INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain...

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Key Indices 31-Jul-09 30-Jun-09 % Change Nifty 4636.45 4291.10 8.05% Sensex 15670.31 14493.84 8.12% BSE 100 8176.54 7571.49 7.99% Dow Jones 9171.61 8447.00 8.58% Nikkei 10356.83 9958.44 4.00% Hang Seng 20573.33 18378.73 11.94% Nasdaq 1978.50 1835.04 7.82% KOSPI 1559.47 1390.07 12.19% INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05 percent. Markets gained on the back of good earnings data for Q1FY10 and positive domestic and global economic data. During the month, Foreign institutional investors pumped Rs 11066.3 Crore (net) while Domestic Institutions pumped in Rs 1825.5 Crores (net). 2000 2250 2500 2750 3000 3250 3500 3750 4000 4250 4500 4750 5000 5250 5500 5750 6000 6000 8000 10000 12000 14000 16000 18000 20000 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Sensex Nifty (2500) (1500) (500) 500 1500 2500 3500 4500 In US $ MN FII MF 42 00 43.00 44.00 45.00 46.00 47.00 48.00 49.00 50.00 51.00 52.00 53.00 Rs v/s USD The equity markets have rallied strongly in the last four months since the lows of early March 2009, Q1FY10 earnings had become extremely important because positive results would further provide support to the market. In spite of average sales growth being still muted for most of the sectors on a sequential as well as yoy basis, significant EBITDA margins improvement was the most important driver of earnings growth for Q1FY10. EBITDA margin expansion was a result of cost savings and lower raw material costs benefiting companies across the board. As economy revives further, revenue expectations will get upgraded gradually, and in our view that would be the biggest positive for earnings, coupled with higher margins, they would lead to significant upgrades in EPS. The current quarterly season has resulted in earnings upgrades across various sectors and companies and this trend of positive earnings revisions going forward by market analysts will continue to be a big support factor for the overall market. Post the current earnings upgrades, the Sensex currently hovering around 15500 levels is trading at 15xFY11e earnings estimates which is attractive for long term investors. India has a potential of re-rating if global economic recovery is faster than expected, India’s sovereign rating remains unchanged (i.e. not downgraded), monsoon deficiency While indicators such as the higher growth in core infrastructure sector, positive growth in IIP, gradual revival in demand for non- food credit, improving performance of the corporate sector in terms of both sales and profitability, gradual return of risk appetite in the capital market, and improved domestic and external financing conditions could be viewed as signs of recovery from the slowdown, there are other factors which may dampen the growth outlook such as the delayed progress of monsoon, decline in exports due to the persistence of global recession. Recently published both the manufacturing PMI and the non-oil import data suggest that a recovery in domestic demand is gaining traction except for the export demand which remains sluggish. Equity Outlook The Indian Stock market continued its upward journey on the back of positive domestic and global economic data published in recent times. The various stimulus packages and the steroids administered by the government and RBI over the past 7-8 months have had the desired soothing impact on the domestic economy, with the growth cycle showing unmistakable signs of a turnaround. In the recently announced monetary policy, RBI has kept all key policy rates unchanged to balance the growth objective and has raised its projection for WPI inflation to 5% by end-March 2010 as concerns remain on prices of primary (especially food) articles coupled with the uncertain monsoon outlook and recent trends in global commodity prices. It has taken a cautiously optimistic stance on GDP growth, with an “upward bias” to its projection of 6 % Growth. (4500) (3500) July 08 Aug 08 Sept 08 Oct 08 Nov 08 Dec/08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 July 09 38.00 39.00 40.00 41.00 42.00 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 reduces sharply and the economic reforms are implemented by the government in a proactive manner.

Transcript of INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain...

Page 1: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

Key Indices 31-Jul-09 30-Jun-09 % ChangeNifty 4636.45 4291.10 8.05%

Sensex 15670.31 14493.84 8.12%

BSE 100 8176.54 7571.49 7.99%

Dow Jones 9171.61 8447.00 8.58%

Nikkei 10356.83 9958.44 4.00%

Hang Seng 20573.33 18378.73 11.94%

Nasdaq 1978.50 1835.04 7.82%

KOSPI 1559.47 1390.07 12.19%

INVEST UPDATEJuly 2009

Equity Market

Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05 percent.Markets gained on the back of good earnings data for Q1FY10 and positive domestic and global economic data.

