Record date for dividend is 24 January 2014
Birla Sun Life Top 100 Fund-Regular Plan-Dividend Option: 0.80
Birla Sun Life Index Fund-Regular Plan-Dividend Option & Direct Plan-Dividend Option: 1.00 each
Tuesday, January 21, 2014
Birla Sun Life Mutual Fund announces dividend under two schemes
Birla Sun Life Top 100 Fund-Regular Plan-Dividend Option: 0.80
Birla Sun Life Index Fund-Regular Plan-Dividend Option & Direct Plan-Dividend Option: 1.00 each
IDFC Fixed Maturity Plan-36 Months Series 2 Announces Dividend
Record date for dividend is 24 January 2014
Franklin India Taxshield announces dividend
Record date for dividend is 24 January 2014
PineBridge India Equity Fund announces dividend
Record date for dividend is 24 January 2014
Reliance Mutual Fund announces dividend under two schemes
Record date for dividend is 24 January 2014
Reliance Long Term Equity Fund-Dividend Plan & Direct Plan-Dividend Plan: 1.00 under each plan
Reliance Top 200 Fund-Dividend Plan & Direct Plan-Dividend Plan: 1.00 under each plan
SBI Debt Fund Series A – 2 Floats On
NFO period from 24 January to 29 January 2014
The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme.
The scheme offers regular and direct plan. Both the plans will have growth and dividend option.
The scheme will invest 60% to 100% of assets in debt securities and upto 40% of assets in money market securities with low to medium risk profile. Exposure to domestic securitized debt may be to the extent of 40% of the net assets.
The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
Entry and exit load charge will be nil for the scheme. The units of the scheme will be listed on BSE in order to provide liquidity.
Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index.
The scheme will be managed by Rajeev Radhakrishnan.
IDFC Fixed Term Plan – Series 65 extents NFO closing date
NFO will now close now 28 January 2014
5% duty credit scrip to be provided for the import of specialty fabrics not available in India on actual user basis-Virender Uppal, Chairman AEPC
Proposes to provide more concessions by raising
the limit of 5 to 10% and from 10 to 20% for small and medium industries
respectively
The minister raised concern on the macroeconomic risks facing the Indian economy which have increased during the last six months, mainly on the dimensions of sliding domestic growth, rising input cost and slowdown in manufacturing and employment generation.
Chairman AEPC Mr. Uppal asked to provide more concessions by raising the limit of 5 to 10% and from 10 to 20% for small and medium industries respectively. Apparel sector alone engages around 11.2 million workers and contributes almost 50% of the entire textiles exports, it has the latent potential to absorb more people, therefore focusing on this sector is extremely important.
Smt. Chatterji, Secretary Textiles, in her address informed that, “Not only have the traditional market such as USA & EU grown but, the non- traditional markets also have grown during April-September 2013. EU is the top most RMG export destination of India with US $ 2794.1 million, followed by USA where exports from India were to the tune of US$ 1642.5 million, West Asia is the third largest regional apparel export destination of India with US$ 1270.8 million, India's exports to Africa were to the tune of US $ 311.3 million. It is important for us to understand the opportunities available and its importance to fulfill our needs which can help us realize the true potential of the apparel exports in India.”
Against a backdrop of worrisome global and domestic macroeconomic developments, Chairman AEPC, pressed for 5% duty credit scrip for the import of specialty fabrics not available in India on actual user basis. And, separate chapter for exports in the banking sector for availability of easy credit to industry. These two demands have tremendous potential to boost exports.
Gross NPAs of banks to touch 5 percent by March-end: ASSOCHAM
Indian banking sector, which has witnessed an upsurge in
non-performing assets for past three years, could see further
deterioration with gross NPAs expected to touch 5 percent by the end of
March 2014, according to the ASSOCHAM latest study.
“Sluggish economic growth and high interest rates are being touted as primary drivers for rising bad loans and if the economic scenario continues there is no doubt that asset quality would suffer further”, adds the ASSOCHAM study.
Other factors like delays in obtaining statutory and other approvals as well as lax credit appraisal and complacency in monitoring by banks were also significantly responsible for deteriorating asset quality. The asset quality of banks has deteriorated in the aftermath of global economic crisis of 2008.
The ASSOCHAM spokesperson said, gross NPA of the public sector banks were Rs 41,378 crore in March 2006, which came down to Rs 38,305 crore in March 2007 because of better economic environment. However, it has shown an upward trend since March 2008.
The ratio of gross NPA to advances for banks increased significantly, from 2.36 per cent in March 2011 to 3.92 per cent in June 2013. Public sector banks account for a disproportionate share of this increase. However, private sector banks especially new generation banks are performing much better by managing their NPA ratio in this difficult climate.
At the same time, restructured standard assets as a percentage of total credit more than doubled, from 2.6 per cent in December 2010 to 6.1 per cent in June 2013, points out the study. As of September 2013, banks together approved Corporate Debt Restructuring (CDR) worth Rs 2.72 lakh crore out of Rs 3.62 lakh crore that came for restructuring.
Iron & steel and infrastructure sectors are the largest contributor to NPAs of the public sector banks. Besides, aviation, textiles and mining are also adding to the stressed assets, highlights the ASSOCHAM.
These five sectors together contribute around 24 per cent of total advances of all banks, and account for around 51 per cent of their total stressed advances at the end of September, 2013.
The chamber paper has pointed out that with continued slowdown in the industrial growth, pick-up in activity in infrastructure and iron & steel sector is expected to be delayed. Since concentration of distressed assets is higher in these sectors asset quality deterioration in banks is set to worsen.
Industrial production entered the negative territory after three months, contracting by 1.8 per cent in October, 2013 mainly on account of poor performance of the manufacturing sector. It further contracted to six months low of 2.1 per cent in November.
Factory output, as measured in terms of the Index of Industrial Production (IIP), grew by 8.4 per cent in October last year, adds the ASSOCHAM.
“Sluggish economic growth and high interest rates are being touted as primary drivers for rising bad loans and if the economic scenario continues there is no doubt that asset quality would suffer further”, adds the ASSOCHAM study.
Other factors like delays in obtaining statutory and other approvals as well as lax credit appraisal and complacency in monitoring by banks were also significantly responsible for deteriorating asset quality. The asset quality of banks has deteriorated in the aftermath of global economic crisis of 2008.
The ASSOCHAM spokesperson said, gross NPA of the public sector banks were Rs 41,378 crore in March 2006, which came down to Rs 38,305 crore in March 2007 because of better economic environment. However, it has shown an upward trend since March 2008.
The ratio of gross NPA to advances for banks increased significantly, from 2.36 per cent in March 2011 to 3.92 per cent in June 2013. Public sector banks account for a disproportionate share of this increase. However, private sector banks especially new generation banks are performing much better by managing their NPA ratio in this difficult climate.
At the same time, restructured standard assets as a percentage of total credit more than doubled, from 2.6 per cent in December 2010 to 6.1 per cent in June 2013, points out the study. As of September 2013, banks together approved Corporate Debt Restructuring (CDR) worth Rs 2.72 lakh crore out of Rs 3.62 lakh crore that came for restructuring.
Iron & steel and infrastructure sectors are the largest contributor to NPAs of the public sector banks. Besides, aviation, textiles and mining are also adding to the stressed assets, highlights the ASSOCHAM.
These five sectors together contribute around 24 per cent of total advances of all banks, and account for around 51 per cent of their total stressed advances at the end of September, 2013.
The chamber paper has pointed out that with continued slowdown in the industrial growth, pick-up in activity in infrastructure and iron & steel sector is expected to be delayed. Since concentration of distressed assets is higher in these sectors asset quality deterioration in banks is set to worsen.
Industrial production entered the negative territory after three months, contracting by 1.8 per cent in October, 2013 mainly on account of poor performance of the manufacturing sector. It further contracted to six months low of 2.1 per cent in November.
Factory output, as measured in terms of the Index of Industrial Production (IIP), grew by 8.4 per cent in October last year, adds the ASSOCHAM.
Ind-Ra: Infrastructure and Construction Likely to Pull Down Cement Demand
India Ratings & Research (Ind-Ra) has maintained a stable to
negative outlook for the cement sector for FY15. The agency expects
limited downside risks for integrated players who are also among the top
two to three players in their respective regions. They are likely to
maintain a Stable Outlook on their Long-Term Issuer Rating for FY15. The
median EBITDA margin of this group is unlikely to fall more than
50bp-100bp yoy in FY15. However, non-integrated players placed on the
cost curve may continue to face pressure on their credit profile and
thus a Negative Outlook.
The resilience of top five integrated players in the industry to adverse macroeconomic factors is displayed in the form of a similar credit profile for the past two to three years. Ind-Ra expects the top five integrated players to see some margin pressure; however, it would not impact on their credit profile. Non-integrated players are likely to continue to witness a deteriorated credit profile till FY15, due to lack of control on cost, regional concentration and limited pricing power.
The agency expects cement demand growth to remain sluggish at around 5%-6% for FY15, given the slowdown in the construction and infrastructure sectors. The growth will be supported by an expected increase in demand from the rural sector and Tier II and Tier III cities. There could also be some uptick in demand from 2HFY15 due to a provision in the Union Budget of 2013-2014 for an investment allowance for infrastructure projects of INR1,000m and above between 1 April 2014 to 31 March 2015. Also, election results will impact overall growth in construction activities.
Ind-Ra expects the credit profile of non-integrated players to further deteriorate due to limited pricing power and rising costs. The EBITDA margins of non-integrated players fell to 11% in 1HFY14 from 18% in FY13 and the margins of integrated players fell to 18.5% from 22.7%. The difference of EBITDA margins between top five players and non-integrated players was 750bp. The agency expects EBITDA margins for top five integrated players to be around 19%-22% for FY15, while non-integrated it would be around 11%-13%.
Cement companies do not have the pricing power to pass on cost increases to customers due to the sluggish demand. There was a substantial increase in the overall cost structure in FY13. Median freight costs increased 17% yoy in FY13 due to an increase in rail freight rates and higher diesel prices.
Ind-Ra expects overall capacity addition will be moderate as incremental demand will be lower than incremental supply. Capacity additions will grow at a CAGR of 6% from FY13 to FY16, more than a 4% CAGR increase in demand in the same period.
What Can Change The Outlook
Improvement in Infrastructure Spending: A Stable Outlook could result from formation of a stable government post general elections, which may enable higher investment in infrastructure leading to an improvement in cement demand.
The resilience of top five integrated players in the industry to adverse macroeconomic factors is displayed in the form of a similar credit profile for the past two to three years. Ind-Ra expects the top five integrated players to see some margin pressure; however, it would not impact on their credit profile. Non-integrated players are likely to continue to witness a deteriorated credit profile till FY15, due to lack of control on cost, regional concentration and limited pricing power.
The agency expects cement demand growth to remain sluggish at around 5%-6% for FY15, given the slowdown in the construction and infrastructure sectors. The growth will be supported by an expected increase in demand from the rural sector and Tier II and Tier III cities. There could also be some uptick in demand from 2HFY15 due to a provision in the Union Budget of 2013-2014 for an investment allowance for infrastructure projects of INR1,000m and above between 1 April 2014 to 31 March 2015. Also, election results will impact overall growth in construction activities.
Ind-Ra expects the credit profile of non-integrated players to further deteriorate due to limited pricing power and rising costs. The EBITDA margins of non-integrated players fell to 11% in 1HFY14 from 18% in FY13 and the margins of integrated players fell to 18.5% from 22.7%. The difference of EBITDA margins between top five players and non-integrated players was 750bp. The agency expects EBITDA margins for top five integrated players to be around 19%-22% for FY15, while non-integrated it would be around 11%-13%.
Cement companies do not have the pricing power to pass on cost increases to customers due to the sluggish demand. There was a substantial increase in the overall cost structure in FY13. Median freight costs increased 17% yoy in FY13 due to an increase in rail freight rates and higher diesel prices.
Ind-Ra expects overall capacity addition will be moderate as incremental demand will be lower than incremental supply. Capacity additions will grow at a CAGR of 6% from FY13 to FY16, more than a 4% CAGR increase in demand in the same period.
What Can Change The Outlook
Improvement in Infrastructure Spending: A Stable Outlook could result from formation of a stable government post general elections, which may enable higher investment in infrastructure leading to an improvement in cement demand.
Mineral Production rises by 3.7% During November 2013 on m-o-m basis
The index of mineral production of mining and quarrying sector in
November 2013 was higher by 3.7% compared to that of the preceding
month. The mineral sector has shown a positive growth of 1.0% during
November 2013 as compared to that of the corresponding month of previous
year.
