Press Release – Foresight Analytics & Ratings Assigns ‘VERY STRONG’ Rating to the India Avenue Equity Fund.
Sydney, 25th July 2024
We are pleased to share our latest press release with you below.
Foresight Analytics & Ratings has recently completed its ratings assessment of the India Avenue Equity Fund. The Investment Rating for the strategy has been assigned as VERY STRONG while the Foresight Complexity Indicator has been graded as RELATIVELY SIMPLE.
A VERY STRONG investment rating indicates a very strong conviction that the Fund can deliver a risk-adjusted return in line with its investment objectives.
The India Avenue Equity Fund is an Australian registered, unlisted unit trust managed by India Avenue Investment Management (India Avenue), a boutique investment manager with offices in both Sydney and Mumbai (India). India Avenue adapts an active investment philosophy on the basis that the Indian equity market is inefficient due to various factors like availability of information, level of corporate governance, impact of governance policy and business. Over the last 3 to 5 years, the firm has comfortably outperformed its index and other passive/active ETFs and funds through superior stock selection.
India Avenue is a profitable business with over A$141m in assets under management as at 30 June 2024. Of the current AUM, A$118m is invested in this flagship fund while the balance is invested in the concentrated India 2030 fund. The firm is managed by experienced professionals who have been investing in global and Indian equity markets for more than a decade. The India Avenue Equity fund is one of the few actively managed options available for Australian investors looking to gain exposure to the Indian Equity market. Over the last decade investors in Indian Equities have been well rewarded on the basis transformative economic reforms by the BJP government led by PM Narendra Modi.
Foresight analyst, Shruti Ghosh, stated that “exposure to Indian Equities continues to offer secular growth opportunities for investors who are prepared to withstand short-term volatility and sentiment headwinds.”
She further added, that over the last 3 to 5 years, the India Avenue team led by Mugunthan Siva has consistently delivered a true to label, active management strategy with significant value-add over various time horizons.
Equity investors considering allocation to this fund should be cognizant of the possible short-term volatility of the Indian Equity market. Given the fund is unhedged, investors need to consider possible impacts of currency fluctuations on their investment returns.
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About Foresight Analytics’ Investment Due Diligence Rating (IDD Rating)
The objective of Foresight Analytics’ Investment Due Diligence Rating (IDD Rating) is to identify the best funds and opportunities for future investment. We assess the fund’s historical risk-adjusted performance – compared to its peers – to form a holistic view of the manager’s ability to deliver future returns. The IDD rating indicates the quality of the investment option within the context of a diversified portfolio and full investment cycle.
Foresight’s analysts use a 5-point scale to determine how the fund will perform against a range of risk factors.
- SUPERIOR indicates the highest level of confidence that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is highly suitable for inclusion on APLs.
- VERY STRONG indicates a very strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
- STRONG indicates a strong likelihood that the fund can deliver a risk-adjusted return in line with its investment objectives and that it is suitable for inclusion on most APLs.
- COMPETENT indicates the fund may deliver a risk-adjusted return in line with its relevant benchmark and that it may be suitable for APLs.
- WEAK indicates the fund is unlikely to deliver a risk-adjusted return in line with its investment objective and that it is not suitable for most APLs.
A ‘Hold’ designation is applied to a fund’s rating if a material change impacts the fund manager, and we need to review the rating. A ‘Sell’ designation indicates the Foresight Investment Ratings Committee considers risk factors to be elevated enough that maintaining an investment in the fund as part of their diversified portfolio is questionable.
Foresight Analytics Foresight Complexity Indicator
A Foresight Complexity Indicator (FCI) highlights the complexity of an investment product based on a range of indicators. These typically include its terms and conditions, performance-based fees, liquidity structure, financial leverage, use of derivatives, rare and niche asset class/opportunity set, currency exposure and the level of transparency offered for investors. Foresight believes these factors can disproportionately affect risk–adjusted return outcomes for investors even if a manager is very skilled. Investors can use FCI as a guide to portfolio position sizing within a diversified portfolio context.
Media Contact – Foresight Analytics
Jay Kumar
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Telephone: 0408266713
Email: jay@foresight-analytics.com
Web: www.foresight-analytics.com
About Foresight Analytics
Foresight Analytics, an independent Sydney- based firm, provides investment ratings, data analytics, assurance and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific.
Foresight’s innovative, evidence-based approach blends both human and forensic insights into the analyses of economies, markets, themes, investments products and portfolios. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
Foresight Analytics & Ratings platform provides investment and operational due diligence ratings on both public and private market strategies. Foresight has built its diligence niche in complex alternative assets, including domestic and international private credit investments.
For more information on our capabilities, please visit our website on www.foresight-analytics.com and social media platforms via LinkedIn, Facebook or Twitter.
For additional analyst insights, thematic research and market commentaries, please visit our website on www.foresight-analytics.com and streaming channels YouTube and Podcast.