During the month, Foreign institutional investors pumped Rs 11066.3 Crore (net) while Domestic Institutions pumped in Rs1825.5 Crores (net).

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42 0043.0044.0045.0046.0047.0048.0049.0050.0051.0052.0053.00

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The equity markets have rallied strongly in the last four months since the lows of early March 2009, Q1FY10 earnings hadbecome extremely important because positive results would further provide support to the market. In spite of average salesgrowth being still muted for most of the sectors on a sequential as well as yoy basis, significant EBITDA margins improvementwas the most important driver of earnings growth for Q1FY10. EBITDA margin expansion was a result of cost savings and lowerraw material costs benefiting companies across the board. As economy revives further, revenue expectations will get upgradedgradually, and in our view that would be the biggest positive for earnings, coupled with higher margins, they would lead tosignificant upgrades in EPS. The current quarterly season has resulted in earnings upgrades across various sectors andcompanies and this trend of positive earnings revisions going forward by market analysts will continue to be a big support factorfor the overall market. Post the current earnings upgrades, the Sensex currently hovering around 15500 levels is trading at15xFY11e earnings estimates which is attractive for long term investors. India has a potential of re-rating if global economicrecovery is faster than expected, India’s sovereign rating remains unchanged (i.e. not downgraded), monsoon deficiency

While indicators such as the higher growth in core infrastructure sector, positive growth in IIP, gradual revival in demand for non-food credit, improving performance of the corporate sector in terms of both sales and profitability, gradual return of risk appetitein the capital market, and improved domestic and external financing conditions could be viewed as signs of recovery from theslowdown, there are other factors which may dampen the growth outlook such as the delayed progress of monsoon, decline inexports due to the persistence of global recession. Recently published both the manufacturing PMI and the non-oil import datasuggest that a recovery in domestic demand is gaining traction except for the export demand which remains sluggish.

Equity OutlookThe Indian Stock market continued its upward journey on the back of positive domestic and global economic data published inrecent times. The various stimulus packages and the steroids administered by the government and RBI over the past 7-8 monthshave had the desired soothing impact on the domestic economy, with the growth cycle showing unmistakable signs of aturnaround. In the recently announced monetary policy, RBI has kept all key policy rates unchanged to balance the growthobjective and has raised its projection for WPI inflation to 5% by end-March 2010 as concerns remain on prices of primary(especially food) articles coupled with the uncertain monsoon outlook and recent trends in global commodity prices. It has takena cautiously optimistic stance on GDP growth, with an “upward bias” to its projection of 6 % Growth.

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reduces sharply and the economic reforms are implemented by the government in a proactive manner.

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Key Indices 31-Jul-09 30-Jun-09 % Change

10 year G-Sec7.15% 7.01% 2.01%

5 Year G-Sec 6.72% 6.49% 3.57%

91 Day T Bill3.29% 3.33% -1.20%

364 day T-Bill 3.75% 3.87% -3.10%

MIBOR 3.80% 3.82% -0.52%

Call Rates 3.25% 3.25% 0.00%

Inflation -1.54% -1.14% -35.09%

INVEST UPDATEJuly 2009

Debt Market

India’s inflation rate fell marginally to minus 1.54 percent for the week ended July 18 compared with last week’s minus 1.17 percent. Majordecline was registered in mineral index, as prices fell by 16.8 per cent mainly due to softening iron ore prices by 24 per cent. Analysts saidthe ease comes mainly on the back of decrease in prices of iron ore, lower aviation fuel and cement. India's Index of Industrial production (IIP) grew 2.7 per cent per cent in May 2009 from the previous year. The Union Budget hikedgovernment's spending on rural jobs and eased the tax burden on companies and consumers which will prove favourable for the industriesin the country.

W ld th i t d t i k b t i th ft th th t b k d t t l t b d t C i iDebt Outlook

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World growth is expected to pick up but, given the aftermath, the recovery to be weak and return to normalcy to be drawn-out, Crisis-calibrated monetary policy should not lead to runaway inflation – independent central banks will tighten if that risk looms. A potential upsidesurprise: monetary policies, helped by the healing of time, could help kick-start virtuous cycle dynamics. The US economy is entering its21st month of recession, the longest slide in economic activity since 1933. The risk sentiments remain strong internationally, that has led toa rise in the international crude oil prices to around USD 70 a barrel while the 10-year US Treasury has also witnessed rise. Headline WPIinflation in India has fallen below zero; latest reported inflation is at –1.54%. It is expected to remain in negative territory for few moreweeks because of the base effect. Year-end inflation is expected to be at 5% (with an upside risk) primarily on the basis of base effect.

