The Hindu Business Line : Canbank mulls revamp of GIC MF plans

CANBANK MF, which is set to acquire GIC MF's schemes, will consider restructuring them in line with its own investment strategies. It will not take on board any of the 20-odd executives engaged by the GIC-promoted outfit.

An overwhelming portion of the portfolios of the five schemes is in equities, and the acquirer may be required to take a fresh look at them after the take over is completed, hinted Mr N.R. Ramanujam, Managing Director of Canbank MF. He, however, clarified that no specific realignment exercise was on the cards at this juncture.

"We have no definite plans. This is an issue that will be taken up at an appropriate stage," he said.

The schemes are: GIC Fortune '94, GIC Growth Plus II, GIC D'Mat, GIC Balanced and GIC Taxsaver '95.

The last-named is a close-ended product due for redemption next year. The largest scheme of the lot, GIC Fortune '94, has followed a broadbased investment policy by spreading its assets over a number of sectors.

The last available portfolio, pertaining to June 30, records investments in areas such as oil and gas, auto equipment, construction and engineering, and banks. The portfolio, based on market value, is led by stocks such as Federal Bank, Indian Oil, HPCL, Ultratech Cemco, and Sundaram Brake Linings.

GIC Growth Plus II has adopted a slightly varied approach by giving substantial weightage to such sectors as pharma, IT consulting and services, construction material, gas utilities, and tobacco. The top five stocks (also as on June 30) are Petronet LNG (10.25 per cent), Infosys, ITC, Ranbaxy and GlaxoSmithkline.

GIC D'Mat, however, is not too different. Some of the heavier names in its portfolio are Grasim, SBI and M&M. The equity portion of GIC Balanced is led by counters such as BHEL, HDFC, SBI, ITC and Dr Reddy's Labs.

The debt portion is made up, inter-alia, by debentures issued by Tata Steel and SKF Bearings. The scheme has also invested in IDBI Omni Bonds.

Canbank MF will accept only the five schemes, Mr Ramanujam said, adding that there is no plan to take charge of any of the employees.

GIC MF has around 20 personnel on its rolls, including employees on the fund management side.