Pares exposure in construction, IT, engg; ups holdings in banking

Nilanjan Dey

Mutual moves


Mastershare has

increased exposure to industrial manufacturing even as it remains somewhat overweight on energy, cement and telecom

Master Plus

has reduced its exposure to both construction and engineering even as it added to its bank holdings.

UTI Equity

Fund has scaled down holding in the IT services space

Kolkata, Sept. 6

Select equity funds managed by UTI MF have shed some of their overweight positions, including those in construction, IT and engineering, even as a few of them have scaled up holdings in banking and manufacturing.

Large funds such as UTI Equity, Mastershare and Master Plus as well as the newly launched UTI Contra have brought about key changes in recent times, a review of the latest portfolio statements issued by the fund house has indicated.

Mastershare, which manages well over Rs 1,500 crore, has lately increased exposure to industrial manufacturing even as it remains somewhat overweight on energy, cement and telecom. The three sectors account for 16.8 per cent, 7.2 per cent and 6.6 per cent of its assets respectively.

Master Plus, which mainly sticks to BSE 100 constituents, has reduced its exposure to both construction and engineering even as it added to its bank holdings. Financial services account for 9.8 per cent of its portfolio, which includes such stocks as SBI, ICICI Bank and UTI Bank.

UTI Equity Fund, which has roughly Rs 1,300 crore to manage, has scaled down holding in the IT services space. It has on the other hand augmented its interest in banking, a segment that is said to offer value.

Among the relatively smaller funds in the UTI MF stable, Dynamic Equity has recently increased its allocation to mid-cap stocks, while UTI Growth & Value added to its auto ancillary holdings. UTI Mastergrowth for its part has fortified exposure to large-caps like ONGC, ACC, Tata Steel and Tata Motors, it is pointed out.

Some of the smallest schemes managed by the fund house - UTI PSU Fund, UTI Large Cap Fund or India Advantage Equity - remained more or less committed to their earlier stated positions.

The MF has in the context of its PSU holdings made special mention of stocks like ONGC, NTPC and BHEL as well as public sector banks that have hiked PLR rates, a move that is expected to protect their margins.

New funds too re-align

UTI Contra and UTI Leadership, both launched earlier this year, have adjusted their portfolios as well. These moves pertain to sectors such as technology, banking, cement, media and auto. The two schemes are benchmarked against the Sensex and the Nifty respectively.

Contra, which manages about Rs 860 crore, has taken a call on technology, which, as Mr Siddharth Dembi, fund manager, sees it, is "leveraged to events in the US economy". It has intensified its exposure to banking - financial services account for a high 16 per cent - and will consider building this up further.

Leadership, which has approximately Rs 1,400 crore under management, has reduced its involvement in cement (now at about 9 per cent) even as it has strengthened its investment in auto and media. The scheme, notes Mr Sanjay Dongre, fund manager, should do better once volatility settles down in the market.

(This article was published in the Business Line print edition dated September 7, 2006)
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