UTI Offshore Funds and Rainbow Funds

Transcription

UTI OFFSHORE FUNDS &
UTI RAINBOW FUNDS
FOR PRIVATE CIRCULATION ONLY
NOT FOR SALE
August 29, 2008
Contact us
UTI International Ltd.
UTI International Limited, Kingsway House, Havilland Street, St. Peter Port, Guernsey, Channel Islands, GY1 3FN
(T): +44 1481 726141, (F): +44 1481 726142.
www.uti-intl.co.uk
Branch offices
london office
(1) Mr. Gajendra Kothari - Manager - Business Development, gajendra@uti-intl.co.uk
Address: UTI International Ltd., 32, City Road, London, EC1Y 2BD, United Kingdom
(T): + 44 20 7374 4719, (F): + 44 20 7374 4720.
Dubai office
(1) Mr. Sameer Bhatia - Country Head - Dubai, sameer@uti-intl.co.uk
(2) Mr. Naresh Sood - Marketing Manager, naresh@uti-intl.co.uk
Address: UTI International Limited, P.O. Box 29288, 17 Al Maskan Building, Karama, Dubai, UAE.
(T): + 971 4 3356656, (F): + 971 4 3356636.
Bahrain Office
(1) Mr. Rajesh Deore - Country Head - Bahrain, rajesh@uti-intl.co.uk
(2) Mr. Vinesh Nair - Marketing Manager - Bahrain, vinesh@uti-intl.co.uk
Address: Bahrain Representative Office, 16, Ground Floor, Manama Centre, Government Avenue,
P. O. Box 1395, Kingdom of Bahrain
(T): + 973 17212410, (F): + 973 17212415.
INVESTMENT MANAGER
UTI Asset Management company Ltd.
(1) Ms. Silpita Guha - Head, Offshore Funds,shilpita.guha@uti.co.in
(2) Mr. V. Srivatsa - Fund Manager, v.srivatsa@uti.co.in
Address: UTI AMC Ltd., UTI Tower, Gn Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051, India.
(T): +91 22 66786661, (F) +91 22 66786626.
www.utimf.com
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Equity Market Overview
• Sensex: Markets remained range-bound in August. The
benchmark index Sensex recovered slightly to 14,564
points, a recovery of 1.4% over the previous month.
• Key stock performers: Key outperformers of the month are,
Educomp (28%), Gujarat Gas (25%), Indian Bank (19%),
Ashok Leyland (17%), HCL (16%), and Titan (15%). Key
underperformers were led by RCOM (-23%), Aban Offshore
(-21%), HPCL (-12%), Sun TV (-12%), Hexaware (-11%),
Tata Tea (-10%), NALCO (-10%).
• FII’s net sellers & MF’s net buyers during August’08: FIIs
remained bearish and were net sellers with net outflow of
USD 300mn compared to a net outflow US$450mn in the
previous month. Domestic Mutual funds however were net
sellers with outflows of USD92mn compared to USD285mn
of inflow in August’08.
• JP Associates signs 4 MOUs: JP Associates has signed
four MOUs with MP Govt. to invest Rs130bn for setting up
two cement units, an aluminium production factory and a
power plant for generating power.
• HCC wins contract in AP: Hindustan Construction
Company led consortium has bagged a contract worth
Rs14bn from the AP Government for an irrigation
project.
• Monsoons 1% below normal as on 27th Aug, 2008:
Cumulative Rainfall was excess/normal in 32 and deficient/
scanty in 4 out of 36 meteorological sub-divisions.
• Core sector growth falls to 3.4% in June: Output of
six core industries remained weak and grew by 3.4% in
June’08 vs. 3.5% in the previous month.
• Industrial production recovers to 5.4% y/y in Jun: YoY IIP
growth recovered to 5.4% from 3.8% in previous month as
manufacturing rose by a higher rate.
• Trade deficit widens in July: Trade deficit widened in July
by USD 10.8 bn as compared to USD 9.8 bn a month
earlier. Exports rose by 31.2% to USD 16.3 bn in July, while
imports rose by 48.1% to USD 27.1 bn.
• Forex reserves rise: Forex reserves decreased by $1.1bn
to $297.2bn for the week ended 22nd August.
• Inflation moderates but still high at 12.4%: WPI inflation
remained high at 12.4% in the week ended 13th August’08
compared to last month’s 12.4%.
• Liquidity growth increases: Liquidity growth moderated
but still remained at a high rate, with YoY M3 growth
at 20.6% (as on Aug16th, ’08) compared to 20.4% the
previous month.
• Tata Power bids for Senoko of Singapore: Tata Power is
bidding for Senoko Power Ltd of Singapore which will give
access to generation capacity of 3,300MW should it win
the bid.
• ICICI reduces focus on 2-wheeler loans: Seeking to cut
down its operating costs and leverage from an expanded
branch network, ICICI Bank has decided to source twowheeler loans only through its branches and not at the
dealers’ end.
