Mutual Funds
DSP BlackRock launches another global fund—the Emerging Europe Fund

Another fund that would invest your money abroad. For a change it is emerging Europe

On 4th May, (DSP BlackRock brings its foreign funds to India), we had written on DSP BlackRock filing an offer document with the Securities and Exchange Board of India (SEBI) to launch three global funds—DSP BlackRock Latin American Fund, DSP BlackRock World Agriculture Fund and DSP BlackRock New Energy Fund. All three were open-ended fund of funds (FoF) schemes investing in international BlackRock funds.

Now, DSP BlackRock Mutual Fund has filed another offer document with SEBI to launch one more global fund—the DSP BlackRock Emerging Europe Fund. It's an open-ended FoF scheme, again investing in BlackRock's international funds.

Moneylife has been wondering whether funds that put your money in other countries offer another round of diversification. Another issue with these funds that bet on global markets is that it is hard to find the details of where exactly your money is being invested.

We had mentioned earlier that Indians have not been keen to channel their savings into domestic mutual funds—for a variety of reasons—despite the excellent performance of many schemes over the past decade. So, it comes as a surprise that fund companies think Indian savers would be keen to invest in funds for overseas markets. The number of fund houses that have planned to raise money from Indians, to invest in overseas securities, is actually turning into a torrent.

DSP BlackRock Emerging Europe Fund plans to invest in units of BlackRock Global Funds-Emerging Europe Fund (BGF-EEF). It has given a return of just 4.3% over the past five years and 17.9% since its inception (1 September 1998).

BlackRock Global Funds-Emerging Europe Fund invests in sector such as financials, energy, telecom services, materials and consumer stables, among other sectors. The fund is also benchmarked to MSCI EM Europe 10/40 (net). The benchmark has given a return of 5.6% over the past five years and 15.8% since inception, while the Sensex and the Nifty have returned 12% CAGR (compounded annual growth rate) over the past five years. Again, both these indices have returned 16% (CAGR) since 1 September 1998.

The top five holdings of BlackRock Global Europe fund are OAO Gazprom, Sberbank, Bk Pekao, Lukoil and OTP Bank.




Mutual Funds

5 years ago

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StanChart Private Equity, Merlion India III exits ABG Shipyard

Standard Chartered Private Equity (Mauritius) and Merlion India III had sold 3.6 million shares in ABG Shipyard within a span of five days from 24 June 2011

Standard Chartered Private Equity (Mauritius) and Merlion India III have exited from ABG Shipyard by selling their entire 7.078% stake in the firm through open market transactions.

In a notice to the Bombay Stock Exchange (BSE), ABG Shipyard said the two firms had sold 3.6 million shares in it within a span of five days from 24 June 2011.

Meanwhile, in a separate filing, ABG Shipyard said KBS Trading had increased its stake in the ABG Group flagship by 3.93% to 6.65% on 28 June 2011.

KBS Trading has bought 2 million fresh shares through open market transactions.

ABG International has also hiked its holding in ABG Shipyard by 0.80% and it currently stand at 60.93%.


TGIF to focus on large format outlets in India

TGI Friday’s is looking to enter new cities such as Pune, Kolkata, Chandigarh and Chennai

Bistro Hospitality Pvt Ltd that operates global casual dining restaurant chain, TGI Friday's (TGIF) in India today said it will open a minimum of two to three outlets every year and will focus only on large formats.

Besides expanding presence in existing locations-Delhi/NCR, Mumbai, Hyderabad and Bangalore, the company is also looking to enter new cities such as Pune, Kolkata, Chandigarh and Chennai.

"With cultural dynamics changing in India at a fast pace, the acceptability and willingness to experience the American concept of TGIF is growing in the country. Hence, we have decided to expand aggressively here," Bistro Hospitality Vice President Development and Marketing Rohan Jetley told PTI.

He said the company plans to "to open a minimum of 2-3 restaurants every year". At present the firm operates nine TGIFs in India out of which four of them are small formats.

This financial year the company will open three new TGIFs in Mumbai and Bangalore and would target other cities going ahead, he added.

Asked about the required investment for the expansion he said: "One restaurant costs anywhere between Rs3 crore to Rs7 crore depending on the size and location. Our focus will be to open large formats with a carpet area of 5,000 to 7,000 sq ft."

Recently the firm has opened a large format outlet in Bangalore having an area of 6,500 sq ft with a seating capacity of 250 guests. The new projects will be funded by internal accruals, he added.

Asked about revenues, Jetley said the company expects to close this fiscal at Rs50 crore.

TGIF was introduced in India in 1996. It is currently operated by Bistro Hospitality in which 25% stake is held by US-based hospitality firm Carlson.
In India, Carlson also operates 35 hotels across brands, including Radisson, Country Inns & Suites and Park Plaza with a total of about 3,500 rooms.


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