Launch of India Fund
April 11 2006 - 3:01AM
UK Regulatory
RNS Number:3338B
Absolute Capital Mgmt Holdings Ltd
11 April 2006
Launch of Absolute India Fund Limited
Absolute Capital Management Holdings Limited (ACMH), the fund management company
focused on delivering investment returns through the management of absolute
return funds and ASK Raymond James Securities India Private Limited (ASKRJ), one
of India's leading Fund Managers, based in Mumbai, are pleased to announce that
they have entered into an agreement to launch a Absolute Return Long/Short
Equity Fund, which will be named the Absolute India Fund Limited ("the Fund").
The Fund will combine the excellent value driven local stock picking skills of
ASKRJ, who have a 5-star S&P rating and a long track record of success, with
ACMH who have a proven ability to generate consistent absolute returns with
lower than the peer group volatility, by employing a disciplined risk management
process. Together they will manage the Fund which will seek to deliver superior
absolute returns in a geographic area of huge opportunity. By combining the
local talents of one of India's most respected and well known Investment
Managers with the risk overlay discipline of ACMH, the Fund will be able to
benefit from the expertise of two experienced managers to deliver a genuine
Absolute Return India Fund.
Sean Ewing, CEO of ACMH says;
"I am delighted we are entering into a joint venture with India's premier fund
manager. I believe that ACMH have found the ideal partner in Bharat Shah (CEO of
ASKRJ), as it will combine ACMH's ability to manage risk with a local manager
who has an outstanding track record of delivering out performance over the
long-term."
Florian Homm, CIO of ACMH agreed;
"In our opinion, India is poised to embark on a long period of sustained
economic growth. Fundamental economic reforms and major investment are producing
fantastic investment opportunities. We wanted to create a Fund that would be
able to take advantage of these growth opportunities, with a manager that shared
the same fundamental, value driven investment style of ACMH and one which knew
the Indian market inside out. In Bharat Shah, we have found a manager that not
only embodies our core investment beliefs, but one with over 15 year's
investment expertise and is highly experienced in dealing in Indian equities. I
very much look forward to working with Bharat and his talented investment team."
Bharat Shah has demonstrated that his core investment philosophy of focusing on
fundamental bottom up research in undervalued quality businesses, will deliver
his two core targets of capital preservation and generation of absolute returns.
This can be demonstrated by the performance of India Value Investments Limited
(INVIL), an offshore India dedicated fund managed by Bharat, which was ranked as
the Best Performing India Dedicated Offshore Fund by Forsyth Partners, U.K. for
the year 2003 (1-year Performance) and 3-year period ended February 2005.
In addition, INVIL enjoys 5-Fund Star Ranking from Standard & Poor's, on the
basis of quantitative analysis of its three-year performance numbers. Over a
three year period up to the 28th February 2006, the INVIL fund rose by 351.16%,
against the Indian NIFTY Index which rose 189.14% (local currency).
Bharat Shah, CEO of ASKRJ comments;
"Having managed money in India for a number of years, I am convinced that India
will add more wealth in the next ten years than it has added in the last fifty,
it is now perfectly placed to provide robust market growth for the next few
years. I am delighted and excited to have entered into a partnership with ACMH
to launch the Absolute India Fund. Together I believe we will provide risk
adverse investors with a Fund that will benefit from our detailed local company
knowledge as well as the disciplined risk management process managed by ACMH,
whom we believe to have shown to be one of the most consistent Absolute Return
fund managers in Europe."
The intended launch date of the Fund is the 1st July 2006. The Fund will target
15-25% annual returns with 8% volatility, a Sharpe ratio that is expected to be
in excess of 2.5 and a Fund size of Euro300million.
- ends -
Notes to Editors
ASKRJ have two flagship funds; India Value Investments Limited (INVIL) and the
India Emerging Opportunities Fund.
Highlights of India Value Investments Limited:
* Launched in 1995,
* NAV based mutual fund, GBP denominated
* 1 & 3 year top rank from Forsyth Partners, UK
* Ranked Five Stars & rated 'A' by S&P
* No.1 rated Indian focused offshore fund over 1 (2003) and 3(2001- 4)
year periods (Forsyth Partners)
* 351.16% CAGR over 3 years (ASKRJ fact sheet 28-02-06 in INR Terms)
India Emerging Opportunities Fund:
* Launched in early 2003
* Unique multi-share class fund, USD denominated
* Offers customized portfolios: I-Merge, I-Gain
* I-Merge ($) 155.60% since inception 05/09/03 against BSE Index
137.35% (ASKRJ fact sheet 28-02-06)
* I-Gain ($)140.30% since inception 15/04/04 against BSE Index 80.64%
(ASKRJ fact sheet 28-02-06)
Bharat Shah
* 15 years of experience in the Indian capital markets
* Successful investment track record
* Was previously responsible for managing assets of US$1.2bn as CIO of
a leading mutual fund in India
* Bharat has an outstanding academic track record. He has an MBA in
Finance from IIM, Kolkatta (topped his year). He is a Chartered
Accountant (with a nation-wide ranking of 17) from the Institute of
Chartered Accountants of India and a Cost Accountant from the
Institute of Cost & Works Accountants of India.
