Market Update - Equity. Market Update - Derivatives. From The Debt Desk. Monthly Market Update by JM Financial Mutual Fund

Transcription

1 Monthly Market Update by JM Financial Mutual Fund Details as on December 31, 2012 Market Update - Equity Economy The IIP for Oct came as a positive surprise to the street at 8.2% v/s. consensus expectations of 5.1%. This was driven by a strong base effect in the index as well as the festive season sales. Nov WPI reading also led to a positive surprise when it came at 7.2% v/s. consensus expectations of 7.6%. However disappointingly, the Sep data was revised up from 7.8% to 8.1%. The bigger surprise was the easing in core inflation from 5.2% to 4.5%. Meanwhile, Nov CPI once again remained elevated at 9.9% v/s. 9.75% last month even as the core CPI came slightly lower at 8.1% v/s. 8.2% last month. In its Dec policy meet, the RBI expectedly left the benchmark repo rate unchanged again, but somewhat surprised the market by leaving the CRR unchanged too, citing the on-going Open Market Operations (OMOs) as sufficient liquidity measures. The mkts, however, took this decision in their stride in light of the dovish stance reiterated by the RBI in its guidance of monetary policy easing in the Jan-Mar quarter and needing to increasingly shift the policy stance towards growth. STOCK MarkeT Indian Markets consolidated in Dec, 2012(Nifty up 0.4% in Dec). For 2012, Nifty gave 28% YTD, In comparison, the S&P returned 13.4% and the HSI 23%, in CY 12. Indian macro data points in terms of growth and inflation both saw a notable improvement in Dec, the RBI continued to keep rates unchanged a trend that could change in Second half of the year saw fund raising both by the government as well as the promoters. This was the primary reason which capped the Nifty on the upside in Dec, A fruitful Winter session of Parliament and the progress on the reforms front was encouraging on the political side, with all eyes now shifting to the pre-election year budget in March. With the US Fiscal Cliff close to resolution and holidays coming to a close, markets are looking forward to the new year with optimism. Market Update - Derivatives The December expiry level of the Nifty index was around 0.7% higher than that of the November level. Market-wide rollovers on the final day stood at ~75% which was slightly lower than 77% rollovers seen on the last day of the November series. The January series may start with market wide future Open Interest of ~INR 459bn as against ~INR 446bn seen at the start of the December expiry. Roll cost remained at elevated levels for most part of the expiry week except the expiry day. Nifty rollover on the last day stood at ~62% which was less than ~72% rollovers seen in the last expiry. Infrastructure (84%) & Technology (81%) stocks saw higher rollover activity in this expiry as compared to their three-month average whereas rolls in Consumer (77%) names lagged the average. Overall rolls were at 73%, in line with the three-month average. Volatility in the markets is expected to help churn the arbitrage portfolio and generate better returns. Source: Bloomberg and JM AMC Research From The Debt Desk Key data and events December Monetary Policy: Mid-Quarter Monetary Policy remained unchanged by the RBI in anticipation of higher inflation in next two months, though the decline in core inflation has also been comforting. These emerging patterns reinforce the likelihood of steady moderation in inflation going into FY WPI Inflation: The provisional inflation for the month of November, 2012 was 7.24% as against the 7.45% in the month of Oct, IIP: The provisional Index of Industrial Production (IIP) for the month of Oct, 2012 was at 8.2% as against revised IIP of -0.7% in the month of Sept, Forex reserves: The Forex Reserves as on Dec, 2012 was at USD billion as against USD billion as on Nov, Domestic Liquidity: Liquidity remained tight as RBI received average daily bids of around INR crores during the month in the daily LAF repo auction. Fixed Income and Currency data: Indian 10 year government bond: Government bond yield ended lower by 13bps at 8.05% as against previous month on rate cut expectations and continuation of open market operations. Indian 5 year corporate Bond yield ended lower on back of fall in government bond yields. 5-year AAA bond yield ended at 8.87%. 3 Month Certificate of Deposit ended higher at 8.55% in view of tight liquidity and quarter end supply. 12 Month Certificate of Deposit ended higher at 8.80% in view of tight liquidity and quarter end supply. USD/INR: The local currency appreciated by about 1% to end the month of December at as against the US dollar on improvement in global risk aversion. Global data: 10 year US bond yield ended Higher at 1.76% as compared to 1.62% in the previous month. Brent Crude ended flat at $ per barrel as against $ Source: RBI WSS & Bloomberg 2