The total value of mineral production (excluding atomic & minor minerals) in the country during November 2013 was Rs. 17163 crore. The contribution of coal was the highest at Rs. 5798 crore (34%). Next in the order of importance were: petroleum (crude) Rs. 5728 crore, iron ore Rs. 2276 crore, natural gas (utilized) Rs. 1797 crore, limestone Rs. 364 crore and lignite Rs. 365 crore. These six minerals together contributed about 95% of the total value of mineral production in November 2013.
Production level of important minerals in November 2013 were: coal 473 lakh tonnes, lignite 29 lakh tonnes, natural gas (utilized) 2807 million cu. m., petroleum (crude) 31 lakh tonnes, bauxite 1439 thousand tonnes, chromite 243 thousand tonnes, copper conc. 12 thousand tonnes, gold 86 kg., iron ore 115 lakh tonnes, lead conc. 15 thousand tonnes, manganese ore 204 thousand tonnes, zinc conc. 116 thousand tonnes, apatite & phosphorite 121 thousand tonnes, dolomite 470 thousand tonnes, limestone 213 lakh tonnes, magnesite 14 thousand tonnes and diamond 2180 carat.
In November 2013 the output of chromite increased by 57.0%, bauxite 18.3%, manganese ore 15.1%, coal 11.1%, iron ore 9.8% and copper conc. 1.8 percent. However the production of lignite decreased by 0.1%, petroleum (crude) 1.3%, natural gas (utilized) 2.2%, lead conc. 5.9%, limestone 6.2%, dolomite 10.8%, magnesite 11.6%, zinc conc. 15.4%, diamond 22.1%, apatite & phosphorite 24.3% and gold 24.6 percent.
The total value of mineral production (excluding atomic & minor minerals) in the country during November 2013 was Rs. 17163 crore. The contribution of coal was the highest at Rs. 5798 crore (34%). Next in the order of importance were: petroleum (crude) Rs. 5728 crore, iron ore Rs. 2276 crore, natural gas (utilized) Rs. 1797 crore, limestone Rs. 364 crore and lignite Rs. 365 crore. These six minerals together contributed about 95% of the total value of mineral production in November 2013.
Production level of important minerals in November 2013 were: coal 473 lakh tonnes, lignite 29 lakh tonnes, natural gas (utilized) 2807 million cu. m., petroleum (crude) 31 lakh tonnes, bauxite 1439 thousand tonnes, chromite 243 thousand tonnes, copper conc. 12 thousand tonnes, gold 86 kg., iron ore 115 lakh tonnes, lead conc. 15 thousand tonnes, manganese ore 204 thousand tonnes, zinc conc. 116 thousand tonnes, apatite & phosphorite 121 thousand tonnes, dolomite 470 thousand tonnes, limestone 213 lakh tonnes, magnesite 14 thousand tonnes and diamond 2180 carat.
In November 2013 the output of chromite increased by 57.0%, bauxite 18.3%, manganese ore 15.1%, coal 11.1%, iron ore 9.8% and copper conc. 1.8 percent. However the production of lignite decreased by 0.1%, petroleum (crude) 1.3%, natural gas (utilized) 2.2%, lead conc. 5.9%, limestone 6.2%, dolomite 10.8%, magnesite 11.6%, zinc conc. 15.4%, diamond 22.1%, apatite & phosphorite 24.3% and gold 24.6 percent.
Rupee ends weaker
At 61.88/89 per dollar
The rupee closed weaker on Tuesday (21 January 2014) at 61.88/89 per
dollar against its previous close of 61.62/63 on Monday, due to dollar
demand from a large state-run bank, which dealers speculated was likely
to meet the government's defence purchase needs.
Asia Pacific Market: Stocks advance as China adds funds
Headline indices of the Asia Pacific financial market advanced on
Tuesday, 21 January 2014, lifted by calming jitters about China's
liquidity squeeze after China's central bank injected extra credit into
its financial system, helping to offset concern about slower Chinese
growth.
Bargain buying spread across the regional market after China's short-term interest rates fell after China's central bank pumped in usually large amount of funds into the money markets to pre-empt a potential liquidity crisis, as demand for cash rises ahead of the Lunar New Year holiday.
The People's Bank of China pledged after an injection to the big banks earlier Monday that it would continue further liquidity support to cash-strapped smaller banks for the rising cash demand ahead of the Chinese New Year.
The People's Bank of China supplied money to the largest commercial banks through its Standing Lending Facility yesterday and conducted 255 billion yuan of reverse-repurchase agreements today. Small- and medium-sized banks will also be able to tap the SLF for loans.
The PBOC did not give many details, but said the facility has maturities of overnight, seven and 14 days. Small banks could use treasury bonds, bonds issued by policy banks and the China Development Bank and high-rated corporate bonds as collateral. The central bank will set different collateral ratios to control credit risks. It said the move was aimed to address the impact of rising cash demand ahead of the holiday which begins on January 31. The nation's financial markets are closed from Jan. 31 through to Feb. 6 for the Lunar New Year holidays.
Asian markets were uneasy on Monday after China's fourth-quarter growth declined slightly from the previous quarter but confidence rebounded after the Chinese central bank promised extra liquidity in the financial system.
Back to country wise, Japan's share market advanced as risk appetite lifted by a US dollar appreciation against the yen. The benchmark Nikkei225 index advanced 154.28 points to 15795.96 while the Topix index of all first-section shares rose 2.09 points to 1295.95.
Tokyo market commenced trade with firm footing as traders took advantage of the weaker yen after the Bank of Japan kicked off a two-day policy meeting, which will be watched for any changes or announcements regarding its stimulus program. The dollar bought 104.50 yen, compared with 104.10 yen in London late Monday.
Inflation-sensitive stocks with land assets such as Sumitomo Realty & Development and Tokyu Fudosan Holdings were also bid up. The pair rose 1.4% and 2.8%.
Strengthening in the dollar aided exporters, with shares of Nikon Corp. rising 1.73%,Kyocera Corp. gaining 1.38% and Suzuki Motor Corp adding 0.68%.
Shares of shipper Mitsui OSK Lines also gained 2.8% after a Nomura Securities upgrade to buy from neutral, citing a halt in the longstanding fall in rates for tankers and container ships.
Shares of NEC Corp gained 1.5% to 276 yen on report that the company is in late-stage discussions to sell Internet service provider Biglobe for roughly 70 billion yen ($666 million) to investment fund Industrial Partners.
In Australia, Australian stock market finished higher, on the back of strong gain in the stocks of financial, industrial, tech, healthcare and consumer & media counters. However, weakness in metal & mining and energy blue chips capped upside.
The Australian benchmark S&P/ASX 200 index advanced 36.50 points, or 0.69%, to 5331.50. The broader All Ordinaries grew 34.40 points, or 0.65%, to 5342
Financials were sharp higher in Australia, with top four banks helped drive the rally. Among top four lenders, Australia & New Zealand Banking Group advanced 0.9% to A$31.15, National Australia Bank 1% to A$33.99, Westpac Banking Corp 0.8% to A$31.79 and Commonwealth Bank 1% to $76.10. Bendigo Bank (BEN) jumped 1% to A$11.72 and Bank of Queensland 1.8% to A$12.03.
Industrials also posted some solid gains, with Leighton shares up 0.6% to A$16.06 and Bramble 1.8% to A$9.06. Toll Holdings advanced 1.7% to A$5.87 and Downer EDI 2.2% to A$5.02.
Consumer and media companies performed strongly. Kitchen appliances maker Breville rose 2.7% while Fairfax gained 2.3% to A$0.675 and Ten network 1.5% to A$0.35.
Shares of metal & mining companies recorded some heavy losses, on the back of softer iron ore prices which fell 2.0% in the previous day to $124.80/t (CFR China) with Chinese steel mills citing a weaker steel market and tighter credit conditions. Fortescue Metals was down 4.6% to A$5.41. Rio Tinto fell 1% to A$65.80 while rival BHP Billiton limited its losses to 0.1%.
Diversified industrial group GUD Holdings (GUD) kicked off the start to the reporting season today. The group reported an underlying net profit after tax for the six months to the end of December of A$14.9 million, down 31% from the previous corresponding period. The result was hampered by restructuring costs at the groups Sunbeam and Dexion operations. An interim dividend of 18 cents per share fully franked will be paid on March 6. GUD shares were higher by 0.35% to A$5.74.
In Thailand, shares in Thai market rose as expectations of interest rate cut bolstered broader sentiment. The key SET index was up 3.11 points to 1293.10. The Bank of Thailand's monetary policy committee is expected to cut its benchmark interest rate by 25 basis points on Wednesday to help the economy cope with prolonged political unrest.
The nation's army chief called for calm after attacks on anti-government rallies in Bangkok injured 70 people, prompting authorities to consider declaring a state of emergency for the first time since 2010.
Shares of airport operator Airports of Thailand climbed 3.8% after a 5% drop over the past two sessions and telecom operator Advanced Info Service rose 1.4%, recouping some losses over the past two days.
In China, headline indices of the China's stock market rebounded today, lifted by calming a bit uneasiness liquidity strain after the central bank pumped funds into the financial system. The Shanghai benchmark ended higher 17.06 higher at 2008.31, while CSI 300 Index inclined 21.42 points to 2187.41.
Bargain buying in the Mainland China market lifted after the People's Bank of China moved to offer funds to big lenders on Monday after short-term borrowing costs leapt amid an increase in demand for cash ahead of the Lunar New Year holiday.
Among SSE sectors, 9/10 sectors of the SSE index inclined, with information technology sector outperformed amongst the SSE sectoral peers, adding 2.7, followed by consumer discretionary up 1.9%, telecommunication services up 1.9%, utilities up 1.5%, materials up 1.2%, financial up 1% healthcare up 1%, industrials up 0.9% and energy up 0.7%.
In Hong Kong, shares in city's market climbed, with mainland China banks and financials blue chips leading rally after the PBoC injected liquidity into the market. The benchmark Hang Seng Index provisionally finished 104 points higher at 23033.12.
Among the HK 50 blue chips33 rose and 12 fell, with five stocks remaining steady. CNOOC (00883) slid 6.3% to HK$13.08 on lower-than-expected 2014 output guidance. It became the worst blue-chip loser. But Sinopec (00386) jumped 4.1% to HK$6.37 and was the best blue-chip performer.
Chinese banks were higher on PBoC's injection. CCB (00939) rose 3% to HK$5.55. ICBC (01398) added 2.7% to HK$4.91. Both ABC (01288) and BOC (03988) gained 2% to HK$3.46 and HK$3.43.
Lenovo Group Ltd. jumped 2.8% to HK$10.46, as the world's largest maker of personal computers is said to be in discussions to acquire International Business Machines Corp.'s low-end server business.
Hong Kong's overall consumer prices rose 4.3% in December 2013 over the same month a year earlier, same as that in November 2013, data from the Census and Statistics Department showed. After netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in December 2013 was 3.9%, slightly smaller than November's 4%, mainly due to the smaller increases in the prices of fresh vegetables.
In India, key benchmark indices finished higher on sustained buying by funds in blue chips led by banks ahead of the RBI monetary policy meet amid a firming global trend. The market sentiment was also boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 403.20 crore from the secondary equity markets on Monday, 20 January 2014, as per data from Securities & Exchange Board of India.
The S&P BSE Sensex garnered 46.07 points or 0.22% to settle at 21,251.12, its highest closing level since 16 January 2014.
Asian Paints declined 2.16% on weak Q3 result. The company after market hours on Monday, 20 January 2014, reported 1.75% fall in consolidated net profit to Rs 329.35 crore on 13.03% rise in total income to Rs 3481.99 crore in Q3 December 2013 over Q3 December 2012. Asian Paints said that results for Q3 December 2013 include unaudited consolidated financials of Sleek International in which the company acquired 51% stake on 8 August 2013.
In view of this, the results for Q3 December 2013 are not comparable with the corresponding previous periods, Asian Paints said.
Emami rose 0.71% on strong Q3 result. The company's consolidated net profit rose 31.1% to Rs 150.68 crore on 6.6% increase in net sales to Rs 584.67 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Monday, 21 January 2014.
Hindustan Zinc rose 2.15% to Rs 135.40 after hitting a 52-week high of Rs 141.80 in intraday trade. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.64%. South Korea's KOSPI added 0.52%. Indonesia's Jakarta Composite index added 0.47%. Taiwan's Taiex index sank 0.25%. Malaysia's KLSE Composite rose 0.43%. Singapore's Straits Times index rose 0.16%.
Bargain buying spread across the regional market after China's short-term interest rates fell after China's central bank pumped in usually large amount of funds into the money markets to pre-empt a potential liquidity crisis, as demand for cash rises ahead of the Lunar New Year holiday.
The People's Bank of China pledged after an injection to the big banks earlier Monday that it would continue further liquidity support to cash-strapped smaller banks for the rising cash demand ahead of the Chinese New Year.