4000
2000
0
-2000
-4000
FIIs Cash
-6000
DIIs
Aug-08
Jul-08
Jun-08
May-08
Apr-08
Mar-08
Feb-08
Jan-08
-10000
Dec-07
-8000
Nov-07
• India GDP slows down to 7.9%: Indian economic growth
moderated to 7.9% in the first quarter of current fiscal,
against 9.2% a year ago as rising borrowing costs impacted
manufacturing and some other sectors. Manufacturing
grew at 5.6%, services at 10.2% and agriculture at 3%.
Net Investment by various categories for the month
US$ mn
6000
Oct-07
Macro Economy Overview
Sources: BSE & NSE
Sep-07
• RCOM launches GSM services in Delhi: RCOM has
launched GSM service in Delhi. It has been offering CDMA
based mobile service throughout the country and has
recently been allowed by the government to start GSM
service simultaneously.
Aug-07
• BHEL wins project in Africa: BHEL has won Rs 4bn
contract for setting a hydro power project in Rwanda.
• Govt. allows PFs to invest in equities: The govt. has
permitted non-government provident funds (PFs) and
other private provident funds to invest 15 per cent of their
corpus in equities on which F&O trades are available.
“Please refer to important disclaimers on last page”
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UTI INDIA FUND - 1986 SHARES
Scheme Details
“The UTI India Fund Limited - 1986 shares is an open-ended multi-class investment company incorporated
in Mauritius and invests in India through a domestic scheme managed by UTI Asset Management
Company Ltd. The principal investment objective is long-term capital appreciation primarily through
investment in a diversified portfolio of Indian equity and equity-linked securities listed on an Indian stock
exchange. Income, which will not be substantial after expenses, will generally be distributed”. Portfolio as on August 29, 2008
Name of the Company % of Total Portfolio
Bharti Airtel Ltd.
6.57
I.t.c Limited
5.40
Reliance Industries Ltd.
4.87
Tata Consultancy Services Ltd.
4.14
Icici Bank Ltd.
4.00
Bank of Baroda
3.04
Deepak Fertilisers
2.81
Federal Bank Ltd.
2.78
Texmaco Ltd.
2.69
Ballarpur Industries Ltd.
2.61
Bharat Electronics Ltd.
2.57
Reliance Communications Ltd.
2.57
Aditya Birla Nuvo Ltd.
2.44
Shanthi Gears Ltd.
2.29
Amarraja Batteries Ltd.
2.24
Punjab National Bank
2.19
Satyam Computers
2.16
Biocon Ltd.
Glaxo Smithkline Consumer Ltd.
Maharashtra Seamless Ltd.
Rain Commodities Ltd.
Panacea Biotec Ltd.
Tata Steel Ltd.
Lic Housing Finance Ltd.
Axis Bank Ltd.
Dr. Reddy's Laboratories Ltd.
Rallis India Ltd.
Jain Irrigation Systems Ltd.
Niit Technologies Ltd.
Hindustan Unilever Ltd.
Larsen & Toubro Ltd.
Dlf Ltd.
Astra Microwave Products Ltd.
Aban Offshore Ltd.
Others
Cash & Other Equivalents
Total
2.07
1.90
1.81
1.79
1.68
1.63
1.55
1.49
1.48
1.47
1.26
1.23
1.18
1.16
1.12
1.09
1.06
4.15
11.81
100.00%
Fund Performance as on August 29, 2008
Absolute Returns
29-Aug-08
1986 share (£)*
10.16
3 Months
-6.61%
15th June, 1986
Restructuring Date*
4th June, 2007
Head-Offshore Funds
Silpita Guha
Fund Manager
V. Srivatsa
Fund Size
USD (mn)
40.21
NAV per unit as on August 29, 2008
1986 shares
GBP
10.16
USD
18.54
High/Low of NAV in the month
1986 Shares
High
Low
GBP
10.52
9.98
USD
20.02
18.35
Load Structure
Entry Load
Exit Load
up to 3%
0.50%
Administrator
An nualised Returns
6 Months
1 Year
2 Years
3 Years
5 Years
-14.26%
-0.29%
19.57%
20.73%
32.67%
BSE 100 Index (£)
95.21
-7.72%
-19.71%
0.02%
19.31%
21.37%
27.14%
1986 Share ($)
18.53
-13.81%
-21.42%
-9.83%
17.01%
21.66%
33.48%
BSE 100 Index ($)
174.04
-14.63%
-26.13%
-9.27%
16.85%
22.35%
30.98%
BSE Sensex ($)
332.60
-13.71%
-24.47%
-11.07%
15.04%
23.35%
30.65%
80.05
-4.88%
0.93%
-3.03%
-5.01%
0.62%
2.08%
Exchange Rate (Rs/GBP)
Launch Date
Exchange Rate (Rs/US$)
43.79
2.82%
9.69%
6.91%
-3.01%
-0.19% -0.91%
*Please note the India Fund A and B shares have been merged with effect from June 4, 2007 and the new shares are now called
The UTI India Fund Limited - 1986 shares.
c/o Northern Trust International Fund
Administration Services (Guernsey) Ltd.
