Baring Asset Management is to launch a Dublin-based fund based on the investment themes of a fast-developing upper middle and high-class consumer segments, low personal and national debt, and extensive government spending.
The fund will be managed by Barings’ Head of Indian Equities, Ajay Argal, who recently joined Barings from Biria Sun Life in Mumba. Based in Hong Kong, Argal will focus on Indian equities and equity-related securities of companies listed in India, or which carry out the predominant part of their economic activity there.
This will account for at least 70% of the fund at any time, leaving the remaining 30% for investment in companies listed outside India and within the Indian subcontinent, yet still conducting a significant proportion of their business within India. The fund will have a relatively high concentration of between 30 and 50 holdings.
Areas of investment likely to be featured include:
* consumption - there is a growing appetite in India for consumer goods of all kinds from small everyday items to large aspirational purchases
* financial services - currently a relatively low proportion of Indians use banks and financial services and as urbanisation and economic development increases, Barings expect this to continue
* infrastructure - large capital outlays in roads, rail, ports and irrigation are planned
* IT Services - forecast to grow from today’s US$8bn to US$15bn by 2014.
The fund will be launched on 7 December and will be a sub-fund of Baring Investment Funds plc, an OEIC domiciled in Ireland, with UCITS status. Annual management charge is Class A: 1.5%, Class I: 0.5%. Minimum investment sum for Class A is £2,500, €3,500, US$5,000, and for Class I it’s £/@ US$ 10,000,000.
Barings is currently responsible for investing US$318.5m of assets in Indian equities1 (as at the end of June 2011).
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November