The People's Bank of China supplied money to the largest commercial banks through its Standing Lending Facility yesterday and conducted 255 billion yuan of reverse-repurchase agreements today. Small- and medium-sized banks will also be able to tap the SLF for loans.
The PBOC did not give many details, but said the facility has maturities of overnight, seven and 14 days. Small banks could use treasury bonds, bonds issued by policy banks and the China Development Bank and high-rated corporate bonds as collateral. The central bank will set different collateral ratios to control credit risks. It said the move was aimed to address the impact of rising cash demand ahead of the holiday which begins on January 31. The nation's financial markets are closed from Jan. 31 through to Feb. 6 for the Lunar New Year holidays.
Asian markets were uneasy on Monday after China's fourth-quarter growth declined slightly from the previous quarter but confidence rebounded after the Chinese central bank promised extra liquidity in the financial system.
Back to country wise, Japan's share market advanced as risk appetite lifted by a US dollar appreciation against the yen. The benchmark Nikkei225 index advanced 154.28 points to 15795.96 while the Topix index of all first-section shares rose 2.09 points to 1295.95.
Tokyo market commenced trade with firm footing as traders took advantage of the weaker yen after the Bank of Japan kicked off a two-day policy meeting, which will be watched for any changes or announcements regarding its stimulus program. The dollar bought 104.50 yen, compared with 104.10 yen in London late Monday.
Inflation-sensitive stocks with land assets such as Sumitomo Realty & Development and Tokyu Fudosan Holdings were also bid up. The pair rose 1.4% and 2.8%.
Strengthening in the dollar aided exporters, with shares of Nikon Corp. rising 1.73%,Kyocera Corp. gaining 1.38% and Suzuki Motor Corp adding 0.68%.
Shares of shipper Mitsui OSK Lines also gained 2.8% after a Nomura Securities upgrade to buy from neutral, citing a halt in the longstanding fall in rates for tankers and container ships.
Shares of NEC Corp gained 1.5% to 276 yen on report that the company is in late-stage discussions to sell Internet service provider Biglobe for roughly 70 billion yen ($666 million) to investment fund Industrial Partners.
In Australia, Australian stock market finished higher, on the back of strong gain in the stocks of financial, industrial, tech, healthcare and consumer & media counters. However, weakness in metal & mining and energy blue chips capped upside.
The Australian benchmark S&P/ASX 200 index advanced 36.50 points, or 0.69%, to 5331.50. The broader All Ordinaries grew 34.40 points, or 0.65%, to 5342
Financials were sharp higher in Australia, with top four banks helped drive the rally. Among top four lenders, Australia & New Zealand Banking Group advanced 0.9% to A$31.15, National Australia Bank 1% to A$33.99, Westpac Banking Corp 0.8% to A$31.79 and Commonwealth Bank 1% to $76.10. Bendigo Bank (BEN) jumped 1% to A$11.72 and Bank of Queensland 1.8% to A$12.03.
Industrials also posted some solid gains, with Leighton shares up 0.6% to A$16.06 and Bramble 1.8% to A$9.06. Toll Holdings advanced 1.7% to A$5.87 and Downer EDI 2.2% to A$5.02.
Consumer and media companies performed strongly. Kitchen appliances maker Breville rose 2.7% while Fairfax gained 2.3% to A$0.675 and Ten network 1.5% to A$0.35.
Shares of metal & mining companies recorded some heavy losses, on the back of softer iron ore prices which fell 2.0% in the previous day to $124.80/t (CFR China) with Chinese steel mills citing a weaker steel market and tighter credit conditions. Fortescue Metals was down 4.6% to A$5.41. Rio Tinto fell 1% to A$65.80 while rival BHP Billiton limited its losses to 0.1%.
Diversified industrial group GUD Holdings (GUD) kicked off the start to the reporting season today. The group reported an underlying net profit after tax for the six months to the end of December of A$14.9 million, down 31% from the previous corresponding period. The result was hampered by restructuring costs at the groups Sunbeam and Dexion operations. An interim dividend of 18 cents per share fully franked will be paid on March 6. GUD shares were higher by 0.35% to A$5.74.
In Thailand, shares in Thai market rose as expectations of interest rate cut bolstered broader sentiment. The key SET index was up 3.11 points to 1293.10. The Bank of Thailand's monetary policy committee is expected to cut its benchmark interest rate by 25 basis points on Wednesday to help the economy cope with prolonged political unrest.
The nation's army chief called for calm after attacks on anti-government rallies in Bangkok injured 70 people, prompting authorities to consider declaring a state of emergency for the first time since 2010.
Shares of airport operator Airports of Thailand climbed 3.8% after a 5% drop over the past two sessions and telecom operator Advanced Info Service rose 1.4%, recouping some losses over the past two days.
In China, headline indices of the China's stock market rebounded today, lifted by calming a bit uneasiness liquidity strain after the central bank pumped funds into the financial system. The Shanghai benchmark ended higher 17.06 higher at 2008.31, while CSI 300 Index inclined 21.42 points to 2187.41.
Bargain buying in the Mainland China market lifted after the People's Bank of China moved to offer funds to big lenders on Monday after short-term borrowing costs leapt amid an increase in demand for cash ahead of the Lunar New Year holiday.
Among SSE sectors, 9/10 sectors of the SSE index inclined, with information technology sector outperformed amongst the SSE sectoral peers, adding 2.7, followed by consumer discretionary up 1.9%, telecommunication services up 1.9%, utilities up 1.5%, materials up 1.2%, financial up 1% healthcare up 1%, industrials up 0.9% and energy up 0.7%.
In Hong Kong, shares in city's market climbed, with mainland China banks and financials blue chips leading rally after the PBoC injected liquidity into the market. The benchmark Hang Seng Index provisionally finished 104 points higher at 23033.12.
Among the HK 50 blue chips33 rose and 12 fell, with five stocks remaining steady. CNOOC (00883) slid 6.3% to HK$13.08 on lower-than-expected 2014 output guidance. It became the worst blue-chip loser. But Sinopec (00386) jumped 4.1% to HK$6.37 and was the best blue-chip performer.
Chinese banks were higher on PBoC's injection. CCB (00939) rose 3% to HK$5.55. ICBC (01398) added 2.7% to HK$4.91. Both ABC (01288) and BOC (03988) gained 2% to HK$3.46 and HK$3.43.
Lenovo Group Ltd. jumped 2.8% to HK$10.46, as the world's largest maker of personal computers is said to be in discussions to acquire International Business Machines Corp.'s low-end server business.
Hong Kong's overall consumer prices rose 4.3% in December 2013 over the same month a year earlier, same as that in November 2013, data from the Census and Statistics Department showed. After netting out the effects of all Government's one-off relief measures, the year-on-year rate of increase in the Composite CPI (i.e. the underlying inflation rate) in December 2013 was 3.9%, slightly smaller than November's 4%, mainly due to the smaller increases in the prices of fresh vegetables.
In India, key benchmark indices finished higher on sustained buying by funds in blue chips led by banks ahead of the RBI monetary policy meet amid a firming global trend. The market sentiment was also boosted by data showing that foreign funds were net buyers of Indian stocks on Monday, 20 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 403.20 crore from the secondary equity markets on Monday, 20 January 2014, as per data from Securities & Exchange Board of India.
The S&P BSE Sensex garnered 46.07 points or 0.22% to settle at 21,251.12, its highest closing level since 16 January 2014.
Asian Paints declined 2.16% on weak Q3 result. The company after market hours on Monday, 20 January 2014, reported 1.75% fall in consolidated net profit to Rs 329.35 crore on 13.03% rise in total income to Rs 3481.99 crore in Q3 December 2013 over Q3 December 2012. Asian Paints said that results for Q3 December 2013 include unaudited consolidated financials of Sleek International in which the company acquired 51% stake on 8 August 2013.
In view of this, the results for Q3 December 2013 are not comparable with the corresponding previous periods, Asian Paints said.
Emami rose 0.71% on strong Q3 result. The company's consolidated net profit rose 31.1% to Rs 150.68 crore on 6.6% increase in net sales to Rs 584.67 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Monday, 21 January 2014.
Hindustan Zinc rose 2.15% to Rs 135.40 after hitting a 52-week high of Rs 141.80 in intraday trade. Trade minister Anand Sharma on Monday, 20 January 2014, said that Union Cabinet has approved divestment of government's residual stake in Hindustan Zinc. He said the method and timing of the stake sale would be decided later.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.64%. South Korea's KOSPI added 0.52%. Indonesia's Jakarta Composite index added 0.47%. Taiwan's Taiex index sank 0.25%. Malaysia's KLSE Composite rose 0.43%. Singapore's Straits Times index rose 0.16%.
Thursday, January 16, 2014
After US funds, AMCs line up Europe funds
Three fund houses have launched Europe focused funds.
Attractive valuation, prospects of a healthy GDP growth and reviving macro-economic sentiments in many European countries has led AMCs to float overseas fund of funds with a focus on European market.
Three fund houses – DWS, JP Morgan and Religare Invesco have launched their overseas fund of funds which predominantly invest in the European market. Reportedly, Franklin Templeton is also considering launching a Europe focused fund. A similar trend was witnessed recently when ICICI Prudential, JP Morgan and PineBridge had launched fund of funds which primarily invested in the US market. JP Morgan - Europe Dynamic Equity Offshore Fund will open for subscription on January 17 and closes on January 31. Its master fund - Europe Dynamic Fund invests primarily in an aggressive managed portfolio of European companies. The fund is benchmarked against MSCI Europe Index and currently managing around $824.4 million.
The scheme has outperformed its benchmark since its 1 year, 3 years and 5 years returns are 57%, 29% and 22% against 41%, 24% and 19% of its benchmark respectively in terms of INR whereas in Euro terms the fund has delivered a return of 33.89% in 2013 against 19.82% of its benchmark, said the fund house. Since inception, it has delivered a return of 9.82% in Euro terms against 6.35% return by its benchmark. The fund has an exposure to companies like British Petroleum, British Telecom, Roche, Vodafone and Capgemini. Last week, DWS launched DWS Top Euroland Offshore Fund benchmarked against EURO STOXX 50. The scheme has outperformed its benchmark for past couple of years. Last year, it has delivered 49% returns compared to 42% of its benchmark in terms of INR. Euroland fund currently manages close to Euro 1 billion in assets.
The NFO opens on January 9. Similarly, Religare Invesco Pan European Equity Fund will primarily invest in the units of Invesco Pan European Equity Fund, which manages about Eur2.23 billion. The scheme has delivered a return of 34.30% in Euro terms against 19.82% of its benchmark in 2013. In past three years ended November 2013, the scheme has generated an alpha of 4.55% in Euro terms. Its top five holding consists of Novartis AG, Roche, BP, BT and Rio Tinto. The scheme will offer for subscription from today and closes on January 29. Nand Kumar Surti, CEO, JP Morgan Asset Management, said growth prospects of global market like Europe, US etc. are much better than emerging market. He informed that European market has delivered a return of 25% in 2013 and has a comparatively low volatility.
Anis Lahlou, Portfolio Manager, JPMAM said that the stocks in European market are trading at very low valuation and available at bargain price. “Most of the good companies in European market are trading at its historically low valuations. It’s a good time to invest in European funds since from now onwards, these companies are poised to grow due to increasing consumer sentiments and strong macro-economic outlook of European countries.”
Fabain Frankenberg, Senior Product Specialist, DWS had earlier told Cafemutual that it is a perfect time to invest in European funds as there is a strong improvement in macro-economic data and uptick in Eurozone manufacturing Purchasing Managers Index (PMIs).
Source: Team Cafe Mutual
Attractive valuation, prospects of a healthy GDP growth and reviving macro-economic sentiments in many European countries has led AMCs to float overseas fund of funds with a focus on European market.
Three fund houses – DWS, JP Morgan and Religare Invesco have launched their overseas fund of funds which predominantly invest in the European market. Reportedly, Franklin Templeton is also considering launching a Europe focused fund. A similar trend was witnessed recently when ICICI Prudential, JP Morgan and PineBridge had launched fund of funds which primarily invested in the US market. JP Morgan - Europe Dynamic Equity Offshore Fund will open for subscription on January 17 and closes on January 31. Its master fund - Europe Dynamic Fund invests primarily in an aggressive managed portfolio of European companies. The fund is benchmarked against MSCI Europe Index and currently managing around $824.4 million.
