The turnaround spotter

Tuesday 30th April, 2019

Article Details
Publication  Mutual Fund Insight
Source  Bureau
CCM  124.11
Edition  National
Supplement   NA
MAV  60,000
Language  English
Page  51
Circulation  15,000

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FUND ANALYST'S CHICE Launch April 2007 Fund manager Taher Badshah, Amit Ganatra REGULAR | DIRECT Expense ratio (%) 2.23 | 0.98 Top five sectors (%) 4.30 782 11.76 Bl 6.31 14.71 11.36 12,05 43,00 3248 Fund S&P BSE 500 Total Retum Index Financial W Energy B Technology W Healthcare " Construction Market capitalisation (%) Small caps 7.66 Large caps 67.97 Mid caps 24.37 Assets 33,256 Cr as on January 31, 2019 Trailing returns (%) B Fund B S&P BSE 500 TRI 1-Year 3-Year 5-Year Recent rally Recent crash Recent rally: Dec 20, 2011 Mar 03, 2015 Recent crash: Mar 04, 2015 ~ Feb 11, 2016 Data as on Feb 28, 19. Portfolio-related data as on Jan 31,'19. INVESCO INDIA CONTRA FUND his fund has sharply improved its rating from three to five stars in the last two years due to its ability to outperform its category by a good margin in the last one year and three years. The fund invests across the market capitalisation range with a contrarian bias. It prefers companies in a turnaround phase, those trading below their intrinsic value and de-rated/under-owned growth companies. Though the fund is contrarian, it is not a value fund. If market conditions do not offer companies trading below intrinsic value, it looks for companies trading below their historic average or peer group. It does not go down the quality curve by compromising on ROE or cash-flow conversion. In the last one year, the large-cap portion has been at 60-70 per cent and mid-cap allocations at 15-25 per cent, with the remaining in small caps. The funds returns are negative in the last one year and about 1 percentage point below the benchmark REGULAR l DIRECT Yok ok ke | ek kokok The turnaround spotter Because of the nature of the funds strategy, many times we are too early to enter into a company or a sector which creates near-term underperformance. Many of our best ideas over a three-year period underperform in the first six months. AMIT GANATRA returns. But the fund has done much better than peers, beating the category average by over 5 percentage points. The three and five-year returns are 1-6 percentage points higher than the benchmark returns and 3-4 percentage points ahead of the category returns. The track record suggests that the fund has been quite successful at containing losses to levels less than the benchmark and category in severe bear markets like 2008 and 2011. It has also capitalised well on bull phases like 2009, 2014 and 2017. A reliable performer for conservative investors. SIP value (3) 9 lakh . X195 jakn 6 lakh 3 lakh 0 e Y s e 5 2l P ;; L= I Mar 2014 310,000 invested monthly for five years X6 lakh) Feb 2019 Fund history Year 2013 2014 2015 2016 2017 2018 2019 (YTD) Rating J % K J ok K khkkAk hkhkkk hhkkk hkhkkhk kkkkk Quartile ranking Fund return (%) 4.67 62.96 4.02 6.72 45.63 -3.24 -3.35 Category retum (%) 4.48 58.52 2.40 6.05 39.60 -8.53 -3.29 S&P BSE 500 (%) 4,93 38.93 0.45 5.15 37.60 -1.80 -2.23 Investment style i o e [ i o 4 Growth Biend Value 2 o g I n - Quartile ranking means the quartile in which the fund appears when all the funds in the category are arranged E %g in a descending order of returns. YTD as on February 28, 19 b = Mutual Fund Insight April 2019 51