JUNE 2011Product Construct BlackRock Global Funds (BGF) - World Mining Fund (WMF) Indian Investors USD 18.19 billion (Rs. 81,923 crore#) #Source: BlackRock; AUM of BGF-WMF as on May 31, 2011; As per conversion rate (RBI) on May 31, 2011: USD/INR = 45.03Performance and Outlook A number l of macro headwinds have challenged equity markets volatility in equity markets, it is our expectation that rising leading to a broad based ‘risk off’ trade. Investor sentiment was commodity markets combined with a strong pipeline of internal driven lower by the European Sovereign Debt concerns, weaker US growth opportunities could lead to out performance over the longer economic data and the potential impact of high oil prices on the rate term. of global growth. l political The situation in Peru, which has weighed heavily on Peruvian These l factors also weighed heavily on the short term out look for stocks over the past few months, appears to have reached a commodity prices with many metals and minerals declining sharply. conclusion with Ollanta Humala achieving a narrow victory. Nickel and tin exhibited the most volatile performance with both The l portfolio’s exposure to silver companies was a detractor to metals falling more than -12% over the month. On the positive side, performance this month. As the silver price fell from the highs iron ore prices remained robust rising at the start of the month to exhibited over the past few months, silver equities weakened. $189.5/t before falling slightly to close at $179.5/t (CIF China). The l BGF World Mining Fund exited from their position in Energy Precious l metals such as gold and platinum performed relatively well Resources of Australia as a negative operational update by over the period, delivering broadly flat performance of 0.2% and -0.4% management provided the market with a weak outlook. The Fund respectively. The silver price began to give back some of the strong continued to add to its high conviction holdings in copper and iron ore gains of the past 9 months, declining -20.6% in May, as COMEX raised as a sell off in the market provided attractive valuation opportunities. their margin requirements four times in one week. 2011 l has so far been a volatile period for mining equities. The sector Weak l industrial production is likely to have contributed to the -12% has at times been at the mercy of macroeconomic uncertainty and has fall in the Nickel price to $23,587t. As the stainless steel market is broadly been at the forefront of any risk on/risk off trade. The reliant upon growth in the global economy, recent developments have fundamentals for our favoured commodities continue to look added a degree of uncertainty to future demand for Nickel. Nickel supportive. producers were weak over the month with Norilsk Nickel falling by - 8.6%. The BGF World Mining Fund’s underweight to this holding The l strength of those fundamentals are not being fully reflected in contributed positively to the performance of the Fund. equity valuations which look attractive not only on a historical basis but also when considered in light of the exceptional levels of free While l markets have been under pressure over the past month, cashflow mining companies are able to generate at current Glencore, the world’s largest trader of commodities with ambitions to commodity prices. The trends of more mergers and acquisition increase its direct mining activities, did an IPO on 19th May. The activity as well as returns to shareholders in the form of dividends and equity, listed on the London Stock Exchange, was priced at 530p on share buybacks are likely to get further traction in the second half of IPO. While the stock price has been buffeted by the on-going the year. Source:Internal
DSP BlackRock World Mining Fund - Portfolio DSP BlackRock World Mining Fund - Performance Compounded Annualised Return Name of Instrument % of Net Assets Period DSP BlackRock HSBC Mining BlackRock Global Fund - World Mining Fund 97.93% World Mining Fund Index^ Last 1 Year 34.24% 32.50% (Class I2 USD Shares)^^ Since Inception 15.74% 14.36% CBLO / Reverse Repo Investments 2.45% NAV / Index Value ` 12.3047 33,356.17 Net Receivable/ (Payable) (0.38%) (May 31, 2011) 100.0% ^ Benchmark. The ‘since inception’ returns are calculated on Rs. 10/- invested at Total inception. For this purpose the inception date is deemed to be the date of allotment (December 29, 2009). Past performance may or may not be sustained Total AUM as on May 31 2011: Rs. 183.81 crores in future and should not be used as