The scheme has outperformed its benchmark since its 1 year, 3 years and 5 years returns are 57%, 29% and 22% against 41%, 24% and 19% of its benchmark respectively in terms of INR whereas in Euro terms the fund has delivered a return of 33.89% in 2013 against 19.82% of its benchmark, said the fund house. Since inception, it has delivered a return of 9.82% in Euro terms against 6.35% return by its benchmark. The fund has an exposure to companies like British Petroleum, British Telecom, Roche, Vodafone and Capgemini. Last week, DWS launched DWS Top Euroland Offshore Fund benchmarked against EURO STOXX 50. The scheme has outperformed its benchmark for past couple of years. Last year, it has delivered 49% returns compared to 42% of its benchmark in terms of INR. Euroland fund currently manages close to Euro 1 billion in assets.
The NFO opens on January 9. Similarly, Religare Invesco Pan European Equity Fund will primarily invest in the units of Invesco Pan European Equity Fund, which manages about Eur2.23 billion. The scheme has delivered a return of 34.30% in Euro terms against 19.82% of its benchmark in 2013. In past three years ended November 2013, the scheme has generated an alpha of 4.55% in Euro terms. Its top five holding consists of Novartis AG, Roche, BP, BT and Rio Tinto. The scheme will offer for subscription from today and closes on January 29. Nand Kumar Surti, CEO, JP Morgan Asset Management, said growth prospects of global market like Europe, US etc. are much better than emerging market. He informed that European market has delivered a return of 25% in 2013 and has a comparatively low volatility.
Anis Lahlou, Portfolio Manager, JPMAM said that the stocks in European market are trading at very low valuation and available at bargain price. “Most of the good companies in European market are trading at its historically low valuations. It’s a good time to invest in European funds since from now onwards, these companies are poised to grow due to increasing consumer sentiments and strong macro-economic outlook of European countries.”
Fabain Frankenberg, Senior Product Specialist, DWS had earlier told Cafemutual that it is a perfect time to invest in European funds as there is a strong improvement in macro-economic data and uptick in Eurozone manufacturing Purchasing Managers Index (PMIs).
Source: Team Cafe Mutual
Life insurers settle 96 percent claims in FY 2012-13
Out of the 23 private insurance companies, only five have crossed 90% mark in claim settlement ratio of individual policies.
Claim settlement ratio of life insurance companies stood at 96% in FY 2012-13 on death claims of both individual and group policies. Claim settlement ratio is the number of claimed settled to the total number of claims registered in a financial year.
In its annual report, IRDA stated that life insurance companies had settled a total of 8.5 lakh claims on individual policies, with a total payout of Rs 9,370 crore during FY 2012-13. However, the companies had rejected 18,485 policies amounting to Rs 568 crore. The number of outstanding complaints were 12,267 and the amount involved was Rs 318 crore. On group policies, IRDA data showed that the total claims received this year were 3.5 lakh along with 13,640 pending claims of previous year. The insurers had settled close to 3.49 lakh claims in FY 2012-13.
Claim Settlement Ratio of some life insurance companies
The claim settlement ratio of LIC has been better than the private life insurers. As the above table shows, LIC’s claim settlement ratio was much higher at 97.7% and 99.7% respectively in individual and group policies as compared to 88.6% and 87.8% in case of private insurers in FY 2012-13. Private insurers had posted claim settlement ratio of 89.3% in FY 2011-12. Out of the 23 private insurance companies, only five had crossed 90% mark in claim settlement ratio of individual policies. However, in group category, most of the private companies had fared better.
Among these players, ICICI Prudential topped the chart with settlement ratio of 96.3% and 98.4% in individual group and group policies respectively followed by HDFC Standard Life which stood at second position with claim settlement ratios of 95.8% (individual) and 99.8% (group). Further, the report said that private insurance firms had rejected close to 8% claims in FY 2012-13. LIC had repudiated only 1.12% in FY 2012-13. The data also shows that private insurers had 3.5% of claims pending in FY 2012-13 against 1.04% of LIC.
However, in terms of duration of claim settlement, private insurance companies had outpaced LIC with 83% of individual policies settled in less than 3 month period compared to only 40% of public sector giant. Similarly, in group policies, private insurers had settled 86% of claims within 3 months compared to 25% of LIC in FY 2012-13.
Source: Team Cafe Mutual
Claim settlement ratio of life insurance companies stood at 96% in FY 2012-13 on death claims of both individual and group policies. Claim settlement ratio is the number of claimed settled to the total number of claims registered in a financial year.
In its annual report, IRDA stated that life insurance companies had settled a total of 8.5 lakh claims on individual policies, with a total payout of Rs 9,370 crore during FY 2012-13. However, the companies had rejected 18,485 policies amounting to Rs 568 crore. The number of outstanding complaints were 12,267 and the amount involved was Rs 318 crore. On group policies, IRDA data showed that the total claims received this year were 3.5 lakh along with 13,640 pending claims of previous year. The insurers had settled close to 3.49 lakh claims in FY 2012-13.
Claim Settlement Ratio of some life insurance companies
The claim settlement ratio of LIC has been better than the private life insurers. As the above table shows, LIC’s claim settlement ratio was much higher at 97.7% and 99.7% respectively in individual and group policies as compared to 88.6% and 87.8% in case of private insurers in FY 2012-13. Private insurers had posted claim settlement ratio of 89.3% in FY 2011-12. Out of the 23 private insurance companies, only five had crossed 90% mark in claim settlement ratio of individual policies. However, in group category, most of the private companies had fared better.
Among these players, ICICI Prudential topped the chart with settlement ratio of 96.3% and 98.4% in individual group and group policies respectively followed by HDFC Standard Life which stood at second position with claim settlement ratios of 95.8% (individual) and 99.8% (group). Further, the report said that private insurance firms had rejected close to 8% claims in FY 2012-13. LIC had repudiated only 1.12% in FY 2012-13. The data also shows that private insurers had 3.5% of claims pending in FY 2012-13 against 1.04% of LIC.
However, in terms of duration of claim settlement, private insurance companies had outpaced LIC with 83% of individual policies settled in less than 3 month period compared to only 40% of public sector giant. Similarly, in group policies, private insurers had settled 86% of claims within 3 months compared to 25% of LIC in FY 2012-13.
Source: Team Cafe Mutual
Rs 1,000 minimum monthly pension to be a reality this month
Ahead of Lok Sabha polls, the government is likely to approve
this month a proposal that will entitle formal sector workers a minimum
monthly pension of Rs 1,000, immediately benefiting 27 lakh pensioners.
Those who get less than Rs 1,000 a month include 22 lakh member pensioners and 5 lakh widows as on March 31, 2013. There are about 44 lakh pensioners. "The Labour Ministry’s revised proposal for minimum pension of Rs 1,000 per month was submitted to the Finance Ministry last week, and is likely to be approved this month," said an official source. The ministry’s proposal to assure minimum pension of Rs 1,000 under the Employees’ Pension Scheme 1995 (EPS-95), run by the Employees’ Provident Fund Organisation (EPFO), is pending for a long time.
Earlier, the ministry had proposed that the government should increase its subsidy on the scheme from 1.16 per cent of the basic wages to 1.79 per cent to assure the minimum pension amount of Rs 1,000 per month. However, it did not find favour with the Finance Ministry as this would have resulted in permanent increase in subsidy provided by government. The Labour Ministry in its revised proposal has asked the Finance Ministry to provide for around Rs 1,300 crore additional amount every year for the purpose, and indicated that this amount can reduce over a period of time with more members subscribing to the EPS-95.
Besides, the government is in the process of raising the basic wages ceiling under the Employees Provident Fund Scheme to Rs 15,000 from existing Rs 6,500. All those employees getting basic wages - including basic pay and dearness allowance - of more than Rs 6,500 per month, are not covered under the social security schemes run by EPFO. The Finance Ministry did not agree with the hike in pension subsidy to 1.79 per cent of basic wages as the proposed increase in wage ceiling would have resulted in perpetual burden on the exchequer. EPFO has a corpus of around Rs 5 lakh crore including around Rs 1.7 lakh crore in its pension fund it has a subscriber base.
Source: ET
Those who get less than Rs 1,000 a month include 22 lakh member pensioners and 5 lakh widows as on March 31, 2013. There are about 44 lakh pensioners. "The Labour Ministry’s revised proposal for minimum pension of Rs 1,000 per month was submitted to the Finance Ministry last week, and is likely to be approved this month," said an official source. The ministry’s proposal to assure minimum pension of Rs 1,000 under the Employees’ Pension Scheme 1995 (EPS-95), run by the Employees’ Provident Fund Organisation (EPFO), is pending for a long time.
Earlier, the ministry had proposed that the government should increase its subsidy on the scheme from 1.16 per cent of the basic wages to 1.79 per cent to assure the minimum pension amount of Rs 1,000 per month. However, it did not find favour with the Finance Ministry as this would have resulted in permanent increase in subsidy provided by government. The Labour Ministry in its revised proposal has asked the Finance Ministry to provide for around Rs 1,300 crore additional amount every year for the purpose, and indicated that this amount can reduce over a period of time with more members subscribing to the EPS-95.
Besides, the government is in the process of raising the basic wages ceiling under the Employees Provident Fund Scheme to Rs 15,000 from existing Rs 6,500. All those employees getting basic wages - including basic pay and dearness allowance - of more than Rs 6,500 per month, are not covered under the social security schemes run by EPFO. The Finance Ministry did not agree with the hike in pension subsidy to 1.79 per cent of basic wages as the proposed increase in wage ceiling would have resulted in perpetual burden on the exchequer. EPFO has a corpus of around Rs 5 lakh crore including around Rs 1.7 lakh crore in its pension fund it has a subscriber base.
Source: ET
Reliance Mutual Fund announces change
With immediate effect
Reliance Liquidity Fund (an open ended liquid scheme), Reliance Liquid Fund-Treasury Plan (an open ended liquid scheme), Reliance Liquid Fund-Cash Plan (an open ended liquid scheme) and Reliance Money Manager Fund (an open ended income scheme).
UTI Fixed Income Interval Fund – Monthly Interval Plan I Announces Dividend
Record date for dividend is 20 January 2014
Kotak Hybrid Fixed Term Plan Series-I announces maturity
The scheme will mature on 20 January 2014
ICICI Prudential Midcap Fund Announces Dividend
Record date for dividend is 21 January 2014
Direct Plan-Dividend: 1.31
Regular Plan-Dividend: 1.31
HDFC MF Launches HDFC FMP 370D January 2014 (1)
NFO remains open only on 23 January 2014
The investment objective of the plan is to generate regular income through investments in debt / money market instruments and government securities maturing on or before the maturity date of the plan.
The plan shall offer three options – growth, dividend and flexi option.
The plan would invest 60% to 100% of assets in debt and money market instruments with low to medium risk profile and invest upto 40% in government securities with low risk profile.
The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the plan during the NFO period.
Entry and exit load charge will be nil for the plan.
Benchmark Index for the plan is CRISIL Short Term Bond Fund Index.
The fund managers of the scheme are Anil Bamboli & Rakesh Vyas (Dedicated fund manager for overseas investments).
HDFC MF Launches HDFC CPO-Series II
NFO period is from 08 Janaury to 22 January 2014
The investment objective of the plan is to generate returns by investing in a portfolio of debt and money market securities which mature on or before the date of maturity of the scheme. The scheme also seeks to invest a portion of the portfolio in equity and equity related securities to achieve capital appreciation.
The plan shall offer two options – regular and direct option.
The plan would invest 75% to 100% of assets in debt securities and invest upto 25% in equity and equity related instruments (including equity derivatives) with high risk profile.
The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the plan during the NFO period.
Entry and exit load charge will be nil for the plan.
Benchmark Index for the plan is CRISIL MIP Blended Index.
The fund managers of the scheme are Anil Bamboli (Debt Portfolio) and Vinay R kulkarni (Equity Portfolio). Rakesh Vyas will be dedicated fund manger for Overseas Investments.
Birla Sun Life MF Announces Change In Key Personnel(s)
With immediate effect
Mr Nishit Dholakia, Fund Manager has ceased to be in the services of BSLAMC and accordingly also ceases to be Key Personnel of Birla Sun Life Mutual Fund.
The fund Management responsibilities of certain schemes of Birla Sun Life Mutual Fund has been reassigned with immediate effect as follows:
Birla Sun Life Midcap Fund will be managed by Mr Hitesh Zaveri, Birla Sun Life Dividend Yield Plus will be jointly managed by Mr Naysar Shah & Mr Vinnet Maloo, Birla Sun Life Small & Midcap Fund will be managed by Mr Hitesh Zaveri, Birla Sun Life Pure Value Fund will be jointly managed by Mahesh Patil & Mr Milind Bafna, Birla Sun Life 95 Fund will be jointly managed by Mahesh Patil & Mr Prasad Dhonde, Birla Sun Life RGESS – Series 1 will be managed by Mr Satyabrata Mohanty and Birla Sun Life New Millennium Fund will be managed by Kunal Sangoi.
ICICI Prudential Global Stable Equity Fund announces change
With effect from 20 January 2014
The existing/new investor under designated source schemes can avail the STP facility from the effective date.