* Bharat has won many national and international awards, some are
listed below;
* India Value Investments Limited (INVIL) an India dedicated
offshore fund managed under his guidance is currently ranked
No. 1 for its three-year performance (month ending February
2005), as represented within Forsyth Partners South East Asia
Research Service, using Micropal data.
* INVIL has also been assigned the high 5-fund star ranking by
Standard & Poor, UK, for its consistent superior performance
within equity India sector consisting of 27 India-dedicated
offshore funds.
* INVIL was adjudged the best performing India dedicated
offshore fund for one-year performance in 2003, again
represented within Forsyth Partners South East Asia Research
Service, using Micropal data.
* For the 2002 awards, Micropal had adjudged India Advantage
Fund as the best performing fund for 5-year period ended
December '01.
* Birla Advantage Fund (domestic equity) has been ranked No. 1
by Value Research for the four-year period ended March '00 as
well as the calendar year 1998 & 1999 amongst all domestic
equity funds.
India Opportunity
The transforming Indian economy is poised for sustained robust growth;
* India is the 4th largest economy in the world
* Turbo demographics
- 15% of world population (1.2bn)
- 30% of world's youth (under 25)
* Therefore having youngest workforce providing the right demographic
advantage
* Expanding middle class
- More than 200 million people today
* Government - a new face but continuity in reforms
* Improving infrastructure - major projects in roads, power, ports,
etc.
* Rising investment cycle - significant capital expenditure undertaken
after 6 years
* 7% GDP Growth for four consecutive years, led by services and mfg
sectors, $720bn
* 4th largest in purchasing power parity terms at $1.7tn
About Absolute Capital Management Holdings Limited
Absolute Capital Management Holdings Limited is a specialist fund management
company focused on delivering investment returns through the management of
absolute return funds, launched in 2001. The company has offices in Spain,
Germany, Switzerland, United Kingdom and Cayman Islands. The group manages 6
funds and has over Euro800m under management.
ACMH listed on the UK AIM on the 3rd March 2006
Key People -
Sean Ewing, CEO
* University of Ulster, MBA (1st)
* Life Securities, Analyst and Buy Out Principle (Investment Management)
* Farlake Group Plc, Chairman and Chief Executive Officer
* Rowan & Co, Chairman and Chief Executive Officer (Member of the London
Stock Exchange)
* Investment Funds Direct Ltd, Founder Chairman and Chief Executive
Officer (Fund Platform and Distribution - 13 Countries)
Florian Homm, CIO
* Harvard Business School, MBA
* Merrill Lynch Intl., Securities Analyst
* Fidelity, (FMR) Securities Analyst, Portfolio Manager
* Bank Julius Baer AG, Director Instl. Asset Mgmt.
* Tweedy Browne Europe GmbH, Managing Partner
* Value Management & Research AG,
* Founder/largest shareholder
* Investment Awards: BVI, Lipper,...
* Listed in "Who's Who in Europe"
ACMH Investment Achievements -
No. 1 European Event Driven Fund, 2005 - Eurohedge
No. 1 Risk Adjusted Long/Short Fund 2005 - Barclay Group
No. 1 European Long Short Fund, 2002 - HFI
No. 1 Germany Fund over 1, 2 and 3 years, 2004 - Micropal
No. 1 US Specialty Fund, 1988 - Lipper
No. 2 European Fund, 1990 - 1991 - Frank Russell/BJB
No. 5 European Equity Fund, 1991 - Finstat
No. 3 Germany Fund, 1994 - Finanzen, Micropal
No. 1 European Equity Fund, Germany, 1994 - Micropal
No. 5 Global Fund, Switzerland, 1996 - Lipper
No. 1 Swiss Pension Fund/ European Equities, 1994 -96 - EIM
No. 1 Global Fund, Germany 1997 - Micropal
No. 4 European Fund, Germany, 1997 - Micropal
No. 1 Balanced Fund, Germany, 1998 - BVI
No. 1 European Large Cap Fund, 1998 - BVI
No. 1 International Fund, Austria, 1998 - Standard & Poor's
About ASK Raymond James Securities India Private Limited
ASK Raymond James Securities India Pvt. Ltd. (ASKRJ) is a joint venture between
Bharat Shah, ASK Investment and Financial Consultants Limited of India and
Raymond James Financial Inc. of the USA, the three principal shareholders. The
group currently manages assets of over US$ 480mn, and employs over 60 people in
offices based in Mumbai, New Delhi, Bangalore and Dubai.
The three principal shareholders in detail;
* Bharat Shah: 15 years of well rounded experience in the Indian capital
markets, various funds managed by him have won national and
international recognition
* Raymond James Financial Inc, USA: founded in 1962, listed on NYSE,
assets under control US$ 140 billion, ranked #7 by Wall Street Journal
for research performance (May 05)
* ASK Investment & Financial Consultants: pioneers of portfolio
management services in India, over two decades of successful capital
markets experience, excellent reputation for long-term investing
For further information please contact:
Media Enquiries
Tim Robertson, Media Relations + 44 207 930 0777
+ 44 7900 927 650
tim.robertson@cardewgroup.com
Investor Enquiries
Ross Thompson, Investor Relations +41 44 286 9010
ross@abcapman.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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