Excel Funds today launched Excel Income and Growth Fund. The new fund will seek to provide investors access to investment in what Excel says are some of the world’s best kept secrets in income paying equity and debt securities.
For example, “India’s 364-day T-bills are yielding just over 7%, and the debt risk in India is low,” says Bhim Asdhir, president and CEO, Excel Funds. India’s equity and debt markets have undergone a massive re-rating over the last seven years, as has India’s financial security. “It is a less known fact that India is now America’s fourth largest creditor, having some $160-billion in foreign exchange reserves,” says Asdhir
The new fund will also look to invest in other places like Australia, Singapore and Germany. In Australia, Macquarie Infrastructure Group is among the world’s largest owners and developers of toll roads. It also has a current yield of over 6% and built in purchasing power growth. Macquarie also happens to own 30% of Canada’s 407 ETR.
In Singapore, the fund will seek to invest in real estate income trusts (REITs) that invest in property in Singapore, India and China. According to Excel Funds, these not only pay a decent yield, but they offer investors access to Asia’s teeming real estate markets.
In Germany, real property managers, such as Deutsche Wohnen, a spin-off of Deutsche Bank, will have the chance to restructure their assets into REITs next year when laws preventing this are repealed. Real property values in Germany are experiencing a strong turnaround as more people seek home-ownership.
Besides providing investors with geographical diversification, and non-North American currency exposure, Excel Income and Growth Fund will also show a low correlation to India, China and North American equity markets, as well as Excel’s other funds.
“Investors should ideally seek low correlating assets with good growth and/or income characteristics, when constructing their portfolios,” says Asdhir. “It smoothes out the ride.”
Excel launches new global income and growth fund
Fund offers investors geographical diversification, and non-North American currency exposure
- By: IE Staff
- January 2, 2007 January 2, 2007
- 08:40