GIC Fortune '94 is an equity growth fund. Fortune '94 was the first open-end equity fund from a publ
05-May-1999 •Research Desk
GIC Fortune '94 is an equity growth fund. Fortune '94 was the first open-end equity fund from a public sector fund. The fund has been an absolute non-performer. Except for few days in 1996, the fund has never been above its face value. Launched in December 94, the fund invested in small and mid-cap stocks resulting in significant value erosion. This was followed by a massive portfolio restructuring, which also could not improve the performance. As on March 31, 1998 the portfolio was spread over 80 stocks, of which the top ten stocks account for 35% of the net assets while top twenty account for 54%. This has made the fund more volatile. Besides, the portfolio's non-performance the fund follows a faulty historic pricing providing opportunity to short-term investors to benefit at the cost of long-term investors of the fund. In view of the sustained non-performance and faulty pricing followed, investors in the fund should immediately exit.