India 10-year benchmark yield is likely to show correlation on multiple fronts, namely the international crude oil prices, US Treasury yieldsetc. High commodity price fueled by liquidity, economic recovery and monsoon concerns have made upward bias for interest rates in nearterm. Currently the 10-year corporate bond spread is at around 150 bps and expected to remain steady at current levels

The monetary system is flush with liquidity; with more than Rs.1,300 billion parked with RBI on an average in the month of July. The centralbank has showed its commitment in the monitory policy of keeping enough liquidity in the system in the coming months. The India bondyield curve is likely to remain steep, as short-term rates are likely to remain supported due to surplus liquidity while long yields are rising.We expect 10 year G-sec yields at ~ 7.25% in the near term. Most of the event risks for the Indian economy such as the Budget and themonetary policy review are now out and the market continues to focus on the supply pressure in the bond market. We expect RBI tosupport the yields via OMO or market purchases.

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Learning Curve

Maturity Profile Every month in the fact sheet you come across ‘Maturity Profile’ of our funds stating the average maturity and the percentage of holdings in different maturity baskets viz. less than 2 years, 2 to 7 years and 7 years & above. What does it actually imply and why is it important for us in understanding the fund strategy? What is Maturity? Every debt security or bond has a specific time period within which the borrowed money must be paid back to the bond or security holder. The date on which the principal payment has to be made is called maturity and the period of time from the issue of the security upto its maturity is called the ‘maturity period’.

What is Average Maturity? In a portfolio of securities or a fund, the maturity of each security may be different. Here, the maturity of a single security doesn't indicate the fund's maturity profile. In such cases, the Average Maturity of the portfolio or fund helps us in understanding its maturity profile. Just like any other average of the population like average marks, average age etc, debt funds too use a similar concept called average maturity. Average Maturity is the weighted average maturity of the instruments in the portfolio. Average maturity can be determined for funds with investments in debt instruments, with each instrument having a different maturity For example, if a fund owns three bonds of 2-year (Rs 30,000), 3-year (Rs 10,000) and 5-year (Rs 20,000) maturities, its average maturity would be 3.17 years. The average maturity is derived by calculating the weighted average of the maturities of the above bonds as follows: Average maturity = (2 x 30,000) + (3 x 10,000) + (5 x 20,000) = 3.17 years. (30,000 + 10,000 + 20,000) What does it imply? Average maturity tells you how sensitive a bond fund is to change in interest rates. When interest rates move down, bond prices move up, consequently the NAV of the fund increases. Thus increasing the return on debt funds and vice versa when rates move up. However, a change in interest rates will impact different maturities differently. The price of long-term debt securities generally fluctuates more than that of short-term securities due to interest rate changes. Consequently, funds with long-maturity papers in its portfolio are more sensitive to interest rate fluctuations. If interest rates go up, the price of a security goes down. The degree of fall in price depends on the maturity of the security. The lower the maturity of a security, the lower will be the fall in its price and vice versa.

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An active fund manager, while keeping the fund objective in mind, will endeavour to invest more in short maturity securities when rates are expected to move up and invest more in long maturities when rates are expected to go down. Average maturity of a fund portfolio undergoes a change with the passage of time or when the portfolio is churned. As a debt security approaches its maturity date, the length of time to maturity becomes shorter. Also, if a fund sells one security and buys a fresh one, its average maturity will change too since each security has its own maturity period. For example, let us assume the average maturity of a fund is 3 years. The fund manager sells a security with a maturity of 5 years and buys a security with a maturity of 4 years, then its average maturity will come down below the current maturity of 3 years. In a nutshell, the longer the average maturity, the higher the interest rate risk associated with a bond fund and, consequently, higher the volatility. So while understanding a particular debt fund, apart from looking at other criteria like asset allocation, historical returns, benchmark performance etc., one should also look at the maturity profile of the fund.

