Quantum Advisors has launched an India equities fund, focused on companies it believes will benefit from the development of the Indian economy.
The fund will hold between 25 and 40 stocks and use Quantum’s integrity screen in order to eliminate poorly governed companies. To be eligible, companies must trade at least $1m per day. The Q Predictable India Equity UCITS fund will allow for a larger investment base, following the Q India Value Equity strategy which Quantum Advisors has run for the last 25 years.
I V Subramaniam, managing director and group head of equities for Quantum Advisors said: “The fund follows a unique team driven, disciplined bottom-up approach, focusing on stock picking while understanding the macro environment.
“We are agnostic to market capitalisation, sector weights, and rigid benchmarks which gives us flexibility to build a high conviction portfolio with a measured blend of liquidity and risk. Our 25-year track record is a testament to our ability to build a sensible, valuation-driven long-term India allocation while aiming to avoid governance risks.”
The fund, which is available in US dollars, is registered in the UK and Switzerland with plans to expand to the UAE, Hong Kong and Singapore in the coming days along with Italy, France, Germany, Spain and Italy further on. It will not be benchmarked against an index.
Ajit Dayal, founder of Quantum Advisors, said, “India is under-allocated in global portfolios. The structural changes in the Indian economy over the last three decades coupled with the strong performance of public equity markets reflecting the growth in the economy present a strong investment case for standalone India investments.
“Our disciplined approach, combined with a strong focus on integrity and valuation, has continued to deliver sensible outcomes for our clients over the years. We believe this Fund offers a unique opportunity to benefit from India’s growth story while endeavouring to minimise non-financial risks.
“Our job as an asset manager is to manage the increased risk profile that investors take on when investing in India and not add to them. India investing should thus be active, with a focus on governance and valuation. Passive index investing completely ignores these risks and exposes investors to headline and reputation risks.”
This article first appeared in our sister publication, Portfolio Adviser.
