The predominance of government securities and Reliance group companies continues in the US-64 portfolio for August 2000. Government securities take up 16.34 per cent of the portfolio, marginally lower than 17.57 per cent as on June 30, 2000. In absolute terms, the largest fund of the Indian fund industry held gilts worth Rs 3375 crore as on August 31, 2000. While the maturity profile of the fund's G-sec exposure is not known, the fund's investment is likely to have taken a hit as the gilt markets have been on a roller-coaster in the last two months. The fund's total market value of net assets was a whopping 20658.81 crore on August 31, 2000. Incidentally, this is the first monthly disclosure of the portfolio of US-64 and the top ten holdings account for 57 per cent of the total investments or 11,775 crore.
The market value of total investments of US-64 is marginally up by Rs 65 crore from Rs 20593.63 crore to its August 31 level of Rs 20658.81 crore. The larger corpus, despite a 271 point falls in the Sensex between June 30 and August 31 is attributed to fresh inflows into the fund. US-64 had opened for fresh sales and repurchase for financial year 2001 in July at a price of Rs 13.50 per unit.
While government securities continue to be the top holding of the fund, US-64 also continues to hold a sizeable chunk of investments in Reliance Industries and Reliance Petroleum. Both the companies account for 18.66 per cent or a whopping 3900 crore of the fund's investments. Alternatively, the fund holds roughly 7.5 per cent of Reliance Industries' equity capital of Rs 1053 crore (as on March 31, 2000) while it has a stake of nearly 5.8 per cent in Reliance Petroleum's massive equity base of 4299 crore. In fact, the weightage of the Reliance twins has gone up since June 30, 2000 when the fund held 11.34 per cent and 4.26 per cent in Reliance Industries and Reliance Petroleum, respectively.
The fund's investment in the volatile technology counters has seen a marginal drop since June levels. Still, the fund holds its largest chunk of equity investments in technology stocks, which account for 19.29 per cent or roughly Rs 4000 crore on August 31, 2000. Himachal Futuristic and Infosys Technologies continue to be the top ICE sector holdings while the fund has added Information Technologies and Mastek to its portfolio.
Financial institutions and banks also form a formidable part of the portfolio with stocks of ICICI, SBI, HDFC and ICICI Bank accounting for 6 per cent of the portfolio while the two stocks from the FMCG sector - ITC and HLL - have a combined weight of 6.58 per cent.