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GROUPAnnualised CAGR Annualised CAGR Annualised CAGR Annualised CAGR

Last 1 year 23.75% 23.75% 23.35% 23.35% 29.52% 29.52% 36.38% 36.38%Last 2 years 14.55% 13.62% 12.36% 11.68% 18.65% 17.17% - -Last 3 years 15.88% 13.86% 16.33% 14.21% 23.89% 19.73% - -Since Inception 19.90% 12.57% 30.81% 16.88% 36.86% 18.82% 22.44% 21.45%

Asset Held (Rs. In Millions)

GROUPAnnualised CAGR Annualised CAGR Annualised CAGR Annualised CAGR Annualised CAGR

Last 1 year 17.59% 17.59% 7.07% 7.07% 29.64% 29.64% 24.17% 24.17% 29.82% 29.82%Last 2 years 15.29% 14.27% 7.56% 7.29% 16.17% 15.03% 16.52% 15.34% 17.78% 16.42%Last 3 years 14.73% 12.97% 7.75% 7.22% 14.07% 12.45% - - 15.57% 13.63%Since Inception 12.68% 10.63% 7.07% 6.28% 8.52% 7.29% 16.50% 14.81% 10.33% 8.17%

Asset Held (Rs. In Millions)

* Date of Inception of Group Growth Advantage Fund is 18th February 2008.# Date of inception of Group Bond Fund is 28th January 2007

Money Market Floating Rate Gilt Fund Bond #

2581

Fixed Interest

145 33 18 2904 245

337803438

FUND PERFORMANCE AS ON 31ST JULY 2009

Secure Stable Growth Growth Advantage *

Disclaimer:

This document is issued by BSLI. While all reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors of fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any investment strategy, nor does it constitute any prediction of likely future movements in NAVs. Past performance is not necessarily indicative of future performance. We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Birla Sun Life Insurance Company Limited, nor any person connected with it, accepts any liability arising from the use of this document. You are advised to make your own independent judgment with respect to any matter contained herein.

Page 6: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

SECURITIES HOLDING

GOVERNMENT SECURITIES 16.00%

7.59% GOI 2016 3.20%8.2% GOI 2022 2.67%8.24% GOI 2027 2.22%7.95% GOI 2032 1.96%7.46% GOI 2017 1.68%7.44% GOI 2012 1.19%OTHER GOVERNMENT SECURITIES 3.09%

CORPORATE DEBT 53.80%

9.47% POWER GRID CORPORATION LTD. 2012 3.26%11.45% RELIANCE INDUSTRIES LTD. 2013 3.25%9.45% RURAL ELECTRIFICATION CORP LTD 2013 2.77%9.25% EXPORT IMPORT BANK OF INDIA 2012 2.55%9.5% NABARD 2012 2.34%6% INDIAN HOTELS CO. LTD. 2011 1.90%8.9% STEEL AUTHORITY OF INDIA LTD. 2014 1.77%11.4% POWER FINANCE CORPORATION LTD 2013 1.73%11.3% ACC LTD 2013 1.72%8.73% POWER GRID CORPORATION LTD. 2011 1.62%OTHER CORPORATE DEBT 30.90%

Group SecurePortfolio as on 31st July 2009

Asset Allocation

Rating Profile

About the FundObjective: To build your capital and generate better returns at moderate level of risk, overa medium or long-term period through a balance of investment in equity and debt.

Strategy: Generate better return with moderate level of risk through active managementof fixed income portfolio and focus on creating long term equity portfolio which willenhance yield of composite portfolio with low level of risk appetite.

AA3.42% AA+

11.33%

MMI11.20%

G-Secs16.00%

Equities19.00%

NCD53.80%

EQUITY 19.00%

RELIANCE INDUSTRIES LTD. 1.54%ICICI BANK LTD. 1.04%OTHER EQUITY 16.41%

MMI 11.20%

Maturity Profile

Sectoral Allocation

1.04%

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Page 7: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

SECURITIES HOLDING

GOVERNMENT SECURITIES 12.53%

7.44% GOI 2012 3.45%7.5% GOI 2034 2.65%7.95% GOI 2032 2.41%8.2% GOI 2022 1.55%7.59% GOI 2015 1.44%OTHER GOVERNMENT SECURITIES 1.03%