FICCI Disappointed With Delhi Decision on FDI In Retail
FICCI President Shri Sidharth Birla, while appreciating CM-Delhi Mr.
Arvind Kejriwal's desire to promote growth of the state with great
transparency in Government machinery, expressed disappointment on the
recent move to bar FDI investments in multi brand retail in Delhi. Shri
Birla felt that "this direct negation without demonstrating a search for
a viable alternative or via-media would hamper investment sentiment for
the State. In itself multi brand retail would help in reduction in
wastage of food products thereby controlling inflation, and FDI is an
alternate capital and technology source.
Consumers would have benefited from choices of products at competitive prices. It has been proven time and again in various Countries and the model which exists in Delhi itself, where both large Multi brand retail stores and small kirana stores coexist peacefully. Further, with the clause of mandatory sourcing from SMEs, domestic manufacturers across the country would benefit by getting additional access to foreign channels and a greater opportunity to export."
Consumers would have benefited from choices of products at competitive prices. It has been proven time and again in various Countries and the model which exists in Delhi itself, where both large Multi brand retail stores and small kirana stores coexist peacefully. Further, with the clause of mandatory sourcing from SMEs, domestic manufacturers across the country would benefit by getting additional access to foreign channels and a greater opportunity to export."
Commodity-Wise Freight Revenue by Railways Goes up by 8.42 Per Cent During April-December 2013
The Railways have generated Rs. 67705.11 crore of revenue earnings
from commodity-wise freight traffic during 1st April to 31st December
2013 as compared to Rs. 61408.05 crore during the corresponding period
last year, registering an increase of 8.42 per cent. Railways carried
769.74 million tonnes of commodity-wise freight traffic during
April-December 2013 as compared to 735.22 million tonnes carried during
the corresponding period last year, registering an increase of 4.70 per
cent.
Out of the total earnings of Rs.8635.38 crore from commodity-wise freight traffic during the month of December 2013, Rs. 3694.27 crore came from transportation of 44.37 million tonnes of coal, followed by Rs. 914.52 crore from 10.91 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 754.63 crore from 9.29 million tonnes of cement, Rs. 653.89 crore from 4.32 million tonnes of foodgrains, Rs. 506.02 crore from 3.65 million tonnes of petroleum oil and lubricant (POL), Rs. 524.90 crore from 3.42 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 472.73 crore from 4.22 million tonnes of fertilizers, Rs. 149.62 crore from 1.51 million tonnes of raw material for steel plants except iron ore, Rs. 378.48 crore from 3.99 million tonnes by container service and Rs. 586.32 crore from 6.48 million tonnes of other goods.
Out of the total earnings of Rs.8635.38 crore from commodity-wise freight traffic during the month of December 2013, Rs. 3694.27 crore came from transportation of 44.37 million tonnes of coal, followed by Rs. 914.52 crore from 10.91 million tonnes of iron ore for exports, steel plants and for other domestic user, Rs. 754.63 crore from 9.29 million tonnes of cement, Rs. 653.89 crore from 4.32 million tonnes of foodgrains, Rs. 506.02 crore from 3.65 million tonnes of petroleum oil and lubricant (POL), Rs. 524.90 crore from 3.42 million tonnes of Pig iron and finished steel from steel plants and other points, Rs. 472.73 crore from 4.22 million tonnes of fertilizers, Rs. 149.62 crore from 1.51 million tonnes of raw material for steel plants except iron ore, Rs. 378.48 crore from 3.99 million tonnes by container service and Rs. 586.32 crore from 6.48 million tonnes of other goods.
Decline in WPI Inflation inspiring, expect cut in interest rates: PHD Chamber
The decline in WPI inflation in the month of December 2013 is
inspiring and is a positive sign at this juncture when the economy is
facing severe macroeconomic challenges, said Mr. Sharad Jaipuria,
President, PHD Chamber, in a press statement issued here today.
Since the industry growth is in the negative trajectory, so at this juncture, it is inevitable to reduce the repo rate to rejuvenate the industry sector growth, said Mr. Jaipuria.
The growth of IIP was recorded at (-) 2.1% for the month of November 2013. The cumulative growth of IIP for the period April-Nov 2013-14 stands at (-) 0.2%.
We therefore expect, a cut in repo rate in the coming third quarter review of monetary policy which is due on 28th January 2014, he said.
The WPI inflation for the month of December 2013 declined to 6.16% from 7.52% in November 2013. The decline in WPI inflation is attributed mainly to steep reduction in inflation in vegetables as well as onion prices.
We believe that in the coming times, the government must encourage investments in infrastructure sector especially the agriculture infrastructure in terms of supply side infrastructure i.e. farm gate to consumer doorstep supply chain management, which could effectively tackle the challenge of inflation, he added.
Since the industry growth is in the negative trajectory, so at this juncture, it is inevitable to reduce the repo rate to rejuvenate the industry sector growth, said Mr. Jaipuria.
The growth of IIP was recorded at (-) 2.1% for the month of November 2013. The cumulative growth of IIP for the period April-Nov 2013-14 stands at (-) 0.2%.
We therefore expect, a cut in repo rate in the coming third quarter review of monetary policy which is due on 28th January 2014, he said.
The WPI inflation for the month of December 2013 declined to 6.16% from 7.52% in November 2013. The decline in WPI inflation is attributed mainly to steep reduction in inflation in vegetables as well as onion prices.
We believe that in the coming times, the government must encourage investments in infrastructure sector especially the agriculture infrastructure in terms of supply side infrastructure i.e. farm gate to consumer doorstep supply chain management, which could effectively tackle the challenge of inflation, he added.
With industrial production limping we hope the RBI will consider a downward revision in policy rates later this month-Sidharth Birla, President, FICCI
The inflation numbers released today moved southwards on the back of
an evident decline in vegetable prices. The wholesale price index for
the month of December 2013 witnessed a growth of 6.16%, a decline by
over one percentage point from 7.52% growth seen in November 2013.
The prices of vegetables clocked a growth of 57.33% in December 2013 (vis-à-vis 95.25% growth in November 2013). Although this is still very high, a moderation in inflation has come about on the back of improved supply of the winter crop in the market. This has had a bearing on primary articles inflation that receded to 10.78% in December 2013 from 15.92 % in the previous month. Increase in fuel prices also saw some moderation in the month of December 2013.
“Just like the WPI numbers, the CPI data for December 2013 also indicated moderation on account of easing food prices. Food inflation is largely determined by supply side factors and we hope the government pursues policies that would help address the shortages so that food inflation further softens in the months ahead. As for manufactured goods inflation, this is certainly on the lower side and with industrial production limping, we hope the RBI will consider a downward revision in policy rates later this month”, said Mr. Sidharth Birla, President, FICCI.
The prices of vegetables clocked a growth of 57.33% in December 2013 (vis-à-vis 95.25% growth in November 2013). Although this is still very high, a moderation in inflation has come about on the back of improved supply of the winter crop in the market. This has had a bearing on primary articles inflation that receded to 10.78% in December 2013 from 15.92 % in the previous month. Increase in fuel prices also saw some moderation in the month of December 2013.
“Just like the WPI numbers, the CPI data for December 2013 also indicated moderation on account of easing food prices. Food inflation is largely determined by supply side factors and we hope the government pursues policies that would help address the shortages so that food inflation further softens in the months ahead. As for manufactured goods inflation, this is certainly on the lower side and with industrial production limping, we hope the RBI will consider a downward revision in policy rates later this month”, said Mr. Sidharth Birla, President, FICCI.
Growth of 23.80% in Tourists Availing of “Tourist Visa on Arrival” (VoA) Scheme
A growth of 23.80 percent has been recorded in the number of tourists
availing the tourist Visa on Arrival (VoA) Scheme during the month of
December 2013 as compared to the corresponding period of the year 2012. A
total number of 2700 VoAs have been issued in December, 2013 as
compared to 2181 VoAs during the corresponding period of 2012
registering a growth of 23.80 per cent.
The following are the other important highlights of VoAs issued during November, 2013:
(i) During the month of December 2013, a total of 2,700 VoAs were issued under this Scheme as compared to 2,181 VoAs during the month of December 2012, registering a growth of 23.8%.
(ii) During the period January to December 2013, a total number of 20,294 VoAs were issued as compared to 16,084 VoAs during the corresponding period of 2012 registering a growth of 26.2%.
(iii) The number of VoAs issued under this scheme during December 2013 for nationals of the eleven countries was Japan (744), New Zealand (619), Singapore (416), Indonesia (358), the Philippines (352), Finland (141), Vietnam (24), Cambodia (20), Luxembourg (19), Myanmar (5) and Laos (2).
(iv) The number of VoAs issued under the Scheme during January to December 2013 was Japan (6,448), New Zealand (3,968), the Philippines (2,967), Indonesia (2,758), Singapore (2,486), Finland (1,030), Vietnam (205), Myanmar (148), Luxembourg (145), Cambodia (120) and Laos (19).
(v) During the period January to December 2013, the highest number of VoAs were issued at New Delhi airport (11,046) followed by Mumbai (4,206), Chennai (2,815), Kolkata (1,351), Bangalore (380), Kochi (229), Hyderabad (165) and Trivandrum (102).
The following are the other important highlights of VoAs issued during November, 2013:
(i) During the month of December 2013, a total of 2,700 VoAs were issued under this Scheme as compared to 2,181 VoAs during the month of December 2012, registering a growth of 23.8%.
(ii) During the period January to December 2013, a total number of 20,294 VoAs were issued as compared to 16,084 VoAs during the corresponding period of 2012 registering a growth of 26.2%.
(iii) The number of VoAs issued under this scheme during December 2013 for nationals of the eleven countries was Japan (744), New Zealand (619), Singapore (416), Indonesia (358), the Philippines (352), Finland (141), Vietnam (24), Cambodia (20), Luxembourg (19), Myanmar (5) and Laos (2).
(iv) The number of VoAs issued under the Scheme during January to December 2013 was Japan (6,448), New Zealand (3,968), the Philippines (2,967), Indonesia (2,758), Singapore (2,486), Finland (1,030), Vietnam (205), Myanmar (148), Luxembourg (145), Cambodia (120) and Laos (19).
(v) During the period January to December 2013, the highest number of VoAs were issued at New Delhi airport (11,046) followed by Mumbai (4,206), Chennai (2,815), Kolkata (1,351), Bangalore (380), Kochi (229), Hyderabad (165) and Trivandrum (102).
Sequential negative growth in IIP in October and November 2013 reinforces the belief that fall in manufacturing growth has not yet bottomed out-FICCI
FICCI's Reaction to IIP Data For November 2013
"This reinforces the belief that fall in manufacturing growth has not yet bottomed out. Urgent measures and fresh thoughts are required to boost manufacturing, without which the jobs potential here will remain depressed.
Stronger systemic steps for enhancing competitiveness are also critical for the the sector, added Mr Birla. Consumer goods de-growth of 8.7% in November 2013 is the sharpest since March 2009 with steep decline in consumer durables demand, where consumer interest rates could also be a key factor.
Manufacturing growth is significantly affected by low growth in mining since sectors like metals that depend on minerals and have substantive weight in the index have pulled down the growth. Capital goods remain a cause for concern as growth of this sector was a meager 0.3% over a negative base of 8.5% in November 2012", Mr Sidharth Birla stated.
Rupee ends with a slight change
At 61.5350/5450 per dollar
Indian rupee closed with a slight change on Thursday (16 January 2014)
at 61.5350/5450 per dollar against its previous close of 61.54/55, as
dollar demand from importers was adequately met by dollar selling by
foreign banks, likely on behalf of clients looking to invest in domestic
debt market.
Bond yield eases by 02 bps
10-year G-sec Paper yield closes at 8.62%
The total trading volume on central bank's gilts trading platform stood at Rs 46670 crore.
Bond yield eased on comments from finance ministry that this year fiscal borrowing may be curtailed, raising hopes of lower deficit.
The weighted average rate in the overnight call money increased to 8.75% compared to 8.64% in previous session. The call money rate hovered in the range of 8.60% to 8.80% with the volume of Rs 19649.29 crore.
Asia Pacific Market: Stocks struggle to hold gains
Asia Pacific stocks closed mixed after reversing most of early gains on
Thursday, 16 January 2014, as investors locked profit after yesterday's
impressive rally.
Asian investors were initially taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy and after strong earnings from Bank of America. The rally was helped along by Bank of America, the country's No. 2 bank, reporting that quarterly profits quadrupled.
In the latest US economic data, the seasonally adjusted Producer Price Index rose 0.4% last month, the biggest increase since June, although inflation pressures remained benign. The Federal Reserve Bank of New York's "Empire State" index of general business conditions climbed to its highest level in 20 months. The data reassured investors that the economy is able to stand on its own even as the Federal Reserve begins to slow its massive stimulus programs, which contributed to huge equity gains in 2013.