2 JM Equity Fund (An Open-Ended ) ASSET allocation by sector : To provide optimum capital growth and appreciation. : Sanjay Chhabaria ( M a n a g i n g t h i s f u n d s i n ce December, 2007 & more than 12 yrs of experience in fund management & equity research) : 1st April, 1995 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) Turnover Ratio : Issuer : Qtly - AAUM (Rs.) : Crores % to NAV ICICI Bank 8.57 Housing Development Finance 7.98 ITC 7.85 Reliance Industries 7.53 Larsen & Toubro 7.44 HDFC Bank 6.81 Tata Motors 5.15 Grasim Industries 4.79 Maruti Udyog 4.31 Infosys 4.23 Tata Consultancy Service 3.52 LIC Housing Finance 3.47 Bharti Airtel 3.19 Mahindra & Mahindra 3.10 Bajaj 2.69 Associated Cement Companies 2.63 State Bank Of India 2.28 Tata Iron & Steel 2.25 Punjab National Bank 2.25 Bharat Heavy Electricals 2.20 Dr. Reddy's Lab Equity less than 2% of corpus 5.35 Total Equity Holdings Banks Finance Consumer Non Durable Software Petroleum Products Construction Project Cement Telecom-Services Industrial Capital Goods Ferrous Metals Pharmaceuticals Non Ferrous Metals Mineral/Mining Power Total Equity: 99.59% 1.09% 0.01% 0.01% 2.25% 2.00% 3.19% 3.15% 7.75% 7.53% 7.44% 7.42% 9.66% 12.93% 15.24% 19.91% RISK REPORT Name Beta Sharpe Std. Dev. JM Equity Fund - Option 1.08 (0.28) Source: Mutual Funds India Explorer Note: Standard Deviation & Sharpe are calculated on Annualised basis using 3 years history of monthly returns (using daily frequency). Risk Free rate assumed to be 8.15% (91 day Treasury Bill yield as on Dec 31, 2012) for calculation of Sharpe Ratio. JM Basic Fund (An Open-Ended Sector ) : To provide capital appreciation to its Unitholders through judicious deployment of the corpus of the in sectors categorized under basic industry in the normal parlance and in context of the Indian economy, including but not limited to, energy, petrochemicals, oil & gas, power generation & distribution and electrical equipment suppliers, metals and building material. The fund would continue to remain open-ended with a sector focus. : Asit Bhandarkar (Managing this fund since December, 2006 & total 9 yrs of experience in fund management & equity research). : 2nd June, 1997 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) Turnover Ratio : Qtly - AAUM (Rs.) : Crores : Issuer % to NAV Larsen & Toubro 8.01 Tata Motors 7.94 ICICI Bank 7.68 Housing Development Finance 6.70 HDFC Bank 4.08 L&T Finance Holdings 3.66 Associated Cement Companies 3.66 JSW Steel 3.52 State Bank Of India 3.39 Thermax 3.25 LIC Housing Finance 3.20 Mahindra & Mahindra 3.15 Maruti Udyog 3.12 Mahindra & Mahindra Financial Services 3.08 Jai Prakash Associates 2.94 Bajaj 2.94 Infrastructure Development Finance Company 2.93 AXIS Bank 2.86 Crompton Greaves 2.82 Bharti Airtel 2.65 Power Finance Corporation 2.57 Exide Industries 2.49 Cairn India 2.29 Bharat Heavy Electricals 2.16 Equity less than 2% of corpus 8.83 Total Equity Holdings ASSET allocation by sector Finance Banks Industrial Capital Goods Construction Project Ferrous Metals Construction Cement Telecom-Services Ancillaries Oil Non Ferrous Metals Petroleum Products Pharmaceuticals Industrial Products Total Equity: 99.92% 1.07% 0.27% 2.29% 1.52% 1.35% 2.65% 2.49% 5.03% 4.84% 3.65% 8.01% 9.45% 18.01% 17.14% 22.14% Details as on December 31, 2012 RISK REPORT Name Beta Sharpe Std. Dev. JM Basic Fund - Option 1.27 (0.54) Source: Mutual Funds India Explorer Note: Standard Deviation & Sharpe are calculated on Annualised basis using 3 years history of monthly returns (using daily frequency). Risk Free rate assumed to be 8.15% (91 day Treasury Bill yield as on Dec 31, 2012) for calculation of Sharpe Ratio. JM Multi Strategy Fund (An Open-Ended Equity Oriented ) : To provide capital appreciation by investing in equity and equity related securities using a combination of strategies. : Sanjay Chhabaria (Managing this fund since February, 2009 & more than 12 years of experience in fund management & equity research). : 23rd September, 2008 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) Turnover Ratio : Qtly - AAUM (Rs.) : Crores : Issuer % to NAV ICICI Bank $ Larsen & Toubro 9.26 Housing Development Finance 8.58 Mahindra & Mahindra Financial Services 4.94 Tata Motors 4.90 Maruti Udyog 4.85 HDFC Bank 4.15 Infrastructure Development Finance Company 3.88 Associated Cement Companies 3.80 Bajaj 3.65 Eicher Motors 3.46 LIC Housing Finance 3.27 State Bank Of India 3.06 Punjab National Bank 2.95 Reliance Industries 2.94 Infosys 2.76 Mahindra & Mahindra 2.62 Bharat Heavy Electricals 2.45 Dr Reddy's Lab 2.10 Bharti Airtel 2.08 L&T Finance Holdings 2.06 Equity less than 2% of corpus Total Equity Holdings $ increase over 10% on account of market movements/change in net assets of the scheme. 3

3 ASSET allocation by sector 4 Finance Banks Construction Project Cement Industrial Capital Goods Petroleum Products Pharmaceuticals Software Telecom-Services Non Ferrous Metals Ancillaries Consumer Non Durable Ferrous Metals Construction Total Equity: 99.63% RISK REPORT Name Beta Sharpe Std. Dev. JM Multi Strategy Fund (0.41) Option Source: Mutual Funds India Explorer Note: Standard Deviation & Sharpe are calculated on Annualised basis using 3 years history of monthly returns (using daily frequency). Risk Free rate assumed to be 8.15% (91 day Treasury Bill yield as on Dec 31, 2012) for calculation of Sharpe Ratio. JM Tax Gain Fund (An Open-Ended Equity Linked Savings ) : To generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities and to enable investors a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. However, there can be no assurance that the objective of the scheme will be achieved. : Sanjay Chhabaria: (Managing this fund since October 2010 & more than 12 yrs of experience in fund management & equity research). : 31st March, 2008 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) Turnover Ratio 2.08% 1.99% 1.97% 1.54% 1.52% 1.48% 3.12% 2.94% 2.77% 2.76% 5.57% 9.26% 20.41% 19.48% : Qtly - AAUM (Rs.) : Crores : % Issuer % to NAV ICICI Bank 9.13 Housing Development Finance 8.32 Eicher Motors 7.96 Larsen & Toubro 7.20 HDFC Bank 6.91 Grasim Industries 5.69 Mahindra & Mahindra Financial Services 5.17 Maruti Udyog 5.08 Divi'S Laboratories 4.22 Tata Motors 