CORPORATE DEBT 41.45%

11.45% RELIANCE INDUSTRIES LTD. 2013 3.28%9.45% RURAL ELECTRIFICATION CORP LTD 2013 2.98%9.5% NATIONAL BANK FOR AGRI. & RURAL DEV 2012 2.78%8.5% EXPORT IMPORT BANK OF INDIA 2011 2.42%8.65% RURAL ELECTRIFICATION CORP LTD 2019 2.14%11.4% POWER FINANCE CORPORATION LIMITED 2013 1.78%9.15% LARSEN & TOUBRO LTD. 2019 1.50%9.4% POWER FINANCE CORPORATION LIMITED 2013 1.29%10.75% RELIANCE INDUSTRIES LTD. 2018 1.22%8.9% POWER FINANCE CORPORATION LIMITED 2014 1.19%OTHER CORPORATE DEBT 20.88%

Group StablePortfolio as on 31st July 2009

Asset Allocation

Rating Profile

About the FundObjective: Helps you to grow your capital through enhanced returns over a mediumto long term period through investments in equity and debt instruments, therebyproviding a good balance between risk and return.Strategy: To earn capital appreciation by maintaining diversified equity portfolio andseek to earn regular return on fixed income portfolio by active management resultingin wealth creation for policyholders.

P1+ / A1+0 07%

AA2.19%

G-Secs12.55%

MMI13.38%

Equities32.62%

NCD41.45%

EQUITY 32.62%

RELIANCE INDUSTRIES LTD. 2.55%ICICI BANK LTD. 1.83%INFOSYS TECHNOLOGIES LTD. 1.54%ITC LTD 1.40%HOUSING DEVELOPMENT FINANCE COR LTD 1.38%LARSEN & TOUBRO LTD. 1.30%OIL & NATURAL GAS CORPORATION LTD. 1.26%BHARTI AIRTEL LTD. 1.24%BHARAT HEAVY ELECTRICALS LTD. 1.10%STATE BANK OF INDIA 1.09%OTHER EQUITY 17.93%

MMI 13.38%

Maturity Profile

Sectoral Allocation

2.16%

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SECURITIES HOLDING

GOVERNMENT SECURITIES 8.26%

7.46% GOI 2017 2.29%5.64% GOI 2019 1.93%8.2% GOI 2022 1.36%7.95% GOI 2032 1.30%OTHER GOVERNMENT SECURITIES 1.39%

CORPORATE DEBT 36.17%11.45% RELIANCE INDUSTRIES LTD. 2013 4.33%11.75% RURAL ELECTRIFICATION CORP LTD 2011 2.84%8.6% POWER FINANCE CORPORATION LIMITED 2014 2.56%10.9% RURAL ELECTRIFICATION CORP LTD 2013 2.13%10.05% NABARD 2014 2.06%8.9% STEEL AUTHORITY OF INDIA LTD. 2014 1.95%10.1% RELIANCE INDUSTRIES LTD. 2011 1.92%10% NATIONAL BANK FOR AGRI. & RURAL DEV 2012 1.50%10.48% GRASIM INDUSTRIES LTD. 2013 1.39%9.5% NATIONAL BANK FOR AGRI. & RURAL DEV 2012 1.36%OTHER CORPORATE DEBT 14.12%

EQUITY 45.90%

RELIANCE INDUSTRIES LTD

Group GrowthPortfolio as on 31st July 2009

Asset Allocation

Rating Profile

About the FundObjective: To achieve optimum balance between growth and stability to providelong-term capital appreciation with balanced level of risk by investing in fixed incomesecurities and high quality equity security.Strategy: To ensure capital appreciation by simultaneously investing into fixedincome securities and maintaining diversified equity portfolio. Active fundmanagement is carried out to enhnce policyholder’s wealth in long run.

