Nature: Equity oriented open ended
Inception: May 2013
Assets under Management: Rs 385 crore at the end of April 2014
Fund Manager: Rajeev Thakkar, Vishal Shah & Raunak Onkar
Parag Parikh Long Term Value Fundseeks to provide returns for investors using the value investing theme. The fund had just over 10 per cent of its portfolio in cash at the end of June 2013 as it had just been launched a month earlier and was in the process of investing its corpus. Companies that would gain from special situations formed over 16 per cent of the portfolio while banks, finance and gas were some of the other prominent sectors present. There was also a large allocation to debt in the portfolio. ICRA was the top individual holding with Maharashtra Scooters, Noida Toll Bridge, Indraprastha Gas, LI&FS Investment Managers, Gujarat Gas and Axis Bank being some of the other leading holdings. Under the special situations holdings were Hindustan Unilever, CRISIL and Bharti Airtel while Foreign securities, IDR and ADR holdings consisted of Standard Chartered IDR, 3M Company and Nestle SA ADR. The CNX 500 was the benchmark for the fund.
At the end of October 2013 debt instruments consisted of nearly 11 per cent of the portfolio with another 4 per cent being present in cash and cash equivalents. 6 per cent of the portfolio as present in arbitrage opportunities. Banks was the top individual sector with an exposure of 14 per cent. Finance, software and gas were some of the other areas with a significant share. Noida Toll Bridge was the top individual holding with Axis Bank, Mahindra Holidays, ICRA, Maharashtra Scooters, Mphasis, J&K Bank and Gujarat Gas being some of the other leading ones. 19 per cent of the portfolio was in overseas securities, IDR and ADR and the holdings list included Nestle SA ADR, 3M Company, BAT ADR, Standard Chartered IDR and Anheuser Busch Inbev ADR. The fund was an outperformer over the benchmark since inception.
The percentage of the portfolio present in debt and money market instruments had gone up to 14 per cent at the end of April 2014. Banks, finance, software and gas were some of the leading sectors present in the portfolio. Noida Toll Bridge was the top individual holding with ICRA, Axis Bank, J&K bank, Maharashtra Scooters, Zydus Wellness, Mahindra Holidays, Gujarat Gas and Polaris being some of the other leading ones. Nearly 20 per cent of the portfolio was in overseas securities, IDR and ADR and IBM, BAT ADR, Nestle ADR, 3M co were some of the holdings within this category. The fund continued to be a strong outperformer over the benchmark since inception.
This fund gives a unique exposure to the investor at a single place and has a distinctive fund management style. Those investors who have a longer term outlook and are receptive towards the value investing style of fund management should look at this fund as a part of their portfolio.
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