4.13 Mahindra & Mahindra 4.01 Crompton Greaves 3.98 Thermax 3.49 Bajaj 3.41 Infrastructure Development Finance Company 3.20 Tata Consultancy Service 3.12 Associated Cement Companies 2.97 Jai Prakash Associates 2.92 Sundaram Finance 2.91 SKF India 2.73 JSW Steel 2.17 Equity less than 2% of corpus 1.06 Total Equity Holdings ASSET allocation by sector Finance Banks Cement Industrial Capital Goods Construction Project Pharmaceuticals Software Construction Industrial Products Ferrous Metals Consumer Non Durable Total Equity: 99.78% RISK REPORT Name Beta Sharpe Std. Dev. JM Tax Gain Fund - Option 1.05 (0.31) Source: Mutual Funds India Explorer Note: Standard Deviation & Sharpe are calculated on Annualised basis using 3 years history of monthly returns (using daily frequency). Risk Free rate assumed to be 8.15% (91 day Treasury Bill yield as on Dec 31, 2012) for calculation of Sharpe Ratio. JM Balanced Fund (An Open-Ended Balanced ) : To provide steady current income as well as long term growth of capital. : Sanjay Chhabaria (Managing this fund since February, 2008 & more than 12 years of experience in fund management & equity research). : 1st April, 1995 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) : Qtly - AAUM (Rs.) : 7.55 Crores Turnover : Ratio 1.06% 2.92% 2.73% 2.17% 4.22% 3.12% 7.47% 7.20% 8.66% 16.04% 19.59% 24.60% Issuer % to NAV ICICI Bank 8.44 Eicher Motors 8.13 Larsen & Toubro 8.09 Associated Cement Companies 7.73 Maruti Udyog 6.37 HDFC Bank 5.54 Mahindra & Mahindra Financial Services 5.46 Housing Development Finance 5.13 State Bank Of India 4.50 Punjab National Bank 4.30 Sun Pharmaceuticals Industries 3.84 ITC 3.77 Thermax 3.33 Equity less than 2% of corpus 0.04 Total Equity Holdings Details as on December 31, 2012 ASSET allocation by sector Banks Finance Construction Project Cement Pharmaceuticals Consumer Non Durable Industrial Capital Goods Petroleum Products Total Equity: 74.67% JM Core 11 Fund (An Open-Ended equity oriented scheme) : To provide long-term growth by i nve s t i n g p re d o m i n a ntly i n a concentrated portfolio of equity / equity related instruments : Asit Bhandarkar (Managing this fund since February, 2009 & total 9 yrs of experience in fund management & equity research). : 5th March, 2008 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) Turnover Ratio : Qtly - AAUM (Rs.) : Crores : Issuer % to NAV Tata Iron & Steel 9.63 Tata Motors 9.52 Bajaj 9.29 Power Finance Corporation 9.22 Maruti Udyog 9.20 Infrastructure Development Finance Company 9.09 ICICI Bank 9.00 Larsen & Toubro 8.98 Yes Bank 8.72 Mahindra Satyam 8.49 Dr. Reddy's Lab 8.12 Total Equity Holdings ASSET allocation by sector Finance Banks Ferrous Metals Construction Project Software Pharmaceuticals Total Equity: 99.26% 14.50% 10.59% 8.09% 7.73% 3.84% 3.77% 3.33% 0.04% 9.63% 8.98% 8.49% 8.12% 18.31% 17.72% 22.78% 28.01%

4 RISK REPORT Name Beta Sharpe Std. Dev. JM Core 11 Fund - Option 1.41 (0.21) Source: Mutual Funds India Explorer Note: Standard Deviation & Sharpe are calculated on Annualised basis using 3 years history of monthly returns (using daily frequency). Risk Free rate assumed to be 8.15% (91 day Treasury Bill yield as on Dec 31, 2012) for calculation of Sharpe Ratio. JM MIP Fund (An Open-Ended Monthly Income Fund with no assured return. Monthly Income is not assured and is subject to the availability of the distributable surplus.) : To generate regular income, primarily through s in fixed income securities so as to make monthly, quarterly and annual dividend distribution, declare bonus in the growth option. The Fund would also aim to achieve capital appreciation through investing a portion of its assets in equity and equity related securities. : Shalini Tibrewala (Managing this fund since September, 2003 & over 14 years of experience in fund management & financial services sector). : 18th September, 2003 NAV DETAILS : Option (Rs.) : Option - Monthly (Rs.): Option - Quarterly (Rs.): Option - Annual (Rs.): CORPUS (Oct 12 - : Qtly - AAUM (Rs.) : 5.49 Crores Dec 12) Associated Cement Companies 3.87 HDFC Bank 4.82 Larsen & Toubro 5.17 Total Equity Holdings Money Market Instruments Commercial Paper Religare Finvest ICRA A1+ Tata Teleservices CARE A1+ Corporate Debt 3.21 Britannia Industries 3.21 CRISIL AAA Total Debt Holdings ASSET allocation by sector Money Market Instruments Larsen & Toubro HDFC Bank Associated Cement Companies Corporate Debt 5.17% 4.82% 3.86% 3.21% 37.16% 45.77% Kindly Refer Page No. 10 statistics Current Yield 9.45% Duration years Average Maturity years JM Arbitrage Advantage Fund (An Open-Ended Equity Oriented Interval ) : To generate income through arbitrage opportunities emerging out of mispricing between the cash market and the derivatives market and through deployment of surplus cash in fixed income instruments. : Chaitanya Choksi (Managing this fund since Feb 1, 2011 and has around 10 years of work experience in the field of equity research and capital markets.) : 18th July, 2006 NAV DETAILS : Option (Rs.) : Option (Rs.) : CORPUS (Oct 12 - Dec 12) : Qtly - AAUM (Rs.) : Crores Turnover : Ratio Issuer Market Value (Rs. In Lacs) % to NAV Market Value (Rs. In Lacs) Futures Banks (290.90) Indian Overseas Bank Indian Overseas Bank - Futures (17.31) Karnataka Bank Karnataka Bank - Futures (20.33) Punjab National Bank Punjab National Bank - Futures (202.22) UCO Bank UCO Bank - Futures (51.04) Cement (176.21) Grasim Industries Grasim Industries - Futures (176.21) Consumer Non Durable (64.70) Tata Tea Tata Tea - Futures (64.70) Finance (150.90) Housing Development Finance