GEMGAZE
April 2013

Global funds have made a dramatic comeback in the past year. Impressive returns from international funds have created an indelible impression on investors in such funds so much so that their lacklustre performance in the previous year has been erased from their memory.

The five sparkling GEMs among the global equity funds in India in 2012 have retained their preeminent status in 2013 also.

Principal Global Opportunities Fund Gem

Launched in March 2004, Principal Global Opportunities Fund is the oldest global fund in India. With an AUM of Rs 32.51 crores, Principal Global Opportunities Fund has earned a one-year return of 6.48% as against the category average of 4.65%. Being a feeder fund, the performance of the fund depends entirely on Principal Global Investors –Emerging Market Equity. 95% of the portfolio is in equity, predominantly mid and small cap stocks. The fund is benchmarked against the MSCI World Index.

Templeton India Equity Income Fund Gem

With an AUM of Rs 997.82 crores, the one-year return of the Templeton India Equity Income Fund is 9.13% as against the category average of 2.46. Since its launch in April 2006, the fund has delivered two times returns of its benchmark index BSE 200. Since 2006, the fund has given 108% returns, while its benchmark index BSE 200 has delivered just 48.4%. The fund follows value investing and the fund's strategy is to select good dividend yielding companies across various sectors in Indian and overseas markets. At present, the fund has exposure to various sector themes such as auto, cement, chemicals, minerals, power, and semi-conductors in emerging and Indian markets. The fund's exposure to such a wide range of themes has ensured reasonable returns in the long term. Interestingly, over the years, the fund’s portfolio has not undergone a lot of change but for some periodical rebalancing. The fund's overseas exposure is spread across markets such as China/Hong Kong, Taiwan, Korea, and Turkey. The fund is benchmarked against the S & P BSE 200.

DWS Global Thematic Offshore Fund Gem

DWS Global Thematic Offshore Fund was launched in August 2007. With an AUM of a mere Rs 8.57 crores, the one-year return of DWS Global Thematic Offshore Fund is 11.66% as against the category average of 4.65%. The entire portfolio is invested in DWS Invest Global Thematic Fund. 99.57% of the portfolio is in equity, with a mere 0.43% in cash. The fund is benchmarked against the MSCI World Index.

Sundaram Global Advantage Fund Gem

Sundaram Global Advantage Fund was launched in July 2007. The fund has an AUM of Rs 48.76 crores. The one-year return of the fund is 9.99% as against the category average return of 4.65%. The fund has invested in 10 foreign equity mutual funds, with Fidelity South East Asia and DB Tracker Emerging Markets Asia being the top two funds. Only 67% of the fund’s assets are in equities with the rest in cash. The fund is benchmarked against the MSCI Emerging Markets Index.

ICICI Prudential Indo Asia Equity Fund Gem

ICICI Prudential Indo Asia Equity Fund was launched in September 2007. The fund has an AUM of Rs 153.54 crores. Its one-year return is 6.46% as against the category average return of 3.9%. 31.48% of the portfolio is in Eastspring Investment Asia Equity Fund and 68% of the portfolio is in large cap stocks. Nearly 50% of the portfolio is in financial services stocks, with technology and energy constituting 11% and 8% respectively. The Fund is benchmarked against CNX Nifty (65) and MSCI AC Far East Free Ex-Japan (35).