Asian equity specialist, Coupland Cardiff Asset Management (CCAM) is launching a daily dealing Irish fund seeking to capitalise on the rapid growth in domestic demand in India, Bangladesh, Sri Lanka, Pakistan and Myanmar.
The CC Indian Subcontinent Fund is focussed on encapsulating opportunities within the region that are benefiting from a large domestic market rather than those reliant on export trade.
The investment team consists of Abhinav Mehra, based in Singapore and Andrew Draycott, based in the UK and is a high conviction, index agnostic, concentrated long-only equity portfolio of 25 to 40 stocks. It is focussed on high growth and high quality companies that benefit from domestic growth and strong corporate governance with demonstrable track records.
The Indian subcontinent has a population of 1.7 billion which represents 24 per cent of the world’s population and a GDP of USD2.84 trillion. Yet, despite this, the area has minor representation in global indices with the India subcontinent representing just 2.9 per cent of the world’s market cap.
Nominal GDP in India alone currently stands at USD2.2 trillion and is predicted to hit USD6 trillion by 2027 which would make it the world’s third largest economy.
Richard Cardiff (pictured), CEO of Coupland Cardiff Asset Management says: “The Indian subcontinent comprises countries with some of the fastest economic growth in the world, some of the youngest populations and rapidly growing consumption. By focussing on stocks benefiting from domestic demand, the portfolio is less affected by external influences on trade. The results of recent economic reforms are already beginning to bear fruit with the tax-to-GDP ratio growing consistently from 9.7 per cent in 2015 to 11.7 per cent in 2018.
“The companies we are looking at are non-cyclical – those having continued to grow in spite of a poor economic cycle and those that are leaders in their field with a growing market and pricing power. These companies will also benefit from a widening competitive advantage with scale.”
“The Indian economy is growing at a rapid pace but it is still where China was 12 years ago. Bangladesh is where India was seven years ago so opportunity for further growth in the region over the coming years is clear.”
