Mumbai, Feb 24: Sun F&C Value Fund, an open-ended equity fund from Sun F&C AMC, has given a return of 67.74 per cent for the period ended December 31, 1997 to February 18, 1999. The net asset value (NAV) of the fund has rose to touch Rs 16.02 as on February 18 from Rs 9.55 as on December 31, 1997.The fund has outperformed the BSE Sensex by 76.18 per cent during the same period with the Sensex dropping by 8.44 per cent to close at 3,351.05 as on February 18 from 3,659.98 levels as on December 31, 1997. During the same period, the BSE 200 also dropped by 3.06 per cent from 354.45 to 343.57.A prescriber to the concept of `value investing', the fund was one of the first to make investments in the information technology sector and has seen the boom in the sector since the beginning. ``The technology revolution is there to stay for an extended period of time. First, there was the industrial revolution, then the manufacturing revolution (which we have all missed), and now the information technology revolution,which we are not going to miss,'' said the chief investment officer of Sun F&C Mutual Fund, Gul Teckchandani.
``Apart from FMCG and the pharmaceutical sector, the highest growth is in the information technology sector, with everything in the future: process control, cost cutting, production control, anything and everything, to be determined by technology, which makes it the sector to be in. Prices and valuations can always be argued upon but it should be the capacity for growth which should be the determining force,'' said Gul Teckchandani. The software sector commands the highest asset allocation at 40 per cent of the portfolio as on December 31, 1998 up from 18 per cent in the corresponding period previous year. The exposure to pharmaceutical has also come upto 17 per cent of the portfolio from 12 per cent previous year.
The software investments are Aptech, Maars Software, NIIT, Pentafour Software, Satyam Computers, Software Soluitons and Tata Elxi. Investments in pharmaceuticals consist of BurroughsWellcome, E Merck, German Remedies, Hoechst Marion, Knoll Pharma, Smithkline Pharma and Sun pharmaceuticals, among other stocks.
The chief executive officer of Sun F&C Asset Management Ltd, Nikhil Khattau said: ``The vision underlying Sun F&C Mutual Fund is to create a premier mutual fund business in India through an uncompromising focus on quality in all aspects of this business. This would be through an unrelenting focus on quality in all aspects of product innovation, investment management and investment execution.''
The AMC has launched a new income scheme, Sun F&C Money Value Fund, this fiscal. The fund is now managing three schemes.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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