Reliance Capital, India’s largest asset manager, has partnered with UK mutual fund specialist Cohesion Investments to launch the India Equities Portfolio fund, Reliance’s first Ucits vehicle.
Advised from India by Sunil Singhania, Reliance’s chief investment officer, the fund will follow the investment philosophy of the firm’s flagship domestic fund, the Reliance Growth fund, which has a 20-year track record, and manages assets of $1 billion (€873.8 million). The portfolio will typically be comprised of 40 - 50 stocks.
The new fund is aimed at the UK discretionary investment market, and follows the launch in December last year of the Indian Best Ideas fund, a non-Ucits Sicav vehicle aimed at the ultra-high net worth family office sector. It charges an annual management fee of 1.25%, and no performance fee.
Spike Hughes, Cohesion chief executive officer, said the firm has already seen a significant amount of interest in the fund from the wealth management community.
“I am convinced in a few years everyone will allocate to India directly – if you invest via broader emerging markets, you are only really getting exposure to the mega caps, most of which are consumer staple, defensive stocks,” he added.
Reliance expects India’s GDP, which currently stands at $2 trillion, will grow to $5 or $6 trillion over the next five years. The firm manages assets of $39.2 billion.
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