ACPI launches India fixed income fund

ACPI_OberoiACPI Investments has partnered with Bombay-based Quantum Asset Management (QAMC) to launch one of the few Indian fixed income focused funds available in Europe.

The UK manager, founded by former Goldman Sachs employees is bringing to market the Q-ACPI India Fixed Income Fund – an absolute return fixed income product which aims to preserve capital with a return target of 10%-12% per annum and a target volatility of 7%.

The fund will be launched in mid-August.

Alok Oberoi, CEO, ACPI, said: “India’s growth should continue to present profit opportunities for investors.  It is particularly timely and attractive to be launching an India fixed income fund because of the medium-term appeal of the rupee as well as the fact that the deregulation of Indian fixed income markets has created massive investor interest.  These two factors combined, could translate into a 10 to 15% annualized return in the fund over the next few years.”

APC’s partner in this venture, the Indian asset manager QAMC will provide the research on India fixed income markets and securities.

The fund will invest in securities issued by the Central Government of India, debt issued by Government owned companies and high-grade Indian corporate bonds. Although the investments will be rupee denominated, the fund will be priced in US dollars and will offer daily liquidity.

India has been one of the most attractive emerging markets for a number if years and the investment story still holds. The country is urbanisations, positive demographics and a sound financial system all make for a strong investment case.

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