AA5.97%

Sovereign18.60%

G-Secs8.26%

MMI9.67%

NCD36.17%

Equities45.90%

RELIANCE INDUSTRIES LTD. 3.74%ICICI BANK LTD. 2.58%ITC LTD 2.01%INFOSYS TECHNOLOGIES LTD. 1.96%HOUSING DEVELOPMENT FINANCE COR LTD 1.94%BHARTI AIRTEL LTD. 1.82%LARSEN & TOUBRO LTD. 1.82%OIL & NATURAL GAS CORPORATION LTD. 1.78%BHARAT HEAVY ELECTRICALS LTD. 1.60%STATE BANK OF INDIA 1.53%OTHER EQUITY 25.13%

MMI 9.67%

Sectoral Allocation

Maturity Profile

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Jul-0

8O

ct-0

8Ja

n-09

Apr

-09

Jul-0

9

Gr. Growth BM

1.11%PAPERLess than 2 years 2 to 7years 7years & above

Page 9: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

SECURITIES HOLDING

GOVERNMENT SECURITIES 7.73%

7.59% GOI 2016 3.10%7.46% GOI 2017 3.06%7.99% GOI 2017 1.58%

CORPORATE DEBT 29.67%

11.95% HDFC LTD 2018 3.61%10.48% GRASIM INDUSTRIES LTD. 2013 3.25%10.05% NABARD 2014 3.22%9% RELIANCE CAPITAL LTD. 2011 3.13%9.8% TATA STEEL LTD. 2011 3.12%8.55% IRFC LTD. 2019 3.01%8.6% POWER FINANCE CORPORATION LTD 2014 3.00%8.6% POWER FINANCE CORPORATION LTD 2019 3.00%8.65% RURAL ELECTRIFICATION CORP LTD 2019 2.99%OTHER CORPORATE DEBT 1.33%

EQUITY 57.46%

RELIANCE INDUSTRIES LTD. 4.73%ICICI BANK LTD. 3.17%INFOSYS TECHNOLOGIES LTD. 2.51%ITC LTD 2.42%

Rating Profile

Asset Allocation

Group Growth AdvantagePortfolio as on 31st July 2009 About the Fund

Objective: The Objective of the fund is to provide blend of fixed return byinvesting in debt & money market instruments and capital appreciation bypredominantly investing in equities of fundamentally strong and large bluechip companies.Strategy: The Strategy of the fund is to build and actively manage a well-diversified equity portfolio of value & growth driven stocks by following aresearch-focused investment approach. While appreciating the high riskassociated with equities, the fund would attempt to maximize the risk-returnpay-off for the long-term advantage of the policyholders. The non-equityportion of the fund will be invested in high rated debt and money marketinstruments and fixed deposits.

AA+ AA

MMI5.14% G-Secs

7.73%

NCD29.67%

Equities57.46%

HOUSING DEVELOPMENT FINANCE COR LTD 2.39%LARSEN & TOUBRO LTD. 2.33%BHARTI AIRTEL LTD. 2.32%

OIL & NATURAL GAS CORPORATION LTD. 2.19%BHARAT HEAVY ELECTRICALS LTD. 2.02%STATE BANK OF INDIA 1.88%OTHER EQUITY 31.51%

MMI 5.14%

Maturity Profile

Sectoral Allocation

23.64%

34.07%42.29%

AA+0.89%

AA8.35%

Sovereign20.67%AAA

70.10%

1 00%

1.09%

1.21%

1.41%

2.12%

2.21%

2.33%

3.72%

4.21%

4.42%

5.73%

5.98%

6.31%

7.13%

7.31%

12.29%

14.69%

16.84%

MEDIA & ENTERTAINMENT

PAPER

CONSUMER NON DURABLES

OTHERS

AUTO

CEMENT

AGRO & FERTILISERS

CONSTRUCTION

PHARMA

METAL

POWER

TELECOM

FMCG

FINANCIAL SERVICES

IT

CAPITAL GOODS

OIL & GAS

BANKING

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09Fe

b-09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Gr. Advantage BM

Less than 2 years 2 to 7years 7years & above

1.00%MEDIA & ENTERTAINMENT

Page 10: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 0.00%

EQUITY 0.00%

MMI 100.00%BAJAJ AUTO FINANCE LTD. 2010 19.73%BIRLA MUTUAL FUND 0.05%CLEARING CORPORATION OF INDIA LTD. 2009 33.30%KOTAK MAHINDRA BANK LTD. 2010 13.15%RELIANCE CAPITAL LTD. 2009 20.59%RELIANCE COMMUNICATIONS LTD 2010 13.21%

-0.03%

Rating Profile

Group - Money Market FundPortfolio as on 31st July 2009

Asset Allocation

About the FundObjective: The primary objective of this BSLI Fund Option is to providereasonable returns, at a high level of safety and liquidity for capitalconservation for the Policyholder

