INSYNERGY INVESTMENT MANAGEMENT
Absolute India Fund
Type: Offshore Oeic
Aim: Growth by investing in Indian equities, equity-related securities and derivatives to take short positions
Minimum investment: Lump sum £2,500
Investment split: 100% in Indian equities and related securities including derivatives
Place of registration: Dublin
Charges: Initial 5.25%, annual 1.25%, performance fee 15%
Commission: Initial 3%, renewal 0.5%
Tel: 020 7131 8052
The Inynergy absolute India fund an unconstrained portfolio of 20 to 50 holdings. The aim is to generate positive returns from Indian equities in the long term while preserving capital and making money from the losers in difficult markets. To achieve this, the fund will hold companies that are expected to increase in value and short positions using derivatives.
Putting the fund in to its market context, Capital Trust Financial Management partner Bruce MacFarlane says: “Emerging markets are no longer an exotic afterthought for most advisers and their clients. Until recently, most advisers would suggest that their clients hold no more than 5 per cent of their portfolios in this sector. But this advice is beginning to look a little outdated as emerging markets become an increasingly greater part of the world stockmarket index and a more mainstream consideration in portfolio construction. “
MacFarlane adds that India is one of the fastest growing economies in the world supported by excellent demographics and political stability, which should continue to favour a sustainable high level of economic growth.
“To participate in this exciting growth story, Insynergy has launched the absolute India fund in partnership with Reliance Capital Asset Management, the biggest asset management company in India. The fund aims to provide investors with returns by investing in the growth areas of the Indian economy, with a focus on infrastructure but will also look to provide a level of downside protection by holding short positions in stocks hat the fund manager considers to be over valued,” says MacFarlane.
Turning to the potential drawbacks of the fund MacFarlane says: “For investors and their advisers looking for exposure to this exciting country there is little to dislike about this well thought out and structured fund.”
He says he likes its unconstrained approach and its ability to smooth volatility by holding short positions.
Discussing the charges, MacFarlane says: “The annual management charge is relatively low for this sort of fund and the performance fee is quite reasonable considering the returns that the fund manager expects to deliver over an economic cycle.”
Scanning the market for potential competitors MacFarlane says: “There are few pure plays on the Indian market so competition is limited to mostly Asian or Asia pacific funds with exposure to this area. However, there is little doubt that competition is likely to grow as investors wake up to the potential of this economic giant.”
Summing up MacFarlane says: “The economic world order is shifting from West to East and India will play a greater role on the years ahead. While economic growth is likely to be strong, there will undoubtedly be periods of volatility. In this environment it will be important to have in Reliance Capital Asset Management a fund manager that has an excellent track record and fund management team which understands the country, its culture and most importantly its companies.”
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average