JUNE 2011Product Construct (USD 6.62 billion) (USD 2.75 billion) Rs 29,796 crore # Rs 12,374 crore # Indian Investors BlackRock Global Funds (BGF) BlackRock Global Funds (BGF) World Energy Fund New Energy Fund 50 - 100% Allocation 0 - 30% Allocation #Source: BlackRock; AUM of BGF funds as on May 31, 2011; As per conversion rate (RBI) on May 31, 2011 USD/INR = 45.03Why Invest In DSP BlackRock World Energy Fund?Energy Sector New Energy Sectorl Globally, valuations of oil companies are near their historical lows l to global warming issues - Governments all over the world have made Duel Demand – Supply gap for oil to continue to increase over time investments in the sector mandatory l technology advancements, costs of alternate energy is declining, Withl Investing in oil companies could be a potential hedge against the prospect of rising inflation which is accelerating growth in companies within this sectorPricing flexibility available to global oil companiesl after deregulation, oil companies in India are still governed by some “Administered Pricing” – Therefore they cannot completely benefit from Even rising oil pricesl Global oil companies enjoy considerable pricing flexibility Unique opportunity to invest globally in companies within these sectorsPerformance and OutlookVolatile month for the energy market l The market also responded well to the signing of a rig contract by one of thelMay witnessed a sharp pull back across most major commodities, crudeEarly fund’s offshore West Africa focused explorers. Crescent Point, a Canadaoil amongst them. The move was dubbed by some a ‘flash crash’ and concerns based E&P name, delivered strong results and benefitted from brokerthat growth in the developed market world may be faltering and that the US upgrades, our holding in the company outperformed as a result.dollar would be set to strengthen on the withdrawal of QE2 were cited as its l The BGF World Energy Fund added to some of the natural gas holdings overcauses. the month (names engaged in both conventional and unconventionall oil subsequently made back some of its losses, but still finished theCrude extraction).month considerably lower as markets also gave consideration to any demand l The fund also initiated a position in an Indonesian coal name.destruction that the prices of recent weeks may have given rise to.lDemand elsewhere is robust: in China, India and Brazil oil demand has Outlookincreased year-on-year (through March) by 917, 148 and 59 thousand barrels l The pullback in crude prices seen in May has not altered, in our view, theper day respectively according to data cited in a Morgan Stanley report. trend of a tightening oil market that we have seen emerging since the closinglAs anticipated, Japan has now also added incremental barrels to oil demand stages of 2009.as the country looks to oil fired power as one of the near term solutions to l entering a traditionally, seasonally stronger period of demand as the We aremaking up the post-Fukushima power generation shortfall maintenance period for refineries come to end and the industry prepares forl supply side, the ‘Arab Spring’ continues to add uncertainty and, in theOn the summer grade products. On the supply side, all eyes will now be focused oncase of Libya, keep approximately 1.5mb/d of oil off the market with no OPEC’s meeting in early June to decide their output quotas. Saudi Arabia hasreasonable expectation of its near term return. already been utilizing idled capacity to offset the barrels lost from Libya and with the unrest in the MENA region showing no signs of imminent resolution, Portfolio Activity the oil cartel will be carefully considering output levels.l of the BGF World Energy Fund’s high conviction positions re-gatheredSome l This continues to be a highly attractive environment for our investments, momentum against the general trend in May, generating outperformance. many of which are enjoying significant margin expansion and cash generationlAnadarko, which is the Fund’s largest holding and overweight, delivered and yet are still trading on undemanding valuations. strong first quarter results showing record sales volumes and referencing six successful offshore discoveries and/or appraisal wells over the period. Source:Internal
