India Avenue Equity Fund - Wholesale Class

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101487-2023-06-20-16:40.pdf
FUND MANAGER India Avenue Asset Management Aust
ASX Code
INVESTMENT STYLE The India Avenue Equity Fund is a professionally managed portfolio of Indian listed equities.
INVESTMENT PROFILE The Fund aims to outperform the Benchmark over rolling 5 year periods.
FEES 1.10% p.a. of the NAV of the Fund



Benefits of investing in the India Avenue Equity Fund - Wholesale Class

The Fund is actively managed, principally investing in a diverse range of Indian companies listed on Indian stock exchanges and other recognised stock exchanges globally. India's economic growth over the next several years is forecast to be one of the highest amongst the major world economies, driven by a youthful population, a burgeoning middle class and rapid urbanisation. This bodes well for several Indian companies that are expected to generate significant profits from this economic development and underlying domestic driven demand. The Fund seeks to identify and invest in many of these strongly growing companies in order to create significant wealth for investors. For Australian and New Zealand investors, an investment in Indian equities provides diversification benefits as both the Indian equity market and the Indian Rupee tend to have low correlations to the Australian and New Zealand equity markets. The significant advantages that the Fund provides for investors include:

  • Sole Focus: The investment manager, India Avenue is purely focused on investing in India's capital markets for the benefit of its clients.
  • Local & Global Experience: The investment team at India Avenue and its investment advisors have significant experience in managing money in India, as well as in Australia.
  • Risk Management: The Fund aims to deliver on its investment objective with lower risk than the benchmark over rolling 5-year periods. Whilst, India Avenue believes Indian equity markets will deliver attractive returns over time, managing risk is crucial as market volatility can impact short-term performance.
  • Optimal Access: India Avenue believes an active approach, particularly where markets are less efficient (like India), is likely to produce superior returns over the long term in comparison to investing passively.
  • Access to Local Investment Talent: India Avenue's experienced investment team identifies skilled investment advisers on the ground in India through a detailed due-diligence process. These advisors have proven track records and substantial localised knowledge, market connectivity and understanding of the corporate and regulatory environment in India, which enables them to identify opportunities early.
  • Unique Investment Process: India Avenue undertakes three layers of investment analysis to manage the Fund:

  1. Rigorously monitors the investment landscape to determine best of breed' investment advisers based in India.
  2. Investment advisers are selected for their investment expertise, the complementarity of investment styles and diversification they bring to the portfolio. The portfolio construction process creates a robust, well diversified fund that can outperform across various investment cycles. India Avenue receives non-binding investment advice from its advisors and has the discretion to execute / reject the recommended investments.
  3. Continuously monitors the market environment to identify both current and long-term investment opportunities and may implement tactical tilting between investment advisers depending on their view going forward. The investment team can initiate overlays to manage risk.

Risk level


Investor suitability

The Fund is designed for investors seeking higher return over a long term investment horizon and are therefore willing to accept a higher degree of risk for such returns.




Key Features

About the Fund

The Indian economy has witnessed a paradigm shift over the last decade. Today it is one of the fastest growing economies in the world and this trend is set to continue over coming decades. This is likely to create significant opportunities for growth by accessing India's capital markets.

Investors in our Fund benefit from years of experience our founders bring in constructing investment portfolios within both India's capital markets and global multi-asset portfolios. This allows us to provide both a local and global perspective on building portfolios for success.

Why Invest

  • The India Avenue Equity Fund is a professionally managed portfolio of Indian listed equities which are not readily accessible for Australian investors.
  • Tomorrow's growth companies and industries are discovered at an early stage by our local investment adviser partners, leading to the potential for substantial out performance compared to investing passively.
  • Strong consumption growth will be driven by 60 million new households entering the ranks of India's middle class by 2025. Our fund will have exposure to mid and small cap companies that tend to have strong leverage to growing local demand.
  • Companies with high levels of corporate governance is a key selection criteria for our portfolio.
  • Indian listed companies compare favourably on a global basis, as some of the highest generators of return-on-equity for shareholders.
  • The Government of India has forecast a spend on infrastructure of over $US1 trillion over the rest of the decade. Given the significant requirement, several companies leveraged to the infrastructure sector in India are likely to benefit.


How we invest your money

India Avenue's investment process involves:

  1. Strategic and thematic idea generation to formulate the strategy for the portfolio
  2. Investment Advisor selection

Portfolio construction

In selecting the investment advisors, India Avenue follows the following process:

  • Identifying an investment universe of suitable investment advisors through India Avenue's investment experience, strong network, database and local market connectivity
  • Quantitative analysis to screen for appropriate investment advisors

  • Qualitative analysis and oversight to reduce investment advisors to a short list. Some of the factors examined include:

  1. A reputable asset manager, with an audited performance track record
  2. Experience and stability of the investment team of the investment advisor
  3. A consistent and rational investment philosophy and process

  • Due-diligence on short listed advisors, including attribution analysis to determine core skill sets
  • Structuring of investment advisory agreements
  • Establishment of "back-up investment advisors
  • Portfolio construction incorporating blending of different investment styles
  • Review and ongoing monitoring

India Avenue may conduct due diligence on the stocks recommended by the investment advisors. If the recommendations given by the advisors aligns with the overall objective of the Fund, India Avenue proceeds to make the investment in the selected stock, if not, India Avenue may reject the recommendations of the investment advisors, at their own discretion.

All investment advisors are remunerated based on their provision of advice which includes proposed stock names, stock weighting allocation and cash levels. However, all execution and implementation of trades proposed occur through India Avenue's staff.

Asset allocation

The Fund will invest in a diversified portfolio of stocks of Indian companies either listed on stock exchanges in India or any other recognised global stock exchange. The Fund may also invest in cash and cash equivalent instruments like short term money market securities as well as both exchange traded and over the counter derivatives for hedging purposes.

Asset Limits:

  • Indian Listed Equities 70-100%
  • Cash and Cash Equivalents 0-30%
  • Derivatives 0-20%