In the first quarter of this year, India-focused offshore funds and ETFs registered a net outflow of $0.9 billion. When broken down, this comprised of $878 million of outflows from offshore funds and $30 million of outflows from offshore ETFs.
Outflows were dominant in January and February, but March saw inflows with India-focused ETFs being the primary recipients to the extent of $224 million.
Franklin India A $,an India-focused equity fund domiciled in Luxembourg, recorded the highest inflow of $327 million during the quarter.
Over the past year, iShares MSCI India – US ETF experienced the highest inflow of $536 million.
Aberdeen Global Indian Equity Fund, the largest fund in the pack with a size of $5 billion as of March 31, 2014, registered a net outflow of $172 million during the first quarter.
HSBC GIF Indian Equity registered the highest outflow of $189 million in the first quarter. Over the past one year, $750 million has drained out of the fund as a result of lackluster performance. From a peak of $7 billion in 2010, the fund size declined to $2.5 billion as of March 31, 2014.
We took a look at how offshore funds focused on the Indian market have performed during the first quarter of 2014. We present the observations in the Morningstar Offshore India Fund Spy.
To read the entire report, click here.