Housing Development Finance (66.96) - Futures IFCI IFCI - Futures (83.95) Gas (35.23) Indraprastha Gas Indraprastha Gas - Futures (35.23) Hotels (22.91) Indian Hotels Co Indian Hotels Co - Futures (22.91) Pesticides (157.50) United Phosphorous United Phosphorous - Futures (157.50) Power (192.76) Details as on December 31, 2012 National Hydroelec Power Corporation National Hydroelec Power (139.05) Corporation - Futures PTC India PTC India - Futures (53.71) Retailing (207.72) Pantaloon Retail (India) Pantaloon Retail (India) - (207.72) Futures Software (49.81) I-Flex Solutions I-Flex Solutions - Futures (49.81) Total Equity Holdings ( ) Fixed Deposit HDFC Bank Yes Bank Total Debt Holdings Total Assets Note: Nifty Futures that are sold is a complete hedge against the purchase of Nifty Basket. ASSET allocation by sector Banks Retailing Power Cement Pesticides Finance Consumer Non Durable Software Gas Hotels Total Equity: 68.85% 1.80% 1.17% 2.55% 3.30% 8.06% 7.7% 9.82% 8.99% 10.61% 14.85% Although classified under Equity category, Risk ratios are not calculated for JM Arbitrage Advantage Fund as the scheme is benchmarked to CLFI. 5

5 JM High Liquidity Fund (An Open - Ended Liquid ) Fund Manager 6 : To provide income by way of dividend (dividend plans) and capital gains (growth plan) through investing in debt and money market instruments. : Shalini Tibrewala (Managing this fund since December, 1997 & over 14 years of experience in fund management & financial services sector). : Option: 31st December, 1997 Weekly Option: 31st December, 1997 Daily Option: 2nd July, 2001 Quarterly Option.: 23rd Sept, 2003 Bonus Option: 17th August, 2002 Institutional Plan - : 4th April, 2003 Institutional Plan - WDO: 4th April, 2003 Institutional Plan - DDO: 28th July, 2003 Super Institutional Plan - :19th May, Super Institutional Plan - DDO:19th May, Super Institutional Plan - WDO: 19th May, NAV DETAILS : Option (Rs.): Weekly Option (Rs.): Daily Option (Rs.): Bonus Option (Rs.): Quarterly Option (Rs.): Institutional Plan Option (Rs.): Weekly Option (Rs.): Daily Option (Rs.): Super Institutional Plan Option (Rs.): Weekly Option (Rs.): Daily Option (Rs.): CORPUS (Oct 12 - Dec 12) : Qtly - AAUM (Rs.) : Crores Money Market Instruments Certificate of Deposits Allahabad Bank 5.05 ICRA A1+ Bank of Maharashtra 9.54 CRISIL A1+ Canara Bank 2.79 CRISIL A1+ Central Bank of India 5.09 CARE A1+ Corporation Bank 0.57 CRISIL A1+ ICICI Bank 0.56 ICRA A1+ IDBI Bank 2.25 CRISIL A1+ Indian Bank 2.70 IND A1+ Indusind Bank 2.25 CRISIL A1+ ING Vysya Bank 2.23 CRISIL A1+ Kotak Mahindra Bank CRISIL A1+ Oriental Bank of Commerce 2.24 CRISIL A1+ Punjab National Bank 4.47 CARE A1+ South Indian Bank 0.11 CARE A1+ State Bank of Patiala 5.07 ICRA A1+ State Bank of Travancore 1.12 CRISIL A1+ Union Bank of India 2.25 CRISIL A1+ Commercial Paper Alkem Laboratories 2.24 CRISIL A1+ Blue Star 1.24 CARE A1+ Century Textiles 3.38 CARE A1+ Godrej Agrovet 1.12 ICRA A1+ HCL Infosystems 1.12 ICRA A1+ India Infoline Finance 2.25 ICRA A1+ Indian Oil Corporation 5.06 ICRA A1+ Jindal Power 1.12 CARE A1+ Jindal Saw 1.12 CARE A1+ Jindal Steel & Power 3.38 ICRA A1+ L & T Finance 0.56 CARE A1+ Orient Paper & Industries 0.56 ICRA A1+ Piramal Enterprises 2.24 ICRA A1+ Reliance Capital 1.12 CRISIL A1+ Religare Finvest 3.36 ICRA A1+ SML Isuzu 0.33 ICRA A1+ Srei Equipment Finance 2.23 ICRA A1+ Tata Teleservices 0.55 CARE A1+ Vardhman Textiles 4.03 CRISIL A1+ Treasury Bills Days T-Bill 0.09 GOI SOV Total Debt Holdings ASSET allocation Money Market Instruments Treasury Bills Kindly Refer Page No. 10 statistics Current Yield 8.62% Duration years Average Maturity years JM Money Manager Fund - Regular Plan (An Open - Ended Debt ) : To generate stable long term returns with low risk strategy and capital appreciation/accretion through s in debt instruments and related securities besides preservation of capital. : Vikas Agrawal (Managing this fund since July, 2011 & has total 9 years of experience in fixed income market). : Regular Plan - : 27th Sept, 2006 Regular Plan - DDO: 27th Sept, 2006 Regular Plan - WDO: 26th July, 2007 Regular Plan - FDO: 26th Sept, 2008 NAV DETAILS : Regular Plan - Option (Rs.) : Daily Option (Rs.) : Weekly Option (Rs.) : Fortnightly Option (Rs.) : CORPUS (Oct 12 - Dec 12) 0.09% 2.65% : Qtly - AAUM (Rs.) : Crores 97.26% Money Market Instruments Certificate of Deposits Bank of India CRISIL A1+ Punjab National Bank CARE A1+ Commercial Paper Blue Star CARE A1+ India Infoline Finance ICRA A1+ Jindal Steel & Power ICRA A1+ ASSET allocation Kindly Refer Page No. 10 Details as on December 31, 2012 RHC Holding ICRA A1+ (SO) Tata Teleservices CARE A1+ Total Debt Holdings Money Market Instruments statistics Current Yield 9.47% Duration years Average Maturity years JM Money Manager Fund - Super Plan (An Open - Ended Debt ) 3.35% 96.65% : To generate stable long term returns with low risk strategy and capital appreciation/ accretion through s in debt instruments and related securities besides preservation of capital. : Vikas Agrawal (Managing this fund since July, 2011 & has total 9 years of experience in fixed income market). : Super Plan - : 27th Sept, 2006 Super Plan - DDO: 27th Sept, 2006 Super Plan - WDO: 12th October, 2007 Super Plan - FDO: 2nd April, 2008 NAV DETAILS : Super Plan Option (Rs.) : Daily Option (Rs.) : Weekly Option (Rs.) : Fortnightly Option (Rs.) : CORPUS : Qtly - AAUM (Rs.) : Crores (Oct 12 - Dec 12) Money Market Instruments Certificate of Deposits AXIS Bank CRISIL A1+ Canara Bank CRISIL A1+ Indusind Bank CRISIL A1+ Oriental Bank of Commerce CRISIL A1+ Commercial Paper Cholamandalam & Finance 7.10 ICRA A1+ India Infoline Finance ICRA A1+ Indian Oil Corporation ICRA A1+ RHC Holding ICRA A1+ (SO) Tata Teleservices CARE A1+ Total Debt Holdings

