26 Apr, 2019

ACEPRO – Large Cap Strategy – Quarterly Review

About the Fund

It is pure large cap fund where fund manager’s investible basket is the NIFTY 50 companies only. The objective of the fund is to outperform the benchmark (NIFTY 50) without increasing the underlying risk.

Quarterly Performance

On performance attribution analysis in fourth quarter of FY19, largecap strategy has outperformed the benchmark (NIFTY 50) return by 3.2%. Largecap strategy has delivered the absolute return of 10.2% in Q4FY19 against the benchmark (NIFTY 50) return of 7%. On the basis of risk attribution analysis, the outperofrmance came with the portfolio beta of just 1.06. So, the additional return on the portfolio was not because of the additional risk but due to the right selection & right allocation.

Top Performers of Q4FY19:               

Company Return
Yes Bank Ltd. 51.3%
Axis Bank Ltd. 25.4%
Titan Company Ltd. 22.6%
Reliance Industries Ltd. 21.6%

Top Losers of Q4FY19:

Company Return
Mahindra & Mahindra Ltd. -16.2%
Eicher Motors Ltd. -11.3%
Maruti Suzuki India Ltd. -10.6%
Vedanta Ltd. -8.8%

Top 5 Company Holdings as on 31-Mar-19:

Company Weight
Reliance Industries Ltd. 12.1%
HDFC Bank Ltd. 11.9%
ICICI Bank Ltd. 7.1%
Tata Consultancy Services Ltd. 6.7%
Infosys Ltd. 6.1%

Top 5 Sector Holdings as on 31-Mar-19:

Sectors Weight
Finance 41.00%
Oil & Gas 15.20%
Information Technology 12.90%
Infrastructure 7.30%
Auto 5.60%

Index Updates

Hindustan Petroleum Corporation Ltd (HPCL) has moved out of NIFTY 50 on 31st March 2019. Britannia Industries Ltd. has been included in the NIFTY 50 index.

Outlook

The first quarter of FY20 will remain very volatile due to domestic political event. Our strategy will be to book profits where internal targets are met and continue to keep high cash in the portfolio.

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