a basis for comparison with other investments. Performance in INR term as on May 31, 2011. The Returns of the Scheme shown are for the Growth Option (Regular Plan).Source: Bloomberg ^^Fund domiciled in Luxembourg BGF - World Mining Fund BGF - World Mining Fund: Top 10 Stocks l Launched in 1997 Stock % of Scheme Rio Tinto Plc 9.5% l AUM of approx US $18.19 bn (INR 81,923 cr.) Bhp Billiton Plc 8.3% Teck Resources Ltd. 6.1% Freeport-mcmoran Copper & Gold Inc 5.7% Cia Vale Do Rio Doce Pfd Sh -a- 5.6% Xstrata Plc 4.3% Newcrest Mining Ltd. 4.2% Anglo American Plc 3.6% First Quantum Minerals Ltd. 3.6% Impala Platinum Holdings Ltd. 3.3% Total 54.1% AUM of BGF - WMF as on May 31, 2011; Source: BlackRock, as on May 31, 2011 As per conversion rate (RBI) on May 31, 2011: USD/INR = 45.03 DSP BlackRock World Mining Fund: Scheme Features Minimum Investment: Load Structure: Regular Plan Rs. 5,000/- (Additional Purchase: Rs. 1,000/-) Institutional Plan Rs. 1 crore (Additional Purchase: Rs. 1,000/-) Entry Load: NIL Options Available: Exit Load (both Plans): Growth For holding period < 12 months: 1% Dividend For holding period >= 12 months: NIL - Payout - Reinvest Note: Investors shall bear the recurring expenses of the underlying Schemes in which the Scheme will invest, in addition to the recurring expenses of the Scheme.DSP BlackRock Mining Fund (DSPBRWMF) is an open ended Fund of Funds Scheme investing in international funds and the primary investment objective of the Scheme is to seek capitalappreciation by investing predominantly in the units of BlackRock Global Funds – World Mining Fund (BGF – WMF). The Scheme may, at the discretion of the Investment Manager, also investin the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money marketsecurities and/or money market/liquid schemes of DSP BlackRock Mutual Fund (Fund), in order to meet liquidity requirements from time to time.Asset Allocation: 1. Units of BGF – WMF# orother similar overseas mutual fund scheme(s): 80% to 100% 2. Money market securities and/or units of money market/liquid schemes of DSP BlackRock Mutual Fund: 0% to 20%. #in theshares of BGF – WMF, Undertaking for Collective Investment in Transferable Securities (UCITS) III fund. Features: SIP only in Regular Plan, SWP & STP available in each plan of the scheme.Nomination facility available, subject to applicable conditions as per the Statement of Additional Information (SAI) and Scheme Information Document (SID). Declaration of NAV on allBusiness Days. Redemption normally within 5 Business Days. Sale and Redemption of Units on all Business Days at Purchase Price and Redemption Price respectively. Minimum investment:Rs. 5,000/- (Reg. Plan)/Rs. 1 crore (Inst. Plan). Entry load: NIL. Exit load: Holding Period < 12 months: 1%, Holding Period >= 12 months: NIL. Investors shall bear the recurring expenses ofthe Scheme in addition to the expenses of the underlying scheme(s) in which the Scheme will make investment. Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and thesettlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRockTrustee Company Pvt. Ltd. Investment Manager: DSP BlackRock Investment Managers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and otherrisks and there can be no assurance that the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Scheme can go up or downdepending on the factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Scheme. Investors inthe Scheme are not being offered a guaranteed or assured rate of return. Each Scheme/Plan is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of corpus. Ifthe aforesaid point (i) is not fulfilled within the prescribed time, the Scheme/Plan concerned will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribedperiod, the investors holding in excess of 25% of the corpus will be redeemed as per SEBI guidelines. If the SEBI limits for overseas investments allowed to the Fund are expected to beexceeded, subscriptions and switches into the Scheme may be temporarily suspended/SIP/STP into the Scheme may be terminated. DSPBRWMF is the name of the Scheme and does notin any manner indicate the quality of the Scheme, its future prospects or returns. For scheme specific risk factors, please refer the Scheme Information Document. For more details,please refer the Key Information Memorandum cum Application Forms, which are available on the website, www.dspblackrock.com, and at the ISCs/Distributors. Please read the SchemeInformation Document and Statement of Additional Information carefully before investing.