Strategy: The strategy of this BSLI Fund Option is to make judiciousinvestments in high quality debt and money market instruments to protectcapital of the Policyholder with very low level of risk

MMI100.00%

MM BM

Maturity Profile100.00%

Less than 2 years

P1+ / A1+100.00%

Apr

-08

May

-08

Jun-

08Ju

l-08

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09Fe

b-09

Mar

-09

Apr

-09

May

-09

Jun-

09Ju

l-09

Page 11: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 90.97%

5.28% ICICI BANK LTD. 2010 41.65%4.8% HDFC LTD 2011 37.30%11% IDFC LTD. 2010 7.78%9% TATA SONS LTD. 2010 4.24%

EQUITY 0.00%

MMI 9.03%

Group - Floating Rate FundPortfolio as on 31st July 2009

Rating Profile

Asset Allocation

About the FundObjective: The primary objective of the Investment Fund Option is toprovide income consistent with prudent level of risk to achieve capitalconservation for the policyholder.

Strategy: The strategy of the Investment Fund Option is to build aportfolio comprising substantially of floating rate debt instruments, fixedrate debt instruments swapped for floating rate returns and also fixed rateinstruments and money market instruments

MMI9.03%

NCD90.97%

r-08

y-08

n-08

ul-0

8g-

08p-

08ct

-08

v-08

c-08

n-09

b-09 r-09

r-09

y-09

n-09

ul-0

9Gr. Floating BM

Maturity Profile

100.00%

Less than 2 years

AAA100.00%

Ap May Jun

Ju Aug

Sep

Oc

Nov

Dec Ja

nFe

bM

aAp M

ay Jun

Ju

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SECURITIES HOLDING

GOVERNMENT SECURITIES 92.34%

6.07% GOI 2014 34.92%7.59% GOI 2016 25.62%7.44% GOI 2012 22.24%7.46% GOI 2017 4.90%6.25% GOI 2018 2.62%8.15% GOI 2022 1.20%OTHER GOVERNMENT SECURITIES 0.85%

CORPORATE DEBT 0.00%

EQUITY 0.00%

MMI 7.66%

Rating Profile

Group Gilt FundPortfolio as on 31st July 2009

Asset Allocation

About the FundObjective: The fund aims to deliver safe and consistent returns over a long-term period by investing in Government Securities.

Strategy: Active fund management at very low level of risk by having entireexposure to government securities & money marketinstruments, maintaining medium term duration of the portfolio to achievecapital conservation.

MMI7.66%

G-Secs92.34%

Maturity Profile

6.15%

84.13%

9.72%

Less than 2 years 2 to 7years 7years & above

Sovereign100.00%

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SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 90.68%

8.65% RURAL ELECTRIFICATION CORP LTD 2019 5.80%TATA SONS LTD. 2009 4.46%9.15% LARSEN & TOUBRO LTD. 2019 3.90%8.55% INDIAN RAILWAY FINANCE CORPN. LTD. 2019 3.45%11.75% CITIBANK N.A. 2010 3.09%8.9% STEEL AUTHORITY OF INDIA LTD. 2014 2.79%9% RELIANCE CAPITAL LTD. 2011 2.69%9% BAJAJ AUTO FINANCE LTD. 2011 2.48%8.25% MARICO LTD. 2011 2.45%10.48% GRASIM INDUSTRIES LTD. 2013 2.24%OTHER CORPORATE DEBT 57.33%

SECURITISED DEBT 0 35%

Group Bond FundPortfolio as on 31st July 2009

Asset Allocation

Rating Profile

About the FundObjective: The fund aims to achieve capital preservation along withstable returns by investing in corporate bonds over medium-termperiod.

Strategy: The fund follows a strategy to invest in high credit ratedcorporate bonds, maintaining a short-term duration of the portfolio ata medium level of risk to achieve capital conservation.

