproach. While appreciating the high risk associated with equities, the fundwould attempt to maximize the risk-return pay-off for the long-termadvantage of the policyholders. The non-equity portion of the fund will beinvested in high rated debt and money market instruments and fixeddeposits.
AA+
MMI13.91%
G-Secs11.91%
NCD21.01%
Equities53.17%
EQUITY 53.17%
RELIANCE INDUSTRIES LTD. 4.62%
INFOSYS TECHNOLOGIES LTD. 3.58%
I T C LTD. 2.85%
STATE BANK OF INDIA 2.82%
I C I C I BANK LTD. 2.80%
LARSEN AND TOUBRO LTD. 2.36%
HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2.11%
H D F C BANK LTD. 2.04%
BHARAT HEAVY ELECTRICALS LTD. 1.61%
RURAL ELECTRIFICATION CORPN. LTD. 1.48%
OTHER EQUITY 26.90%
MMI 13.91%
Maturity Profile
Sectoral Allocation
37.29% 35.75%
26.96%
AA+5.48%
AAA58.35%
Sovereign36.18%
1.04%
1.16%
2.15%
2.40%
2.44%
3.29%
5.69%
6.75%
8.04%
9.47%
10.47%
11.10%
16.74%
19.27%
AUTO ANCILLIARY
HOTELS
POWER GENERATION AND SUPPLY
TELECOMMUNICATION
MEDIA AND ENTERTAINMENT
PHARMACEUTICALS
AUTOMOBILE
FINANCIAL SERVICES
FMCG
SOFTWARE / IT
CAPITAL GOODS
METAL
OIL AND GAS
BANKING
Apr-08
Jul-08
Oct-08
Jan-0
9
Apr-09
Jul-09
Oct-09
Jan-1
0
Apr-10
Jul-10
Oct-10
Jan-1
1
Apr-11
Gr. Advantage BM
Less than 2 years 2 to 7years 7years & above
1.04%AUTO ANCILLIARY
SECURITIES HOLDING
GOVERNMENT SECURITIES 0.00%
CORPORATE DEBT 0.00%
EQUITY 0.00%
MMI 100.00%
STANDARD CHARTERED BANK CD (MD 13/04/2012) 8.22%
MOTHERSON SUMI SYSTEMS LTD. CP (MD 17/06/2011) 7.34%
BLUE STAR Ltd. CP (MD 25/05/2011) 7.21%
ORIENT PAPER AND INDUSTRIES LTD MD( 26-08-2011) 7.19%
STATE BANK OF BIKANER AND JAIPUR CD (MD 23/01/2012) 5.07%
Other MMI 33.54%
Money Market FundPortfolio as on 30th April 2011
Asset Allocation
Rating Profile
About the FundObjective: To provide reasonable returns, at a high level of safety andliquidity for capital conservation for the Policyholder
Strategy: To make judicious investments in high quality debt and moneymarket instruments to protect capital of the Policyholder with very lowlevel of risk
MMI100.00%
Maturity Profile
100.00%
Less than 1 year
P1+/A1+100.00%
Apr-
08
Jul-08
Oct-
08
Jan-0
9
Apr-
09
Jul-09
Oct-
09
Jan-1
0
Apr-
10
Jul-10
Oct-
10
Jan-1
1
Apr-
11
MM BM
SECURITIES HOLDING
GOVERNMENT SECURITIES 0.00%
CORPORATE DEBT 71.48%
8.5% EXPORT IMPORT BANK OF INDIA 2011 9.34%
10.1% RELIANCE INDUSTRIES LTD. 2011 6.27%
6.85% SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 20135.19%
7.35% HINDUSTAN PETROLEUM CORPN. LTD. 2012 5.07%
9.5% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 20124.17%
Short Term Debt FundPortfolio as on 30th April 2011 About the Fund
Objective: To provide capital preservation at a high level of safety &
liquidity through judicious investments in high quality short‐term debtinstruments
Strategy: To actively manage the fund by building a portfolio of fixedincome instruments with short term duration. The fund will invest ingovernment securities, high rated corporate bonds, good quality moneymarket instruments and other fixed income securities. The quality &duration of the assets purchased would aim to minimize the credit risk andliquidity risk of the portfolio. The fund will maintain reasonable level ofliquidity.
MMI28.52%
NCD71.48%
MMI 28.52%
Maturity Profile
90.83%
9.17%
Less than 2 years 2 to 7years
AA-1.67%
AA7.28%
AA+10.31%
P1+/A1+20.71%
AAA60.03%
Jul-09
Aug-0
9
Sep-0
9
Oct-
09
Nov-0
9
Dec-0
9
Jan-1
0
Feb-1
0
Mar-
10
Apr-
10
May-1
0
Jun-1
0
Jul-10
Aug-1
0
Sep-1
0
Oct-
10
Nov-1
0
Dec-1
0
Jan-1
1
Feb-1
1
Mar-
11
Apr-
11
Short Term Debt BM
SECURITIES HOLDING
GOVERNMENT SECURITIES 25.15%
8.2% GOVERNMENT OF INDIA 2022 5.76%
8.28% GOVERNMENT OF INDIA 2032 5.41%
6.35% GOVERNMENT OF INDIA 2020 4.90%
8.26% GOVERNMENT OF INDIA 2027 4.53%
8.08% GOVERNMENT OF INDIA 2022 4.10%
8.32% GOVERNMENT OF INDIA 2032 0.45%
CORPORATE DEBT 52.43%
9.95% STATE BANK OF INDIA 2026 5.77%
8.75% INDIAN RAILWAY FINANCE CORPN. LTD. 2013 4.59%
10.48% ULTRATECH CEMENT LTD. 2013 4.01%
9.6% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2016 3.94%
8.55% L I C HOUSING FINANCE LTD. 2011 3.59%
8.55% TATA MOTORS FINANCE LTD. 2012 3.19%
8.95% POWER FINANCE CORPN. LTD. 2015 2.75%
9.25% DR. REDDYS LABORATORIES LTD. 2014 2.74%
10.4% KOTAK MAHINDRA PRIME LTD. 2013 2.33%
9.9% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2014 2.33%
OTHER CORPORATE DEBT 17.18%
SECURITISED DEBT 0.00%
Income Advantage FundPortfolio as on 30th April 2011
Asset Allocation
Rating Profile
About the FundObjective: To provide capital preservation and regular income, at a highlevel of safety over a medium term horizon by investing in high quality debtinstruments
Strategy: To actively manage the fund by building a portfolio of fixedincome instruments with medium term duration. The fund will invest ingovernment securities, high rated corporate bonds, high quality moneymarket instruments and other fixed income securities. The quality of theassets purchased would aim to minimize the credit risk and liquidity risk ofthe portfolio. The fund will maintain reasonable level of liquidity.
