The Morningstar Offshore Fund Spy is a quarterly report that gives an insight into performance and flow trends of funds investing into India as per the Morningstar Global Database.
Below are some takeaways:
Do note: The data is for the March 2016 quarter, unless specified otherwise. The category refers to India-focused offshore equity funds and exchange traded funds, or ETFs.
Assets and Flows
- For the third consecutive quarter, India-focussed offshore funds and ETFs recorded a net outflow. During the quarter ended March 2016, the category witnessed a net outflow of $1.4 billion compared to a net outflow of $0.8 billion in the previous quarter.
- Of the total quarterly net outflow of $1.4 billion, India-focussed offshore equity funds witnessed a net outflow of $1.1 billion, whereas India-focussed ETFs registered a net outflow of about $0.3 billion.
- The assets of India-focussed offshore equity funds and ETFs declined during the quarter to about $40.1 billion from $43.1 billion at the end of December 2015.
Performance
- During the quarter ended March 2016, the S&P BSE Sensex Index fell by 2.97% against a loss of 0.14% posted in the quarter ended December 2015.
- The India-focussed offshore equity mutual funds and ETFs category posted a loss of 4.1% (in U.S. dollar terms) during the quarter, thus underperformed the U.S.-dollar-denominated MSCI India USD Index, which fell 2.5%.
Asset flows into Indian markets from funds with partial allocations
- The assets of other regionally diversified equity funds and ETFs surged marginally to $4.26 trillion as of the quarter ended March 2016 compared with $4.21 trillion at the end of the previous quarter.
- The value of investment into Indian equities by foreign funds fell to $157.3 billion from an estimated $164.8 billion during quarter ended December 2015.
- Global funds and Asia/Asia-Pacific funds pulled out about $1.6 billion and $0.4 billion, respectively, from the Indian equities during the quarter. On the other hand, emerging-markets funds pumped an estimated $1.2 billion into the Indian equity market.
- The allocation to Indian equities (in percentage terms) decreased in all three categories of foreign funds during the quarter.
You can read the last quarter's report here.
