UK Asset Manager Launches First India Fixed Income Fund

Vanessa Doctor

5 August 2010

ACPI Investments, the London based independent asset management firm, has launched one of the first India fixed income funds available in Europe.

Q-ACPI India Fixed Income Fund will invest in securities issued by the Central Government of India, debt issued by government-owned companies and high grade Indian corporate bonds. The fund, which is expected to launch in mid-August 2010 with $50 million in initial funding, also intends to invest in rupee-denominated bonds, with the fund priced in US dollars. It has partnered with Bombay's Quantum Asset Management to provide research on Indian markets.

"India’s growth should continue to present profit opportunities for investors. We are launching an India fixed-income fund as it is particularly timely and attractive because of the medium-term appeal of the rupee, as well as the fact that the deregulation of Indian fixed income markets has created massive investor interest. These two factors combined could translate into a 10 to 15 per cent annualised return in the fund over the next few years," Alok Oberoi, the chief executive officer of ACPI, said in a statement.

India is believed to present a strong investment opportunity for Western investors primarily because it a relatively young economy with a huge potential for consumption growth due to its having a burgeoning middle class. The country presently has an external debt/GDP ratio of 19.5 per cent.