Ashburton has launched a fund that invests in China and India, and gained distributor status for its...
Ashburton has launched a fund that invests in China and India, and gained distributor status for its America, Asia Pacific and European equity portfolios.
The Chindia Equity fund, managed by Jonathan Schiessl, will invest in these two countries as well as companies traded in other markets where growth in their business is set to derive from these regions.
Schiessl said: "China is expected to grow at a rate of 8% to 10% per annum for the foreseeable future, while a growth rate of 8% per year is projected for India. This growth will be primarily driven by demographics as the working population of both countries is expected to increase by 250 million by 2020.
"Furthermore, reliance on growth from exports is decreasing in both China and India. Consumer demand is growing as a result of an expanding generation with much higher aspirations. Combined, these two countries will be the second largest economic power in the next 15 years and the opportunities this offers to investors is tremendous."
The fund is benchmarked half to the MSCI China and half to the MSCI India indices.
However, Schiessl added that the percentage invested in the two countries may fluctuate over time.
He said: "We will be following a bottom-up stock selection strategy that will enable us to carefully pick the companies and sectors which we believe deliver the best growth at a reasonable price. We will not be constrained by the benchmark because an unconstrained, actively managed approach is ideally suited to the success of such a fund."
Meanwhile, the Ashburton Americas, Asia Pacific and European funds have been granted distributor status and will be made available to UK investors.
All the funds have a minimum investment of £10,000 and are Jersey domiciled. An initial fee of 5% is charged as well as a 1.75% annual management fee.key points
Ashburton launches China and India fund
Chindia fund managed by Jonathan Schiessl
Ashburton Americas, Asia Pacific and European funds gain distributor status
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till