FUND MANAGEMENT NEWS
NEW INDIAN DEBT FUND TO LAUNCH
ACPI Investments has announced the launch of one of the first Indian bond funds available in Europe. The fund is looking for strong rupee appreciation along with further de-regulation in the corporate sector to boost returns. It plans to invest in securities issued by the Indian government, debt issued by government-owned companies and high grade Indian corporate bonds, all denominated in rupees, although the fund will be priced in US dollars. It is targeting a return of 10-12 per cent per year, with a target volatility of 7 per cent. The minimum investment is $50,000.
LOW COST IS GOOD FOR PERFORMANCE
Independent fund research firm Morningstar has published a new report that has found total expense ratios for mutual funds help investors to make a better choice about where to put their money. “Expense ratios are strong predictors of performance. In every asset class over every time period, the cheapest quintile produced higher total returns than the most expensive quintile,” Morningstar analysts wrote. For example, the cheapest quintile since 2005 in domestic equity funds returned an annualised 3.35 per cent, versus 2.02 per cent for the most expensive quintile.
CHANGING CONSUMPTION HABITS
The rise of the global consumer, fuelled by greater urbanisation in emerging markets, is still a key theme even a post-recessionary world, according to Peter Kirkman manager of JP Morgan’s Global Consumer Trends fund. The fund has performed strongly since 2008, returning 34.5 per cent, compared to 3.9 per cent for the MSCI World Index. The fund has three drivers: demographics, health and wellness and aspiration. And it’s not just emerging markets where he is finding opportunities. The west’s aging population makes health providers extremely attractive, Kirkman says.