6 ASSET allocation Money Market Instruments Kindly Refer Page No. 10 statistics Current Yield 9.16% Duration years Average Maturity years JM Money Manager Fund - Super Plus Plan (An Open - Ended Debt ) 4.38% 95.62% : To generate stable long term returns with low risk strategy and capital appreciation/ accretion through s in debt instruments and related securities besides preservation of capital. : Shalini Tibrewala (Managing this fund since September, 2006 & has over 14 years of experience in fund management & financial services sector). : Super Plus Plan - : 27th Sept, 2006 Super Plus Plan - DDO: 27th Sept, 2006 Super Plus Plan - WDO: 16th July, 2007 Super Plus Plan - FDO: 12th July, 2007 NAV DETAILS : Super Plus Plan - Option (Rs.) : Daily Option (Rs.) : Weekly Option (Rs.) : Fortnightly Option (Rs.) : CORPUS (Oct 12 - : Qtly - AAUM (Rs.) : Crores Dec 12) Money Market Instruments Certificate of Deposits Allahabad Bank ICRA A1+ Andhra Bank CARE A1+ ICICI Bank 8.07 ICRA A1+ South Indian Bank 4.85 CARE A1+ The Ratnakar Bank 5.42 ICRA A1+ Commercial Paper Century Textiles & Industries 5.40 CARE A1+ India Infoline Finance ICRA A1+ Religare Finvest ICRA A1+ RHC Holding 5.37 ICRA A1+ (SO) Tata Teleservices CARE A1+ Corporate Debt 1.43 ICICI Bank 0.34 CARE AAA Rural Electrification Corporation 1.09 CRISIL AAA Treasury Bills Days T-Bill 0.22 GOI SOV Total Debt Holdings ASSET allocation Money Market Instruments Corporate Debt Treasury Bills Kindly Refer Page No. 10 statistics Current Yield 9.23% Duration years Average Maturity years JM Floater Long Term Fund (An Open-Ended Income ) (w.e.f. December 28, 2012, the name has been changed from JM Floater Fund - Long Term Plan) : To provide regular income and capital appreciation through in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns and also fixed rate instruments and money market instruments. : Shalini Tibrewala (Managing this fund since March, 2006 & has over 14 years of experience in fund management & financial services sector). : : 25th June, 2003 : 25th June, 2003 Daily Option: 22nd May, 2007 Weekly Option: 22nd May, 2007 Premium Plan - : 13th October, 2004 Premium Plan - : 13th October, 2004 Premium Plan - DDO: 15th May, 2007 Premium Plan - WDO: 18th May, 2007 NAV DETAILS : Option (Rs.): Option (Rs.): Daily Option (Rs.): Wkly Option (Rs.): CORPUS (Oct 12 - Dec 12) ASSET allocation Premium Plan - Option (Rs.): Option (Rs.): Daily Option (Rs.): Wkly Option (Rs.): : Qtly - AAUM (Rs.) : 0.42 Crores % 0.22% 2.80% % 95.56% Kindly Refer Page No. 10 Details as on December 31, 2012 statistics Current Yield 8.84% Duration years Average Maturity years JM Floater Short Term Fund (An Open-Ended Liquid ) (w.e.f. December 28, 2012, the name has been changed from JM Floater Fund - Short Term Plan) : 25th June, 2003 NAV DETAILS CORPUS (Oct 12 - Dec 12) : To provide regular income and capital appreciation through in floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns and also fixed rate instruments and money market instruments. : Shalini Tibrewala (Managing this fund since September, 2006 & over 14 years of experience in fund management & financial services sector). : Floater Short Term Fund Option (Rs.) : Daily Option (Rs.) : : Qtly - AAUM (Rs.) : 1.73 Crores ASSET allocation Kindly Refer Page No % statistics Current Yield 8.84% Duration Years Avg. Maturity Years 7

7 JM Short Term Fund (An Open-Ended Income ) : To generate regular returns and high level of liquidity with low risk strategy and capital appreciation / accretion through in debt instruments and related securities besides preservation of capital. : Girish Hisaria (Managing this fund since July 2009 & has total 7 years of experience in Fixed Income Markets). : Regular Plan - : 24th June, 2002 Regular Plan - : 24th June, 2002 Regular Plan - DDO: 31st March, 2011 : 4th April, 2003 : 4th April, 2003 Daily Option: 6th April, 2011 NAV DETAILS : option (Rs.): option (Rs.): Daily option (Rs.): Regular Plan - option (Rs.): option (Rs.): Daily option (Rs.): CORPUS (Oct 12 - Dec 12) ASSET allocation : Qtly - AAUM (Rs.) : Crores Money Market Instruments Certificate of Deposits Bank of Baroda ICRA A1+ Oriental Bank of Commerce CRISIL A1+ Syndicate Bank CARE A1+ Commercial Paper Cholamandalam & Finance 4.07 ICRA A1+ India Infoline Finance ICRA A1+ Power Finance Corporation CRISIL A1+ Government Securities % GOI GOI SOV 8.97% GOI GOI SOV Corporate Debt Hindalco Industries 2.30 CRISIL AA+ Power Finance Corporation 2.27 CRISIL AAA Reliance Gas Transportation & Infrastructure 2.32 CRISIL AAA Rural Electrification Corporation 6.82 CRISIL AAA Rural Electrification Corporation 4.57 CRISIL AAA Shriram Transport Finance Company 2.28 CARE AA+ Bajaj Finance 4.55 ICRA AA+ Rural Electrification Corporation 1.84 CRISIL AAA Sundaram BNP Paribas Home Finance 4.54 CARE AA+ Treasury Bills Days T-Bill 0.91 GOI SOV Total Debt Holdings Money Market Instruments Corporate Debt Government Securities Treasury Bills 3.11% 0.91% 6.81% 31.50% 57.66% statistics Current Yield 9.10% Duration Years Avg. Maturity Years JM Income Fund (An Open-Ended Income ) : To generate stable long term returns with low risk strategy and capital appreciation / accretion through in debt instruments and related securities besides preservation of capital. : Girish Hisaria (Managing this fund since July 2009 & has total 7 years of experience in Fixed