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Hurricane Sandy impacts global funds: Reports

Sandy also impacted all the US markets which remained closed for the second consecutive day on Tuesday

November 01, 2012 4:11 IST | India Infoline News Service
Hurricane Sandy also referred to as Superstorm Sandy after October 29 has created havoc on the eastern coast of the US. A tropical cyclone—that severely affected portions of the Caribbean, Mid-Atlantic and Northeastern United States—has also impacted a few global mutual fund schemes that were launched in India and invest in the US market, according to media reports.

In the US, Hurricane Sandy affected at least 24 states. Sandy also impacted all the US markets which remained closed for the second consecutive day on Tuesday. As a result, these global funds, which invest in US stocks, are not able to update their prices. These funds have either declared Monday and Tuesday as non-business days or are displaying NAVs (net asset values) based on prices of Friday, the last session before the US markets went into an unscheduled close, the reports added.

There are around 32 global equity mutual funds in India. A DSP Blackrock release said that October 29 and October 30 have been declared as non-business days for the affected funds due to hurricane Sandy hitting some states in the USA. As a result, all subscription/redemption requests received on these two days will be processed on the basis of the NAVs of October 31, according to the data available on Value Research website, the reports concluded.

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