Weaker rupee and greater resiliency in international markets help international feeder funds outshine domestic equity funds in 2011.
International feeder funds posted an average of -7% returns in 2011 as compared to 25% slip in the returns of domestic equity funds, thanks to 19% depreciation in rupee against the dollar and the resilience of international markets as compared to the Indian markets, shows a Morningstar study.
The report states that 14 of the top 20 performing equity funds in 2011 were global funds in which themes like global infrastructure, agri-business and commodities stood out.
Despite 16 new fund launches in 2007-08, the assets under management of these funds have seen a 15% decline since 2009 when the assets were at peak. The number of new fund offers in this category has also declined with four new launches per year between 2009 & 2011.
Assets of international feeder funds dipped 7% in 2011. The assets of the largest global fund- DSP BlackRock World Gold Fund fell below Rs. 1,000 crore. It was managing above Rs. 2,000 crore in mid 2008. Recently, DSP BlackRock launched DSP BlackRock World Agriculture Fund in October 2011 which collected Rs. 48 crore. DSP BlackRock New Energy Fund and DSP BlackRock Latin American Fund are also in the pipeline awaiting SEBI approval.
The assets of agribusiness funds grew quite robustly during the year. DWS Global Agribusiness Offshore Fund saw its assets grow by 330% in 2011 (up to September) to in excess of Rs. 100 crore.
Global funds recorded outflows in most months of 2011 except in May when HSBC Brazil Fund collected Rs. 300 crore. In 2010, global funds had registered a net outflow of Rs. 939 crore, states the study.
