Morgan fund sidesteps Tata, Birla, RIL firms

The latest top 25 holdings of Morgan Stanley Growth Fund (MSGF) does not include any Tata, Reliance or Birla group of companies.

The top 25 holdings by market value as on June 30, 2006, represents 77.54 per cent of total portfolio, according to the company's official website.

Also, the half-yearly portfolio for the period ended on March 31, 2006, does not include any of the three companies in their top 25 holdings list.

"This is probably for the first time that MSGF has not included any of the three premium companies of India in its top 25 list since its inception in 1994. Although this does not mean that the companies are not growing. May be their growth did not fit in MSGF's scheme of things," according to an industry expert, who has been watching the company's development.

The total net assets of the top 25 securities is Rs 2,407 crore. "It is rare that of the Rs 2,400 odd crore, there isn't any investment in Tata, Reliance or Birla," he said.

"The criteria for stock selection broadly revolves on superior growth earnings, leadership in respective sector, high management quality and an established track record. We combine this bottom-up approach on our overall macro view on the sector," said Ruchir Sharma, head of emerging markets, Morgan Stanley Investment Management Private Limited (MSIM India).

However, when asked about the exclusion of three top companies, Sharma said, "We would not like to comment on individual companies."

MSGF is a closed end diversified equity scheme, aimed to serve the needs of Indian retail investors, with a focus on long-term capital appreciation.

Morgan Stanley Investment Management Private Limited (MSIM India) is the asset management company for Morgan Stanley Mutual Fund (MSMF). Morgan Stanley Investment Management manages $421 billion in assets for institutional and individual clients around the world.

Morgan Stanley Growth Fund was launched in February 1994, with a duration of 15 years. The top 25 holdings of the fund are updated on a monthly basis.

The top 25 companies as on June 30 includes Bharat Heavy Electricals with net assets of 10.19 per cent of the total amount, Siemens with 6.41 percent, Hindustan Lever with 5.62 per cent, ABB with 5.35 per cent and ITC with 4.96 per cent.

Infosys Tech Ltd has made it to the list with 4.31 per cent of the total net assets, while HDFC Bank, Mahindra and Mahindra, Wipro, Cipla and ACC have earned their position with 4.24 per cent, 2.65 per cent, 2.63 per cent, 2.56 per cent and 2.46 per cent respectively.

Some of the other companies to figure in the list includes HCL Technologies, Aban Loyd Chiles, Punjab National Bank, Aventis Pharma, Marico Industries, Glenmanrk Pharma and Rico Auto. The net value asset of the fund is determined at the close of business on each trading day.

The NAV is calculated in accordance with the following formula: Net Asset Value = Market Value of Scheme's investment + Receivables + Accrued Income + Other Assets "� Accrued Expenses "� Payables "� Other Liabilities, according to the website.