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 fourth consecutive quarter, India-focussed offshore funds and ETFs recorded net outflows to the tune of $826 million. Last quarter (March 2016), $1.4 billion was eroded from the category. Between July 2015 and June 2016, India-focussed offshore funds and ETFs witnessed net outflows of $5.2 billion.
- India-focussed offshore equity funds witnessed higher outflows than India-focussed offshore ETFs during the quarter. Of the total quarterly net outflows of $826 million, India-focussed offshore equity funds witnessed net outflows of $733 million, whereas India-focussed ETFs registered net outflows of about $93 million.
- The assets of India-focussed offshore equity funds and ETFs surged during the quarter ended June 2016 to $41.3 billion from $40.1 billion recorded at the end of the March 2016 quarter.
Performance
- During the quarter ended June 2016, the S&P BSE Sensex Index rose by 6.54% during the quarter against a loss of 2.97% in the previous quarter ended March 2016.
- The India-focussed offshore funds and ETFs category also registered a growth of 5.6% (in US dollar terms) during the quarter, thus outperforming the US-dollar-denominated MSCI India USD Index, which surged by 3.7%.
Asset flows into Indian markets from funds with partial allocations
- The assets of other regionally diversified equity funds and ETFs surged to $4.42 trillion as of the quarter ended June 2016 compared with $4.26 trillion as of the quarter ended March 2016.
- The value of investment into Indian equities in foreign funds also surged to an estimated $163.2 billion against an estimated $157.3 billion during the quarter ended March 2016.
- Emerging-markets funds and Asia/Asia-Pacific funds pumped in an estimated $0.4 billion each into the Indian equities. On the contrary, global funds pulled out an estimated $0.8 billion from the Indian equity markets.
- While the allocation to Indian equities (in percentage terms) remained unchanged in case of global funds, it increased for the emerging markets and Asia/Asia Pacific funds.
You can read the last quarter's report here.