DSP BlackRock World Energy Fund - Portfolio DSP BlackRock World Energy Fund - Performance Name of Instrument % of Net Assets Compounded Annualised Return Period DSP BlackRock Composite BlackRock Global Fund - World Energy Fund 93.81% World Energy Fund Benchmark Index^ (Class I2 USD Shares)^^ Last 1 Year 32.85% 36.20% BlackRock Global Fund - New Energy Fund 5.43% Since Inception 12.13% 19.87% (Class I2 USD Shares)^^ NAV / Index Value CBLO / Reverse Repo Investments 0.98% (May 31, 2011) ` 12.2806 138.43 Net Receivable/ (Payable) (0.22%) ^Composite Benchmark = 30% MSCI World Index + 70% MSCI World Energy Index (Net & Expressed in INR; Normalised Values). . The ‘since inception’ Total 100.0 returns are calculated on Rs. 10/- invested at inception. For this purpose the inception date is deemed to be the date of allotment (August 14, Total AUM as on May 31, 2011: Rs. 307.33 crores 2009). Past performance may or may not be sustained 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 ^^Fund domiciled in Luxembourg shown are for the Growth Option (Regular Plan).Source: Bloomberg BGF - World Energy Fund - Top 10 Holdings BGF - New Energy Fund - Top 10 Holdings Anadarko Petroleum Corp. 4.7% Iberdrola Renovables S.a. 5.3% Schlumberger Ltd. 4.1% Schneider Electric S.a. 5.0% National Oilwell Varco Inc. 3.4% Johnson Matthey Plc 4.9% Halliburton Co. 3.2% Johnson Controls Inc. 4.8% Occidental Petroleum Corp. 3.0% Novozymes A/s 4.4% Bg Group Plc 2.9% Vestas Wind Systems A/s 4.2% Marathon Oil Corp. 2.9% Quanta Services Inc. 3.5% Suncor Energy Inc. 2.9% Archer Daniels Midland Co. 3.4% Talisman Energy Inc. 2.9% Itc Holdings Corp. 3.4% Technip S.a. 2.6% Wacker Chemie Ag 3.2% Total 32.6% Total 42.0 Source: BlackRock; data as on May 31, 2011 Source: BlackRock; data as on May 31, 2011 DSP BlackRock World Energy 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 World Energy Fund (DSPBRWEF) 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 Energy Fund (BGF – WEF) and BlackRock Global Funds – New Energy Fund (BGF – NEF). The Scheme may,at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may alsoinvest a certain portion of its corpus in money market securities and/or money market/liquid schemes of DSP BlackRock Mutual Fund (Fund), in order to meet liquidity requirements from timeto time. Asset Allocation: 1. Units of BGF – WEF# or other similar overseas mutual fund scheme(s): 50% to 100% 2. Units of BGF – NEF# or other similar overseas mutual fund scheme(s): 0% to30% 3. Money market securities and/or units of money market/liquid schemes of DSP BlackRock Mutual Fund: 0% to 20%. #in the shares of BGF – WEF and BGF – NEF, Undertaking for CollectiveInvestment 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 applicableconditions as per the Statement of Additional Information (SAI) and Scheme Information Document (SID). Declaration of NAV on all Business 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 of the 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 the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK HoldingsPvt. Ltd. (collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSP BlackRock InvestmentManagers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the Scheme’s objectives will beachieved. As with any investment in securities, the NAV of Units issued under the Scheme can go up or down depending on the factors and forces affecting capital markets. Pastperformance of the sponsor/AMC/mutual fund does not indicate the future performance of the Scheme. Investors in the 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. If the aforesaid point (i) is not fulfilled within the prescribed time, theScheme/Plan concerned will be wound up and in case of breach of the aforesaid point (ii) at the end of the prescribed period, the investors holding in excess of 25% of the corpus will beredeemed as per SEBI guidelines. If the SEBI limits for overseas investments allowed to the Fund are expected to be exceeded, subscriptions and switches into the Scheme may be temporarilysuspended/SIP/STP into the Scheme may be terminated. DSPBRWEF is the name of the Scheme and does not in any manner indicate the quality of the Scheme, its future prospects orreturns. For scheme specific risk factors, please refer the Scheme Information Document. For more details, please refer the Key Information Memorandum cum Application Forms, which areavailable on the website, www.dspblackrock.com, and at the ISCs/Distributors. Please read the Scheme Information Document and Statement of Additional Information carefully beforeinvesting.