The Offer - Jaipur India Growth Fund Unit Class
The Jaipur India Growth Fund Unit Class is a compelling opportunity for Institutional, Professional or Wholesale investors who are domiciled in Australia for tax purposes, to invest in India.
Through a master fund structure, the Jaipur India Growth Fund Unit Class invests, via the Jaipur India Growth Fund, in up to five select funds managed by specialist Indian Asset Managers. These funds only invest in companies listed on the Indian Stock Exchanges.
Currently, the Jaipur India Growth Fund invests in the following underlying funds:
India Frontline Equity Fund
SBI Resurgent India Opportunities Fund
UTI India Dynamic Equity Fund
The Investment Manager expects that the Sub-Fund may in time expand its portfolio of investments to include two further Indian equity-related funds.
The Jaipur India Growth Fund is expecting to maintain an allocation to each manager in a fixed band between 0% and 50%, rebalanced quarterly, plus a cash holding of up to 10% of assets.
Investment style
All of the underlying Asset Managers pursue the investment style and philosophy of Growth at a Reasonable Price (GARP), however, each has a specific approach to it.
Aditya Birla Sun Life AM Company Pte. Ltd. adopts a bottom-up investment approach, seeking to identify companies that could exhibit above average earnings growth on a consistent basis; have a robust business model; a strong competitive advantage; and good management while trading at reasonable valuations. This is supplemented by a top-down approach to further identify sectors most likely to benefit in the current environment.
SBI Funds Management (International) Private Limited, the asset manager of SBI Resurgent India Opportunities Fund, invests in a dedicated scheme launched and managed in India, which uses the following market strategies. The exposure in large cap companies focuses on positive incremental change on fundamental variables that drive performance versus market expectations. For the mid and small company exposures, they seek the 'potential right to win' in each investment. This includes factors such as potential market share; a superior business model; a technological edge; and/or some core competency. Overall, they seek companies with an ability to generate stable and accelerating profitability characteristics that are likely to result in a reasonably high return of capital.
UTI International (Singapore) Private Limited is driven by the three tenets of Quality, Growth and Valuation. Quality is defined as the ability to generate high returns on equity (RoE) through the business cycle. The portfolio is constructed with a very long-term orientation, keeping stock turnover to a minimum. Preference is given to industries with stable and secular growth prospects and industries with low predictability are avoided. The focus is on the underlying business; management quality; corporate governance and capital efficiency.
The Offer - Jaipur India Sustainable Impact Unit Class
The Jaipur India Sustainable Impact Unit Class is the first Indian centric investment option available to Australian investors based on the principles of environment, sustainability and good governance.
Investment strategy
The objective of the Jaipur India Sustainable Impact Unit Class is to provide investors with opportunities for long- term growth in capital through the active management of investments in a diversified basket of companies following Environmental, Social and Governance (ESG) criteria whose operations are in India.
This unit class is actively managed.
It is expected to invest in a portfolio of between one and five equity funds managed by some of the largest, best- known and most skilled asset managers in India. These funds invest in stocks on the Indian Stock Exchanges.
The Investment Manager selects the underlying manager on an understanding of their processes and with an expectation of achieving a suitable return for all investors. The underlying fund managers apply an ESG screening process when making decisions about investments. These will be similar but not identical. The detail of the screening processes are available on request from the Investment Manger.
The Jaipur India Sustainable Impact Unit Class is expecting to maintain an allocation to each Underlying Asset Manager in a fixed band between 0% and 50%, rebalanced quarterly. It may also have a cash holding of up to 10% (excluding any cash holding in any Underlying Fund/s).
The Jaipur India Sustainable Impact Unit Class currently invests only in one Underlying Fund and expects to invest in further Underlying Funds soon. Until such period as investments are made into other Underlying Funds, the asset allocation band shall be 0% to 100% to the single Underlying Fund.
The Jaipur India Sustainable Impact Unit Class aims to provide investors with a total return (both capital growth and income) that exceeds the Nifty 100 ESG Index TRI.
To obtain a copy of the current Information Memorandum and accompanying Application Form, please complete the Request for an IM here.
pictured above: Chandra Mahal Palace, Jaipur, India