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Fund managers at Ashburton Investments have pointed to ‘compelling’ investment opportunities in both China and India as their unique Chindia Equity Fund, which invests in the Chinese and Indian markets, celebrated its tenth anniversary last month.
Domiciled in Jersey, the Chindia Fund was launched in December 2006 and since its inception its performance has been strong, having featured in the top quarter of comparable funds every year for the past three years and delivered a total return of 27.7% compared to the benchmark of -6.37% (MSCI Emerging Markets Index, December 2016).
Managed by Jersey-based fund managers Craig Farley and Jonathan Schiessl, the focussed fund invests in the stock-markets of China and India and was established at a time when emerging markets, particularly the ‘BRIC’ countries, were in vogue. Ten years on, and the managers believe both China and India offer continue to offer good prospects for investors.
Commenting on the fund Craig Farley said: “In setting up the Chindia Fund, the team at Ashburton sought to deliver something a little bit different. In our minds, the combination of China and India offered a strong growth profile, relative economic and political stability, clear reform mandates, and underlying structural tailwinds. All this made for a solid investment framework, and the Fund’s performance over the past ten years has been testament to that.”
Jonathan Schiessl added: “Our philosophy and approach to both markets have been developed and refined over the years. In India, a strong equity market culture, deep and liquid financial markets and arguably the best corporate management in Asia underpin our approach. Meanwhile, in China the chasm between the country’s vast economic size and impact on global trade compared to its capital market environment remains enormous and it’s worth remembering that China’s equity markets remain emerging in the context of a transitional economy.
“Our view is that China and India remain compelling and offer some exciting growth opportunities, as both countries continue to evolve in their own ways. As we look to the months and years ahead, growth in both countries will be driven by a more sustainable balance of growth and investment, with each economy positioned to benefit from the drivers it needs most - China through consumption, India through investment. These tailwinds combined with decisive government mandates and reform agendas that address the most pressing needs of each economy mean that we see sustained investment opportunity in China and India in the long-term.”
