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The global funds fall somewhere between the two.
Already, global funds such as BlackRock are many firms' biggest outside investors.
Global funds are invested in Brazil and China because investors want a diversified portfolio.
For now, there is confusion surrounding the missing MF Global funds.
Until now, private equity here has been dominated by global funds investing dollar-denominated assets.
For at least a decade, global funds acquired stakes in Chinese start-ups.
"We are focused on finding mispriced, undervalued opportunities," said Jeff Everett, who oversees Templeton's global funds.
The global funds will be those that put more than 40percentt of their assets abroad.
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"[Global funds] are great in theory, since they are supposed to be in the best stocks," says Morningstar senior analyst Kunal Kapoor.
Today, global leaders met in Washington, DC at the Global Funds 4th Replenishment conference.
Global Funds, Basket Funds, and Pass-Throughs: These funds have generally been managed by the United Nations Development Programme in Zimbabwe with a coordination committee determining priorities and the United Nations acting as a pass-through.
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