MMI22.42%
G-Secs25.15%
NCD52.43%
MMI22.42%
Maturity Profile
39.96%
19.93%
40.10%
Less than 2 years 2 to 7years 7years & above
AA4.61% AA+
7.07%AA-
8.71%
P1+/A1+14.24%
Sovereign27.80%
AAA37.57%
Mar-
10
Apr-
10
May-1
0
Jun-1
0
Jul-10
Aug-1
0
Sep-1
0
Oct-
10
Nov-1
0
Dec-1
0
Jan-1
1
Feb-1
1
Mar-
11
Apr-
11
Gr. Inc Adv BM
SECURITIES HOLDING
GOVERNMENT SECURITIES 85.67%
7.59% GOVERNMENT OF INDIA 2016 41.97%
7.44% GOVERNMENT OF INDIA 2012 23.14%
6.35% GOVERNMENT OF INDIA 2020 20.56%
CORPORATE DEBT 0.00%
EQUITY 0.00%
MMI 14.33%
Gilt FundPortfolio as on 30th April 2011
Asset Allocation
Rating Profile
About the FundObjective: To deliver safe and consistent returns over a long-term period byinvesting in Government Securities.
Strategy: Active fund management at very low level of risk by having entireexposure to government securities & money marketinstruments, maintaining medium term duration of the portfolio to achievecapital conservation.
MMI14.33%
G-Secs85.67%
Maturity Profile
35.74%
43.13%
21.12%
Less than 2 years 2 to 7years 7years & above
Sovereign100.00%
SECURITIES HOLDING
GOVERNMENT SECURITIES 0.00%
CORPORATE DEBT 72.82%
9.8% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 20126.84%
12.65% CHOLAMANDALAM INVESTMENT AND FINANCE CO. LTD. 20142.93%
11.3% A C C LTD. 2013 2.83%
OTHER CORPORATE DEBT 33.95%
SECURITISED DEBT 0.00%
EQUITY 0.00%
MMI 27.18%
Rating Profile
Asset Allocation
Bond FundPortfolio as on 30th April 2011
About the FundObjective: To achieve capital preservation along with stable returnsby investing in corporate bonds over medium-term period.
Strategy: To invest in high credit rated corporate bonds, maintaininga short-term duration of the portfolio at a medium level of risk toachieve capital conservation.
MMI27.18%
NCD72.82%
MMI 27.18%
Maturity Profile
42.05%
34.40%
23.55%
Less than 2 years 2 to 7years 7years & above
AA+8.15% AA
8.98% AA-10.05%
P1+/A1+18.32%
AAA54.50%
SECURITIES HOLDING
GOVERNMENT SECURITIES 23.65%
8.08% GOVERNMENT OF INDIA 2022 7.89%
6.35% GOVERNMENT OF INDIA 2020 7.59%
7.99% GOVERNMENT OF INDIA 2017 2.32%
8.2% GOVERNMENT OF INDIA 2023 1.92%
8.2% GOVERNMENT OF INDIA 2022 0.97%
8.26% GOVERNMENT OF INDIA 2027 0.77%
8.3% GOVERNMENT OF INDIA 2040 0.77%
8.24% GOVERNMENT OF INDIA 2027 0.76%
5.69% GOVERNMENT OF INDIA 2018 0.67%
CORPORATE DEBT 61.67%
10.48% ULTRATECH CEMENT LTD. 2013 4.79%
9.25% DR. REDDYS LABORATORIES LTD. 2014 4.66%
9.95% STATE BANK OF INDIA 2026 4.47%
9.4% NATIONAL BANK FOR AGRI. AND RURAL DEVELOPMENT 20143.90%
7.63% INDIAN RAILWAY FINANCE CORPN. LTD. 2013 3.77%
L I C HOUSING FINANCE LTD. 2011 2.70%
9.05% RALLIS INDIA LTD. 2013 2.68%
9.6% HOUSING DEVELOPMENT FINANCE CORPN. LTD. 2016 2.38%
10.4% KOTAK MAHINDRA PRIME LTD. 2013 2.37%
8.55% TATA MOTORS FINANCE LTD. 2012 2.31%
OTHER CORPORATE DEBT 27.66%
Rating Profile
Asset Allocation
Fixed Interest FundPortfolio as on 30th April 2011 About the Fund
Objective: To achieve value creation at low risk over a long-term horizonby investing into high quality fixed interest securities.
Strategy: To actively manage the fund at a medium level of risk by havingentire exposure to government securities, corporate bonds maintainingmedium to long-term duration of the portfolio to achieve capitalconservation.
