India Avenue Equity Fund

A long-term investment, in a well-diversified portfolio of companies, listed predominantly on India stock exchanges. The Fund is suitable for both for institutional and retail clients with an investment horizon of 5-7 years.

 

LONSEC RATING: RECOMMENDED*


Access to a Wealth of Opportunities

The Indian economy has witnessed a paradigm shift over the last decade. Today it is one of the fastest growing economies in the world and this trend is set to continue over coming decades. This is likely to create significant opportunities for growth by accessing India’s capital markets.

Investors in our Fund benefit from years of experience our founders bring in constructing investment portfolios within both India's capital markets and global multi-asset portfolios. This allows us to provide both a local and global perspective on building portfolios for success.

Why Invest

  • The India Avenue Equity Fund is a professionally managed portfolio of Indian listed equities which are not readily accessible for Australian investors.
  • Tomorrow's growth companies and industries are discovered at an early stage by our local investment adviser partners, leading to the potential for substantial out performance compared to investing passively.
  • Strong consumption growth will be driven by 60 million new households entering the ranks of India's middle class by 2025. Our fund will have exposure to mid and small cap companies that tend to have strong leverage to growing local demand.
  • Companies with high levels of corporate governance is a key selection criteria for our portfolio.
  • Indian listed companies compare favourably on a global basis, as some of the highest generators of return-on-equity for shareholders.
  • The Government of India has forecast a spend on infrastructure of over $US1 trillion over the rest of the decade. Given the significant requirement, several companies leveraged to the infrastructure sector in India are likely to benefit.

Fund Details

Benchmark MSCI India (Net) in AUD
Objective To outperform the benchmark over rolling 5 year periods
Valuation and Liquidity Daily
Access PDS, Select Platforms
Maximum Stock Weight 10% (ensure adequate diversification of companies)
Maximum Cash Weight 30% (to shield the portfolio against adverse market events)
Maximum Futures Exposure 10% (to either protect portfolio or equitise when managing cash exposure)
Wholesale Fees Retail Fees 1.1% p.a. Management Expense Ratio
1.5% p.a. Management Expense Ratio
Performance Fees 10% charged on the outperformance, achieved against the benchmark, MSCI India (in AUD), with a high watermark

Wholesale refers to "sophisticated investors". To qualify as a sophisticated investor the investor needs either an investment of A$500,000 or above or an accountant's certification (not more than 6 months old) that the investor has either a net asset value above A$2,500,000 or earned above A$250,000 per annum for the last two consecutive financial years. Retail refers to investors who are not classified as "sophisticated investors" as described above with investments of AU$20,000 or more. For more information regarding features, benefits and risk of the Fund, please refer to the PDS.


*Lonsec Disclaimer: The Lonsec Rating (assigned June 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product. Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold India Avenue Investment Management Limited’s product, and you should seek independent financial advice before investing in this product. The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document following publication. Lonsec receives a fee from the Fund Manager for researching the product using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to Lonsec’s website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings