The new Schroder ISF Indian Opportunities Fund will sit alongside the existing Schroder ISF Indian Equity Fund which was launched in November 2006 (see chart below for five year performance), but will be managed with a different style by Schroder’s in-house India investment team, advised by Axis Asset Management.
Specifically, Schroders said the new fund will take an unconstrained all-cap approach, compared with the fundamental large cap approach used by the existing fund, and is not managed relative to a benchmark.
Chandresh Nigam, managing director and chief executive of Axis AMC, said: “India has been among the fastest growing major economies in the last 20 years. While India has certain short and medium term cyclical challenges, it has a number of long term competitive advantages that have allowed it to grow on a sustained basis.
“More importantly, quality Indian companies have been able to participate in this growth by growing their profits and rewarding shareholders.
“Our investment process focuses on bottom-up stock selection of quality companies that are likely to sustain growth over the medium to long term. Furthermore, we believe that the Indian economy is resilient and once the immediate headwinds subside, both global and local investors should revert their focus back to the long term potential of the country.”
Schroders said the fund will leverage Axis AMC’s on-the-ground expertise in India to identify the best investment opportunities for capital growth. Investments will primarily be in equity and equity related securities of Indian companies that have substantial business exposure to India.