ISIN No. – MU0217S00127
SEDOL No. – 6BDZP86
Bloomberg Code – INDFUND MP
Reuters Code – UTIP.CH
MEXID – UUI1 / UUI2
Fund Manager’s Comments
The UTI India Fund has consistently been in line with the benchmark over the last three years and has outperformed the benchmark in the last five years.
The fund increased its cash position over the last month by reducing exposure in the banking sector and increased its exposure in the agrculture sector.
The fund continues to be overweight on telecom, pharma, IT , Agriculture related sectors and Fast Moving Consumenr Goods. The fund also maintains
a good blend of large cap and mid cap stocks in its portfolio to drive consistent outperformance.
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Performance of UTI India Fund vis-à-vis the benchmark BSE 100
THE INDIA I.T. FUND
Scheme Details
Launch Date
The India I.T. Fund Limited is an open-ended investment company incorporated in Mauritius and invests
27th June, 1997
substantially all of its assets, in India through a domestic scheme managed by UTI Asset Management
Head-Offshore Funds
Silpita Guha
Company Ltd. The principal objective of the Fund is to achieve capital appreciation through investment
Fund Manager
V. Srivatsa
in a portfolio of equity and equity-linked securities of Indian information technology companies listed
in India. The Fund may also invest up to 10% of its NAV in unlisted equity and equity-linked securities
of Indian information technology companies and up to 10% of its NAV in equity and equity-linked
USD (mn)
7.46
securities traded outside India, such as ADRs and GDRs.
Portfolio as on August 29, 2008
Fund Size
Infotech Enterprises Limited
2.75
Geodesic Information Systems Ltd.
2.35
USD
Infosys Technologies Ltd.
21.56
Hcl Infosystems Ltd.
2.10
35.38
20.89
Hexaware Technologies Ltd
1.69
Wipro Limited.
10.97
Zensar Technologies Ltd.
1.36
Tanla Solutions Ltd.
1.30
Sonata Software Ltd
1.30
Allsec Technologies Ltd.
0.67
Cash And Cash Equivalent
3.23
Satyam Computers Ltd.
8.78
Hcl Technologies Ltd.
8.27
Niit Technologies Ltd.
3.85
Tech Mahindra Ltd.
3.26
Mphasis Bfl Ltd.
2.92
Patni Computer Systems Ltd.
2.77
TOTAL
100.00
Absolute Returns
Annualised Returns
USD
High
36.62
Low
34.99
Load Structure
Entry Load
up to 3%
Exit Load
0.50%
Administrator
29-Aug-08
3 Months
6 Months
1 Year
2 Years
3 Years
5 Years
India I.T. Fund NAV ($)
35.38
-18.57%
-14.02%
-27.34%
-0.04%
9.12%
24.22%
S&P CNX IT Index ($)
89.67
-18.54%
-10.16%
-23.69%
-3.10%
7.52%
22.25%
BSE Sensex ($)
332.60
-13.71%
-24.47%
-11.07%
15.04%
23.35%
30.65%
Exchange Rate (Rs./$)
43.79
2.82%
9.69%
6.91%
-3.01%
-0.19%
2.08%
Performance of India IT Fund vis-à-vis the benchmark
S&P CNX IT Index
ISIN No. – MU0126S00120
SEDOL No. – 6019293
Bloomberg Code – UTIINII MP
Reuters Code – IAIT.CH
MEXID – UUII
The India I.T. Fund has underperformed in the last one year time frame
while it has outperformed the benchmark in the longer time frame from
2 years to 5 years. The results of the IT sector were broadly in line with
expectations and the guidance given by the top tier IT firms at the begining
of the year. The fund has increased its exposure in the mid cap segment
given the sharp valuation differential between the large cap and mid
cap stocks. The underperformance of the fund is attributed to the sharp
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underperformance of the mid cap stocks and larger weightage of the
fund in mid cap stocks vis a vis the Index. The India I.T. Fund is ideally
positioned to capture the growth in the Indian IT sector.
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THE INDIA PHARMA FUND
Scheme Details
Launch Date
The India Pharma Fund Limited is an open-ended multi-class investment company incorporated in
22nd March, 2005
Mauritius and invests substantially all of its assets, in India through a domestic scheme managed
by UTI Asset Management Company Ltd. The principal objective of the Fund is to achieve capital
Head-Offshore Funds
Silpita Guha
Fund Manager
V. Srivatsa
appreciation through investment in a portfolio of equity and equity-linked securities of Indian
pharmaceutical companies listed in India. The Fund may also invest up to 10% of its NAV in unlisted
equity and equity-linked securities of Indian Pharmaceutical companies and can also invest in equity
Sun Pharmaceuticals Industries Ltd.