SECURITISED DEBT.35%

MMI8.97%

NCD90.68%

SECURITISED DEBT 0.35%

CREDIT ASSET TRUST SR LXIV 2009 0.35%

EQUITY 0.00%

MMI 8.97%

Maturity Profile

42.54%

31.95%25.51%

Less than 2 years 2 to 7years 7years & above

P1+ / A1+1.05%

AA7.45%

AA+14.89%

AAA76.61%

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SECURITIES HOLDING

GOVERNMENT SECURITIES 12.01%

5.64% GOI 2019 4.70%7.99% GOI 2017 2.14%7% GOI 2022 1.89%8.35% GOI 2022 1.09%8.24% GOI 2027 1.07%OTHER GOVERNMENT SECURITIES 1.13%

CORPORATE DEBT 83.64%

11.45% RELIANCE INDUSTRIES LTD. 2013 11.67%11.3% ACC LTD 2013 7.01%9.25% POWER GRID CORPORATION LTD. 2012 6.00%5.9% HDFC BANK LTD. 2014 5.60%9% RELIANCE CAPITAL LTD. 2011 5.33%8.7% TATA SONS LTD. 2012 5.29%8.6% POWER FINANCE CORPORATION LIMITED 2014 5.11%11.5% RURAL ELECTRIFICATION CORP LTD 2013 4.56%7.45% TATA CAPITAL LIMITED 2011 4.11%7.45% TATA CAPITAL LIMITED 2011 4.11%OTHER CORPORATE DEBT 24.87%

Group Fixed Interest FundPortfolio as on 31st July 2009

Asset Allocation

Rating Profile

About the FundObjective: The Fixed Interest Fund, with full exposure in debt marketinstrument, aims to achieve value creation at low risk over a long-termhorizon by investing into high quality fixed interest securities.

Strategy: The strategy is to actively manage the fund at a medium level ofrisk by having entire exposure to government securities, corporate bondsmaintaining medium to long-term duration of the portfolio to achievecapital conservation.

AA2.29% Sovereign

12.56%

MMI4.35% G-Secs

12.01%

NCD83.64%

EQUITY 0.00%

MMI 4.35%

Maturity Profile

28.82%

51.36%

19.82%

Less than 2 years 2 to 7years 7years & above

AA+12.98%

AAA72.17%

0.00%

Apr

-04

Jul-0

4O

ct-0

4Ja

n-05

Apr

-05

Jul-0

5O

ct-0

5Ja

n-06

Apr

-06

Jul-0

6O

ct-0

6Ja

n-07

Apr

-07

Jul-0

7O

ct-0

7Ja

n-08

Apr

-08

Jul-0

8O

ct-0

8Ja

n-09

Apr

-09

Jul-0

9

FIF BM

Page 15: INVEST UPDATE July 2009... · INVEST UPDATE July 2009 Equity Market Sensex and Nifty saw a gain during the month of July and both Sensex and Nifty surged by 8.12 percent and 8.05

SECURITIES HOLDING

GOVERNMENT SECURITIES 0.00%

CORPORATE DEBT 86.52%

9.05% IDFC LTD. 2010 16.05%11.45% RURAL ELECTRIFICATION CORP LTD 2010 15.27%9.45% NABARD 2010 10.70%6.84% HDFC LTD 2011 7.88%TATA SONS LTD. 2009 7.64%12.25% POWER GRID CORPORATION LTD. 2010 5.56%12.25% POWER GRID CORPORATION LTD. 2011 5.31%7.3% RURAL ELECTRIFICATION CORP LTD 2011 5.30%8.6% POWER FINANCE CORPORATION LTD 2014 4.31%13% KESORAM INDUSTRIES LTD. 2009 2.64%OTHER CORPORATE DEBT 5.86%

SECURITISED DEBT 0.00%

MMI 13.48%

Group Debt FundPortfolio as on 31st July 2009

Asset Allocation

Rating Profile

About the FundObjective:The objective of the fund is to provide capital preservation at ahigh level of safety & liquidity through judicious investments in high qualityshort‐term debt instruments

Strategy: To actively manage the fund by building a portfolio of fixedincome instruments with short term duration. The fund will invest ingovernment securities, high rated corporate bonds, good quality moneymarket instruments and other fixed income securities. The quality &duration of the assets purchased would aim to minimize the credit risk andliquidity risk of the portfolio. The fund will maintain reasonable level ofliquidity.

MMI13.48%

NCD86.52%

Maturity Profile

88.69%

11.31%

Less than 2 years 2 to 7years

AA+1.80%

AA4.31%

AAA93.89%