Barings to launch India fund for Argal

Baring Asset Management has unveiled an Indian-focused equity fund for recent hire Ajay Argal.

The Baring India fund, which launches on December 7, seeks to capitalise on the country’s move towards urbanisation and the associated demand for consumer goods, housing and financial services.

Argal will hold at least 70% of the portfolio in Indian stocks and the equity-related securities of companies listed in the country or making the bulk of their earnings there.

Up to 30% of the portfolio, which will typically own between 30 and 50 holdings, can be invested in companies listed outside India but within the Indian subcontinent that carry out a “significant proportion” of their business in the country.

Argal joined the asset manager in August as its Hong Kong-based head of Indian equities, having run the Birla Sunlife India Advantage and the India Excel funds.

“With a stable and vibrant political system in place, we believe the Indian economy is well positioned to embark on a period of productivity-led growth and that this should translate into a period of strong equity returns for investors,” he says.

The fund will have an annual management charge of 1.5%.

An Indian product was first mooted in 2009 with the appointment of Argal seen as a step towards a launch.

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