Income Markets). : Option: 1st April, 1995 Option: 1st April, 1995 Bonus Option: 18th March, 2002 NAV DETAILS : Option (Rs.) : Option (Rs.) : Bonus Option (Rs.) : CORPUS (Oct 12 - Dec 12) : Qtly - AAUM (Rs.) : 9.89 Crores Money Market Instruments Certificate of Deposits AXIS Bank 8.63 CRISIL A1+ Canara Bank 4.10 CRISIL A1+ Vijaya Bank 8.62 CARE A1+ Yes Bank 8.62 ICRA A1+ Government Securities % GOI GOI SOV Corporate Debt 8.47 Rural Electrification Corporation 8.47 CRISIL AAA Total Debt Holdings ASSET allocation Government Securities Money Market Instruments Corporate Debt 6.37% 8.47% 29.98% 55.19% statistics Current Yield 8.41% Duration Years Avg. Maturity Years ASSET allocation Details as on December 31, 2012 JM G-Sec Fund (An Open-Ended Dedicated Gilt ) : To provide ultimate level of safety to its unitholders through s in sovereign securities issued by the Central and State Government. : Girish Hisaria (Managing this fund since July 2009 & has total 7 years of experience in Fixed Income Markets). : Option : 29th September, 1999 Option : 29th September, 1999 Bonus Option : 30th November, 2002 NAV DETAILS : Option (Rs.) : Option (Rs.) : Bonus Option (Rs.) : CORPUS (Oct 12 - : Qtly - AAUM (Rs.) : Crores Dec 12) Government Securities % GOI GOI SOV 8.97% GOI GOI SOV Treasury Bills Days T-Bill 8.80 GOI SOV Total Debt Holdings Government Securities Treasury Bills 2.56% 8.79% 88.64% statistics Current Yield 8.40% Duration Years Avg. Maturity Years 8 (*) Others may include net receivables / payables, cash, cash equivalents, stocks in transition and other instruments such as warrants, convertibles etc.

8 ANNEXURE FOR RETURNS OF ALL THE SCHEMES Performance as on December 31, 2012 Name Equity s Funds Managed by Sanjay Chhabaria Dec 31, 2011 to Dec 31, 2012 Dec 31, 2010 to Dec 31, 2011 Dec 31, 2009 to Dec 31, 2010 Details as on December 31, 2012 Since inception till Dec 31, 2012 (CAGR) Inception Date@ JM Balanced Fund (17.16) Apr-95 Bench Mark Crisil Balanced Fund Index (14.39) N A N A Crisil 1 Year T Bill* S & P Nifty Index* (24.62) JM Equity Fund (30.99) Apr-95 Bench Mark BSE Sensex (24.64) S & P Nifty Index* (24.62) JM Multi Strategy Fund (36.05) Sep-08 Bench Mark BSE (27.41) S & P Nifty Index* (24.62) JM Tax Gain Fund (30.96) (7.00) 31-Mar-08 Bench Mark BSE (27.41) S & P Nifty Index* (24.62) Funds Managed by Asit Bhandarkar JM Basic Fund (40.97) 8583 (14.17) June-97 Bench Mark BSE 200 Index (26.95) S & P Nifty Index* (24.62) JM Core 11 Fund (39.92) 9254 (7.46) 3837 (18.00) 5-Mar-08 Bench Mark BSE Sensex (24.64) S & P Nifty Index* (24.62) Funds Managed by Chaitanya Choksi JM Arbitrage Advantage Fund July-06 Bench Mark Crisil Liquid Fund Index S & P Nifty Index # (24.62) # performance may not be strictly comparable with that of its Additional Benchmark since the scheme does not take directional call in equity markets but is limited to availing arbitrage opportunities, etc. Performance as on December 31, 2012 Name Debt s Funds Managed by Girish Hisaria Dec 31, 2011 to Dec 31, 2012 Dec 31, 2010 to Dec 31, 2011 Dec 31, 2009 to Dec 31, 2010 Since inception till Dec 31, 2012 (CAGR) Inception Date@ JM Gsec Fund Sep-99 Bench Mark I Sec Composite Index N A N A Crisil 10 Year G Sec Paper* N A N A JM Income Fund Apr-95 Bench Mark Crisil Composite Bond Fund Index N A N A Crisil 10 Year G Sec Paper* N A N A JM Short Term Fund June-02 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill*

9 ANNEXURE FOR RETURNS OF ALL THE SCHEMES Details as on December 31, 2012 Name Funds Managed by Vikas Agrawal Dec 31, 2011 to Dec 31, 2012 Dec 31, 2010 to Dec 31, 2011 Dec 31, 2009 to Dec 31, 2010 Since inception till Dec 31, 2012 (CAGR) Inception JM Money Manager Fund Regular Plan Sep-06 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* JM Money Manager Fund Super Plan Sep-06 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* Funds Managed by Shalini Tibrewala JM Floater Long Term Fund June-03 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* JM MIP Fund Sep-03 Bench Mark Crisil MIP Blended Index S & P Nifty Index* (24.62) Crisil 1 Year T Bill* JM Money Manager Fund Super Plus Plan Sep-06 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* Performance for Liquid s Name Funds Managed by Shalini Tibrewala Dec 31, 2011 to Dec 31, 2012 Dec 31, 2010 to Dec 31, 2011 Dec 31, 2009 to Dec 31, 2010 Since inception till Dec 31, 2012 (CAGR) Inception Date@ JM High Liquidity Fund Dec-97 Bench Mark Crisil Liquid Fund Index N A N A Crisil 1 Year T Bill* JM Floater Short Term Fund June-03 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* Performance for Liquid s Simple Annualised Name 7 Days 15 Days 1 mth 3 mths 6 mths Funds Managed by Shalini Tibrewala Inception Date@ JM High Liquidity Fund Dec-97 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* JM Floater Short Term Fund June-03 Bench Mark Crisil Liquid Fund Index Crisil 1 Year T Bill* *Additional Inception Date is considered as the date of first time allotment of units. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other. Absolute returns are computed on s of Rs 10,000. are computed on Compounded Annual Rate (CAGR) basis. Load is not considered for computation of returns. Option has been considered for calculating the performance of the above mentioned schemes. Mutual Fund s are subject to market risks, read all scheme related documents carefully. 10