13.42
Cipla Ltd
8.57
Dr. Reddy's Laboratories Ltd.
8.53
Glenmark Pharmaceuticals Ltd.
6.33
Lupin Ltd
6.15
Biocon Ltd.
5.91
Cadila Healthcare Ltd.
5.76
Glaxosmithkline Pharmacueticals Ltd.
5.53
Divis Laboratories Ltd.
5.52
Ranbaxy Laboratories Ltd.
4.89
Panacea Biotec Ltd.
4.60
USD (mn)
12.91
and equity-linked securities traded outside India, such as ADRs and GDRs.
Fund Size
Ipca Laboratories Ltd.
3.50
Piramal Healthcare Ltd.
3.48
USD
Torrent Pharmaceuticals Ltd.
2.43
14.71
Unichem Laboratories
2.31
Indoco Remedies Ltd.
2.26
Shasun Chemicals And Drugs Ltd.
1.67
Sun Pharma Advanced REsearch
Co Ltd.
1.61
Indraprastha Medical Corporation Ltd
1.02
Piramal Life Sciences Ltd.
0.30
Cash & Other Equivalents
6.22
Total
100.00%
USD
High
15.19
Low
14.62
Load Structure
Entry Load
up to 3%
Exit Load
0.50%
Administrator
Absolute Returns
Annualised Returns
29-Aug-08
3 Months
6 Months
1 Year
2 Years
3 Years
India Pharma Fund NAV ($)
14.71
-4.91%
-0.07%
0.62%
10.03%
8.05%
S&P CNX Pharma Index ($)
118.17
-3.46%
0.99%
11.13%
15.13%
13.95%
BSE Sensex ($)
332.60
-13.71%
-24.47%
-11.07%
15.04%
23.35%
Exchange Rate (Rs./$)
43.79
2.82%
9.69%
6.91%
-3.01%
-0.19%
ISIN No. – MU0180S00010
Performance of India Pharma Fund vis-à-vis the
S&P CNX Pharma Index
SEDOL No. – B06JKD3
Bloomberg Code – INPHRMA MP
Reuters Code – IPFA.CH
MEXID – UUIPH
The India Pharma Fund has underperformed the benchmark on account
of higher exposure to mid cap stocks which has underperformed the large
cap pharma stocks. The fund continues to find the valuation gap between
the large cap pharma stocks and mid cap stocks attractive and continues
to hold good weightages in mid cap pharma stocks. In the last month, the
fund trimmed its weightages in Ranbaxy and shifted to Dr Reddy amongst
the large cap holdings. The portfolio has a good blend of generics, branded
and contract research and manufacturing (CRAMS) companies and the
India Pharma Fund remains a good option to ride in the growth in the
29
Indian pharma industry.
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UTI RAINBOW FUNDS
7
Contact us
(T): +44 1481 726141, (F): +44 1481 726142.
www.uti-intl.co.uk
Branch offices
london office
(1) Mr. Gajendra Kothari - Manager - Business Development, gajendra@uti-intl.co.uk
Address: UTI International Ltd., 32, City Road, London, EC1Y 2BD, United Kingdom
(T): + 44 20 7374 4719, (F): + 44 20 7374 4720.
Dubai office
(1) Mr. Sameer Bhatia - Country Head - Dubai, sameer@uti-intl.co.uk
(2) Mr. Naresh Sood - Marketing Manager, naresh@uti-intl.co.uk
Address: UTI International Limited, P.O. Box 29288, 17 Al Maskan Building, Karama, Dubai, UAE.
(T): + 971 4 3356656, (F): + 971 4 3356636.
Bahrain Office
(1) Mr. Rajesh Deore - Country Head - Bahrain, rajesh@uti-intl.co.uk
(2) Mr. Vinesh Nair - Marketing Manager - Bahrain, vinesh@uti-intl.co.uk
Address: Bahrain Representative Office, 16, Ground Floor, Manama Centre, Government Avenue,
P. O. Box 1395, Kingdom of Bahrain
(T): + 973 17212410, (F): + 973 17212415.
INVESTMENT MANAGER
UTI Investment Management Company (Mauritius) Limited,
Address: Suite 450, 4th Floor, Barkly Wharf East, Le Caudan Waterfront, Port Louis, Mauritius.
iNVESTMENT ADVISOR
UTI Asset Management company Ltd.
(1) Mr. Ashish Ranawade - Head - Portfolio Management Division, a.ranawade@uti.co.in
(2) Mr. Ajay Tyagi - Fund Manager, ajay.tyagi@uti.co.in
Address: UTI AMC Ltd., UTI Tower, Gn Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051, India.
