The Hindu Business Line : ABN Amro Equity Fund

ABN AMRO Equity Fund is an open-ended scheme with the objective of investing in large and medium market capitalisation companies. Over the last quarter, assets under management have grown 33 per cent, including a 17 per cent growth in NAV. The fund has 46 stocks in its portfolio, the top 10 accounting for 43 per cent.

ABN AMRO Equity has a well-diversified portfolio, but takes focused exposures, the top three stocks forming 46 per cent of assets. Unitech has replaced Reliance Industries to occupy the top slot in portfolio.

During the quarter ended December 2006, the fund stepped up exposure to sectors such as banking, construction, IT and pharma. Media and hotels were the new additions to the portfolio. Cement, capital goods, auto, auto ancillary and finance were pruned. The fund moved out completely from petroleum products, telecom and consumer durables.The allocation to the banking sector almost doubled. Exposure to Bank of India and Punjab National Bank were enhanced. Both private and public sector banking majors ICICI Bank and State Bank of India were the new addition s. Despite the steep increase in land prices and interest rates, the real estate and construction sectors continue to witness brisk demand. Anticipating some more action in this sector, the fund increased exposures. Hindustan Construction and Unitech shares were accumulated. Ansal Properties and Infrastructure were added afresh, even as exposure to Jaiprakash Associates was trimmed.

Exposure to the IT sector was increased marginally. Northgate Technologies, Tech Mahindra and Tanla Solutions were added afresh. The fund reduced exposures in TCS and Infosys Technologies. Ranbaxy Laboratories moved out of its holdings, while Dr Reddy's Laboratories entered the portfolio.The media and entertainment sector entered the portfolio and cornered 5 per cent of the assets. Sun TV, Zee Telefilms, Zee News and Wire And Wireless India represent the sector.

Indian Hotels was the lone stock to represent the hotel sector. The cement space underwent a minor re-jig; exposure to Grasim Industries was reduced. India Cements and Orient Paper were accumulated, adding to the existing holdings, while Century Textiles was the new entrant.

Suresh Parthasarathy

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