Singapore-based Aditya Birla Sun Life Asset Management Company Pte. Ltd (ABSLAMC) the wholly owned subsidiary of Birla Sun Life Asset Management Company Ltd (BSLAMC) announced the launch of the India Infrastructure and Reforms Fund – a share class under the India Premium Fund, an open-ended equity fund targeted at global investors.
Open for subscription from April 10 2014 to April 25, 2014, the fund will focus on a portfolio of 20 – 30 stocks of Indian Infrastructure companies including, but not limited to companies operating in - Engineering, Construction, Power and Utilities, Asset Owners (Roads, Ports, Airports, others) Logistics and Transportation sectors. It will also consider other sectors that could potentially gain from the Economic Reforms undertaken in India in the future – for example, Banking, Retail and PSU.
Speaking on the launch of the fund, A. Balasubramanian, CEO, Birla Sun Life Asset Management Company Limited said, “The Indian economy is on the road to recovery and macro indicators being favourable, we see upcoming quarters presenting great promise in the Indian Infrastructure space. For global investors looking to capitalise on emerging opportunities, India is at the cusp of that change and now is the right opportunity to latch on. The launch of our India Infrastructure and Reforms Fund therefore is most timely, as it allows global investors with a long term view to make the most of India’s growth story in this domain.”
In terms of indicators, with inflation and interest rates cooling down, CAD and currency looking stable, green shoots in exports combined with the investment cycle bottoming out, the next few quarters present strong potential in the Indian Infrastructure story.
The Indian markets can expect to see renewed attention, both globally and domestically as one of the best performing emerging markets on the back of economic revival after recent challenges, built on strong fundamentals and currency bounce back. Any favourable political outcome will help in reviving investment demand in the Country. The investment cycle, reminiscent of the 2003 – 2007 phase, can be a key driver for Economic Growth over the next 2-3 year period, with demographics and consumption fueling demand.
The portfolio of India Infrastructure and Reforms Fund will be diversified across Large, Mid and Small cap stocks. A combination of top-down and bottom-up approach will be followed in the stock selection process. The top down approach focuses on an analysis of macro-economic factors, economic changes and trends, key policy changes, infrastructure spending, etc. The bottom-up approach would seek to identify companies with high profitability and scalability supported by sustainable competitive advantages and superior return ratios.
Investment in the India Infrastructure and Reforms Fund is only suitable for “accredited investors” (as defined under the Securities and Futures Act of Singapore) and the fund is not open to the retail public.
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