(T): +91 22 66786739, (F) +91 22 66786776.
www.utimf.com
8
Fund Manager’s Report
The DJIA closed the month at 11,543 up 1.5% over the month from 11,378 last month.
The index was mostly range bound between 11,360 and 11,650 levels. NASDAQ was
up 1.2% over the month to close at 1,872 levels. FTSE 100 was up 4.1% and CAC-40
was up 2% over the month. The economic growth in the Euro zone and U.K. has shown
some sign of faltering. The ECB president Jean-Claude Trichet stated that the economic
growth will be particularly weak through third quarter. Growth concerns were raised
by the British Chancellor of the Exchequer Alistar Darling who said that U.K. faced
the worst economic slump in 60 years; GBP fell to its lowest levels since April 2006.
One has to wait to see whether the central banks will cut rates to help support growth.
However with inflation rate at more that twice their 2% target the central bankers face
a tough decision. Also this month, sub-prime crisis had its latest victim; Allianz SE
has agreed to sell off Dresdner Bank to Commerzbank AG for a $ 14.4 Bn. This is the
biggest financial services takeover in Europe this year. Allianz had bought Dresdner in
2001 with the aim of selling more insurance products through bank branches.
The revised estimates of U.S. Q2 GDP growth put it at 3.3% on an annualized basis;
GDP was buoyed by strong exports and consumer spending (supported by government
stimulus checks). The provisional numbers released in July had estimated the GDP
growth at 1.9%; this upward revision was much greater than analyst’s estimates and
led to a rally in the markets. However it is unlikely that the economy will show a repeat
performance in the coming quarters, the slowing down in the world economy and
the dollar appreciation will moderate export growth. The economic stimulus brought
about by the tax rebates will slow down in the quarters to come. The minutes of the
5’th Aug FOMC meeting indicated that although the economic activity had expanded
in the second quarter, the labor markets softened and the financial markets remained
under considerable stress. Tight credit conditions, the housing contraction and elevated
energy prices are likely to weigh on economic growth in the next few quarters. The
FOMC expressed its belief that current high inflation will moderate over the period of
one year, but maintained the outlook to be highly uncertain. The press release mentioned
that although downside risks to growth remained, they appeared to have diminished
somewhat, the upside risks to inflation and inflation expectations increased.
Crude oil futures started the month at $ 127 per bbl but declined to close at $ 118
per bbl. Oil prices received support over the last week of the month by intensification
of hurricane Gustav. The approach of hurricane Gustav has shut eight U.S. Gulf Coast
refineries and 96 percent of offshore oil production. Crude oil for October delivery rose
as much as $2.54, or 2.2 percent, to $118 a barrel in electronic trading on the New
York Mercantile Exchange. Oil futures are up 22 percent this year and have gained 1.6
percent since Gustav formed on Aug. 25.
India’s WPI Inflation eased marginally to 12.40% for the week ended August 16,
2008 versus 12.63% reported a week earlier. On w-o-w basis, the decline was
primarily on account of a sharp downward movement in various mineral oils like
naphtha and furnace oil. These are basically the non-administered fuel-group items
whose prices largely depend on crude prices. With the decline in crude prices from
their all time high of ~USD 147/bbl in mid-July, the prices of mineral oils too have
shown a downward movement. Manufactured products inflation, on the other hand,
rose to their highest level since June 1995, largely owing to higher prices of textiles
and food products. The sub-indices of Primary Articles, Fuel Power Electricity and
Manufactured Products grew 11.63%, 16.76% and 11.02% respectively on a y-o-y
basis. The last few inflation readings have been benign; however it must be kept in
mind that the adverse base effects will continue till October 2008. In the absence of
adverse commodity shocks and with the effectiveness of monetary policy, we could
expect inflation to reach single digits by March 2009. This Monsoon season has not
been disappointing, with only 4 of 36 zones receiving deficient rainfall; the country
overall received “Normal” rainfall.
RBI’s Annual report for 2007-2008 was released in August. RBI stressed that protecting
the economy from adverse effects of rising inflation would dominate monetary action
going ahead. RBI also expressed discomfort over higher credit off take and money
supply prevailing in the economy in spite of the tightening of the monetary policy. RBI
has cautioned banks to moderate loan book growth in the higher interest rate scenario,
it must be noted that asset quality of India banks is one of the best in the world with
high provision coverage. The report acknowledged that India’s GDP which grew at a
rate of over 9% CAGR over the last three years is expected to slow down to 8% in FY09
primarily due to tighter liquidity conditions. RBI expressed its concern on rising fiscal
deficit on back of the rising government liabilities due to farm loan waiver package,
subsidies on food products, oil and fertilizers, one time liability on account of sixth
pay commission and annual liability of increase in wages.
