The Dublin-domiciled Ucits III Gemini MOSt India Fund is due to be launched at the beginning of September, subject to FSA and Irish regulatory approval. It will be managed by Taher Badesh and Manish Sonthalia co-head of equities and portfolio manager, respectively, of Indian-based Motilal Oswal Asset Management.
Benchmarked against the S&P CNX Nifty, which contains 50 of the biggest Indian stocks, it will be managed on a high conviction basis investing in a portfolio of between 20 and 30 stocks, with a model portfolio indicating the top nine stocks will account for around 70% of the fund. The managers said the portfolio will be built on a long term investment view which will be research-led and focus on stock picking. There will also be an emphasis on buying growth stocks at less than their intrinsic value.
Nitin Rakesh, managing director and CEO of Motilal Oswal, said: “We believe in taking a traditional, straightforward route to making returns for our investors and as a consequence the turnover in our
portfolio is relatively low.
“We believe also that the money is made at the point of purchasing a stock – not at the point of sale – so buy stocks in areas we believe have very high growth prospects.”
The model portfolio also indicates there will be a fairly diverse range of sectors in the portfolio, with banking and finance making up the largest portion at 22.3%, with auto and auto ancillaries at 9.58%, engineering and electricals at 9.04% and oil and gas, technology, consumer goods and pharmaceuticals each with between an 8% and 5% allocation.
Both retail and institutional shares will be available in sterling, dollar and euro denominations and the fund will have daily dealing and pricing. For retail investors there is a 5% initial charge, 1.5% annual management charge and performance fee of 20% after the managers have achieved a return over the benchmark. For institutional investors there is no initial fee, a 1.5% annual management charge and the same performance fee.
IA Fund Facts:
Fund name: Gemini MOSt India Fund
Launch date (target): 1 September 2010
Domicile: Dublin
Structure: Ucits III
Managers: Taher Badesh and Manish Sonthalia (Motilal Oswal)
Benchmark: S&P CNX Nifty
Charges: Retail – initial 5%, AMC 1.5%, performance 20% Institutional – AMC 1.5%, performance 20%
