The Hindu Business Line : Birla India GenNext

Birla India GenNext seeks to invest in companies that derive their revenues from manufacturing products or providing services that appeal to the younger generation. The portfolio has about 30 stocks spanning sectors such as banking, telecom, FMCG, media and auto. Consumption is considered a structural theme that is expected to dominate the market as the economy clocks above 8-per cent growth rates. We take a look at the fund's portfolio changes over the last three months.

GenNext has considerably re-jigged sector allocations. The FMCG sector is no longer the fund's top holding, although it still figures in the top three, with a 17 per cent weight. The fund exited GlaxoSmithKline Consumer and ITC during this period and pared exposure to United Spirits. Tata Tea, however, was a new addition.

GenNext has, instead, stepped up its exposure to banking, making it the top holding that accounts for almost a fifth of the portfolio, although holdings are spread over several stocks. Here, too, the fund shuffled its holdings. HDFC Bank entered the portfolio even as ICICI Bank made its way out. The fund also cut its stake in Kotak Mahindra Bank; ICICI Bank and Kotak Mahindra Bank have been top performers over the past year. The fund has meanwhile enhanced its exposure to Punjab National Bank and UTI Bank. HDFC was another addition.

GenNext also significantly enhanced its positions in the telecom sector, from 11 per cent in February 2007 to about 17 per cent in May. The fund has taken a 5 per cent stake in Idea Cellular; its holdings in Bharti Airtel are unchanged while those in Reliance Communication stood reduced by 10 per cent.

The fund's holding in the media sector have also been reduced by about 20 per cent. Exposures in HT Media, NDTV and Sun TV were cut. Its stake in Television Eighteen, however, was enhanced by 30 per cent.

The addition of Mahindra & Mahindra enhanced its exposure to the automobile sector to 10 per cent from 7 per cent previously. Holdings in Maruti Udyog, the only other stock from the sector, remained largely unchanged.

Other changes include exits from Sobha Developers and Indian Hotels. A significant increase in exposure to EID Parry was the other prominent change.

The fund has an asset base of Rs 168 crore and is managed by Mr Jayesh Gandhi.

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