Date: 29th Sep 2022 | Publication: Ausbiz
An emergency bond buying program by the Bank of England has sent yields tumbling… boosting equity markets. The UK’s FTSE rebounded sharply as the central bank announced it would buy as many long-dated UK government bonds as needed to stabilise financial markets. That fuelled a rally on Wall Street, the S&P 500 up 2% to record its first gain in seven sessions after closing on Tuesday at its lowest since late 2020. The Dow and Nasdaq also jumping. Mugunthan Siva from India Avenue Investment Management was our guest on today’s shows. He’s just authored research on manufacturing in India and how it’s the key to the country’s economic future. He says In order for India to achieve its full potential, it must follow in the footsteps of China, modelling itself to take full advantage of its wide labour force. He says India must encourage foreign companies to invest through the use of incentives and tax cuts. Mugunthan says China’s economy was built off the basis of demand for labour rather than the demand for goods. He says this is a key reason why India has fallen behind by a significant margin. But as India’s population begins to participate further in the economy, Mugunthan says the demand for goods and services will similarly begin to grow.
India Avenue is a boutique investment management firm providing investment solutions that allow our clients to benefit from India’s remarkable growth story.
The journey towards the “birth” of India Avenue originated in 2005, when ING Investment Management started a business in India as a separate division, utilising a practiced multi-manager philosophy in markets like Australia, and exported it to India. Three of our founders, Mugunthan Siva, Rajeev Thakkar and Sajjan Raut Desai worked together for INGIM (India), building investment strategies and structures, under this philosophy and applying them to Indian capital markets
In 2011 our founders started discussing the possibility of building an investment firm with a capability to provide a focus on India as an stand-alone investment jurisdiction for foreign investors. The founders identified Australia and New Zealand as nascent markets for investing in regional locations, with the potential to accelerate given education and insights which the firm could provide.
By 2015 the group of founders decided to work full-time on this concept to bring it to life. They did this by leaving their existing employment, thus exercising high conviction in the investment region of India as a long-term structural story for investors in Australia and New Zealand. Thus, the firm India Avenue Investment Management was registered and came to life in 2015 in Sydney, Australia.
After building our business for a period of 12 months, our first fund, The India Avenue Equity Fund was launched on 6th September 2016, with strong service provider partners like Equity Trustees (RE), Mainstream (Fund Administrator), KPMG (Fund Auditor) and BNP India (Custodian).
India Avenue is now a boutique investment business firm, with clients spread across family offices, high net worth individuals, wealth advisers and financial planning firms. Our firm has focused on education and knowledge as a driver of investment behaviour and have taken a long-term approach towards Australian and New Zealand investors contemplating an allocation to India’s growth as part of their portfolios. Our firm has assets in excess of A$50m and the India Avenue Equity Fund is rated “Recommended”* by Lonsec and is available on multiple investment platforms across Australia and New Zealand.