IIFL FOCUSED INDIA FUND
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Karan holds an MBA in finance from Indian Institute of Management, Bangalore and acquired his Bachelor’s Degree in Commerce from St. Xavier’s College, Calcutta.
He has a Bachelor of Commerce from Bombay University and Post Graduate Diploma in Management from Indian Institute of Management, Lucknow.
Previously, he spent 4 years at Morgan Stanley Plc in London as an analyst, dealing with structured product valuation and fund derivatives.
Mehul is an alumnus of the Cass Business School, London and holds a Masters in Banking and International Finance. He is also a CFA charter holder.
Investment Objective and StrategyThe investment objective of the Compartment is to provide long term capital growth, measured in USD, primarily through investment in equities and equity-linked securities of Indian companies or companies deriving a significant portion of their business from India.
Investment exposure will be achieved through equities and equity-linked securities (such as listed shares, ADRs and GDRs). Investors should refer to the "Risk Warning" section for special risk considerations applicable to this Compartment.
The primary objective of the strategy adopted by the Compartment is to run a concentrated portfolio, consisting of the team’s high conviction investment ideas. The strategy will be market cap agnostic and there will not be any restriction on the sectors in which it can invest.
The investment philosophy is centered around buying growing businesses, with above average return on capital economics, backed by managements with a track record of good governance and valued at a reasonable risk/reward ratio.
One of the Investment Manager’s key frameworks is the SCDV framework (Secular, Cyclical, Defensive, and Value traps). The Investment Manager defines these in purely quantitative terms and classifies its universe into these categories. This framework gives the Investment Manager the opportunity to generate alpha through market cycles. Stocks in the secular segment generally tend to offer higher earnings growth and high return on equity across market cycles. Further, the Investment Manager’s ability to switch weights between the cyclical and defensive categories depending on market cycles and macroeconomic turns offers us the flexibility to capture shifts in market cycles.
This framework is used as a screening tool wherein the strategy is largely based on bottom up stock selection, with a top down view. Sector pricing power trends and interest rates combined with bottom up stock selection play a significant part in the Investment Manager’s tactical calls.
Investment RestrictionsFor the avoidance of doubt, the Compartment will not invest more than 10% of its net assets in UCITS and other UCIs (including open-ended exchange traded funds whose underlying belong to the Compartment's investment universe) (as defined under "Investment Restrictions" 1. (A) (1) d) of the Prospectus).
Investments in ADRs and GDRs will be limited to 10% of the Compartment’s net assets.
The Compartment may hold cash, cash equivalent and liquid assets on an ancillary basis.
In exceptional market circumstances and on a temporary basis, the Compartment may hold up to 100% of its net assets in liquid assets and investment grade debt instruments (including money market instruments).
The Compartment may use futures and options on securities, financial indices and interest rates for different purposes (i.e. hedging and efficient portfolio management).
For Classes of Shares not denominated in USD, the Compartment shall not hedge their currency exposure to the US Dollar. Further, the investments in this Compartment shall remain subject to fluctuation in exchange rate as the underlying investment will predominantly be in INR while the functional currency of the Share Class is USD. As such, 100% of the Compartment’s investments may be exposed to the foreign currency exchange risk.
Sustainability approachThe Investment Manager will integrate sustainability and ESG risks in its investment decision making process (the “Sustainability Risks”).
The material ESG risk factors are analysed alongside traditional financial factors and are considered in forming investment decisions.
Data collection is mainly through primary sources drawn from public documents provided by companies with supplementation from third party sources. The result of the ESG risk score will not be binding on the Investment Manager which will at its discretion decide to divest or engage with a company when considering Sustainability Risks integration.
While the Investment Manager will integrate ESG and Sustainability Risks in its investment decision making process, the Investment Manager does not currently consider principal adverse impacts of investment decisions on sustainability factors due to lack of available and reliable data to conduct a detailed assessment of such impact and to comply with the proposed disclosure norms under the SFDR. The Investment Manager intends to consider principal adverse impacts in due course as and when it can ensure availability of reliable and complete data.
The Compartment does not promote environmental or social characteristics within the meaning of SFDR (article 8) nor is it classified as a pursuing a sustainable investment objective (article 9). The investments underlying this Compartment do not take into account the EU criteria for environmentally sustainable economic activities.
About the Investment ManagerIIFL was incorporated in India as a public limited company under the Companies Act, 1956 on March 22, 2010, having its Registered Office at IIFL Centre, Kamala City, Senapati Bapat Marg, Lower Parel, Mumbai 400 013.
IIFL is a subsidiary of the IIFL Wealth Management Limited (publicly listed company in India) with its head office in Mumbai, India. IIFL acts as an investment manager to various private and public funds in India and provides investment advisory services to eligible investors including large institutions and high net-worth individual investors.
It is also registered as “Portfolio Manager” under the Securities Exchange Board of India (SEBI) Regulations, 1993. Under this registration, it also provides non-binding investment advisory services to eligible investors. It also acts as investment manager to IIFL Mutual Fund and various Alternative Investment Funds i.e. IIFL Venture Fund (Category I Alternative Investment Fund), IIFL Private Equity Fund (Category II Alternative Investment Fund) and IIFL Opportunities Fund (Category III Alternative Investment Fund). IIFL is registered with the SEC under the US Advisers Act.