In its latest Beige Book report on business activity, the Fed said the economy grew at a moderate pace from late November through the end of 2013, with some regions of the country expecting a pickup in growth.
A Federal Reserve survey that showed economic growth remained healthy also bolstered sentiment, as did optimistic comments about the state of the global economy by the World Bank and the head of the International Monetary Fund.
Asia markets were relatively muted as they closed, after they failed to sustain gains earlier in the day.
Among Asian bourses, Japan's share market finished the session tad below the neutral line as the dollar's early rally against the Japanese yen faded, triggering profit taking in the last hour. The benchmark Nikkei 225 index fell 61.53 points to 15,747.20, while the Topix index of all first-section shares slipped 0.13 point to 1,294.39.
Tokyo market commenced trading with positive note on tracking record close on Wall Street overnight and the dollar's gain against the yen. Meanwhile, better than expected Japanese core machinery also aided buying pressure in early trading hours. But, the market washed out entire gains during the last hour of trading as investors locked in profits.
According to Japanese government data released Thursday, core machinery orders went up unexpectedly by 9.3% in November from the previous month as demand picked up ahead of an upcoming sales tax hike. Also in the morning, Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy is expected to continue a moderate recovery. Speaking during BOJ branch managers meeting in Tokyo, Kuroda said, "Japan's economy is on steady track toward the 2% price target."
Shares of financial companies declined, with Japan Exchange Group Inc., operator of the country's biggest stock market, down 3.6% to 2720 yen. Orix Corp. slid 0.8% to 1,733 yen and consumer lender Credit Saison Co. declined 2% to 2,683 yen.
Pulp and paper makers also tumbled, with Daio Paper losing 3.7% to 967 yen. Oji Holdings Corp. slumped 1.1% to 525 yen and Nippon Paper Industries Co. lost 1.7% to 1,886 yen.
Shares of machinery companies rose after data from the Cabinet Office showed core machinery orders for November jumped 9.3% month on month. Tsurumi Manufacturing Co., which makes submersible pumps, surged 13% to 1,301 yen to lead gains on the measure. Disco Corp., which produces precision cutting machinery, added 4.2% to 7,230 yen.
In Australia, shares of the Australian stock market continued northward journey for second day in row, sending the benchmark S&P/ASX 200 index higher by 1.21% to 5309.10. All sectors ended higher, with shares in bullion, mining, resources, industrial, energy, healthcare and retailer companies were leading advances.
Shares of Australia's miners rallied, with Rio Tinto leading rally after a positive production report. Shares of Rio Tinto advanced 2.1% to A$65.58 after reporting record high iron-ore shipments for 2013 and a solid gain for copper output. BHP Billiton jumped 2.5% to HK$36.82. Fortescue Metals added 3.8% to A$5.53 despite news on Thursday that four incidents involving worker safety were being investigated by the West Australian Department of Mines and Petroleum.
Australia's financials stocks were stronger, with Australia & New Zealand Banking Group up 0.4% to A$31.83, National Australia Bank 0.8% to A$34.09 and Westpac Banking Corp 0.4% to A$31.83. Commonwealth Bank shed 0.55% to $75.80, Bendigo Bank (BEN) jumped 0.3% to A$11.79 and Bank of Queensland 0.7% to A$11.97.
Bega Cheese (BGA) announced it would be selling its 18.8% stake in Warrnambool Cheese and Butter (WCB) to Canadian dairy giant Saputo, putting Saputo in the prime position to take complete control of WCB following a lengthy takeover battle. BGA shares rose 0.2% today to close at A$4.62 while WCB rose 1.3% to A$9.40.
Australia Bureau of Statistics said on Thursday that domestic employment fell by 22,600 in December after a revised 10,500 gain in jobs in November (previously reported as a 21,000 increase in jobs). Full-time jobs fell by 31,600 in December and part-time jobs rose by 9,000. In the 2013 calendar year just 54,600 jobs were created, marking the weakest result for a calendar year since 1996. Part time employment lifted by almost 122,100 workers over 2013 compared with 67,500 full-time jobs lost. The unemployment rate in Australia is currently at 5.8%.
In China, shares in Mainland China market closed tad above the neutral line after swinging between gains and losses. The benchmark Shanghai Composite index provisionally closed 0.35 point higher at 2023.70.
Among SSE sectors, 6/10 sectors of the SSE index advanced, with material sector was best performer amongst the SSE sectoral peers, adding 1.1%, while information technology sector had worst showing, falling 0.9%.
Shares of utilities companies advanced, with Guangdong Electric Power Development Co leading a rally, up 1.5% to 4.63 yuan after power producer said 2013 profit may have jumped as much as 100% because of lower fuel prices and investment gains. Huadian Power International Corp rose 1.1% to 2.90 yuan after it reported a 12% jump in electricity output. Shanghai Electric Power Co., supplier of a third of the city's electricity, climbed 3.6% to 4.66 yuan.
Shares of materials and resources were also higher. Chalco, the listed unit of nation's biggest maker of the lightweight metal, gained 1.5% to 3.29 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., China's biggest producer of rare earth, added 2.6% to 22.01 yuan.
CHINA'S annual steel output growth is expected to slow in 2014 to around 3% and reach 810 million tons as a result of changes in its economic strategy, the head of the country's steel association said in comments published late Monday. Chinese steel production has surged to nearly half the world's total in the past two decades as a result of breakneck economic growth, but the government is now determined to slash the excess capacity weighing down the sector as well as reduce the country's overall dependence on heavy industry.
CHINA'S cotton imports dropped 19.2% during calendar 2013 to 4.15 million tons, the industry website CnCotton.com reported yesterday, citing customs data. The government's tight control on imported cotton fiber through quotas has seen the textile sector import rising volumes of cotton yarn last year to substitute the raw material. Imports of the fiber in December reached 609,000 tons, up 14.4% on the same month in 2012.
In Hong Kong, shares in city's financial market advanced, with the benchmark Hang Seng Index up 0.37% to finish at 22986.41 on Thursday, January 16, 2014, taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy. Among the HK 50 blue chips, 23 rose and 21 fell, with six stocks remaining steady. Lenovo (00992) became the top blue-chip winner, jumping 6% to HK$10.46, while Belle (01880) slipped 4.7% to HK$9.1, becoming the biggest blue-chip loser.
Shares of Tencent Holdings propped up 0.4% to HK$512.50 as investors cheered the Chinese internet giant's HK$1.5 billion ($193.5 million) investment in logistics and warehouse firm China South City Holdings. On Wednesday, Tencent said it had agreed to buy 680.3 million new shares in China South City, representing around 9.9% of that firm's enlarged share capital. China South City spiked 60.8% to HK$3.49.
The volume of Hong Kong's re-exports of goods rose 3.6% in November 2013 from a year earlier, whereas that of domestic exports dropped 10.4%. Taken together, the volume of total exports and imports of goods grew 3.4% and 4.8%, data from the Census and Statistics Department showed. Comparing the first eleven months of 2013 with the same period in 2012, the volume of Hong Kong's re-exports of goods expanded 3.5%, whereas that of domestic exports fell 9.6%. Taken together, the volume of total exports and imports of goods rose 3.2% and 4.2%.
In India, key benchmark indices edged lower in choppy trade amid profit booking and a mixed trend in overseas stock markets. As per provisional figures, the S&P BSE Sensex was down 24.31 points or 0.11% to 21,265.18.
In the 30-share barometer, 16 stocks declined led by Bharti Airtel, Cipla, Dr Reddy's Laboratories, HDFC Bank, Hero MotoCorp and ITC. Tata Consultancy Services (TCS) closed nearly flat ahead of earnings release expected after market hours. However, Coal India, Hindalco Industries and HDFC led 14 Sensex gainers higher.
Telecom stocks faced heavy selling pressure and plunged over 7% amid concerns that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt market share and profitability of existing telecom players. Shares of Idea Cellular tanked 7.25%, Bharti Airtel tumbled 4.84% and Reliance Communications lost 4.18%. Bucking the overall downtrend, stocks of HCL Technologies spurted by 4.23% after company reported 58.4% growth in quarterly profit for the period ended December 31.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.17%. South Korea's KOSPI added 0.21%. Indonesia's Jakarta Composite index shed 0.66%. Taiwan's Taiex index added 0.11%. Malaysia's KLSE Composite lost 0.6%. Singapore's Straits Times index shed 0.1%.
Asian investors were initially taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy and after strong earnings from Bank of America. The rally was helped along by Bank of America, the country's No. 2 bank, reporting that quarterly profits quadrupled.
In the latest US economic data, the seasonally adjusted Producer Price Index rose 0.4% last month, the biggest increase since June, although inflation pressures remained benign. The Federal Reserve Bank of New York's "Empire State" index of general business conditions climbed to its highest level in 20 months. The data reassured investors that the economy is able to stand on its own even as the Federal Reserve begins to slow its massive stimulus programs, which contributed to huge equity gains in 2013.
In its latest Beige Book report on business activity, the Fed said the economy grew at a moderate pace from late November through the end of 2013, with some regions of the country expecting a pickup in growth.
A Federal Reserve survey that showed economic growth remained healthy also bolstered sentiment, as did optimistic comments about the state of the global economy by the World Bank and the head of the International Monetary Fund.
Asia markets were relatively muted as they closed, after they failed to sustain gains earlier in the day.
Among Asian bourses, Japan's share market finished the session tad below the neutral line as the dollar's early rally against the Japanese yen faded, triggering profit taking in the last hour. The benchmark Nikkei 225 index fell 61.53 points to 15,747.20, while the Topix index of all first-section shares slipped 0.13 point to 1,294.39.
Tokyo market commenced trading with positive note on tracking record close on Wall Street overnight and the dollar's gain against the yen. Meanwhile, better than expected Japanese core machinery also aided buying pressure in early trading hours. But, the market washed out entire gains during the last hour of trading as investors locked in profits.
According to Japanese government data released Thursday, core machinery orders went up unexpectedly by 9.3% in November from the previous month as demand picked up ahead of an upcoming sales tax hike. Also in the morning, Bank of Japan Governor Haruhiko Kuroda said that the Japanese economy is expected to continue a moderate recovery. Speaking during BOJ branch managers meeting in Tokyo, Kuroda said, "Japan's economy is on steady track toward the 2% price target."
Shares of financial companies declined, with Japan Exchange Group Inc., operator of the country's biggest stock market, down 3.6% to 2720 yen. Orix Corp. slid 0.8% to 1,733 yen and consumer lender Credit Saison Co. declined 2% to 2,683 yen.
Pulp and paper makers also tumbled, with Daio Paper losing 3.7% to 967 yen. Oji Holdings Corp. slumped 1.1% to 525 yen and Nippon Paper Industries Co. lost 1.7% to 1,886 yen.
Shares of machinery companies rose after data from the Cabinet Office showed core machinery orders for November jumped 9.3% month on month. Tsurumi Manufacturing Co., which makes submersible pumps, surged 13% to 1,301 yen to lead gains on the measure. Disco Corp., which produces precision cutting machinery, added 4.2% to 7,230 yen.
In Australia, shares of the Australian stock market continued northward journey for second day in row, sending the benchmark S&P/ASX 200 index higher by 1.21% to 5309.10. All sectors ended higher, with shares in bullion, mining, resources, industrial, energy, healthcare and retailer companies were leading advances.
Shares of Australia's miners rallied, with Rio Tinto leading rally after a positive production report. Shares of Rio Tinto advanced 2.1% to A$65.58 after reporting record high iron-ore shipments for 2013 and a solid gain for copper output. BHP Billiton jumped 2.5% to HK$36.82. Fortescue Metals added 3.8% to A$5.53 despite news on Thursday that four incidents involving worker safety were being investigated by the West Australian Department of Mines and Petroleum.
Australia's financials stocks were stronger, with Australia & New Zealand Banking Group up 0.4% to A$31.83, National Australia Bank 0.8% to A$34.09 and Westpac Banking Corp 0.4% to A$31.83. Commonwealth Bank shed 0.55% to $75.80, Bendigo Bank (BEN) jumped 0.3% to A$11.79 and Bank of Queensland 0.7% to A$11.97.
Bega Cheese (BGA) announced it would be selling its 18.8% stake in Warrnambool Cheese and Butter (WCB) to Canadian dairy giant Saputo, putting Saputo in the prime position to take complete control of WCB following a lengthy takeover battle. BGA shares rose 0.2% today to close at A$4.62 while WCB rose 1.3% to A$9.40.
