The Hindu Business Line : ABN AMRO Future Leaders: The construction tilt

ABN AMRO Future Leaders Fund is an open-ended equity scheme which seeks to invest in mid- and small-cap companies with high growth opportunities. The fund defines the market capitalisation for these companies as being below that of the 99th stock in the BSE-500 Index. The scheme invests at least 65 per cent of the assets in equity from this market cap range.

In the past quarter, the fund increased exposure to sectors such as banks, construction, fertiliser, media and software. It also pruned holdings in cement, consumer non-durables, capital goods, oil and gas and textile products. During this quarter, the healthy earnings of a number of banks attracted the attention of several fund houses. Future Leaders Fund also increased holdings in this sector by three times. Allahabad Bank was added afresh, and exposure to Bank of India increased substantially.

The fund has concentrated exposures to the construction sector. The brisk activity across India, both in commercial and residential property, appears to have brought the sector within the investment radar. Ansal Properties and Unitech were new entrants, and exposure to DS Kulkarni Developers and Jaiprakash Associates was, enhanced while Sadbhav Engineering was sold. DCM Shriram Consolidated was the lone stock to represent the fertilisers space. Exposure to media and entertainment sector was enhanced, although TV Eighteen remained the only stock in this segment.

In the software sector TCS and Subex Azure moved out of the holdings, paving the way for Financial Technologies and NIIT. The auto components sector underwent a minor re-jig. While Suprajit Engineering moved out, exposure to Kesoram Industries was pared.

Capital goods no longer appeared attractive, as the sector's weight in the portfolio dropped from 9.5 per cent to 4.7 per cent. Stocks that exited the portfolio were ABG Heavy Industries, AIA Engineering, Bharat Earth Movers, Thermax and Voltas. Exposure was stepped up in Elecon Engineering.

In consumer non-durables, CCL Products moved out, while exposure to Triveni Engineering was trimmed. Champagne Indage were accumulated.

Fund facts: The fund has 31 stocks in its portfolio and it asset size is Rs 447.7 crore. Mr Prateek Agarwal manages the fund.

Suresh Parthasarathy

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