Banking liquidity continued to remain negative, with banks being the net borrowers
in LAF repo/reverse repo auctions with RBI. The cooling off of commodity prices and
the expectation of peaking out of inflation rate led to a rally in the bond market with
10 year yields falling from 9.4% to 8.62% over the month. The yield curve on GSecs
continued to remain flattish. IIP growth for June’08 was 5.4% vs. 10.3% reported in
June’07 and was far better than 4.1% IIP growth in May’08. Consumer goods were
the best performer for the month, growing 10% y-o-y compared to 3.6% a year earlier.
The IIP has been showing a declining trend over the last one year or so, this is not
just due to RBI’s tightening stance but also due to genuine supply side constraints
faced by the industries, particularly power sector. There is increasing evidence that
the supply side constraints are getting addressed, which makes it likely for the IIP to
improve over the coming quarters. Further the unfavorable base effect will also tend
to wear out in the coming quarters leading to better y-o-y IIP numbers.
India’s forex reserves decreased by $ 9.5 Bn. over the month to close at $ 297 Bn.
The non-food credit grew by 26% y-o-y to reach Rs. 23,960 Bn. Deposits outstanding
grew 21.6% y-o-y to reach Rs. 33,382 Bn. M3 growth was strong at 20.6%, higher
than RBI’s comfort level of 17-18%. USDINR had started the month at 42.37 levels
and rose sharply in the second half of the month to reach 43.8; the dollar appreciated
3.4 % over the month. This appreciation of the USD can be attributed to strength in
the dollar rather than any particular weakness in the INR; USD has gained 1.35% vs.
JPY and 6.15% vs. Euro in the same time period. The USD rose over the month on
speculation that the Federal Reserve is done with rate cuts and may in fact increase
interest rates to counter inflation risks in USA and also on speculation that the ECB
and BoE will aggressively cut rates to support growth, which is seen faltering, in
Euro zone and UK.
Sensex had closed July at 14,355 and was range bound for the month to rise only
200 points over the month to close at 14,565 i.e. a rise of 1.5% over the month. Nifty
was up 60 bps over the month to close at 4,360. Sensex is trading at PE of 14.7x on
FY09 earnings estimates. FII’s were net sellers with net outflow of Rs.20.65 Bn or $
480 Mn over the month; this was the fourth consecutive month with net FII outflow
from equity markets. Domestic mutual funds were more bullish and had net purchases
of Rs. 11.88 Bn or $ 275 Mn over the month, MF’s had purchased similar quantities
last month as well.
The markets continue to trade in a range bound manner. We feel that the broader
markets are fairly valued at this point in time. Any movement in stock valuations from
here on shall depend on the individual business prospects for a particular industry/
company. Although from a market wide perspective the valuations seem to be fair
but we are observing a lot of value in some companies, especially in the midcap
segment, which have a strong business model but have yet been beaten down in the
last few months. We feel that such stocks can provide the return kicker to the fund
over the next few quarters.
We continue to remain bullish on the India growth story and strongly feel that even
though we might see some slow down in GDP in the short term (which can be
partly attributed to the high base effect of previous years) but the medium to long
term structural story still remains intact. We view the current market scenario as an
opportunity to build exposure for long term investors.
Disclaimer:
“This report is not an offer or sale in or into the United States of any equity shares or any other security of the company. The securities of the
company have not been and will not be registered under the US Securities Act of 1933, as amended from time to time and may not be sold
in the United States absent registration under US securities laws or an exemption form such registration.”
9
UTI RAINBOW FUND - CLASS A (India Diversified Equity Fund)
Scheme Details
Launch Date
The Rainbow Fund is a Mauritius based open ended multi-class fund. Class A shares of the Rainbow
October 29, 2007
Fund corresponds to a plain vanilla diversified fund with moderate risk profile. The investment objective
of Class A shares is to achieve medium to long term growth of net assets through investments into
Indian stocks listed on the National Stock Exchange and Mumbai Stock Exchange. The fund endeavours
Fund Manager
Ajay Tyagi
Head-PMS
Ashish Ranawade
to have an equal mix of large caps and midcaps in the portfolio.
Name of the Company
% of Total Portfolio
Infosys Technologies Ltd.
Bharti Airtel Ltd.
Hdfc Bank Limited
Bombay Rayon Fashions Ltd.
Reliance Communication Ltd.
Icsa (India) Ltd.
Bharat Heavy Electricals Ltd.
Satyam Computers Ltd.
Suzlon Energy Ltd.
Core Projects & Technologies Limited
Geodesic Information Systems Pvt. Ltd.
Hdfc Ltd.
Bartronics India Ltd
5.1
5.0
4.6
3.8
3.7
3.4
3.2
3.1
3.0
2.9
2.8
2.4
2.3
2.2
2.1
Axis Bank Ltd.
Sun Pharmaceuticals Industries Ltd.
Opto Circuits (India) Ltd
Yes Bank Ltd.
Tulip It Services Ltd.
