Flemings launches pounds 100m Indian investment trust: Fund will work via Mauritius to take advantage of tax treaty
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.FLEMINGS hopes to raise more than pounds 100m with the launch of the first UK-listed investment trust to invest primarily in India.
Flemings has been working on an Indian investment trust for some months, and has found a way of combining the benefits of a Mauritian tax shelter. It will shortly begin pre-marketing to institutional investors, and hopes that share dealings in the new trust will begin in about two months.
Economic reform in India over the last three years has attracted substantial foreign investment. Other British fund managers including Foreign & Colonial and Martin Currie have already raised large offshore funds.
India has well established stock markets, with 7,000 listed companies and 15 million shareholders. Economic growth is expected to be 4 per cent this year and to reach 5 or 6 per cent in 1994/5, supporting substantial increases in corporate earnings.
Patrick Gifford, chief executive of Fleming Investment Trust Management, said the Indian trust should provide investors with excellent opportunities for growth.
He said: 'I believe that India will become one of the investment success stories of the 1990s.'
The trust will invest via Mauritius to take advantage of a treaty that greatly reduces liability to Indian taxes. David Smith, FITM's marketing director, said some institutions have said they would prefer to invest through an investment trust, whose shares they can trade on the London market, rather than an offshore fund.
However, some investment experts believe the Indian market is too expensive. Nick Knight, deputy managing director of Nomura Research International, last week warned pension fund managers that India was 'a disaster waiting to happen'.
Mr Knight said the enthusiasm of Western investors reflected the 'fashion (that) dictates that if I've not got India I'm just a nobody. The settlement problem related to the collapse of the Indian stock market that we're about to see will take at least the next six years to unravel.'
Mark Mobius, managing director of Templeton Emerging Markets Investment Trust, said this week that although some good bargains can be found, 'the actual market mechanism is in trouble. Trading is not efficient and should be computerised. The settlement system is in deep trouble.'
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments