The India Performance Fund currently has $ 20 million of assets under management, up from $ 6 million when the fund was launched in May, 1996.

The fund appreciated by 57 per cent in dollar terms for the calendar year to July 20, 1999. Since inception, the fund has outperformed the Dollex by 71.4 per cent and has given a return of 68.18 per cent (in dollar terms). The NAV of the offshore fund is $ 168.18 as on July 20 and has, since January 1, 1999, outperformed the Sensex by 13.47 per cent in dollar terms.

According to chief executive officer of Sun F&C Mutual Fund, Nikhil Khattau, the outperformance is due to the astute stock picking strategy of the mutual fund. Commenting on the strategy, Khattau said: ``We invest in companiesof those industries that are either globally competitive or where there is a very large investing market. We look at whether the management is transparent, is focussed on core competencies,'' said Khattau.

On emerging markets, Khattau said there have been continued signs of recovery in the commodity prices. ``Crude oil prices have reached an 18 month high on the back of a report showing US crude stocks falling. Also, the copper prices have risen sharply after a large US producer announced that it would cut production by 68,000 tonnes.

This follows the move by an Australian resource company to cut production by 200,000 tonnes. The performance of the global emerging markets is closely related with the movement of commodity prices. So significant improvement in commodity prices helps to strengthen the bull case for emerging markets,'' said Khattau.