Tanla Solutions Ltd.
2.1
2.1
2.1
2.1
2.1
2.1
Hanung Toys And Textiles Ltd.
Punj Lloyd Ltd.
Sintex Ltd.
Allied Digital Services Limited
Icici Bank Ltd
Glenmark Pharmaceuticals Ltd
Deccan Chronicle Holdings Ltd.
Jain Irrigation System
Havells India Ltd.
K.L.G.Systel Ltd
Jyoti Structures Ltd.
Areva T&D Ltd.
Maruti Udyog Ltd.
Everest Kanto Cylinder Ltd
Voltas Ltd.
Praj Industries Ltd.
Rajesh Exports Ltd
A I A Engineering Limited
Lloyd Electric & Engineering Limited
2.0
1.9
1.9
1.9
1.9
1.9
1.8
1.8
1.6
1.6
1.6
1.5
1.5
1.5
1.5
1.4
1.3
1.1
0.7
0.5
Spanco Telesystems & Solutions Ltd.
0.4
Cash & Cash Equivalents
Class A High/Low of NAV in the month
Low
USD 6.625
Entry Load
upto 5%
Exit Load
0%
Deutsche International Trust Corporation
(Maurtius) Limited,
4th Floor,
Barkly Wharf East,
Le Caudan Waterfront,
Port Louis,
Mauritius.
100.00
The Indian markets were down by about 5% in rupee terms in the month
of August mainly on account of crude oil correcting significantly. The
markets continue to trade in a range bound manner. We feel that the
broader markets are fairly valued at this point in time. Any movement in
stock valuations from here on shall depend on the individual business
prospects for a particular industry/company. Although from a market
wide perspective the valuations seem to be fair but we are observing a lot
of value in some companies, especially in the midcap segment, which
have a strong business model but have yet been beaten down in the last
few months. We feel that such stocks can provide the return kicker to the
fund over the next few quarters. We view the current market scenario as
an opportunity to build exposure for long term investors.
Absolute Returns
BSE 500 Index ($)
USD 7.449
Administrator
Class A share ($)
High Load Structure
6.5
Total
USD 6.826
29-Aug-08
1 month
3 months
6 months
Since Inception
6.83
1.91%
-12.99%
-25.13%
-32.81%
128.60
2.40%
-15.08%
-27.78%
-34.63%
43.79
-2.86%
-2.33%
-8.84%
-10.07%
Performance of UTI Rainbow Fund - Class A Shares ($)
vis-à-vis the benchmark BSE 500 Index ($)
Sector Allocation as on August 29, 2008
Class A composition (Sectoral%)
6.50%
1.48%
12.00%
5.71%
10.71%
8.15%
1.06%
10.78%
15.03%
29
6.01%
10
1.81%
20.76%
Auto & Auto Ancilliary
Banking & Financial Services
Diversified
Engineering & Captialgoods
Health Care
Information Technology
Media
Power & Power Equipments
Retail
Telecommunicaion
Textiles
Cash & equivalents
UTI RAINBOW FUND - CLASS B (Infrastructure Shareclass)
Scheme Details
Launch Date
The Rainbow Fund is a Mauritius based open ended multi-class fund. Infrastructure Shareclass of
the Rainbow Fund corresponds to an infrastructure fund. The investment objective of Class B is to
achieve medium to long term growth of net assets through investments into Indian stocks listed on the
National Stock Exchange and Mumbai Stock Exchange which derive their business from infrastructure
or infrastructure related sectors. The fund endeavours to have a diversified holding covering various
infrastructure sub-sectors like Power, Engineering & Capital Goods, Telecom, Energy, Oil & Gas,
Construction etc.
Name of the Company
% of Total Portfolio
Bharti Airtel Ltd.
Reliance Communication Ltd.
Bharat Heavy Electricals Ltd.
Suzlon Energy Ltd.
Areva T&D Ltd.
Abb Ltd.
Hdfc Ltd.
Punj Lloyd Ltd.
Icsa (India) Ltd.
Crompton Greaves Ltd.
A I A Engineering Limited
Blue Star Limited
Oil & Natural Gas Corporation Ltd.
Thermax Ltd.
Tulip It Services Ltd
Texmaco Ltd
Dlf Ltd.
K.L.G. Systel Ltd
Everest Kanto Cylinder Ltd
Praj Industries Ltd.
6.8
6.2
4.6
4.2
4.0
3.8
3.4
3.3
3.3
3.3
3.3
2.8
2.4
2.4
2.1
2.1
2.0
2.0
2.0
2.0
1.9
1.9
December 17, 2007
1.7
1.7
1.7
1.6
1.4
1.4
1.3
1.2
1.2
1.1
1.0
1.0
1.0
1.0
1.0
0.9
0.9
Elecon Engineering Co. Ltd.
Mahindra & Mahindra Ltd.
Voltas Ltd.