10 Details as on December 31, 2012 DIVIDEND/BONUS HISTORY (for past 3 years) JM Equity Fund Financial Year Record Date (Rs. per unit) FY FY FY The face value per unit is Rs. 10/-. JM Basic Fund Financial Year Record Date (Rs. per unit) FY FY FY The face value per unit is Rs. 10/- JM Balanced Fund Financial Year Record Date (Rs. per unit) FY FY FY The face value per unit is Rs. 10/-. JM Multi Strategy Fund Financial Year Record Date (Rs. per unit) FY FY FY The face value per unit is Rs. 10/-. JM Tax Gain Fund Financial Year Record Date (Rs. per unit) FY FY FY The face value per unit is Rs. 10/-. JM Core 11 Fund Financial Year Record Date (Rs. per unit) FY FY FY The face value per unit is Rs. 10/-. JM MIP Fund JM MIP Fund - Option - Monthly Financial Year Record Date (Rs. per unit) FY $ 3-Dec Nov Oct Sep Aug Jul Jun May Apr FY $ 1-Mar Feb Jan-12 1-Dec Nov Oct-11 2-Sep Aug-11 4-Jul Jun May Apr FY $ March - 11 Feb - 11 Jan Dec Nov Oct Sep Aug Jul Jun May Apr JM MIP Fund - Option - Quarterly Financial Year Record Date (Rs. per unit) FY $ - - FY $ - - FY $ - - JM MIP Fund - Option - Annual Financial Year Record Date (Rs. per unit) FY $ - FY $ - FY $ - taxes wherever applicable. Past performance may or may not be sustained in future. The face value per unit is Rs. 10/-. $ Includes Distribution Tax. JM Arbitrage Advantage Fund Financial Year Record Date (Rs. per unit) FY Sep Jun FY Mar Dec Sep Jun FY Mar Dec Sep Jun The face value per unit is Rs. 10/- JM High Liquidity Fund Financial FYTD Plan Year (Rs. per unit) FY $ Weekly Option Daily Option Quarterly Option - Inst. Plan - Weekly option Inst. Plan - Daily option Super Inst. Plan - Weekly Div. option Super Inst. Plan - Daily Div. option FY $ Regular Plan - Weekly Option Regular Plan - Daily Option Regular Plan - Quarterly Option - Inst. Plan - Weekly option Inst. Plan - Daily option Super Inst. Plan - Weekly Div. option Super Inst. Plan - Daily Div. option FY $ Regular Plan - Weekly Option Regular Plan - Daily Option Regular Plan - Quarterly Option - Inst. Plan - Weekly option Inst. Plan - Daily option Super Inst. Plan - Weekly Div. option Super Inst. Plan - Daily Div. option The face value per unit is Rs.10/-. $ Includes Distribution Tax JM Money Manager Fund Financial FYTD Plan Year (Rs. per unit) FY $ Regular Plan - Daily option Regular Plan - Weekly option Regular Plan - Fortnightly option Super Plan - Daily option Super Plan - Weekly option Super Plan - Fortnightly option Super Plus Plan - Daily option Super Plus Plan - Weekly option Super Plus Plan - Fortnightly option FY $ Regular Plan - Daily option Regular Plan - Weekly option Regular Plan - Fortnightly option Super Plan - Daily option Super Plan - Weekly option Super Plan - Fortnightly option Super Plus Plan - Daily option Super Plus Plan - Weekly option Super Plus Plan - Fortnightly option FY $ Regular Plan - Daily option Regular Plan - Weekly option Regular Plan - Fortnightly option Super Plan - Daily option Super Plan - Weekly option Super Plan - Fortnightly option Super Plus Plan - Daily option Super Plus Plan - Weekly option Super Plus Plan - Fortnightly option The face value per unit is Rs.10/-. $ Includes Distribution Tax. JM Floater Long Term Fund (w.e.f. December 28, 2012, the name has been changed to JM Floater Long Term Fund) Financial Year Plan FYTD (Rs. per unit) FY $ option - Daily option Weekly option Premium Plan - option Premium Plan - Weekly option Premium Plan - Daily Option FY $ Regular Plan - option - Regular Plan - Daily option Regular Plan - Weekly option Premium Plan - option Premium Plan - Weekly option Premium Plan - Daily Option FY $ Regular Plan - option - Regular Plan - Daily option Regular Plan - Weekly option Premium Plan - option Premium Plan - Weekly option Premium Plan - Daily Option The face value per unit is Rs. 10/-. $ Includes Distribution Tax. JM Floater Short Term Fund (w.e.f. December 28, 2012, the name has been changed to JM Floater Short Term Fund) Financial Year Plan FYTD (Rs. per unit) FY $ Short Term Plan - Daily Option FY $ Short Term Plan - Daily Option FY $ Short Term Plan - Daily Option The face value per unit is Rs.10/-. $ Includes Distribution Tax JM Short Term Fund Financial Year Plan FYTD (Rs. per unit) FY $ Regular - Option Option Regular - Daily Option Daily Option FY $ Regular Plan - Option Inst. Plan - Option Regular Plan - Daily Option Inst. Plan - Daily Option FY $ Regular Plan - Option

11 Inst. Plan - Option The face value per unit is Rs. 10/-. $ Includes Distribution Tax. JM Income Fund Option (Rs. per unit) FY $ - FY $ - FY $ - The face value per unit is Rs.10/-. $ Includes Distribution Tax. JM G-Sec Fund Option (Rs. per unit) FY $ - FY $ - FY $ 0.25 The face value per unit is Rs.10/-. $ Includes Distribution Tax. FYTD: Financial Year to Date JM EQUITY SCHEMES AT A GLANCE Introduction of no Entry Load and treatment of Exit Load. In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009, no entry load will be charged for fresh purchase / additional purchase / switch-in transactions accepted by the Fund with effect from August 1, Similarly, no entry load will be charged with respect to applications for fresh registrations under Systematic Plan/Systematic Transfer Plan accepted by the Fund with effect from August 1, Also, in compliance with SEBI Circular no. SEBI / IMD / CIR No. 7 / / 2009 dated August 17, 2009, parity among all classes of unit holders in terms of charging exit load shall be made applicable at the portfolio level with effect from August 24, Load Structure: Entry Load: for all Open-ended Equity s. Exit Load: As mentioned in the table hereunder: Minimum criteria for & Redemption Purchase : As mentioned in the reckoner table for normal transactions other than through SIP/STP. Additional Purchase : Rs. 1,000/- or