Australia Bureau of Statistics said on Thursday that domestic employment fell by 22,600 in December after a revised 10,500 gain in jobs in November (previously reported as a 21,000 increase in jobs). Full-time jobs fell by 31,600 in December and part-time jobs rose by 9,000. In the 2013 calendar year just 54,600 jobs were created, marking the weakest result for a calendar year since 1996. Part time employment lifted by almost 122,100 workers over 2013 compared with 67,500 full-time jobs lost. The unemployment rate in Australia is currently at 5.8%.
In China, shares in Mainland China market closed tad above the neutral line after swinging between gains and losses. The benchmark Shanghai Composite index provisionally closed 0.35 point higher at 2023.70.
Among SSE sectors, 6/10 sectors of the SSE index advanced, with material sector was best performer amongst the SSE sectoral peers, adding 1.1%, while information technology sector had worst showing, falling 0.9%.
Shares of utilities companies advanced, with Guangdong Electric Power Development Co leading a rally, up 1.5% to 4.63 yuan after power producer said 2013 profit may have jumped as much as 100% because of lower fuel prices and investment gains. Huadian Power International Corp rose 1.1% to 2.90 yuan after it reported a 12% jump in electricity output. Shanghai Electric Power Co., supplier of a third of the city's electricity, climbed 3.6% to 4.66 yuan.
Shares of materials and resources were also higher. Chalco, the listed unit of nation's biggest maker of the lightweight metal, gained 1.5% to 3.29 yuan. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., China's biggest producer of rare earth, added 2.6% to 22.01 yuan.
CHINA'S annual steel output growth is expected to slow in 2014 to around 3% and reach 810 million tons as a result of changes in its economic strategy, the head of the country's steel association said in comments published late Monday. Chinese steel production has surged to nearly half the world's total in the past two decades as a result of breakneck economic growth, but the government is now determined to slash the excess capacity weighing down the sector as well as reduce the country's overall dependence on heavy industry.
CHINA'S cotton imports dropped 19.2% during calendar 2013 to 4.15 million tons, the industry website CnCotton.com reported yesterday, citing customs data. The government's tight control on imported cotton fiber through quotas has seen the textile sector import rising volumes of cotton yarn last year to substitute the raw material. Imports of the fiber in December reached 609,000 tons, up 14.4% on the same month in 2012.
In Hong Kong, shares in city's financial market advanced, with the benchmark Hang Seng Index up 0.37% to finish at 22986.41 on Thursday, January 16, 2014, taking their lead from record close on Wall Street overnight in response to an upbeat report on the US economy. Among the HK 50 blue chips, 23 rose and 21 fell, with six stocks remaining steady. Lenovo (00992) became the top blue-chip winner, jumping 6% to HK$10.46, while Belle (01880) slipped 4.7% to HK$9.1, becoming the biggest blue-chip loser.
Shares of Tencent Holdings propped up 0.4% to HK$512.50 as investors cheered the Chinese internet giant's HK$1.5 billion ($193.5 million) investment in logistics and warehouse firm China South City Holdings. On Wednesday, Tencent said it had agreed to buy 680.3 million new shares in China South City, representing around 9.9% of that firm's enlarged share capital. China South City spiked 60.8% to HK$3.49.
The volume of Hong Kong's re-exports of goods rose 3.6% in November 2013 from a year earlier, whereas that of domestic exports dropped 10.4%. Taken together, the volume of total exports and imports of goods grew 3.4% and 4.8%, data from the Census and Statistics Department showed. Comparing the first eleven months of 2013 with the same period in 2012, the volume of Hong Kong's re-exports of goods expanded 3.5%, whereas that of domestic exports fell 9.6%. Taken together, the volume of total exports and imports of goods rose 3.2% and 4.2%.
In India, key benchmark indices edged lower in choppy trade amid profit booking and a mixed trend in overseas stock markets. As per provisional figures, the S&P BSE Sensex was down 24.31 points or 0.11% to 21,265.18.
In the 30-share barometer, 16 stocks declined led by Bharti Airtel, Cipla, Dr Reddy's Laboratories, HDFC Bank, Hero MotoCorp and ITC. Tata Consultancy Services (TCS) closed nearly flat ahead of earnings release expected after market hours. However, Coal India, Hindalco Industries and HDFC led 14 Sensex gainers higher.
Telecom stocks faced heavy selling pressure and plunged over 7% amid concerns that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt market share and profitability of existing telecom players. Shares of Idea Cellular tanked 7.25%, Bharti Airtel tumbled 4.84% and Reliance Communications lost 4.18%. Bucking the overall downtrend, stocks of HCL Technologies spurted by 4.23% after company reported 58.4% growth in quarterly profit for the period ended December 31.
Elsewhere in the Asia Pacific region, New Zealand's NZX50 index rose 0.17%. South Korea's KOSPI added 0.21%. Indonesia's Jakarta Composite index shed 0.66%. Taiwan's Taiex index added 0.11%. Malaysia's KLSE Composite lost 0.6%. Singapore's Straits Times index shed 0.1%.
Tuesday, January 14, 2014
Motor insurance: Declined risk pool could be on its way out
Insurers believe that pool won’t be required as most risks are taken on company books
The declined risk pool in third party segment for commercial vehicles could be short-lived. This is because the general insurance companies have approached the Insurance Regulatory and Development Authority (Irda) for dismantling it. In December 2011, Insurance Regulatory and Development Authority (Irda) dismantled the commercial third-party (TP) motor pool and decided to form a ’declined’ pool, effective April 1, 2012. The move had assumed importance, as it freed the pricing model and gave insurers rights to price vehicles based on claims.
Under the declined pool, insurers have the right to refuse or decline third-party insurance if it finds it too risky an asset to underwrite. This declined vehicle would then be given a cover by another insurer. In the earlier TP pool, all risks were put into this pool. For the remaining vehicles, insurers would be free to underwrite risks independently. To avoid ’cherry picking’, insurers were allowed to decline risks only on the basis of certain parameters like claims, the age of the vehicle, the type of the vehicle, geography, along with other parameters to be decided by the regulator from time to time. General insurers, through the General Insurance Council have put in a proposal to remove the declined risk pool. While Irda has not given any feedback on the same, insurers expect the pool to be done away with, in the next 24-36 months.
“The size of the declined risk pool has shrunk from almost Rs 5000 crore when the TP motor pool was there to about Rs 350-400 crore, due to majority of business being underwritten into individual company books. Hence, the slow dismantlement of the pool is the next logical step,” said the chief executive of a private general insurance company. However, the losses in the motor segment continue to persist because of the third party segment, where pricing is regulated. Even 20 months after third party (TP) pool for commercial vehicles was dismantled and declined risk pool was set-up, the woes of general insurers are far from over. Combined ratios for the motor insurance segment, have stood between 140-145 per cent for the industry.
“Earlier, there was a situation of insurers selectively insuring commercial vehicles in the TP space. Now, most of the business is retained in their books and only a small proportion comes into the pool. Therefore, the significance of the pool has reduced and there are fewer cases of clients not getting TP insurance,” said a senior general insurance company official. Inadequate price hikes in motor TP segment and incomplete coverage of TP insurance for vehicle owing population in India, where TP cover is mandatory, has led to these losses remaining high.
Insurers said that claims ratio is significantly higher meaning that companies paid 60-100% higher claims than the amount of premium earned. Some insurers are also of the opinion that while this pool would be removed, Irda may not be immediately in favour of it. A senior official from a public general insurance company said that Irda’s earlier chairman too was in favour of letting the pool continue for some more time before it slowly becomes insignificant.
Source: BS
The declined risk pool in third party segment for commercial vehicles could be short-lived. This is because the general insurance companies have approached the Insurance Regulatory and Development Authority (Irda) for dismantling it. In December 2011, Insurance Regulatory and Development Authority (Irda) dismantled the commercial third-party (TP) motor pool and decided to form a ’declined’ pool, effective April 1, 2012. The move had assumed importance, as it freed the pricing model and gave insurers rights to price vehicles based on claims.
Under the declined pool, insurers have the right to refuse or decline third-party insurance if it finds it too risky an asset to underwrite. This declined vehicle would then be given a cover by another insurer. In the earlier TP pool, all risks were put into this pool. For the remaining vehicles, insurers would be free to underwrite risks independently. To avoid ’cherry picking’, insurers were allowed to decline risks only on the basis of certain parameters like claims, the age of the vehicle, the type of the vehicle, geography, along with other parameters to be decided by the regulator from time to time. General insurers, through the General Insurance Council have put in a proposal to remove the declined risk pool. While Irda has not given any feedback on the same, insurers expect the pool to be done away with, in the next 24-36 months.
“The size of the declined risk pool has shrunk from almost Rs 5000 crore when the TP motor pool was there to about Rs 350-400 crore, due to majority of business being underwritten into individual company books. Hence, the slow dismantlement of the pool is the next logical step,” said the chief executive of a private general insurance company. However, the losses in the motor segment continue to persist because of the third party segment, where pricing is regulated. Even 20 months after third party (TP) pool for commercial vehicles was dismantled and declined risk pool was set-up, the woes of general insurers are far from over. Combined ratios for the motor insurance segment, have stood between 140-145 per cent for the industry.
“Earlier, there was a situation of insurers selectively insuring commercial vehicles in the TP space. Now, most of the business is retained in their books and only a small proportion comes into the pool. Therefore, the significance of the pool has reduced and there are fewer cases of clients not getting TP insurance,” said a senior general insurance company official. Inadequate price hikes in motor TP segment and incomplete coverage of TP insurance for vehicle owing population in India, where TP cover is mandatory, has led to these losses remaining high.
Insurers said that claims ratio is significantly higher meaning that companies paid 60-100% higher claims than the amount of premium earned. Some insurers are also of the opinion that while this pool would be removed, Irda may not be immediately in favour of it. A senior official from a public general insurance company said that Irda’s earlier chairman too was in favour of letting the pool continue for some more time before it slowly becomes insignificant.
Source: BS
Insurance sector almost compliant with norms: Players
Simplification of policy terminology will require some more work; Irda turns focus to customer services
The finance ministry has asked regulators to voluntarily implement the non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC). However, the insurance sector has a reason to cheer since they believe the sector is almost compliant with the proposals of the commission. Only the terminology in policies needs to be simplified to ensure there are no unfair terms in financial contracts, say players. The guidance handbook of FSLRC deals with issues relating to consumer protection for retail customers, timeline requirements for framing regulations, notices to regulated entities, transparency in board meetings, reporting, approvals, investigation, adjudication, imposition of penalty and capacity-building. With respect to consumer protection, the Insurance Regulatory and Development Authority (Irda) has set up a committee to advise the regulator on customer services.
This committee has members from life insurance firms, non-life companies, and Life and General Insurance Council, among others. Further, the regulator is looking into whether customer-centric regulations can be re-looked at. Under this initiative, all insurers have been asked to file their citizen charters and Irda is looking into the possibility of having product-specific citizen charters. With respect to regulations, Irda is looking into whether the the Policyholder Protection Act needs a revamp. Insurers have also been asked to file a statement of customer services-related issues and data given to their respective boards.
An Irda official said with respect to insurance, most proposals, from transparency to customer grievance management, have been implemented and only some polishing is required with respect to the existing regulations. With respect to the FSLRC handbook’s recommendation on the regulator identifying a separate category of retail consumers comprising individuals and small and medium enterprises that obtain financial products or services below a specified value and providing them additional protections like grievance redressal, Irda has put in place mechanisms to deal with it.
Executives, however, said the insurance contracts were very technical in nature and difficult for the customer to comprehend in several cases. “Both the sector and the regulator are working closely to make changes in this sphere and make these contracts simpler by making use of common English words in the policy. This will ensure the customer will not get a raw deal and no unfair terms are presented,” said the chief actuary of a mid-size life insurance company. By Irda regulations, these customers/policyholders are entitled to grievance redressal if they have any complaint about the insurer or the product. If they are not satisfied with the company’s response, they can also contact the Insurance ombudsman of the region and can later approach the court.
The insurance regulator has also set up an Integrated Grievance Management System (IGMS) to deal with customer dissatisfaction. Insurance executives also agree. The chief executive of a large private life insurance company said Irda has also put in place all regulations to ensure protection of customers. “While there is always scope for improvement, new measures like common definitions for products will ease the process of insurance and make it more customer-friendly,” said the official. One area which insurers said could see some concrete steps is customer privacy.
While the code of conduct of all companies operating in the insurance space clearly states that no customer information is to be provided to any person(s), there is as such no regulation in this area. In the area of imposing penalty, too, Irda has been taking regular actions on erring parties, be it insurers, third-party service providers or other intermediaries. With respect to public disclosures, too, all insurers have been directed to provide all financial information on their website every quarter. The regulator, too, posts all information related to new regulations, notices and board meeting minutes on its website periodically.
