Amundi is set to launch a new Indian equity fund in collaboration with State Bank of India.
The new India Equity Contra fund will invest in value stocks trading below their intrinsic value in the famously growthy market.
Amundi said the “contrarian” strategy will seek out “overlooked opportunities” that are not part of the main indices or covered by sell-side research.
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Dinesh Balachandran, head of equity at State Bank of India, said: “India’s economic landscape is undergoing a massive transformation, with new technologies disrupting traditional business models
“This environment presents a unique opportunity for bottom-up investors to exploit valuation discrepancies, being able to identify companies that are facing temporary headwinds versus those expected to lose their competitive edge over time.”
It will be managed by Thomas Yeung and Gwendolen Tsui, who run Amundi’s India Equity fund together. The $371.5m portfolio is up 163.9% over the past five years versus a 197% return from its MSCI India benchmark.
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India Equity Contra will be registered in 20 countries including the UK and be classified an Article 8 fund under the EU Sustainable Finance Disclosure Regulation (SFDR).
Olivier Mariée, head of international partner networks and joint-ventures at Amundi, added: “Following the launch of our India bond fund last year, we are delighted to offer our clients a new investment product that will enable them to gain exposure to India’s strong economic growth and help them diversify their exposure to the region.”
This article first appeared in our sister publication, Portfolio Adviser.
