Zurich Exposure To It Pared

Zurich India Equity Fund has reduced its exposure to information technology and increased its exposure to communications and entertainment during the past one month.

The fund's exposure to the ICE sector (information technology, communications & entertainment) stood at 48.5 per cent of its equity exposure. The fund reduced its exposure to IT by around 14 per cent, whereas its exposure to communications and entertainment rose by around 6.3 per cent.

The fund has exited from Hughes Software and taken fresh exposures to PSI Data Systems and Satyam Computer Services during this period.

A recent entrant into the fund's portfolio from the entertainment sector is Zee Telefilms: its exposure to Zee Telefilms translates into roughly 7 per cent of the total assets under management (Rs 62 crore).

 

However, the fund has taken a conservative view of the recent boom in stock prices, which is reflected in a high level of debt, cash and current assets in its portfolio. In fact, 15.2 per cent of the fund's assets have been blocked in these low-yield investments.

Zurich India Equity Fund has exited from the cement sector by disposing of its holding in Madras Cements. The pharmaceutical sector seems to have found favour with the fund, with heightened exposure to Cipla and Pfizer.

After significantly increasing its exposure to consumer products during the month of December, the fund has exited from Himatsingka Seide within a relatively short period. The NAV of the scheme has grown from 23.60 to 25.35 during the period under consideration, giving an annualised yield of 9 per cent.

The Break-Up

(Percentage allocations)

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Industry 31 Jan 99 30 Dec 99 30 Nov 99

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Automobiles & Ancillaries 4.3 6.5 6.7

Banking & Finance 3.9 4.9 3.7

Information Technology 31.3 45.8 14.2

Consumer Products 18.2 22.5 9.8

Engineering 2.7 3.8 2.1

Pharmaceuticals 12.4 7.3 5.3

Media & Publishing 9.8 3.6 2.3

Shipping & Transport 2.1 3.3 0.0

Cement 0 2.1 1.4

Others 0 0.0 0.0

Debt, Cash & Current assets 15.2 0.2 54.4

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