Charlemagne looks to tap India potential with new capital fund
Charlemagne Capital has launched the Magna India Fund, which aims to tap into the potential of India's stock markets.
The fund will be managed by Kommera Chakradhar (KC) Reddy in line with Charlemagne Capital's bottom up investment process. KC was previously with Thames River Capital in London and Credit Agricole Asset Management in Hong Kong.
The Indian economy has accelerated and expected to be one of the strongest in the world in the coming years, with an average growth rate of 7 per cent forecast for each of the next two years. Government debt has fallen and foreign exchange reserves have risen to an estimated USD 130 billion. In the longer term, India's demographics are very favourable.
"India's economy has changed significantly in recent years and is set to transform itself further," says Julian Mayo, investment director at Charlemagne Capital. "Corporate balance sheets have improved and we see numerous opportunities in the market across a wide range of sectors, including a number of non index names."
The Magna India Fund is a sub-fund of Magna Umbrella Fund Plc, an Ireland registered UCITS and is expected to have initial investments of about EUR 20 million. There are two classes of shares, A and C. A shares have a minimum initial investment of EUR 5,000 while C shares have a minimum initial investment of EUR 1,000,000. Sterling and US Dollar shares will also be available, while the benchmark for the fund is the MSCI India Index.
Background notes: Charlemagne Capital is an independent specialist emerging markets investment management group. Charlemagne Capital manages a number of products including the Magna umbrella range of long-only UCITS funds, other portfolios, the OCCO range of hedge funds and private equity funds. Assets under management exceed USD 3.5 billion.
The company's investment formula is based on bottom-up research combined with rigorous risk management. Its long funds aim for consistent superior risk-adjusted returns and out-performance of the benchmark. Charlemagne's flagship fund is the Magna Eastern European Fund, a sub-fund of the Ireland-domiciled Magna Umbrella Fund plc.
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