ACPI fund will invest in Indian fixed income
ACPI Investment Managers will launch a fixed income Ucits fund platform on March 2012. The fund will invest in Indian government bonds and government-backed corporate bonds, which currently yield over 8%.
Madilean Coen, head of global wealth management distribution and platforms, ACPI, said: “Most investors don’t realise the Indian government bonds yield almost 8.5% and the ACPI India Fixed Income UCITS Fund has the unusual combination of a high yield, liquidity and currency appreciation potential.”
Steve O’Hanlon, head of fixed income at ACPI and the fund’s lead manager, said: “Indian investment grade bonds have both an attractive real yield and liquidity. They are even attractive from a diversification perspective, as developed bonds have suffered recently and may continue to do so whereas India, following numerous rate hikes, is moving in the opposite direction with potential rate cuts priced in for later in the year.
“India also offers investors the dynamics of their growth story without the noise of western central banks and money printing.”
The long-only ACPI India Fixed Income Ucits Fund, which is on the Skandia platform, has an annual management charge of 1.5%, daily liquidity and no performance fee.