Jain Irrigation System Ltd
Jyoti Structures Ltd.
Idea Celluar Ltd
Transformer & Rectifier (India) Ltd
Aban Loyd Chiles Offshore Ltd.
I D F C Ltd
Kavveri Telecom Products Limited
Siemens India Ltd.
A B G Shipyard Ltd
Jindal Saw Ltd
Genus Power Infrastructure Ltd
Welspun Gujarat Stahl Rohren Ltd.
Bharati Shipyard Ltd
Maharashtra Seamless Ltd.
Ivrcl Infrastructures & Projects Ltd.
Nagarjuna Construction Co.Ltd.
Icici Bank Ltd
Alstom Projects India Ltd.
Havells India Ltd.
Cash And Cash Equivalents
Total
Head-PMS
Ashish Ranawade
Class B USD 5.95
High USD 6.94
Low
USD 5.83
Load Structure
Entry Load
upto 5%
Exit Load
0%
Administrator
0.9
0.7
0.5
0.4
0.3
6.2
100.00
Deutsche International Trust Corporation
(Mauritus) Limited,
4th Floor,
Barkly Wharf East,
Le Caudan Waterfront,
Port Louis,
Mauritius.
Absolute Returns
BSE SENSEX Index ($)
Ajay Tyagi
Class B share ($)
Fund Manager
31-Jul-08
1 month
3 months
6 months
Since Inception
6.00
1.20%
-14.28%
-30.95%
-40.05%
332.60
2.59%
-12.82%
-24.47%
-34.66%
43.79
-2.86%
-2.33%
-8.84%
-10.14%
Performance of UTI Rainbow Fund - Class B Shares ($)
vis-à-vis the benchmark BSE Sensex ($)
The infrastructure sector witnessed some stability in the
month of August. Although over the longer term the growth
drivers for the infrastructure sector seem to be in place but
the fears of slowdown in capex on account of higher interest
rates seem to be the worrying factors in the short term. We
feel that the companies shall continue to show robust volume
growth on account of huge order book position although
the growth on the profitability could be lower on account of
margin pressures.
Sector Allocation as on August 29, 2008
Class B composition (Sectoral%)
6.20%
1.73%
Auto & Auo Ancilliary
4.97%
Banking & Financial Services
8.46%
Diversified
15.33%
Engineering & Capitalgoods
Infrastructure & Construction
27.81%
25.62%
Oil & Gas
Power & Power Equipments
Telecommiunication
3.37%
6.51%
Cash and equivalents
11
Disclaimer
This report should only be distributed or passed on to current shareholders of the Funds, investment institutions and professional advisors.
Your attention is drawn to the special considerations set out below.
This report, which has been prepared by UTI AMC, has been issued in the United Kingdom by UTI International Ltd., which is Authorised
and Regulated by the Financial Services Authority (“FSA”). It does not constitute an offer of shares. Investors are advised that they will not
generally benefit from the rules and regulations made under the Financial Services and Markets Act 2000 (the “Act”) by the FSA and others
for the protection of investors, nor benefit from the Financial Services Compensation Scheme established under the Act in the event of a
dispute. Investors will also have no rights of cancellation or withdrawal under Section 6.7 of the FSA’s Conduct of Business Rules. None
of the shares has been or will be registered under the United States Securities Act of 1933 or the United States Investment Company Act
of 1940. Accordingly, none of the shares may be offered or sold, directly or indirectly, in the United States of America or to any citizen or
resident thereof other than in accordance with certain exemptions. The shares are not being offered or sold and may not be offered or
sold directly or indirectly in India or to, or for the account or benefit of, any resident of India. Investment in the Funds are only suitable for
sophisticated investors who are aware of the risks of investing in India and should be regarded as long-term. The Funds investments are
subject to market fluctuations and the risks inherent in all investments and there are no assurances that appreciation will occur. The Funds
are denominated in Sterling/USD but the underlying investments are denominated in Rupees. Accordingly, the value of your investment
may rise and fall due to exchange rate fluctuations. The price of shares and the income from them can go down as well as up and investors
may not realise the value of their initial investment. Investors should note that past performance will not necessarily be repeated in the
future and past performance information should not be interpreted as a projection illustrating the possible future value of an investment in
the Funds. Shares in the Funds are listed on the CISX and prices are published daily in the Managed Funds Service of the Financial Times
under the subheading UTI International Ltd. (Guernsey). The Funds are open ended and investors may realise their shares on weekly dealing
days based on net asset value, by contacting the Manager at the address below.
The Morningstar Reports and Morningstar Ratings are the trademarks of Morningstar Inc.These reports have been prepared by Morningstar
and UTI International Ltd. doesn’t take any responsibility with regard to the accuracy of such reports.
Phone +44 1481 726141 Fax number +44 1481 726142

UTI Offshore Funds and Rainbow Funds

Transcription

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