any amount thereafter in all schemes except JM Tax Gain Fund. Repurchase : Minimum redemption from existing Unit Accounts for normal transactions other than through STP/SWP would be a) Rs. 500 and any amount thereafter OR b) 50 units or any number of units there after subject to keeping a minimum balance of 500 units or Rs. 5000/- whichever is less. c) for all the units in the folio for the respective plan if the available balance is less than Rs. 500/- or less than 50 units on the day of submission of valid redemption request. Reckoner and Default Options In case an investor fails to specify his preference of Options/Sub-Options, in the below mentioned schemes, the default Options/ Sub-Options would be as under : EQUITY SCHEMES Currently available facilities Sr. no. s Allotment Date Min. amnt. Options Sub Options Default Option Default Sub Option Exit Lock-in Redemption Time# 1 JM - Arbitrage Advantage Fund July 18, 2006 Rs. 5000/- Payout / 0.50% 30 Days T+3 (*) Business Days 2 JM Balanced Fund April 1, 1995 Rs. 5000/- Payout / 1.00% 365 Days T+3 Business Days 3 JM Basic Fund June 2, 1997 Rs. 5000/- Payout / 1.00% 365 Days T+3 Business Days 4 JM Core 11 Fund March 5, 2008 Rs. 5000/- Payout / 1.00% 365 Days T+3 Business Days 5 JM Equity Fund April 1, 1995 Rs. 5000/- Payout / 1.00% 365 Days T+3 Business Days 6 JM Multi Strategy Fund September 23, 2008 Rs. 5000/- Payout / 1.00% 365 Days T+3 Business Days 7 JM Tax Gain Fund March 31, 2008 Rs. 500/- or in multiples of Rs. 500/- each Payout Payout && T+3 Business Days && JM Tax Gain Fund :- The scheme falls in the ELSS category and is eligible for tax benefits under section 80C of Income Tax Act. There is a lock-in period of 3 years under the. # AMC would adhere to the aforesaid service standards for redemption payments on best efforts basis under normal circumstances subject to the overall 10 business days as stipulated by SEBI. *JM - Arbitrage Advantage Fund: The redemption shall be in terms of Interval Period defined hereinbelow.

12 Redemption request can be submitted to the official point of acceptance on any business day till 3.00 pm. All redemption requests received till Friday (in case such Friday is a holiday then the last business day) of the week preceding the interval period, would be processed at the NAV of the Interval Period. The Interval period will be the settlement Thursday (the settlement day for derivatives segment in the NSE which is currently last Thursday of the month) or any day which is declared as the settlement day for Derivatives segment by the NSE. Illustrative Example: Interval Cycle Cut-off for for redemption / switch-out requests Applicable NAV for redemption / switchout For Nov-Dec 2010 All redemptions / switch-out requests received till before 3 p.m. NAV of For Dec - Jan 2011 All redemptions / switch-out requests received after 3 p.m. on till 3.00 pm NAV of It is clarified that the cut-off timings will also be applicable to s made through The exit load shown in the above table are applicable for allotment of units for made through fresh purchases/switch-in/shift-in or through respective SIP/STP/SWP Instalments out of the fresh registration effected during the period when above exit load rates are applicable. The exit load are subject to change at any time. Hence, all Investors are advised to check the current exit load from the nearest Investor Service Centers before. Load structure : A) Exit load on intra-scheme redemptions/switch outs : No exit load shall be charged for any switch of s between Existing Plan (whether the s were made before or after the Effective Date i.e ) and Direct Plan within the same scheme (within the same ). The same procedure will be applicable for switches between various options of Existing Plan and/or Direct Plan (at Level). The applicable exit load, if any, will be charged for redemptions/ switch outs of the scheme (i.e. at portfolio level) before the completion of the stipulated load/ lock-in period. The stipulated load/ lock-in period will be reckoned from the date of allotment of units for a particular transaction in the scheme (i.e. at portfolio level) till the date of redemption / switch out from that scheme (at Level), irrespective of the number of intra-scheme switches by the investor between the aforementioned two dates (e.g. switches between plans/sub-plans/options/sub-options within the scheme having the same portfolio). The extant provisions of applicability of load on redemptions/ switches from one to another will continue to be applicable. However, Government levies e.g. STT (wherever applicable) will continue to be deducted for every intra-scheme and inter-scheme switch-out/redemption transactions. B) In case of Intra & Inter equity switches: (including SIP/STP): No exit load for inter and intra equity switches except in case of (i) switches by SIP/STP investors within 24 months (for cases registered from up to ) and within 12 months (for cases registered upto ) of respective SIP/STP installments (ii) switches by STP investors (for cases registered w.e.f ) within 24 months of respective STP installments (iii) switches by SIP investors (for cases registered w.e.f ) within 12 months of respective SIP installments (iv) switches to / from JM Arbitrage Advantage Fund to any equity schemes. However, Government levies eg. STT (wherever applicable) will continue to be deducted for every intra-scheme and inter-scheme switch-out/redemption transactions. The above details are subject to provisions laid down in the respective Information Documents and Addenda issued from time to time.