CANARA ROBECO MIP
Another MIP scheme with a very focused approach & commitment from the Fund Managers which merits an investment attention is Canara Robeco Monthly Income Plan. The said scheme is managed in the manner an MIP scheme should be managed & i.e. High Accrual/Low Average maturity on the debt side & Invest & Hold/ Trade on the equity side.
How is the Debt Portfolio Managed:
Debt component is managed passively ( like an FMP) wherein the Fund Mangers endeavour is to invest in high accrual, non MTM low average maturity papers & avoid trading in these papers. Current carry is between 5.25% to 5.50% on the debt side with following maturity profile:
|
Maturity Profile as on 30.11.2009 |
||
|
Industry |
Market Value |
% to NAV |
|
0 to 3 Years |
6,470.21 |
78.73% |
|
3 to 5 Years |
0 |
0 |
|
5 to 7 Years |
0 |
0 |
|
Greater Than 7 Years |
0 |
0 |
|
Average Maturity : 0.53 Years |
||
How is Equity Portfolio Managed:
15-18% of the equity portfolio is invested with an intention to buy & hold. They have created a defensive portfolio of deleveraged equities with healthy cash reserves. Though these shares can also correct as & when markets correct, the same would be less impacted than the leveraged company shares. Though the scheme is allowed to invest upto 25% in equity, their endeavour would be to restrict the same below 20% at any given point in time. Even if the markets correct by 25% over 1 year from current levels, accrual of 5.5% to 5.75% on 80% of the portfolio would be sufficient to neutralise any adverse impact of 25% going negative on 20% of the portfolio.
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Other major advantage of investing in the said scheme is there very healthy cushion which has been built over some period of time in their Dividend NAV. NAV as on December 04’2009: Dividend: Rs.14.25 & Growth: Rs.26.69 The Fund House aims to declare a dividend of 1% p.m. from now to September 2010 every month. This confidence stems from a) their past track record which has been excellent & b) hefty reserves & cushion in built in their NAV. |
The said scheme has performed exceedingly well over different time horizons:
|
|
1 year |
3 years |
5 years |
|
% p.a. |
29.94% |
11.30% |
14.12% |
Following is the portfolio break up of their equity holdings as on November 30’2009:
|
ASSETS UNDER MANAGEMENT – Rs.82.16Crores |
|
Market Value |
% of Net |
|
|
Name of the Company |
Industry Classification |
Quantity |
(Rs. In Lacs) |
Assets |
|
A.Equities |
|
|
|
|
|
1- Listed |
|
|
|
|
|
Reliance Industries Ltd |
Petroleum Products |
11534 |
122.58 |
1.49% |
|
Bharti Airtel Ltd |
Telecom – Services |
34221 |
102.56 |
1.25% |
|
State Bank Of India |
Banks |
3385 |
75.76 |
0.92% |
|
Tata Consultancy Services Ltd |
Software |
10713 |
73.62 |
0.90% |
|
Bharat Heavy Electricals Ltd |
Industrial Capital Goods |
3072 |
68.95 |
0.84% |
|
Oil India Ltd |
Oil |
4427 |
56.39 |
0.69% |
|
GAIL (India) Ltd |
Gas |
13055 |
54.73 |
0.67% |
|
HDFC Bank Ltd |
Banks |
3014 |
53.42 |
0.65% |
|
Zee News Ltd |
Media & Entertainment |
91698 |
52.13 |
0.63% |
|
Pantaloon Retail (India) Ltd |
Retailing |
14751 |
51.46 |
0.63% |
|
Mahindra Holidays And Resorts India Ltd |
Hotels |
13731 |
50.04 |
0.61% |
|
Bank Of Baroda |
Banks |
9220 |
48.25 |
0.59% |
|
Cadila Healthcare Ltd |
Pharmaceuticals |
7994 |
47.80 |
0.58% |
|
NTPC Ltd |
Power |
22352 |
46.88 |
0.57% |
|
Sun TV Network Ltd |
Media & Entertainment |
13720 |
45.65 |
0.56% |
|
Mphasis Ltd |
Software |
6500 |
44.00 |
0.54% |
|
Axis Bank Ltd |
Banks |
4401 |
43.90 |
0.53% |
|
Bharat Petroleum Corporation Ltd |
Petroleum Products |
6961 |
41.11 |
0.50% |
|
Tata Power Company Ltd |
Power |
2733 |
36.87 |
0.45% |
|
Kewal Kiran Clothing Ltd |
Textile Products |
15000 |
35.15 |
0.43% |
|
Torrent Pharmaceuticals Ltd |
Pharmaceuticals |
9200 |
34.56 |
0.42% |
|
Hindustan Petroleum Corporation Ltd |
Petroleum Products |
9758 |
34.35 |
0.42% |
|
Dena Bank |
Banks |
41000 |
31.98 |
0.39% |
|
Aditya Birla Nuvo Ltd |
Diversified |
3725 |
31.01 |
0.38% |
|
Jubilant Organosys Ltd |
Pharmaceuticals |
10273 |
30.90 |
0.38% |
|
Pfizer Ltd |
Pharmaceuticals |
2880 |
27.47 |
0.33% |
|
Divi’s Laboratories Ltd |
Pharmaceuticals |
4000 |
24.23 |
0.29% |
|
Oriental Bank Of Commerce |
Banks |
8202 |
22.51 |
0.27% |
|
Indian Oil Corporation Ltd |
Petroleum Products |
7439 |
21.52 |
0.26% |
|
Corporation Bank |
Banks |
4638 |
20.73 |
0.25% |
|
Oil & Natural Gas Corporation Ltd |
Oil |
1600 |
19.18 |
0.23% |
|
Punjab National Bank |
Banks |
2100 |
19.03 |
0.23% |
|
3i Infotech Ltd |
Software |
23364 |
18.64 |
0.23% |
|
Power Finance Corporation Ltd |
Finance |
7301 |
18.32 |
0.22% |
|
Aurobindo Pharma Ltd |
Pharmaceuticals |
2074 |
17.75 |
0.22% |
|
Indraprastha Gas Ltd |
Gas |
7630 |
12.86 |
0.16% |
|
Jaiprakash Associates Ltd |
Cement |
5558 |
12.54 |
0.15% |
|
Bajaj Holdings & Investment Ltd |
Finance |
1891 |
9.99 |
0.12% |
|
ING Vysya Bank Ltd |
Banks |
2991 |
8.88 |
0.11% |
|
Godawari Power and Ispat Ltd |
Ferrous Metals |
6000 |
8.60 |
0.10% |
|
Allied Digital Services Ltd |
Hardware |
2232 |
4.65 |
0.06% |
|
Sub Total |
|
|
1580.98 |
19.25% |
|
2- Unlisted |
|
|
Nil |
|
I would recommend investment in the said scheme with at least one year view as there is exit load of 1% if one exits within one year from the date of their investment.
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