Whilst the world grapples with technological disruption, it seems many investors choose not to “disrupt” conventional investment practices despite several short comings. This is because investment thinking, which is fundamentally sound but unconventional, tends to be considered with greater discomfort, despite potentially being very rewarding. It is only when results have already been rewarding, that herd mentality follows. To take advantage of this, an investor needs to be open-minded and willing to tread off the beaten track to improve their portfolio’s risk-adjusted returns.
One major issue facing investor portfolio’s today is the capital growth conundrum given low prospective returns. Whilst emerging markets have commonly been considered a solution to this conundrum, there has been a stark mismatch between expectations and reality. The theoretical prospect of high growth and uncorrelated returns has unfortunately not eventuated and is unlikely to do so going forward in its traditional construct.
This paper looks to identify why the current emerging market approach has failed investors and identifies possible solutions to provide
the desired growth and diversification one would expect from investing in emerging markets strategies.
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.