In the previous column, we had initiated a discussion on the rush for global / international funds. Since then, some AMC’s have shut their windows for acceptance of investments into these funds while others still have their window open. One can expect periodic opening and shutting of windows herefrom for these global/international funds till the caps set by RBI on acceptance limits are lifted.
The International funds that we have randomly selected to place under the spotlight include Franklin India Feeder - Franklin U.S. Opportunities Fund, ICICI Prudential US Bluechip Equity Fund, Nippon India US Equity Opportunities Fund, Mirae Asset S&P 500 Top 50 ETF Fund of Fund & Axis Greater China Equity Fund of Fund.
Franklin India Feeder - Franklin U.S. Opportunities Fund has an AUM of Rs 2,888 crore and it invests predominantly in Equity and Equity related securities of companies listed in the United States of America through Franklin U.S. Opportunities Fund. The top holdings of this fund are in the Information Technology, Health Care and Customer Discretionary sectors. The performance of this fund over a 1-year, 3-years and 5-years time period is (-22.69%), 11.26% and 14.05% respectively.
ICICI Prudential US Bluechip Equity Fund has an AUM of Rs 1,866 Crore and it invests predominantly in Equity & Equity related securities of companies listed in the United States of America. The top holdings of this fund are in the Application Software, Internet and Direct Marketing, Retail and Financial Services sectors. The performance of this fund over a 1-year, 3-years and 5-years time period is (-3.96%), 16.28% and 15.43% respectively.
Nippon India US Equity Opportunities?? Fund has an AUM of Rs 511 Crore and invests predominantly in Equity and Equity related securities of companies listed in the United States of America. The fund’s top holdings are in the Data Processing and Outsourced Services, Managed Health Care, Interactive Media and Services sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are (-10.81%), 11.99% and 14.03% respectively.
Mirae Asset S&P 500 Top 50 ETF Fund Of Fund is a relatively new entrant into this space and has an AUM of `343 Crore. It invests predominantly in Equity and Equity related securities of companies listed in the United States of America through Mirae Asset S&P 500 Top 50 ETF. The performances of this fund over 3-month and 6-month time period are (-6.26%) and (-8.08%) respectively
Axis Greater China Equity Fund of Fund has an AUM of Rs 136 Crore and it invests predominantly in units of Schroder International Selection Fund Greater China, a fund that in turn invests in equity and equity related securities of companies from China, Hong Kong and Taiwan companies. The performances of this fund over 3-month, 6-month and 1-year time period are 5.60%, (-11.61%) and (-19.53%) respectively.
To conclude, global/international funds seem to have a place in the portfolios of investors seeking a quasi-currency hedge. Any revival in the battered down global markets herefrom, could prove to be the proverbial icing on the cake too for its investors. Nonetheless, selectiveness is recommended.
Ashok Kumar
Head of LKW-India. He can be reached at ceolotus@hotmail.com