One area which insurers said could see some concrete steps in the field of customer privacy. While the code of conduct of all companies operating in the insurance space clearly states that no customer information is to be provided to any person(s), there is as such no regulation on this particular area. Detailed regulations on customer privacy is an area which could see some changes in this financial year, said a senior life insurance executive.
Source: BS
The finance ministry has asked regulators to voluntarily implement the non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC). However, the insurance sector has a reason to cheer since they believe the sector is almost compliant with the proposals of the commission. Only the terminology in policies needs to be simplified to ensure there are no unfair terms in financial contracts, say players. The guidance handbook of FSLRC deals with issues relating to consumer protection for retail customers, timeline requirements for framing regulations, notices to regulated entities, transparency in board meetings, reporting, approvals, investigation, adjudication, imposition of penalty and capacity-building. With respect to consumer protection, the Insurance Regulatory and Development Authority (Irda) has set up a committee to advise the regulator on customer services.
This committee has members from life insurance firms, non-life companies, and Life and General Insurance Council, among others. Further, the regulator is looking into whether customer-centric regulations can be re-looked at. Under this initiative, all insurers have been asked to file their citizen charters and Irda is looking into the possibility of having product-specific citizen charters. With respect to regulations, Irda is looking into whether the the Policyholder Protection Act needs a revamp. Insurers have also been asked to file a statement of customer services-related issues and data given to their respective boards.
An Irda official said with respect to insurance, most proposals, from transparency to customer grievance management, have been implemented and only some polishing is required with respect to the existing regulations. With respect to the FSLRC handbook’s recommendation on the regulator identifying a separate category of retail consumers comprising individuals and small and medium enterprises that obtain financial products or services below a specified value and providing them additional protections like grievance redressal, Irda has put in place mechanisms to deal with it.
Executives, however, said the insurance contracts were very technical in nature and difficult for the customer to comprehend in several cases. “Both the sector and the regulator are working closely to make changes in this sphere and make these contracts simpler by making use of common English words in the policy. This will ensure the customer will not get a raw deal and no unfair terms are presented,” said the chief actuary of a mid-size life insurance company. By Irda regulations, these customers/policyholders are entitled to grievance redressal if they have any complaint about the insurer or the product. If they are not satisfied with the company’s response, they can also contact the Insurance ombudsman of the region and can later approach the court.
The insurance regulator has also set up an Integrated Grievance Management System (IGMS) to deal with customer dissatisfaction. Insurance executives also agree. The chief executive of a large private life insurance company said Irda has also put in place all regulations to ensure protection of customers. “While there is always scope for improvement, new measures like common definitions for products will ease the process of insurance and make it more customer-friendly,” said the official. One area which insurers said could see some concrete steps is customer privacy.
While the code of conduct of all companies operating in the insurance space clearly states that no customer information is to be provided to any person(s), there is as such no regulation in this area. In the area of imposing penalty, too, Irda has been taking regular actions on erring parties, be it insurers, third-party service providers or other intermediaries. With respect to public disclosures, too, all insurers have been directed to provide all financial information on their website every quarter. The regulator, too, posts all information related to new regulations, notices and board meeting minutes on its website periodically.
One area which insurers said could see some concrete steps in the field of customer privacy. While the code of conduct of all companies operating in the insurance space clearly states that no customer information is to be provided to any person(s), there is as such no regulation on this particular area. Detailed regulations on customer privacy is an area which could see some changes in this financial year, said a senior life insurance executive.
Source: BS
Pension fund managers turn to new strategies to enrol youngsters into NPS
HDFC Pension Fund also been finding it difficult to enrol people in younger age-bracket
Four months after the Pension Fund Regulatory and Development Authority (PFRDA) Bill that gives regulatory status to the pension sector regulator has been passed, fund managers in this segment have seen a mark increase in the number of clients. However, attracting young professionals has continued be a challenge for these companies and hence they have adopted new strategies to cater to this segment. The pension fund managers distribute products under National Pension System (NPS). The NPS is a new contributory pension scheme launched by Government of and is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
Under the NPS, you can regularly invest your money into your pension account and have an option of taking a part of the corpus as lump sum amount and the balance in form of fixed monthly income. It was first introduced for government employees and then in end 2009 for all citizens of India. Though there is a tax benefit under Section 80C of the Income Tax Act, younger employees in the age-group of 25-35 years do not want to purchase the product. The major reason attributed by the industry players for this, is that these professionals do not want to think about retirement at an early age. Take HDFC Pension Fund for example.
Similar to the other fund managers in the NPS space, they have also been finding it difficult to enrol people in the younger age-bracket into NPS. Sumit Shukla, Chief Exectuive Officer of HDFC Pension Management Company explained that it is the middle and senior management in companies who want to opt for these products. “To attract younger talent to NPS, we tied-up with BPOs, since they have a relatively younger employee mix. Here, about 40 educational sessions were held where the scheme was introduced to these employees. Post this, we had about 125 forms coming in, for joining NPS,” said Shukla. The company has also adopted the audio-visual method to get more such professionals take NPS. Shukla informed that they have also created an awareness video about how NPS makes retired life more joyful, in order to get youngsters interested. For the future, HDFC Pension Management is also investing in technology to make NPS easier to subscribe to and more accessible.
To subscribe to NPS, one should be between 18 - 60 years of age as on the date of submission of his/her application to the POP / POP-SP. Point of Presence (POP) is the interface between the corporate/subscribers and the NPS architecture. POP-Service Providers (POP-SPs) are the designated branches of registered PoP(s) to extend the reach of NPS. In order to invest in an NPS, it is mandatory for an individual to open a Tier I NPS account where withdrawal is not allowed. However, after opening the Tier I account, you can start a Tier II account where partial withdrawal is allowed. Up to 20% of the funds can be withdrawn from NPS before one turns 60; the rest has to be used to buy annuity. The thrust is also on digital media initiatives. Anil Ghelani, Business Head and Chief Investment Officer, DSP BlackRock Pension Fund Managers said that their marketing strategy is aiming to build a strong connect with the young generation.
“Recognizing that wealth creation including saving for retirement is a long term process and it needs to start at a young age. Connecting with the youth thus is essential for introducing and educating them about investment products traditionally considered by more mature audiences,” he said. At DSP BlackRock Pension Fund Managers, they are focusing on digital media initiatives. Ghelani added that even the team at DSP BlackRock working on this business is constituted of primarily young individuals that can help take out the message in a much more relatable manner.
The Pension Fund Managers for Government Sector NPS are LIC Pension Fund, SBI Pension Funds and UTI Retirement Solutions. The Pension Fund Managers for Private Sector NPS apart from the above three are HDFC Pension Management Company, ICICI Prudential Pension Funds Management Company, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund Ltd and DSP BlackRock Pension Fund Managers. Apart from these initiatives, industry players feel that changes in the technology interface would also be essential to get youth interested.
They informed that further taxation changes would also be welcome, given that the pension earned after retirement is taxable at slab rate for NPS. A senior official from a pension fund manager operating in the NPS space in both private and public sector said that the enrolment process should also be made simpler. “Similar to products like insurance and banking, online processes would be more effective in getting people of a young age interested.
Further, mobile applications to purchase NPS and check its fund value on a regular basis would be beneficial,” the official added. He also said that the industry is looking to bring out simpler enrolment forms that only have four to five basic questions. At present, online purchase of NPS is not allowed. However, sources indicated that the finance ministry and PFRDA are considering this proposal seriously and changes could be made to facilitate it in the near future.
Source: BS
Four months after the Pension Fund Regulatory and Development Authority (PFRDA) Bill that gives regulatory status to the pension sector regulator has been passed, fund managers in this segment have seen a mark increase in the number of clients. However, attracting young professionals has continued be a challenge for these companies and hence they have adopted new strategies to cater to this segment. The pension fund managers distribute products under National Pension System (NPS). The NPS is a new contributory pension scheme launched by Government of and is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
Under the NPS, you can regularly invest your money into your pension account and have an option of taking a part of the corpus as lump sum amount and the balance in form of fixed monthly income. It was first introduced for government employees and then in end 2009 for all citizens of India. Though there is a tax benefit under Section 80C of the Income Tax Act, younger employees in the age-group of 25-35 years do not want to purchase the product. The major reason attributed by the industry players for this, is that these professionals do not want to think about retirement at an early age. Take HDFC Pension Fund for example.
Similar to the other fund managers in the NPS space, they have also been finding it difficult to enrol people in the younger age-bracket into NPS. Sumit Shukla, Chief Exectuive Officer of HDFC Pension Management Company explained that it is the middle and senior management in companies who want to opt for these products. “To attract younger talent to NPS, we tied-up with BPOs, since they have a relatively younger employee mix. Here, about 40 educational sessions were held where the scheme was introduced to these employees. Post this, we had about 125 forms coming in, for joining NPS,” said Shukla. The company has also adopted the audio-visual method to get more such professionals take NPS. Shukla informed that they have also created an awareness video about how NPS makes retired life more joyful, in order to get youngsters interested. For the future, HDFC Pension Management is also investing in technology to make NPS easier to subscribe to and more accessible.
To subscribe to NPS, one should be between 18 - 60 years of age as on the date of submission of his/her application to the POP / POP-SP. Point of Presence (POP) is the interface between the corporate/subscribers and the NPS architecture. POP-Service Providers (POP-SPs) are the designated branches of registered PoP(s) to extend the reach of NPS. In order to invest in an NPS, it is mandatory for an individual to open a Tier I NPS account where withdrawal is not allowed. However, after opening the Tier I account, you can start a Tier II account where partial withdrawal is allowed. Up to 20% of the funds can be withdrawn from NPS before one turns 60; the rest has to be used to buy annuity. The thrust is also on digital media initiatives. Anil Ghelani, Business Head and Chief Investment Officer, DSP BlackRock Pension Fund Managers said that their marketing strategy is aiming to build a strong connect with the young generation.
“Recognizing that wealth creation including saving for retirement is a long term process and it needs to start at a young age. Connecting with the youth thus is essential for introducing and educating them about investment products traditionally considered by more mature audiences,” he said. At DSP BlackRock Pension Fund Managers, they are focusing on digital media initiatives. Ghelani added that even the team at DSP BlackRock working on this business is constituted of primarily young individuals that can help take out the message in a much more relatable manner.
The Pension Fund Managers for Government Sector NPS are LIC Pension Fund, SBI Pension Funds and UTI Retirement Solutions. The Pension Fund Managers for Private Sector NPS apart from the above three are HDFC Pension Management Company, ICICI Prudential Pension Funds Management Company, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund Ltd and DSP BlackRock Pension Fund Managers. Apart from these initiatives, industry players feel that changes in the technology interface would also be essential to get youth interested.
They informed that further taxation changes would also be welcome, given that the pension earned after retirement is taxable at slab rate for NPS. A senior official from a pension fund manager operating in the NPS space in both private and public sector said that the enrolment process should also be made simpler. “Similar to products like insurance and banking, online processes would be more effective in getting people of a young age interested.
Further, mobile applications to purchase NPS and check its fund value on a regular basis would be beneficial,” the official added. He also said that the industry is looking to bring out simpler enrolment forms that only have four to five basic questions. At present, online purchase of NPS is not allowed. However, sources indicated that the finance ministry and PFRDA are considering this proposal seriously and changes could be made to facilitate it in the near future.
Source: BS
Kotak Quarterly Interval Plan Series 5 Announces dividend
Record date for dividend is 16 January 2014
The units of the scheme will not be available for trading on NSE with effect from 14 January 2014.
ICICI Prudential MF Announces Dividend Under Its Schemes
Record date for dividend is 16 January 2014
ICICI Prudential Interval Fund II–Quarterly Interval Plan F:
Retail Dividend: 0.1867
Direct Plan – Quarterly Dividend Payout: 0.1901
Retail Quarterly Dividend Payout: 0.1853
Regular Plan – Dividend: 0.1892
ICICI Prudential Fixed Maturity Plan – Series 65 – 366 Days Plan I – Regular Plan & Direct Plan: 0.05 each.
ICICI Prudential Fixed Maturity Plan – Series 53 – 3 Years Plan B – Dividend: 0.05
FT Dynamic PE Fund of Funds announces dividend
Record date for dividend is 17 January 2014
Individuals & HUF-0.584
Others-0.559
JM Income Fund announces change in exit load structure
With effect from 13 January 2013
The change in load structure shall be applicable for all prospective investment(s) in the scheme for which the NAV of 13 January 2013 onwards in applicable.
ICICI Prudential Interval Fund II–Quarterly Interval Plan F Announces Dividend
Record date for dividend is 17 January 2014
Retail Dividend: 0.1867
Direct Plan – Quarterly Dividend Payout: 0.1901
Retail Quarterly Dividend Payout: 0.1853
Regular Plan – Dividend: 0.1892
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