The GAM Star India Equity vehicle is the product of a partnership with Mumbai-based New Horizon Investments, and will target listed Indian companies with a three to five-year view.
Having become active on 30 January, New Horizon will take a bottom-up approach to invest in under-valued stocks. The firm’s Indian equity strategy is already employed by GAM in its UCITS vehicle.
Star India Equity Fund is managed by New Horizon’s CEO and CIO Madhav Bhatkuly and senior investment analysts Rajesh Vora, Kahlil Randeria and Rohan Koshy.
“The Indian equity market offers huge growth potential,” said Craig Wallis, GAM’s head of institutional and fund distribution. “The under-researched nature of many of the listed companies is creating pockets of opportunity for investors with a medium-term time horizon. In addition, high-profile structural growth and reform initiatives are shaping the economy into a unique investment environment.”
Bhatkuly added: “India, one of the fastest-growing democracies in the world, is in a long-term, structural growth phase across a range of sectors generated by the last decade of liberalisation and reform, and buoyed by positive sentiment from the new prime minister [Narendra Modi] elected in 2014.
“Business and consumer confidence is high, and for the first time ever Indian companies are uniquely positioned to benefit from their own actions and will also be positively affected by government policy.”
The fund is available for sale to both institutional and retail investors in the UK, Austria, Finland, France, Germany, Liechtenstein, Luxembourg, Norway, Spain, Sweden and the Netherlands. It is domiciled in Ireland and carries a 1% fee and 10% performance fee.